The Supreme Court has ruled in favor of IRCTC, dismissing all claims from caterers related to disputes over second regular meals and welcome drinks. The judgment, dated November 7, 2025, overturns previous orders and absolves IRCTC of any financial liability. This decision brings closure to the litigation, with no further financial or operational impact expected on the company.
Supreme Court Verdict
The Hon’ble Supreme Court, through its judgment on November 7, 2025, set aside the Delhi High Court’s Division Bench order dated February 10, 2025, and Single Judge orders dated August 13, 2024, along with the Arbitral Award dated April 27, 2022.
Key Court Findings
The Apex Court determined that the Arbitral Tribunal exceeded its jurisdiction by disregarding binding contractual terms and Railway Board circulars. These circulars authorized IRCTC to modify menus and tariffs unilaterally. The court observed that claims regarding reimbursement of the second regular meal and supply of welcome drinks lacked contractual and legal basis, and were contrary to governing circulars. The award was found patently illegal and against public policy.
Impact on IRCTC
The Supreme Court’s decision fully dismisses all caterers’ claims. This resolution has no financial or operational impact on IRCTC. Details of the case were disclosed in the company’s Annual Report for FY 2023-24, and last updated to exchanges on February 6, 2025.
Source: BSE
