Comprehensive Policy guidelines on Cycle/Motorcycle/Scooter/Car Parking
Contract over East Central Railway: {Authority RB letter no. 2004/TG-IV/8/P dated 14.05.2015 (C. C No. 29/2015)
1. Objective:
1.1 Cycle/Motorcycle/Scooter/Car Parking facility in railway premises is an important
passenger amenity. It is provided by Railway through outsourcing in most of the cases
and wherever outsourcing is not feasible, it is managed departmentally. However, every
endeavor should be made to run it through outsourcing in order to realize maximum
earning potential at all possible stations.
1.2 Survey of parking area should be done by a team of Engineering Department and
Commercial Department Supervisors to finalize a plan. Location and area should be
clearly demarcated with specific mention of area. “Location plan with area identified by
Supervisors of commercial and engineering department should be approved by Officers
of Divisional Engineering and Commercial departments”.
1.3 In order to avoid encroachment of additional area by the contractor, Railway shall
provide a well demarcated, fenced and leveled surface to the contractor for parking
purpose. However covered/partially covered shelter for two wheeler parking can be
permitted to be provided by the contractor in such a manner that such construction does
not adversely affect the aesthetics of the station building/premises.
1.4 Divisions may explore the possibility of managing parking of vehicles at stations
departmentally especially at such stations where outsourcing has not been found
feasible or successful. This may be done within existing resources and no additional post
should be created for this purpose.
2. Tendering Conditions:-
2.1 At all category of stations i.e. A-1, A, B, C, D, E and F (New classification NSG 1, NSG 2,
NSG 3, NSG 4, NSG 5, NSG 6 and HG 1, HG 2 & HG 3) the parking contracts may be
awarded through ‘Single packet’ Open tender system for a period of 3 years. However,
in case of lack of response, contract can be awarded on ‘quotation basis’ directly for a
limited period of three months at a time, on prevailing vetted rate of last one year with
the approval of DRM/ADRM as per the provisions in SOP Commercial Matters /ECR in
vogue. In case of termination of contract midway due to non – payment, quotation to be
called immediately on LAR as per the provisions in SOP Commercial Matters /ECR in
vogue with the approval of DRM/ADRM as mentioned in SOP.
2.2 The process of fresh tendering should be initiated at least six months before the expiry
of the existing contract so that there is no time gap between the expiry of existing
contract and commencement of the new one.
2.3 Period of contract:-
(i) Period of contract shall be for 3 years without escalation clause normally. In case, Sr.
DCM find it justified for some station having higher earning potential through parking
contracts, the escalation clause of 10% increase in license fee per year can be kept and
accordingly Reserve Price can be fixed while calling tender for the Parking contract of
such station.
(ii) At very small NSG 4, NSG 5 and NSG 6 category station having limited scope of parking,
contracts can be clubbed/combined with other similar category adjacent stations (to be
decided by Sr. DCM).
(iii) At ‘F’ (New HG 1, HG 2 and HG 3) category halt stations/operated by halt agents, parking
contracts can also be given to halt agents in addition to the halt contract on a fixed
reserve price based on assessed traffic and local prevailing rates. Separate agreement
for parking may be signed with the halt contractors.
2.4 Minimum eligibility criteria of Licensee:-
(i) Registered company/Proprietorship Firm/Partnership firm/cooperative
society/Individuals are eligible to apply. The bidder will submit following documents:-
(a) Registered company: Memorandum and article of association along with certificate of
incorporation duly attested by Company Secretary. The copy of power of attorney
supported by board’s resolution authorizing Director/ Managing Director to sign the
tender documents should also be submitted.
(b) Proprietorship Firm: Registration certificate. They should submit an undertaking that
“He is the sole proprietor of the firm.”
(c) Partnership Firm: Partnership deed should be duly notarized or it should be registered
with the Registrar prior to date of tender opening as per the Indian Partnership Act. The
copy of the power of attorney of the managing partner to sign the tender document has
to be enclosed with the tender.
(d) Cooperative society: Registration certificate.
(ii) Character and current antecedents’ verification of the tenderer. Police Verification
certificate not prior to six months from date of notification.
(iii) Financial capability: - For NSG1 and NSG2 category of station, annual turnover of the
bidder should not be less than 20% of the tender value in each of the last three
completed consecutive years. For NSG3 and NSG4 category of stations annual turnover
of the bidder should not be less than 15% of the tender value in each of the last three
completed consecutive years. The bidder has to submit the audited balance sheet for
the last three (3) consecutive financial years duly certified by a registered Chartered
Accountant. For small stations below NSG4 category, where bidding potential for
parking contracts may not be high, Sr. DCM/DCM is empowered to decide the
instruments to judge financial capability of bidders.
