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Disposition
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Acts
  • Articles 38 and 39 of the Constitution of India
  • Article 39(a) of the Constitution, which is a directive principle of State policy
  • Article 14 of the Constitution of India
  • Railways Act, 1989
  • Article 21 of the Constitution (right to life includes right to livelihood)
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Articles 39(a) and 41
  • Constitution enacted by the people of India
  • Chapter II-A of the Railways Act
  • Article 19(1)(g) of the Constitution of India
  • Section (1) and (2) of Article 38 of the Constitution of India
  • Article 41, which is another directive principle
  • Article 37 provides that the directive principles, though not enforceable by any court, are nevertheless fundamental in the governance of the country.
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Articles 38 and 39 of the Constitution of India
  • Article 39(a) of the Constitution, which is a directive principle of State policy
  • Article 14 of the Constitution of India
  • Railways Act, 1989
  • Article 21 of the Constitution (right to life includes right to livelihood)
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Articles 39(a) and 41
  • Constitution enacted by the people of India
  • Chapter II-A of the Railways Act
  • Article 19(1)(g) of the Constitution of India
  • Section (1) and (2) of Article 38 of the Constitution of India
  • Article 41, which is another directive principle
  • Article 37 provides that the directive principles, though not enforceable by any court, are nevertheless fundamental in the governance of the country.
Smart Summary

Factual and Procedural Background

The members of the South Central Railways Caterers, Dry Fruits, Fruit Juice Stalls Welfare Association (“the Welfare Association”) held licences to run General Minor Units (GMUs) and Special Minor Units (SMUs) at ‘A’, ‘B’ and ‘C’ category railway stations. Their contracts were initially governed by the Catering Policy, 2005, under which larger stations were transferred to the Indian Railways Catering and Tourism Corporation Ltd. (IRCTC) while smaller stations remained with the South Central Railways.

The Catering Policy, 2010 shifted management of all major and minor catering units back to Zonal Railways and provided for renewals subject to specified conditions. Acting under the 2010 Policy, the South Central Railway renewed the respondents’ licences for three years beginning 21-7-2010, but shortly before expiry (April–May 2013) it issued bid notices inviting fresh tenders for the same stalls.

The Welfare Association challenged the tender notices by writ petition, asserting a right to further renewal. A learned Single Judge (16-8-2013) and, on appeal, a Division Bench (12-9-2013) of the High Court of Andhra Pradesh accepted the Association’s claim and directed renewal in terms of the Policy. The Railways appealed to the Supreme Court, resulting in the present judgment.

Legal Issues Presented

  1. Whether existing licensees who obtained their stalls before the Catering Policy, 2010 are entitled to renewal of their licences under paragraphs 16.1.3 and 16.2.1 of that Policy.
  2. Whether denial of such renewals and insistence on fresh public tender violates Article 14 and the constitutional right to livelihood under Article 21.

Arguments of the Parties

Appellants (South Central Railways)

  • The 2010 Policy permits renewal only for licences originally granted under that Policy; pre-2010 licensees have no vested right to renewal.
  • Paragraph 26.1.1 confines pre-existing IRCTC licences to the 2005 Policy for their original term; after expiry, fresh tenders must be invited.
  • A welfare State must maximise revenue from public property; competitive bidding best subserves that objective (relying on Ram & Shyam Co.).
  • Right to livelihood cannot be stretched to guarantee continuation of a commercial licence (citing Jiwan Dass).
  • Judicial review of policy matters is limited; the impugned clauses are neither arbitrary nor unconstitutional.

Respondents (Welfare Association and Licensees)

