Railway Board - The Legal Chamber

The Supreme Court held that an arbitral award which contravenes binding government policy circulars—incorporated into the parties' contracts—is patently illegal and in conflict with the public policy of India under Section 34(2A) of the Arbitration and Conciliation Act, 1996. An arbitrator cannot rewrite contractual terms that reflect such policy. Facts Of The Case: The case arose from contracts for catering services on premium Indian Railways trains (Rajdhani, Shatabdi, Duronto). The Railway Board initially increased meal tariffs in 2013 but simultaneously introduced a cheaper "combo meal" to replace the second regular meal on long journeys. This combo meal was swiftly discontinued days later, and caterers were directed to serve a second regular meal instead, but were to be reimbu...

The Supreme Court held that successful completion of prescribed training, including passing the requisite written test, is a mandatory condition precedent for confirmation in service for direct recruits to Group 'C' non-gazetted railway posts. Failure to clear this training examination validly entitles the employer to terminate services, as it is a fundamental term of recruitment governed by the Master Circular. Facts Of The Case: The case involved Alok Kumar, who was provisionally appointed as a Senior Section Engineer (Trainee) in the Railways after clearing a recruitment examination. His appointment was conditional on the successful completion of a 52-week training program. After 46 weeks of field training, he was sent, along with other trainees, to a three-week General and Subsidiary...

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Supreme Court: Arbitrator Cannot Rewrite Contracts, Upholds IRCTC’s Catering Policy