(iv) Bidders should have experience in performing similar nature of works. Similar nature of
works for parking contracts may be defined as “having experience of running 2
wheeler/4 wheeler parking stand in municipal or panchayat area (as per locality) at any
place like cinema halls, shopping mall etc, any office buildings of central as well as state
government and Public Sector Undertakings”. A certificate from the gazetted officer in
case of central/state government office and from the Manager/Executive in case of PSU
and others has to be submitted in this regard. Running as well as completed work during
the last three (3) financial years as well as of current financial year shall be considered
for this purpose.
The bidders must have completed at least one work of 35% of the advertised
tender value during the last three consecutive financial years for participation in the
parking tender of NSG1 and NSG2 category of station (to ensure selection of competent
bidders). For remaining category of stations, this criterion shall not be applicable (to
facilitate successful bidding).
(v) Income tax clearance certificate for the last three consecutive financial years have to be
submitted by the bidders for participation in tender of parking contracts of NSG1, NSG-2
and NSG 3 category of stations. For participation in tender below NSG3 category, this
document shall not be required.
(vi) Tenderer has to submit self attested copy of Aadhar card.
(vii) A self declared affidavit from the applicant that he/the firm has not been
terminated/blacklisted from operation of such contract as on date over Indian Railways.
If the declaration is found to be false, action of cancelling the license so awarded on risk
and cost of applicant will be initiated. If the detection is made before issue of Letter of
Acceptance (LOA), EMD will be forfeited, however if it is detected later on i.e. after issue
of LOA, the Security Deposit and the Performance Guarantee will be forfeited.
2.5 Validity of offer: - The validity period of the tender shall be 90 days from the date of
opening the tenders. The Railway administration reserves the right to extend the validity of
offers at its discretion, if necessary. Further, Railway administration reserves the rights
itself to accept, negotiate with the tenderer.
2.6 The Schedule of Power for Calling of tenders and accepting of tenders including quotation
work for Parking contracts to be exercised as per the Model SOP/ECR on Commercial
Matters 2018, Para 26 (Items A to E) in vogue and amended time to time.
3. Earnest Money Deposit (EMD)
3.1 Earnest Money in parking contracts shall be at least 2% of the value of the tender. But in
case frivolous participation is anticipated, Earnest Money Deposit may be charged at a
higher rate up to 10% of the tender value in consultation with associate finance so as to
discourage such practice. Mode of EMD shall be Demand Draft.
3.2 Earnest Money may be charged for tenders invited on quotation basis at the rate of 2% of
the value of work.
4. Security Deposit (SD) and Performance Guarantee deposit:
4.1 Security deposit equivalent to 5% of the contract value should be taken in the form of
Bank Guarantee, FDR, Demand Draft or cash after adjusting the EMD before signing the
agreement. The SD should be released only after the completion of the contract duly
ensuring that the Railway premise is handed over by the contractor after proper cleaning
and removal of debris with all railway assets intact with a certification by the concerned
supervisors and controlling officers. The competent authority in this regard shall be Sr.
DCM.
4.2 In order to ensure uninterrupted performance by the parking contractor throughout the
period of contract in addition to security deposit, a Performance Guarantee in the form of
either Bank Guarantee or FDR or DD of the value equivalent to 5% of total value of
contract may be collected from successful bidder before signing of the agreement. This shall
be released only after satisfactory and successful completion of the contract.
5. Reserve Price (RP):
5.1 Reserve price for all ‘A-1’,’A’,’B’,’C’,’D’,’E’ and ‘F’ (New classification NSG 1, NSG 2, NSG 3,
NSG 4, NSG 5, NSG 6 and HG 1, HG 2 & HG 3) category of stations should be assessed on the
basis of parameters like number of users, type of vehicles, parking charges prevailing at
other locations in the area such as parking lot allotted by municipal authority, last accepted
rate (LAR) etc. While calculating RP, the cost of staff to be deployed per shift, cost of any
special provisions like Automated Boom barriers, LED rate board etc, GST and TCS may be
taken into consideration.
CCTV cameras with monitor and LED rate board at main entry of parking area shall be
provided by the licensee at his own cost. The cost of the same should be taken into
consideration while fixing Reserve price. This condition will be included in the tender
condition of NSG 1 and NSG 2 category of stations only. Automated Boom Barriers shall be
used for Entry/Exit of four wheelers in Normal as well as Premium parking of NSG 1 and
NSG 2 categories of stations, if there is feasibility for such provision.