  • Paragraphs 16.1.3 and 16.2.1 make renewal “the norm” for all GMUs/SMUs, subject only to performance, payment of dues and withdrawal of court cases.
  • Railway circulars dated 9-8-2010 and 23-8-2011 expressly directed Zonal Railways to renew all existing licences; the appellants acted upon these circulars until 2013 and cannot now resile.
  • Revenue maximisation is not the sole objective of the 2010 Policy, which emphasises inclusiveness, affordability and social objectives.
  • Non-renewal in some zones and renewal in others is discriminatory and offends Article 14.
  • The right to livelihood under Article 21 and the principle of social justice require a construction favouring small kiosk owners (relying on Olga Tellis; Bank of India v. K. Mohandas for the contra-proferentem rule).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Lala Ram v. Union of India (2015) 5 SCC 813 Defines obligations of a welfare State toward citizens’ economic welfare. Quoted to underline governmental duty to protect livelihood interests.
Ram & Shyam Co. v. State of Haryana (1985) 3 SCC 267 Public property must ordinarily be disposed of through methods securing best price. Cited by appellants; Court distinguished it, holding social objectives override mere revenue concerns in present context.
Jiwan Dass v. LIC 1994 Supp (3) SCC 694 Right to livelihood does not extend to insisting on a particular commercial opportunity. Relied upon by appellants but not accepted by Court in view of social-justice considerations.
Bank of India v. K. Mohandas (2009) 5 SCC 313 Contra-proferentem interpretation of ambiguous contractual terms. Cited by respondents; Court read renewal clauses liberally in favour of licensees.
Olga Tellis v. Bombay Municipal Corpn. (1985) 3 SCC 545 Right to life includes right to livelihood. Formed constitutional backdrop for recognising renewal as integral to livelihood.
Charu Khurana v. Union of India (2015) 1 SCC 192 Affirms Olga Tellis principle. Reiterated to reinforce constitutional protection of livelihood.
LIC v. D.J. Bahadur (1981) 1 SCC 315 Judicial duty to advance social-justice values. Guided Court’s interpretative approach towards protecting weaker sections.
Ramana Dayaram Shetty v. IAAI (1979) 3 SCC 489 State action in contractual matters must be non-arbitrary under Article 14. Used to characterise selective non-renewal as arbitrary and discriminatory.
People’s Union for Democratic Rights v. Union of India (1982) 3 SCC 235 Condemns exploitation of weaker sections; rule of law must benefit poor. Cited in support of protecting small vendors from displacement.
Consumer Education & Research Centre v. Union of India (1995) 3 SCC 42 Social justice and humane working conditions integral to right to life. Relied upon to stress State’s duty towards petty traders’ dignity.
Sadhuram Bansal v. Pulin Behari Sarkar (1984) 3 SCC 410 Court may prefer social justice over technical rules. Supports Court’s leaning in favour of existing licensees.
Francis Coralie Mullin v. UT of Delhi (1981) 1 SCC 608 Right to live with dignity includes basic necessities and occupation. Forms constitutional basis for sustaining livelihood claims.
North Eastern Railway Co. v. Lord Hastings (1900 AC 260) Contracts to be read as a whole and ambiguities construed harmoniously. Referenced within Bank of India v. Mohandas quotation supporting contra-proferentem approach.
Munn v. Illinois, 94 US 113 (1877) Life means more than mere animal existence. Quoted in Olga Tellis; reaffirms expansive notion of life adopted by Court.

Court's Reasoning and Analysis

The Supreme Court began by examining the relevant clauses of the Catering Policy, 2010 together with subsequent Railway Board Circular No. 37 dated 9-8-2010 and the South Central Railway circular of 23-8-2011. These instruments expressly directed renewal of all existing GMU/SMU licences for successive three-year terms upon satisfactory performance.

The Court rejected the appellants’ interpretation that paragraph 16.1.3 applied only to licences granted after 2010. It noted that:

  • The Policy and the circulars made no distinction between licences granted before and after 2010.
  • The Railways themselves had renewed the very licences for three years in 2010, demonstrating their understanding that paragraph 16 applied to all licensees.
  • If the Policy truly excluded pre-2010 licensees, tenders should have been invited immediately after the six-month transitional period; instead, renewals were granted.

Invoking Article 14 and the jurisprudence on right to livelihood (Olga Tellis, Ramana Dayaram Shetty), the Court held that arbitrary non-renewal would unfairly deprive small kiosk owners of their means of subsistence. Social-justice precedents (LIC v. Bahadur; Consumer Education & Research Centre) mandated an interpretation that protects weaker economic actors where no counter-vailing public interest is shown. Revenue maximisation alone was deemed insufficient to override these constitutional values.

Consequently, the Court affirmed the High Court’s finding that the respondents are entitled to renewal subject to the Policy’s three conditions—satisfactory performance, payment of dues, and withdrawal of litigation.

Holding and Implications

Civil appeals dismissed; the High Court’s judgment directing renewal of licences is affirmed. The interim stay granted on 11-4-2014 stands vacated.

Eligibility for renewal is confined to licensees who file an affidavit declaring that they do not hold more than one shop or kiosk (whether in their own name or benami) and who agree to periodic, reasonable increases in licence fee.

Implications: The decision secures continued livelihood for small catering vendors at railway stations and clarifies that renewal provisions in the Catering Policy, 2010 extend to pre-existing licensees. It re-emphasises constitutional commitments to social justice and non-arbitrariness in governmental contracting, without setting aside the Policy itself.

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    Senior Divisional Commercial Manager, South Central Railways And Others v. S.C.R. Caterers, Dry Fruits, Fruit Juicestalls Welfare Association And Another

    V. Gopala Gowda, J.— The applications for intervention are allowed. Leave granted. The present appeals arise out of the impugned judgment and order dated 12-9-2013 passed by the High Court of Judicature of Andhra Pradesh at Hyderabad in South Central Railways v. S.C.R Caterers, Dry Fruits, Fruit Juice Stalls Welfare Assn. Dry Fruits, Fruit Juice Stalls Welfare Assn., 2013 SCC OnLine AP 770, whereby the Division Bench of the High Court upheld the order S.C.R Caterers, Dry Fruits, 2013 SCC OnLine AP 168 , (2013) 5 ALD 553 of the learned Single Judge, wherein it was held that the respondents are entitled to get their licences renewed under the Catering Policy, 2010.

