Gujarat High Court finds railway authority in contempt after 11 years of failing to license deceased stallholder’s heir at Rajkot station

The original licensee, Babulal J. Chotai, had operated a tea and refreshment stall at Rajkot Railway Station for over four decades.

After his death on 14 November 2012, his son applied to have the license transferred to him under the Railway Catering Policy.

The Railway authorities requested supporting documents but did not determine the application; instead, they directed the son to close the stall.

The Single Judge quashed that direction and permitted the son to continue operating the stall, subject to payment of the license fee and completion of formalities.

During the appeal, the son continued to operate under weekly provisional licenses, and the Railway authorities had not completed the formalities directed by the Single Judge.

1. Whether the Railway authorities acted arbitrarily by leaving the heir’s application for transfer of the license undecided while directing him to close the stall

2. Whether the appeal had merit despite the Railway authorities’ failure to comply with the Single Judge’s order, which had not been stayed

The Court relied on the Railway Catering Policy, 2010, and the policy provision, as described in the record, allowing transfer of a catering license to eligible legal heirs after the licensee’s death.

It applied the principles that administrative action must be bona fide and non-arbitrary, and that a court order remains operative unless stayed and must be complied with.

The judgment cites no statute or judicial precedent by name.

The heir applied for transfer soon after his father’s death, and the Railway authorities themselves sought documents to process the application.

They nevertheless failed to decide it and issued a closure direction, relying on expiry of the license.

The Court considered that sequence arbitrary, consistent with the Single Judge’s findings.

It further held that the Railway authorities could not rely on the pending appeal to withhold compliance because the Single Judge’s order had not been stayed; continued weekly collection of license fees without completing the directed formalities amounted to deliberate non-compliance.

The Court directed the heir to submit a fresh application and required the competent Railway authority to complete the formalities and issue a fresh license, subject to its terms and conditions, within ten days of receipt; the application could not be rejected on any ground.

The authority was also directed to report compliance to the Registrar General within a further ten days.

The Court held the competent officer guilty of contempt for willful non-compliance and awarded exemplary costs of ₹15,000, payable to the heir as compensation.