Provision of CCTV, LED rate board and Automated Boom Barriers in the respective
Parking contracts will be decided by Sr. DCM/ DCM In charge of the division after feasibility
study and accordingly the Reserve Price to be accessed on case to case basis.
5.2 In this regard as per recent guidelines of Railway Board (No. 2018/Transf. Cell/Traffic/Policy
dated 07.06.2018) fixation of reserve price will be done without finance vetting on the basis
of recommendations of an Empowered committee of supervisors of the concerned
departments in the manner given below-
a. Sites/Lots where the current contract is coming to an end:
i. In this case there is fare idea of the potential of the lot and such would not require an
abinitio determination of the same.
ii. The empowered committee would carry out a survey of parking lot to assess the revenue
potential and determine the reserve price which would be used for the auction/bid.
iii. Composition of the Empowered committee – Supervisors from Commercial and Accounts
and the SS/SM of the concerned station.
b. Sites/Lots that have been freshly identified for commercial utilization
i. These should be looked at in conjunction with similar lots at different locations in the
division for which the institutional memory would be at the Divisional Level and not at the
beat level. The recommendations of the empowered committee in these cases for fixation
of reserve price shall be approved by a Branch Officer level committee of the Commercial
and Accounts departments of the Division.
ii. Composition of the Empowered Committee – Supervisors from Commercial and Accounts
and the SS/SM of the concerned station.
c. Regarding other smaller earning contracts, mode of and procedures leading to the award
of contract can be determined locally. However, care may be taken as far as practicable,
not to award contracts by nomination. In the event of receipt of bids below reserve price
Sr. DCM may re-fix the same with the approval of DRM and Invite fresh bids.
If other conditions are same, the vetted Reserve Price will be valid for one year.
However, Division may review the RP, if required. The reserve price for premium parking
shall be higher than the normal parking to be decided by Sr. DCM/DCM. Premium parking
can be awarded for NSG 1, NSG 2 and NSG 3 category stations wherever there is scope.
The reserve price so fixed should have the approval of DRM/ADRM/Sr. DCM, as the case
may be in terms of SOP (Commercial Matters)/ECR in vogue.
5.3 As far as possible, allotment of additional area after awarding the contract should be
avoided. For any additional area, if considered necessary, justified and feasible, should be
provided and license fee shall be increased on pro-rata basis.
5.4 Licensee shall be obliged to pay License fee at the rate notified by the Railway for different
categories of stations from time to time.
6 Parking Rates and calculation of Reserve Price
6.1 Parking rates including premium parking rates for Auto/Taxi/Cars/Cycle/Scooter/Motor
Cycle & other two wheelers/mini bus/other passenger carrying commercial vehicle for
different class of stations should be fixed by Sr. DCM/DCM on the basis of recommendation
of the Empowered Committee as mentioned in Para 5, Railway Board’s letter No.
2018/Transf. Cell/Traffic/Policy dated 07.06.2018. Parking rates should be fixed by
Empowered Committee in view of station category and time slabs, following Railway
Board’s guidance in this regard.
Further, it is also to mention that parking charges will be applicable on Trip System.
If a person places his vehicle in parking space many times a day he have to pay parking
charges every times, that is to say on every entry - exit he have to pay the parking charges
as per time slot.
6.2 While fixing the parking rates, a survey should be carried out for parking charges prevailing
at other similar locations in the city/area. Prevailing parking rates should be reviewed and
revised before inviting tenders. For new parking sites the reserve price will be fixed on the
basis of an assessment carried out by the committee as under:-
(i) The total volume of the vehicles which could be parked in the proposed parking at given
time (3 days assessment) would be assessed keeping in view the total parking area and
area required for parking each vehicle and one day average be arrived at.
(ii) The anticipated percentage of different types of vehicle viz. cycle or scooter or four-
wheelers in a cycle/scooter/four-wheelers parking would be worked out by the
committee in view of the local condition.
(iii) The total no. of vehicles assessed which could be parked in a day, would be multiplied by
the approved parking rate for cycle/ motor cycle/ 4 wheelers etc. The figures worked out
would be termed as the assessed turnover for the period of contract.
(iv) For arriving at reserve price, the labour cost and other investment on the part of
computerized billing, CCTV camera, automated boom barriers, LED Rate board or
florescent rate board etc as the case may be according to category of station and
provision kept in the proposed parking tenders, to be deducted from the assessed turn
over on yearly basis. Then profit element equivalent to 12.5% of the assessed turnover to
be deducted from the remaining value. The value thus arrived at would be reserve price
for one year. This value would be calculated for three consecutive years to arrive at the
Reserve Price for the bid.