    2. The relevant facts which are required for us to appreciate the rival legal contentions advanced on behalf of the parties are stated in brief hereunder: the respondents before us are the South Central Railway Caterers, Dry Fruits, Fruit Juice Stalls Welfare Association (hereinafter referred to as “the Welfare Association”). The members of the Welfare Association were granted licences for running General Minor Units or Special Minor Units in Categories ‘A’, ‘B’ and ‘C’ railway stations. These licences were granted in favour of the members of the respondents prior to the creation of the Indian Railways Catering and Tourism Corpn. Ltd. (hereinafter referred to as “Irctc”) under the Catering Policy, 2005. In terms of the said Policy, the contracts under Categories ‘A’, ‘B’ and ‘C’ railway stations were transferred to Irctc while the contracts granted under Categories ‘D’ to ‘F’ railway stations were continued under the control of the South Central Railways till Irctc was equipped to take over these units. The contracts held by the members of the Welfare Association were renewed during the subsistence of the Catering Policy, 2005. The said Policy was replaced by the Catering Policy, 2010. Under the new Policy, the contracts of all the existing major and minor catering units were to be awarded and managed by the Zonal Railways. Irctc was left with the running of the Food Plaza, Food Courts and Fast Food Units only.

    3. Pursuant to the Catering Policy, 2010, the South Central Railway granted renewal of licences in favour of the licensees for a period of three years with effect from 21-7-2010, the date on which the Catering Policy, 2010 was made effective in respect of the General Minor Units (GMUs) and Special Minor Units (SMUs) taken over from Irctc, subject to the conditions stipulated in Paras 16.1.3 and 16.2.1 of the Catering Policy, 2010. The renewed licences were to expire on 20-7-2013. On 26-4-2013, the Senior Divisional Commercial Manager, Vijayawada, issued a bid notice inviting sealed bids on the single stage two-packet system from food and catering service providers for provision of catering services at the various GMUs of Categories ‘A’ and ‘B’ railway stations in the Vijayawada Division. A similar Notification dated 3-5-2013 was issued for establishment of catering stalls/fruits and fruit juice stalls in SMUs in ‘A1’, ‘A’ and ‘B’ category railway stations.

    4. Aggrieved, the respondent Association, the members of which had existing licences, filed a writ petition before the Single Judge of the High Court of Judicature of Andhra Pradesh at Hyderabad. The respondent Association urged that the said action of inviting fresh bids is discriminatory and also contrary to the provisions of the Catering Policy, 2010. The main plea of the respondent Association was that in terms of the Catering Policy, 2010, the existing licensees were entitled for renewal of their licences for a period of three years, subject to their satisfactory performance, payment of all dues and arrears and withdrawal of court cases, if any. They prayed that the appellant be directed to renew the licences of the existing licence-holders of the canteens and fruits and fruit juice stalls.

    5. Vide judgment and order dated 16-8-2013 S.C.R Caterers, Dry Fruits, 2013 SCC OnLine AP 168 , (2013) 5 ALD 553, the learned Single Judge came to the conclusion that the Catering Policy, 2010 did not differentiate among the licensees based on the number of years for which they have been carrying on their business. It was further held that under the Catering Policy, 2010, the licence fee is liable to be revised based on the potentiality of each railway station and the turnover of the licensees during the previous years. Since the licence fee is subject to continuous revision and does not remain stagnant, the question of the Railways suffering any loss due to renewals would not arise. The learned Single Judge held that the members of the Welfare Association are entitled for renewal of the licences of the members subject to their satisfying the conditions stipulated in Paras 16.1.3 and 16.2.1 of the Catering Policy, 2010. On appeal filed by the appellants, the judgment and order of the learned Single Judge was upheld by the Division Bench of the High Court in the writ appeals vide its judgment and order dated 12-9-2013 Dry Fruits, Fruit Juice Stalls Welfare Assn., 2013 SCC OnLine AP 770. Hence, the present appeals are filed by the appellants.

    6. We have heard the learned Senior Counsel for both the parties. On the basis of the pleadings and evidence on record produced before us, the circumstances of the case and also in the light of the rival legal contentions urged by the learned Senior Counsel for both the parties, the main question that arises for our consideration is whether the members of the respondents before us are entitled to have their licences renewed in terms of the Catering Policy, 2010?

    7. Mr N.K Kaul, the learned Additional Solicitor General appearing on behalf of the appellants drew our attention to the important provisions of the Catering Policy, 2010. The objective of the Policy reads as under:

    “1.1 To provide hygienic, good quality affordable food to the travelling public by adopting best trade and hospitality industry practices.
    1.2 The Policy will have an inclusive approach where from the least advantaged passenger to the relatively affluent will be provided catering services in a socially responsible manner.
    1.3 It should meet all the social objectives of the Government, including provision of reservations as per Government Directives issued from time to time.”

    8. The learned Additional Solicitor General contends that the terms of the Catering Policy, 2010 are absolutely clear. The larger issue here is the right to livelihood of the licensees who are members of the respondents. The welfare of the people is the prime concern of any responsible Government under the provisions of the Constitution. The learned Additional Solicitor General places reliance on Lala Ram v. Union of India (2015) 5 SCC 813, wherein the concept of a welfare State has been discussed as under:

    “9. A welfare State denotes a concept of Government, in which the State plays a key role in the protection and promotion of the economic and social well-being of all of its citizens, which may include equitable distribution of wealth and equal opportunities and public responsibilities for all those, who are unable to avail for themselves, minimal provisions for a decent life. It refers to ‘greatest good of greatest number and the benefit of all and the happiness of all’. It is important that public weal be the commitment of the State, where the State is a welfare State. A welfare State is under an obligation to prepare plans and devise beneficial schemes for the good of the common people. Thus, the fundamental feature of a welfare State is social insurance. Anti-poverty programmes and a system of personal taxation are examples of certain aspects of a welfare State. A welfare State provides State-sponsored aid for individuals from the cradle to the grave. However, a welfare State faces basic problems as regards what should be the desirable level of provision of such welfare services by the State, for the reason that equitable provision of resources to finance services over and above the contributions of direct beneficiaries would cause difficulties. A welfare State is one, which seeks to ensure maximum happiness of maximum number of people living within its territory. A welfare State must attempt to provide all facilities for decent living, particularly to the poor, the weak, the old and the disabled i.e to all those, who admittedly belong to the weaker sections of society. Articles 38 and 39 of the Constitution of India provide that the State must strive to promote the welfare of the people of the State by protecting all their economic, social and political rights. These rights may cover, means of livelihood, health and the general well-being of all sections of people in society, specially those of the young, the old, the women and the relatively weaker sections of the society. These groups generally require special protection measures in almost every set-up. The happiness of the people is the ultimate aim of a welfare State, and a welfare State would not qualify as one, unless it strives to achieve the same.”
    (emphasis supplied)

    9. The learned Additional Solicitor General further places reliance on Ram & Shyam Co. v. State of Haryana (1985) 3 SCC 267, relevant paragraph of which is quoted hereunder:

    “12. Let us put into focus the clearly demarcated approach that distinguishes the use and disposal of private property and socialist property. Owner of private property may deal with it in any manner he likes without causing injury to anyone else. But the socialist or if that word is jarring to some, the community or further the public property has to be dealt with for public purpose and in public interest. The marked difference lies in this that while the owner of private property may have a number of considerations which may permit him to dispose of his property for a song. On the other hand, disposal of public property partakes the character of a trust in that in its disposal there should be nothing hanky-panky and that it must be done at the best price so that larger revenue coming into the coffers of the State administration would serve public purpose viz. the welfare State may be able to expand its beneficent activities by the availability of larger funds. This is subject to one important limitation that socialist property may be disposed at a price lower than the market price or even for a token price to achieve some defined constitutionally recognised public purpose, one such being to achieve the goals set out in Part IV of the Constitution. But where disposal is for augmentation of revenue and nothing else, the State is under an obligation to secure the best market price available in a market economy. An owner of private property need not auction it nor is he bound to dispose it of at a current market price. Factors such as personal attachment, or affinity, kinship, empathy, religious sentiment or limiting the choice to whom he may be willing to sell, may permit him to sell the property at a song and without demur. A welfare State as the owner of the public property has no such freedom while disposing of the public property. A welfare State exists for the largest good of the largest number more so when it proclaims to be a socialist State dedicated to eradication of poverty. All its attempt must be to obtain the best available price while disposing of its property because the greater the revenue, the welfare activities will get a fillip and shot in the arm. Financial constraint may weaken the tempo of activities. Such an approach serves the larger public purpose of expanding welfare activities primarily for which the Constitution envisages the setting up of a welfare State.”
    (emphasis supplied)

    10. The interest of the passenger has no correlation with social objectives. The main objective of the Catering Policy, 2010 is to provide food at an affordable price to the railway passengers. The learned Additional Solicitor General further contends that the State is entitled in law to frame a new policy in that respect. The learned Additional Solicitor General contends that the Policy contains detailed mechanisms and makes it very clear for whom it is meant. The learned Additional Solicitor General draws our attention to Para 3.3.1 of the Policy which reads as under:

    “3.3.1 All existing major and minor catering units will be awarded and managed by the Zonal Railways, except Food Plaza, Food Courts, Fast Food Units. All such contracts presently being managed by Irctc, on expiry of the contract period, will be awarded by the Zonal Railways. Irctc will not renew any contract required to be handed over to Zonal Railways on expiry of the contract.”

    11. The learned Additional Solicitor General further draws our attention to Para 16.1.3 of the 2010 Policy which reads as under:

    “16.1.3 Allotment of all General Minor Units at A, B and C category stations shall be awarded for a period of five years with a provision for renewal after every 3 years on satisfactory performance and payment of all dues and arrears and withdrawal of court cases, if any. Allotment of all General Minor Units at D, E and F category stations will be for a period of 5 years with a provision for renewal after every 5 years for a further period of 5 years on satisfactory performance and payment of all dues and arrears and withdrawal of court cases, if any.”

    The learned Additional Solicitor General contends that by virtue of Para 16.1.3, the members of the respondents cannot claim renewal of their licence as a matter of right.

    12. The learned Additional Solicitor General further placed reliance on Para 26.1.1 of the 2010 Policy which reads as under:

    “26.1.1 All existing operational catering licences awarded by Irctc and transferred to Zonal Railways will be governed by the existing Catering Policy, 2005 up to the validity of their contractual period.”

    13. Further, Para 26.1.4 of the Policy reads as under:

    “26.1.4 This Policy will also apply in case of award of fresh licences and licences awarded in the event of termination, non-renewal, vacation, etc. of the existing licences.”