During calculation of labour and Supervisior charges, the minimum number of
staff required to run the parking stand in the entire three shifts to be kept in mind and
the prevalent labour rate prescribed by Labour Commissioner Office, be taken.
7. Extension of the contract:
Normally, extension of existing contract should be avoided by proper advance
planning. However, in unavoidable and exceptional circumstances, for ensuring
uninterrupted service of parking to the passengers at a station, subject to willingness of the
contractor and his performance, extension to the existing contract may be considered for a
period for three months at a time (maximum 6 months) with a provision of 10% hike in
license fee for the extended period on pro rata basis with the satisfaction of the approving
authority (DRM/ADRM/Sr. DCM as the case may be with finance concurrence) in terms of
SOP (Commercial Matters)/ECR, provided that value of extended contract lies within his
power in following cases:
(a) Open tender floated in advance could not be finalized due to poor response.
(b) Highest rate obtained in the tender is less than 110% of the last accepted license fee for
that area.
(c) Quotation could not be obtained due to poor response.
(d) Parking service cannot be rendered departmentally or financially viable.
(e) Any other unforeseen or extraneous circumstances that may happen during the
contractual period and also during the extension period.
In circumstances, where during extension, the contract value exceeds the limit of
power of approving authority owing to enhancement in work value, the extension should be
granted by the officer under whose power the value of extended contract lies with.
Other Types of Parking Contracts:
8. Premium Parking: The feasibility of having premium parking facility may be explored at NSG
1, NSG 2 and NSG 3 category stations for which also contract can be awarded through open
tender adopting ‘Single Packet system’. The agency (contractor) for this service shall provide
adequate basic features like earmarked lanes for entry and exit, automated boom barriers as
provided at Toll plazas and the Railways to the extent possible shall provide separate
convenient access to the platform other than through the existing circulating area. The
reserve price for Premium Parking may be decided according to market condition based on
the recommendation of the Empowered Committee and with the approval of
DRM/ADRM/Sr.DCM, as the case may be in terms of SOP.
9. Call Taxi/Radio Taxi: Wherever there is a potential for extending parking facility for call
taxi/radio taxi etc., an adequate area for parking up to such number of taxis/vehicles may
be earmarked based on availability of space, which should be independent of auto/taxi
parking. Contract for this facility should be given through a separate tender. The reserve
price and parking rates for call taxi/Radio taxi may be decided according to market condition
based on the recommendation of the Empowered Committee and with the approval of
DRM/ADRM/Sr.DCM, as the case may be in terms of SOP.
10. Parking for Passenger-carrying commercial vehicles (PCCVs):- For other passenger carrying
commercial vehicles, viz. Autos, Taxis (Cars), Tempos, Minibus, Bus etc. adequate and
separate space may be earmarked. This area should be out of main concourse/circulating
area so that movement of passengers should not be hampered. Contracts may be given
through open tender either independently or as a part of Car parking contract. The reserve
price and parking rates for these types of vehicles may be worked out based on the
recommendation of the Empowered Committee and with the approval of
DRM/ADRM/Sr.DCM, as the case may be in terms of SOP.
11. Prepaid Auto/Taxi Booth:-Prepaid Auto/Taxi Booth which is generally managed by local
police/GRP may be permitted in the space earmarked for Auto/Taxi stand. The charges/taxes
due to State Government should be collected from the taxi operators by State Authorities
like local police/GRP etc and the parking charges as applicable to passenger carrying vehicle
of different types should be collected by the Railway through Parking contractor at the rates
based on the recommendation of the Empowered Committee and with the approval of
DRM/ADRM/Sr.DCM, as the case may be in terms of SOP.
For Above contracts mentioned in 9, 10 and 11, following conditions may be made
applicable.
• Preferably monthly registration fees should be charged by the parking licensee. This
condition should be included in the estimate of reserve price of the tender.
• A registration may be done and entry to this effect should be maintained in the
register. Maximum number of registration to be made should be decided by
division as per the availability of parking space and number of vehicles to be parked
at a time. Details modalities of registration may be decided by division.
12. Automation and Computerization:
12.1 Computerized coupons should be necessary for issue to the customers by the licensee of
parking contract at NSG 1 and NSG 2 category railway stations and the coupon should have
details of name/identification of parking lot, date and time of issue of coupons, the name of
the contractor, Serial Number on coupons with counterfoils and amount charged for
coupon/monthly pass. Railway shall encourage issue of computerized parking coupons at
other stations wherever feasible particularly at NSG 3 category.