    14. The learned Additional Solicitor General further contends that a welfare State has to generate more money to take care of the larger public interest. He further contends that the claim of the members of the respondents that they have a vested right to get the renewal of their licence in the railway stations referred to supra and that the Government cannot expand its competitors is completely unsupported in law.

    15. The learned Additional Solicitor General further contends that the entire policy is not under challenge. It is only the clause which confers the right of renewal of the licence which has been challenged. The scope of the judicial review in such cases is limited. For the Court to examine the validity of the same, the Policy either needs to be arbitrary, or must suffer from some glaring error and must be perverse, or be contrary to constitutional provisions. The learned Additional Solicitor General, in support of his contentions, places reliance on Jiwan Dass v. LIC 1994 Supp (3) SCC 694 to contend that the right to livelihood of licensees cannot be extended to use public property to the best advantage as a commercial venture. It was held in that case as under:

    “4. … An owner is entitled to deal with his property in his own way profitable in its use and occupation. A public authority is equally entitled to use the public property to the best advantage as a commercial venture. As an integral incidence of ejectment of a tenant/licensee is inevitable. So the doctrine of livelihood cannot discriminately be extended to the area of commercial operation.”

    16. On the other hand, Mr Prashanta K. Goswami, the learned Senior Counsel appearing on behalf of some of the respondents, draws our attention to the Catering Policy, 2010. He contends that revenue collection for the State cannot be a yardstick or consideration for deciding renewals of licences of licensees. The learned Senior Counsel further submits that the licences of these small shop/kiosk owners have been renewed in some zones of the Railways, while in others not renewed, which action of the appellants is violative of Article 14 of the Constitution of India.

    17. Mr Raju Ramachandran, the learned Senior Counsel appearing on behalf of one of the respondent licensees contends that renewal of the licences of the members is the norm under the Catering Policy, 2010 and that the right to renewal must be read into the contracts of the existing licensees. The learned Senior Counsel further contends that the social objectives of the Central Government, which is running the Railways across the country and which is the major transport industry catering to the need of a large number of commuters, must necessarily include the protection of the right to livelihood of the members of the respondents, apart from the protection of Article 19(1)(g) of the Constitution of India.

    18. Mr Ramachandran further contends that two views are legitimately possible to construe the renewal clause. One is that renewals of the licences that can be done only through the tender route and the other is to renew the existing or pre-existing licences. He contends that the same can be resolved by applying the principle of “contra proferentem”, or interpretation against the draftsman. In this connection, reliance has been placed by the learned Senior Counsel upon the decision of this Court in Bank of India v. K. Mohandas (2009) 5 SCC 313 , (2009) 2 SCC (Civ) 524 , (2009) 2 SCC (L&S) 32, wherein it has been held as under:

    “31. It is also a well-recognised principle of construction of a contract that it must be read as a whole in order to ascertain the true meaning of its several clauses and the words of each clause should be interpreted so as to bring them into harmony with the other provisions if that interpretation does no violence to the meaning of which they are naturally susceptible. (North Eastern Railway Co. v. Lord Hastings 1900 AC 260 , (1900-03) All ER Rep 199 (HL))
    32. The fundamental position is that it is the banks who were responsible for formulation of the terms in the contractual Scheme that the optees of voluntary retirement under that Scheme will be eligible to pension under the Pension Regulations, 1995, and, therefore, they bear the risk of lack of clarity, if any. It is a well-known principle of construction of a contract that if the terms applied by one party are unclear, an interpretation against that party is preferred (verba chartarum fortius accipiuntur contra proferentem).”

    19. The learned Senior Counsel further contends that the social objectives of the Policy are clearly meant to sidestep the profit-making objective. He places reliance on a Constitution Bench decision of this Court in Olga Tellis v. Bombay Municipal Corpn. (1985) 3 SCC 545, wherein it was held that the right to life includes the right to livelihood. In that case, the Court held as under:

    “32. As we have stated while summing up the petitioners' case, the main plank of their argument is that the right to life which is guaranteed by Article 21 includes the right to livelihood and since, they will be deprived of their livelihood if they are evicted from their slum and pavement dwellings, their eviction is tantamount to deprivation of their life and is hence unconstitutional. For purposes of argument, we will assume the factual correctness of the premise that if the petitioners are evicted from their dwellings, they will be deprived of their livelihood. Upon that assumption, the question which we have to consider is whether the right to life includes the right to livelihood. We see only one answer to that question, namely, that it does. The sweep of the right to life conferred by Article 21 is wide and far-reaching. It does not mean merely that life cannot be extinguished or taken away as, for example, by the imposition and execution of the death sentence, except according to procedure established by law. That is but one aspect of the right to life. An equally important facet of that right is the right to livelihood because, no person can live without the means of living, that is, the means of livelihood. If the right to livelihood is not treated as a part of the constitutional right to life, the easiest way of depriving a person of his right to life would be to deprive him of his means of livelihood to the point of abrogation. Such deprivation would not only denude the life of its effective content and meaningfulness but it would make life impossible to live. And yet, such deprivation would not have to be in accordance with the procedure established by law, if the right to livelihood is not regarded as a part of the right to life. That, which alone makes it possible to live, leave aside what makes life liveable, must be deemed to be an integral component of the right to life. Deprive a person of his right to livelihood and you shall have deprived him of his life. Indeed, that explains the massive migration of the rural population to big cities. They migrate because they have no means of livelihood in the villages. The motive force which propels their desertion of their hearths and homes in the village is the struggle for survival, that is, the struggle for life. So unimpeachable is the evidence of the nexus between life and the means of livelihood. They have to eat to live: only a handful can afford the luxury of living to eat. That they can do, namely, eat, only if they have the means of livelihood. That is the context in which it was said by Douglas, J. in Barsky 1954 SCC OnLine US SC 42 , 98 L Ed 829 , 347 US 442 (1954) that the right to work is the most precious liberty that man possesses. It is the most precious liberty because, it sustains and enables a man to live and the right to life is a precious freedom. ‘Life’, as observed by Field, J. in Munn v. Illinois 1876 SCC OnLine US SC 4 , 24 L Ed 77 , 94 US 113 (1877), means something more than mere animal existence and the inhibition against the deprivation of life extends to all those limits and faculties by which life is enjoyed. This observation was quoted with approval by this Court in Kharak Singh v. State of U.P AIR 1963 SC 1295 , (1963) 2 Cri LJ 329
    33. Article 39(a) of the Constitution, which is a directive principle of State policy, provides that the State shall, in particular, direct its policy towards securing that the citizens, men and women equally, have the right to an adequate means of livelihood. Article 41, which is another directive principle, provides, inter alia, that the State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work in cases of unemployment and of undeserved want. Article 37 provides that the directive principles, though not enforceable by any court, are nevertheless fundamental in the governance of the country.. The principles contained in Articles 39(a) and 41 must be regarded as equally fundamental in the understanding and interpretation of the meaning and content of fundamental rights. If there is an obligation upon the State to secure to the citizens an adequate means of livelihood and the right to work, it would be sheer pedantry to exclude the right to livelihood from the content of the right to life. The State may not, by affirmative action, be compellable to provide adequate means of livelihood or work to the citizens. But, any person, who is deprived of his right to livelihood except according to just and fair procedure established by law, can challenge the deprivation as offending the right to life conferred by Article 21.”
    (emphasis supplied)

    20. The learned Senior Counsel further places reliance on a recent decision of this Court in Charu Khurana v. Union of India (2015) 1 SCC 192 , (2015) 1 SCC (L&S) 161, wherein the abovestated principle enunciated in Olga Tellis (1985) 3 SCC 545 has been reiterated.

    21. Before we advert to the contentions in detail, we quote Krishna Iyer, J. from LIC v. D.J Bahadur (1981) 1 SCC 315 , 1981 SCC (L&S) 111, wherein the learned Judge has explained what should be the guiding force for Judges when faced with matters pertaining to social justice, as under:

    “5. Law is no cold-blooded craft bound by traditional techniques and formal forceps handed down to us from the Indo-Anglian era but a warm-blooded art, with a break from the past and a tryst with the present, deriving its soul force from the Constitution enacted by the people of India. Law, as Vice-President G.S Pathak used to emphasise in several lectures, is a tool to engineer a peaceful ‘civil revolution’ one of the components of which is a fair deal to the weaker human sector like the working class. The striking social justice values of the Constitution impact on the interpretation of Indian laws and to forget this essential postulate while relying on foreign erudition is to weaken the vital flame of the Democratic Socialist Republic of India.”

    22. The case of the appellants, in a nutshell, is that the Railways had the right to enact the Catering Policy, 2010. In terms of the said Policy, only such licensees who were granted licence under the 2010 Policy were entitled to get their contracts renewed and the same benefit could not be extended to those licensees who were granted licence prior to the 2010 Policy. According to the Catering Policy, 2010, no provision is made for the renewal of the existing catering units on the expiry of the term of the licences. The renewal of the licences of the licensee under Para 16 of the Policy would apply only to licensees who were allotted licences under the Catering Policy, 2010. The appellants have further submitted that the renewals of the licences by the Zonal Railways up to 2013 was only meant to operate as a temporary arrangement till the bidding and allocation process was finally completed.

    23. We are unable to agree with the contention advanced on behalf of the appellants. The Railway Board issued Commercial Circular No. 37 dated 9-8-2010, which contained the following instructions:

    “1. Transfer of licence units:
    ***
    (d) Zonal Railways should renew all agreements which have expired or are due for expiry in the next 6 months by giving an extension, subject to a maximum extension of six months from the date of issue of the Catering Policy, 2010.”

    This circular clarifies that the renewal of the licence is required to be granted to all the existing licensees of the Minor Units as per Paras 16 and 17 of the Catering Policy, 2010. It also becomes clear that the existing licensees need not be included in the tender process.