12.2 Contractor shall provide CCTV cameras (Number to be decided by division, where the
provision made in the bid) to monitor the parking arrangements at Entry/Exit and billing
counters with sufficient recordings backup not less than 15 days. This will facilitate enquiry
related complaints and solve the security purpose. The monitor of such CCTV be provided with
SM/Dy. SM.
12.3 The rates should also be displayed clearly through LED electronic board of appropriate size
at Entry/Exit point apart from Fluorescent Rate Board at NSG 1, and NSG 2 category railway
stations. At other stations fluorescent normal rate board of adequate size and font should be
available at Entry/Exit point and also at conspicuous places inside the parking area. Rate board
should not be covered/hide by any objects. In case of detection of covered or hidden rate board
penalty may be imposed.
13. Parking for staff and other Rail Customers:-
13.1 Parking rates for Railway staff/Magisterial and Judiciary staff/GRP staff/Parcel
loaders/Press Media/Licensees staff etc as authorized by Station Manager/Station Master shall
be at subsidized charges. Separate parking area of adequate size may be demarcated for such
staff.
13.2 Area as decided by Sr. DCM and subject to maximum 25% of total parking area shall be
earmarked for parking of two wheeler of daily commuters holding season ticket from any
station. Monthly pass should be issued on reasonable monthly charges to such customers. A
register should be maintained giving details of such customers showing details of passengers
and season ticket etc.
13.3 For bonafide Railway staff there should be separate monthly charges and lower in
comparison to Magisterial and Judiciary staff/GRP staff/Parcel loaders/Press Media/Licensees
staff and MST holders as decided by Sr. DCM through Empowered Committee.
13.4 No charges should be realized from official vehicle of Hon’ble Judges, Railway Officers and
Higher officials of State government and Central government (irrespective of government
vehicle or on government service vehicle hired on contract basis).
13.5 Monthly charges recommended for Empowered Committee for fixing parking rates and
assessing Reserve Price are as under:-
Time slab Charges for 2 wheelers only for all
categories of stations.
Monthly pass for daily commuters i.e. season ticket
holders.
20 times of daily charges applicable
for 8 hours in time slab.
Subsidized monthly charges for Magisterial and
Judiciary staff/GRP staff/Parcel loaders/Press
Media/Licensees staff etc as authorized by Station
Manager/Station Master.
15 times of daily charges applicable
for 8 hours in time slab.
Reduced monthly charges for bonafide Railway staff
working on that station or other station duly
authorized by Station Manager/Station Master.
10 times of daily charges applicable
for 8 hours in time slab.
14. The Licensee shall be liable to pay applicable GST in addition to license fee and the same shall
be deposited along with the license fee. The licensee shall also be liable to pay Swachh Bharat
tax or any other taxes or cess or charges payable under the compliance of various acts of the
central as well as the state government. There shall be no tax liability on the railways
whatsoever on any account. The invoice for license fees and taxes is to be raised separately.
15. Payment and penalty: - Penalty may be imposed by Station Manager (Gaz.)/Comml
Officers/ADRM/DRM for violation of contractual conditions. Power of imposition shall be as
under-
15.1 Contractor shall pay the license fee on or before 10th
day of the first month of each
quarter (i.e. every three months) during the period of contract irrespective of the date of
allotment of the contract. A grace period of 7 days may be given to the contractor by the
Railway Administration. Besides this, the contractor shall be liable to make payment of penalty
if the due license fee has not been paid by the 10th
day of the first month of each quarter. After
that, the contractor shall be liable to pay a penalty @5% monthly on the amount due. If the
contractor is willing to pay the license fee for the complete one year in advance at a time, he
may be permitted to do so.
15.2 Contractor shall not encroach the earmarked space of parking area as allotted in the
contract. In case any encroachment detected at any point of time, the license fee shall be
realized for the space under encroachment from the very beginning of the contract period on
pro rata basis.
15.3 Rate board should not be covered/hide by any objects. In case of detection of covered or
hidden rate board penalty may be imposed.
15.4 In case of failure of payment of the license fee by the contractor in terms of para 15.1,
Sr.DCM shall issue 7 day notice for termination of contract and if the party fails to respond
within seven day of receipt of such notice, 48 hours notice for termination of contract and
clearance of premises shall be given to the party by Sr.DCM.
Officer Fine imposition power per case up to Rs.
SM (Gaz.) Rs. 1,000/-
ACM Rs. 2,000/-
DCM Rs. 5,000/-
Sr.DCM Rs. 20,000/-
DRM/ADRM/CCM(PS) SAG Officer Rs. 50,000/-
PCCM (PHOD) Rs. 1,00,000/-
15.5 If the contractor does not pay the due license fee within the last day of the quarter, the
parking contract may be terminated by Sr. DCM. Security deposit and Performance Guarantee
shall be forfeited in such case.
15.6 In case of poor performance of the contract the same can also be terminated by giving one
month notice by the Railway Administration.
15.7 The 'Licensee/Licensees shall always keep the plot of land in clean and sanitary
condition at his own cost and on his/their failing to do so, the Administration may after
giving twenty-four hour notice forthwith remove the same at the expense of the
Licensee/Licensees and dispose of the same in such manner as the Administration, may in their
absolute discretion think fit and such expenses shall be paid on demand by the
Licensee/Licensees to the Administration.
16. Claims compensation: - Railway administration shall not be responsible for any loss,
destruction, damage or deterioration of parking space and property thereof due to following
reasons:-
i) Act of God
ii) Act of war
iii) Act of public enemies
iv) Restraint or seizure under legal process
v) Fire, explosion or any unforeseen risk
vi) Orders or restrictions imposed by central or state government or any higher authority.
17. Compliance of GCC:
The provision of Indian Railway Standard General Condition of Contract issued vide no. 2017/CE-
I/CT/8/GCC/Committee dated 05.11.2018 along with its amendments, if any will be applicable
except anything contrary contained in this policy having approval of competent authority.
18. Vetting of Agreement:
The agreement shall be executed within 30days of issue of Letter of Acceptance (LOA) after
depositing Security Deposit and Performance Guarantee and the same should be vetted by
Associate Finance as per GCC.
19. Monitoring of arrangements:-
19.1 The area of parking should be demarcated in presence of SM, CI, SSE (W) and the Licensee
at NSG 1, NSG 2, NSG 3, NSG 4, NSG 5 and NSG 6 category of stations.
19.2 Regular inspections should be carried out to check parking contracts. An inspection book
should be provided with contractor to record any deficiency found at the time of inspection. At
NSG 1, NSG 2 and NSG 3 category of stations monthly inspections should be carried out by
committee of SSE, CI and concerned SM to oversee that area of licensee has not been
encroached by the licensee. Such inspection by committee should be carried out at other NSG 4,
NSG 5 and NSG 6 category of stations on quarterly basis.
19.3 Commercial officers and Inspectors should check and comment about parking contract in
their regular inspections.
20. Other conditions have been incorporated in the specimen agreement enclosed herewith.
LICENSE TO OCCUPY LAND FOR THE PURPOSE OF CYCLE/MOTOR CYCLE/SCOOTER/CAR
PARKING /Commercial Vehicles (as applicable) STAND AT______________RAILWAY STATION.
An Agreement made this _________day of ________ two thousand ________between
the President of the Union of India acting through {Sr. DCM/ DCM (In charge)of the Division}, as
the Executive Authority of Administration of the __________Railway (Hereinafter called
preamble “The Administrator )_________ Of the One Part and Shri/Mr/s/Smt.__________.
(Hereinafter called the Licensee/Licensees) which expression shall where the context so
requires or admits, be deemed to include his/their or either of his/heirs, executors and
administrators Of the Other Part, WHEREAS THE LAND hereinafter described forms a portion of
the ______Railway and has been for some time past in the occupation of the Administration
and WHEREAS the Licensee/Licensees has/have applied to the Administration for a license or
permission to operate a ………… parking stand and for, the said purpose to have the temporary
use and occupation of the said land which on license or permission, the Administration have
agreed to grant upon the terms and conditions hereinafter contained. Now it is hereby agreed
and between the said party/parties hereto as follows:
1. The Licensee/Licensees shall have the use of all that piece of land on the Railway's station
for the said purpose bearing Survey No. ______Authority within the Registration Sub-
District of_____ station of District ______and measuring about___________ in length
and_______ in to run the breadth and containing by measurement __________Contract
square feet or thereabouts be the same little more or less and bounded us follows that is to
say;-
On the North by:
On the South by:
On the East by:
On the West by:
for the purpose of erecting a temporary ………… parking stand and for no other purpose
whatsoever and subject to the conditions hereinafter contained.
The parking site is as per the site plan enclosed as annexure …., duly signed by the railway
authority and the licensee. The total area of ….parking stand is …....sqm.
2. The Licensee/Licensees shall not erect or cause to be erected on the said land or on any part
thereof any buildings or structure of a permanent or a quasi-permanent nature.