    24. The Circular dated 23-8-2011 issued by the Chief Commercial Manager of South Central Railway directed all the Divisional Commercial Managers and other subordinate officers of the South Central Railway to confirm that the tenure of all GMUs and SMUs at ‘A1’, ‘A’ and ‘B’ category stations shall be renewed after every 3 years on their satisfactory performance and payment of all dues and arrears as per the 2010 Policy. In view of the said circular, catering licences of all the members of the respondent Association were renewed till July 2013. On this aspect of the case, the learned Single Judge of the High Court has held as under: (S.C.R Caterers case S.C.R Caterers, Dry Fruits, 2013 SCC OnLine AP 168 , (2013) 5 ALD 553, SCC OnLine AP)

    “… While the 2010 Policy proper has not envisaged renewal of the existing licences for a period not exceeding six months, the Immediate Operative Instructions issued in commercial Circular No. 37/2010 dated 9-8-2010 has directed the Zonal Railways to renew the licences for a maximum period of six months from the date of issue of the 2010 Policy. If the 2010 Policy is understood as providing renewals only in respect of the licences issued under the said Policy, there was no reason why Respondent 3 has not called for tenders on the expiry of six months' period from the date of coming into force of the 2010 Policy. Instead of calling for tenders, Respondent 3 has renewed all the GMU and SMU licences for a period of three years in terms of Paras 16.1.3 and 16.2.1 of the 2010 Policy. This was done even before Para 16.3 of the said Policy was amended. Having understood the 2010 Policy in its true spirit even before the amendment of Para 16.3, it is incomprehensible that Respondent 3 projects the said Policy in a different light by seeking to give it an interpretation which runs contrary to its plain language. Nowhere in the 2010 Policy, the licensees are classified into two categories, namely, those who were granted licences prior to the commencement of the 2010 Policy and those who were granted licences after the said Policy. On the contrary, all the GMUs and SMUs were treated under one category. Irrespective of whether the licences were granted by the Railways prior to 2005 or by Irctc from 2005 and by the Indian Railways after 2010, renewal of licences is envisaged for all these categories of licensees subject to their fulfilment of the three requirements as referred to hereinbefore.”
    (emphasis supplied)

    The findings of the learned Single Judge have been upheld by the Division Bench and we do not find any reason to interfere with the same.

    25. Article 14 of the Constitution of India mandates that State action must not be arbitrary and discriminatory. It must also not be guided by any extraneous considerations which are antithetical to equality. A three-Judge Bench of this Court in Ramana Dayaram Shetty v. International Airport Authority of India (1979) 3 SCC 489 held as under:

    “21. … It must, therefore follow as a necessary corollary from the principle of equality enshrined in Article 14 that though the State is entitled to refuse to enter into relationship with any one, yet if it does so, it cannot arbitrarily choose any person it likes for entering into such relationship and discriminate between persons similarly circumstanced, but it must act in conformity with some standard or principle which meets the test of reasonableness and non-discrimination and any departure from such standard or principle would be invalid unless it can be supported or justified on some rational and non-discriminatory ground.”
    (emphasis supplied)

    26. India is a welfare State. Article 38 of the Constitution of India, which is a directive principle of State policy, reads as under:

    “38. State to secure a social order for the promotion of welfare of the people.—(1) The State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the national life.
    (2) The State shall, in particular, strive to minimise the inequalities in income, and endeavour to eliminate inequalities in status, facilities and opportunities, not only amongst individuals but also amongst groups of people residing in different areas or engaged in different vocations.”

    27. It is the duty of every welfare State to generate employment. Presently, millions of youth of the country are unemployed. The right to livelihood is a part of right to life, as has been held in Olga Tellis (1985) 3 SCC 545. A vast majority of the unemployed population of the country then, is susceptible to being exploited by the rich and the capitalists. It is the duty of the State, acting through its instrumentalities to ensure that no person in a vulnerable position is exploited. In People's Union for Democratic Rights v. Union of India (1982) 3 SCC 235 , 1982 SCC (L&S) 275, Bhagwati, J. lamenting on the exploitation of the weak and the powerless held as under:

    “2. … The rule of law does not mean that the protection of the law must be available only to a fortunate few or that the law should be allowed to be prostituted by the vested interests for protecting and upholding the status quo under the guise of enforcement of their civil and political rights. The poor too have civil and political rights and the rule of law is meant for them also, though today it exists only on paper and not in reality. If the sugar barons and the alcohol kings have the fundamental right to carry on their business and to fatten their purses by exploiting the consuming public, have the chamars belonging to the lowest strata of society no fundamental right to earn an honest living through their sweat and toil? … civil and political rights, priceless and invaluable as they are for freedom and democracy, simply do not exist for the vast masses of our people. Large numbers of men, women and children who constitute the bulk of our population are today living a sub-human existence in conditions of abject poverty; utter grinding poverty has broken their back and sapped their moral fibre. They have no faith in the existing social and economic system. What civil and political rights are these poor and deprived sections of humanity going to enforce?”

    28. This Court, being entrusted with the task of being the counter majoritarian institution, is duty-bound to ensure that the rights of the downtrodden minorities and the members of the weaker sections of the society are not trampled upon.