3. The Licensee/Licensees may lay, erect and retain upon the said land structures of purely
temporary character only subject to such rules, regulations and bylaws, as may from time to
time be made by or on behalf of the Administration or by or on behalf of any local authority in
relating hereto and subject to the conditions hereinafter mentioned and shall have to provide
at his/their own expenses all the facilities like stands, shelter, enclosures, and other facilities
on the said land and premises, and/shall be responsible for proper upkeep, maintenance of
fence boundary wall and surface provided by Railways during the continuance of License
hereby granted.
4. The Licensee/Licensees shall before proceeding to erect any structure or structures in
pursuance of Clause 3 hereof give a notice in writing thereof to the Divisional Engineer of the-------
Railway of the Division concerned specifying the purposes sites of this temporary structure or
structures intended to be erected and shall furnish him with the detailed plan, elevation and
specification of such structure or structures and the Licensee/Licensees shall erect witch
structure/structures save on such site and in accordance with such plan, elevation and
specification thereof as shall be first approved by the Divisional Engineer concerned of the---------
R a i l w a y .
5. The said temporary structure or structures shall vest in and shall become the property or
properties of the Administration and shall be under their sole control and the Licensee/Licensees
shall have no right or interest in or claim to the said land or structures (hereinafter called
collectively the said premises) whatsoever subject to the provisions of Clause II thereof.
(i) The Licensee/Licensees shall use the said premises solely and only for the purpose as aforesaid
for which it is licensed and shall not occupy land beyond what is described above, except with
express permission in writing of the Divisional Railway Manager concerned.
(ii) The Administration shall at all times be at liberty to carry out any changes, repairs, renewals,
additions or alterations to any of their structure or structures. In case, for, the above purpose it
becomes necessary to dismantle either the whole or any part of the temporary
structure/structures erected by the licensee/licensees on the said land, the licensee/licensees
shall bear the entire cost. If any work is done by the Administration to the temporary structure/
structures as aforesaid, the cost thereof shall be increased by the usual supervision charges and
shall be paid by the licensee/licensees to the Administration immediately on demand. The
Licensee/Licensees shall also reimburse the Administration for any losses or damages caused to
the property of the Administration by the erection and or presence of the temporary structure
or structures referred to above.
6. The Licensee/Licensees shall also be liable to the Divisional Engineer which expression shall he
deemed to include any person for the time being holding the appointment of Divisional Engineer or
any Acting Divisional Engineer or any other person so appointed of the---------Railway within the
Railway Division in which the said premises are situated/free access at all times to the said
premises and the licensee/licensees shall whenever so required by the Divisional Engineer
forthwith pull down, rebuild or repair any part or parts of such structure or structures which the
Divisional Engineer may consider to be improperly situated or of defective design, construction or
material or in want of repairs.
7. The Licensee/Licensees shall have insurance for vehicles against loss, theft or damages etc. due
to theft, fire and other accidents. Licensee/Licensees shall pay the premium thereon regularly to
Insurance Company and submit receipt to the Railway Administration along with the Xerox copy of
such insurance policy premium receipt for verification. Licensee/Licensees will make good the
losses due to theft, fire, and damage etc. to the owners of the vehicle. Licensee/Licensees will get
the insurance policy renewed from time to time during the contract period.
8. The Licensee/Licensees shall during the continuance of this license pay to the Administration
for the use of said premises under the conditions of this license an annual license f e e of Rs. - - - -
- (Rs . - - - - - - - o n l y) . T h e L i ce n se e / L ic e n se e s sh a l l also duly pay during the
continuance of this license all cesses, rates, water-charges, taxes and other charges or taxes in
respect of the said premises or proportion of all cesses, rates, water-charges, taxes and other
charges of taxes of the said premises if Administration deem they are not separately assessed in
respect thereof and as may be intimated to the Licensee/Licensees and any neglect of omission on
the part of the servants of the Administration in giving such intimation to recover such charges of
taxes shall not prejudice and right of the Administration to recover the correct amount of such
charges or taxes due from the Licensee/Licensees from the date of occupation by him/them of
the said premises. The cess and other charge will be payable annually with 1st installment while
the license fee will be payable in quarterly installment every year. The quarterly licensee fee so
worked out will be rounded off to the nearest rupee and will be payable as the following
programme/plan:
The licensee(s) will, if so permitted by the administration, pay the license fee recoverable in
quarterly installments payable as under:-
1st Installment by the 1
st (month) -----------
2nd
Installment by the 1st
(month) ---------- of each quarter during the currency of the
contract.