    29. One more important aspect to be taken note of by this Court is the non-governance of railway property in the past 67 years since Independence. Though, it is a recognised principle of law that the property of the Railways is public property, yet in reality, it is the private players and industries that are allowed to carry on their business for transport of raw materials from one place to another. After the enactment of the Railways Act, 1989, the Rail Land Development Authority has been established under Chapter II-A of the Act to manage the railway property by framing policy or rules for allotment of the same in favour of the licensees, including fixing licence fee or occupation charges in respect of the vast extent of vacant property from which huge revenue can be collected, which is a laudable object to cater to the need of the public at large. The periodical revision of licence fee in respect of such big operators has not been done by the Railways. Also, the policy of not renewing the licences of those persons who are members of the respondents and completely dependent on self earning from these small units and making them participate in a public competition is absolutely unfair, unreasonable and arbitrary. The chances of such persons being deprived of their right to livelihood is also an important factor which has to be taken into consideration by this Court to interpret the policy framed by the appellants. The callous attitude as far as the inaction on the part of the State in tackling the problem of rising unemployment is appalling. The situation is made worse by the handing over of public functions to private entrepreneurs, which then exploit the policies of the Government against the poor and downtrodden people of the country. If the appellants under the guise of the Policy are permitted to deny renewal of licences in favour of the licensees, it would amount to deprivation of their right to freedom of occupation guaranteed under Article 19(1)(g) of the Constitution as well as the right to livelihood, which action of the appellants would be diametrically opposed to their constitutional duty towards social justice as well as uplifting the weaker sections of the society and the unemployed youth of the country.

    30. In Consumer Education & Research Centre v. Union of India (1995) 3 SCC 42 , 1995 SCC (L&S) 604 a three-Judge Bench of this Court observed as under:

    “18. … Social justice, equality and dignity of person are cornerstones of social democracy. The concept ‘social justice’, which the Constitution of India engrafted, consists of diverse principles essential for the orderly growth and development of personality of every citizen. … Social justice is a dynamic device to mitigate the sufferings of the poor, weak, Dalits, tribals and deprived sections of the society and to elevate them to the level of equality to live a life with dignity of person. Social justice is not a simple or single idea of a society but is an essential part of complex social change to relieve the poor, etc. from handicaps, penury to ward off distress and to make their life liveable, for greater good of the society at large. In other words, the aim of social justice is to attain substantial degree of social, economic and political equality, which is the legitimate expectation. Social security, just and humane conditions of work and leisure to workman are part of his meaningful right to life and to achieve self-expression of his personality and to enjoy the life with dignity; the State should provide facilities and opportunities to enable them to reach at least minimum standard of health, economic security and civilised living while sharing according to the capacity, social and cultural heritage.”

    31. Further, in Sadhuram Bansal v. Pulin Behari Sarkar (1984) 3 SCC 410 this Court held as under:

    “29. … There is no ritualistic formula or any magical charm in the concept of social justice. All that it means is that as between two parties if a deal is made with one party without serious detriment to the other, then the Court would lean in favour of the weaker section of the society. Social justice is the recognition of greater good to larger number without deprivation of accrued legal rights of anybody. If such a thing can be done then indeed social justice must prevail over any technical rule. It is in response to the felt necessities of time and situation in order to do greater good to a larger number even though it might detract from some technical rule in favour of a party.”

    32. Keeping in view the evolving concept of social justice, we allow the members of the respondents who are the licensees to continue their petty business, especially in the absence of employment potentiality in the country on account of non-governance and non-implementation of the constitutional philosophy of an egalitarian society, which provides the opportunity to all individuals to lead a life of dignity. The right to life with dignity has been interpreted to be a part of right to life by this Court in Francis Coralie Mullin v. UT of Delhi (1981) 1 SCC 608 , 1981 SCC (Cri) 212, as under:

    “8. … We think that the right to life includes the right to live with human dignity and all that goes along with it, namely, the bare necessaries of life such as adequate nutrition, clothing and shelter and facilities for reading, writing and expressing oneself in diverse forms, freely moving about and mixing and commingling with fellow human beings. Of course, the magnitude and content of the components of this right would depend upon the extent of the economic development of the country, but it must, in any view of the matter, include the right to the basic necessities of life and also the right to carry on such functions and activities as constitute the bare minimum expression of the human-self.”

    33. Therefore, we have to hold that the provisions of the Catering Policy, 2010 are applicable to the respondents concerned. The action of the Railways in not granting renewals of the licences to the members of the respondents is arbitrary, unreasonable, unfair and discriminatory, and the same cannot be allowed to sustain in law.

    34. For the reasons stated supra, this Court cannot interfere with the impugned judgment and order Dry Fruits, Fruit Juice Stalls Welfare Assn., 2013 SCC OnLine AP 770 of the High Court. The civil appeals are dismissed. The order dated 11-4-2014 Dry Fruits, Fruit Juice Stalls Welfare Assn., SLPs (C) Nos. 9921-23 of 2014, order dated 11-4-2014 (SC), “Heard the learned counsel for the parties. Application for intervention is allowed. There shall be stay of the order and the judgment of the High Court. The petitioners are permitted to continue with the tender process and however, we make it clear that the respondents shall not be displaced for the present, so also the intervenors. Further, their continuance will be subject to further orders after finalising the tender process. The respondents are also permitted to participate in the tender. The petitioners are permitted to seek further orders after finalisation of the tender process.” granting stay of the impugned order shall stand vacated. We, however, make it clear that only those licensees may be eligible for renewal of their licences who can declare on affidavit that they do not have the licence of more than one shop or kiosk in their name or benami licence at the railway stations with periodical reasonable increase of licence fee. All pending applications are disposed of.

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