3rd
Installment by the 1st (month) ----------
4th
Installment by the 1st (month) ----------
Licensee shall pay the license fee on or before 10th
day of the first month of each quarter (i.e.
every three months) during the period of contract irrespective of the date of allotment of the
contract. Besides this the licensee shall be liable to make payment of penalty if the due license
fee has not been paid by 10th
day of the first month of each quarter. If the licensee delays the
payment of license fee beyond 7 days grace period as notified by Railway Administration for
the station, the administration shall impose a penalty @5% monthly on the amount due.
In case of failure of payment of license fee by the Licensee in terms of above para Sr.
DCM shall issue 7 days notice for termination of contract and if the party fails to respond
within 7 days of such notice, 48 hours notice for termination of contract and for clearance of
premises shall be given to the party by Sr.DCM.
9. The Licensee/Licensees shall produce an Income Tax Clearance Certificate at the end of
each year ending the currency of the license.
10. (i) Validity of License :
Subject to the terms and conditions contained in this Indenture, the License shall be for
a period of three years (3 years) commencing from the-------and terminating on the --------. In
some cases annual license fee has to be escalated by 10% for each year as mentioned in the
parking tender of such station. Extension to the existing contract may be considered for a
period for three months at a time (maximum 6 months) with a provision of 10% hike in license
fee for the extended period on pro rata basis with the approval of DRM/ADRM/Sr. DCM as the
case may be at the option of the Administration.
(ii) Cleanliness of premises:
The 'Licensee/Licensees shall always keep the plot of land in clean and sanitary
condition at his own cost and shall remove all waste or unsalable properties or whatever other
materials or refuse there may be from the said plot of land and vehicles stand and on his/their
failing to do so, the Administration may after giving twenty-four hour notice forthwith remove
the same at the expense of the Licensee/Licensees and dispose of the same in such manner as
the Administration, may in their absolute discretion think fit and such expenses shall be paid
on demand by the Licensee/Licensees to the Administration.
11.(i) Licensee/Licensees shall also deposit with the Financial Advisor and Chief Accounts
Officer of the East Central Railway a security deposit equivalent to 5% of the contract
value, Performance Guarantee (PG) equivalent to 5% of the total value of the contract
and other charges such as cess, water charges, Municipal Tax etc. for due fulfillment of this
agreement and the said deposit or such portion thereof as may be available shall be refunded
to the Licensee/Licensees on the termination of this license provided that/ the time of
refunding such deposit the licensee/licensees shall surrender the original receipt granted by
the Administration together with a receipt of the refund duly stamped and signed by
him/them. In case the licensee/licensees is/are unable to return the original receipt, he/they
shall be required to furnish an Indemnity Bond stamped and executed by him/them. No interest
will be paid on the said deposits.
(ii) Forfeiture of Security Deposit and Performance Guarantee Deposit:
In case the Licensee/Licensees makes/make any default in the payment of the rent, tax or
any other charges that may be due to the Administration, the Administration shall be at liberty
to recover such rent or other dues from the said amount of security deposit, forfeit the balance
if any as liquidated damage forthwith determine the Licensee/Licensees and proceed to
resume possession in a manner stipulated herein. In case of discontinuation of services by the
licensee unilaterally or termination of contract by the Railway due to default on the part of
licensee in terms of conditions of contract agreement, the Administrator shall have the right to
forfeit the amount deposited as Performance Guarantee (Cash/FDR/DD/Bank Guarantee).
12. Railway's right to enhance license fee and other charges:
The Administration reserves their right to enhance the license fee or the cess, rates and water
charges as and when necessary to do so and such enhanced charges shall be applicable and
recoverable from the Licensee/ Licensees from the date of the notice of enhancement in
writing served on the Licensee/Licensees unless the Licensee/Licensees vacate the premises
within one month of the said notice.
13. The Licensee/Licensees shall at his/their own expenses and on his/their sole responsibility
obtain all other license of licensee (if. any) necessary for carrying on his/their business, for the
subject of this license on the said premises.
14. (i) The charges of per vehicle on hours/day basis or part thereof (whether vehicle is kept
during day or night) shall be recovered from persons offering to keep the vehicles, as
prescribed by the Railway Administration in the schedule of Parking charges.
No such fees will be leviable for parking of vehicles belonging to Railway Administration or
vehicles of railway employees duly authorized by Divisional Commercial Manager.
To ensure charging prescribed rates for parking vehicles in parking stand,
licensee/licensees should give printed coupon for vehicles which shall clearly depict the
name/identification of parking lot, date and time of issue of coupons, the name of the
contractor, Sr. Number on coupons with counterfoils and amount charged for coupon/monthly
pass for vehicles stand, as the case may be, to avoid public complaint for charging more rates.
Computerized coupons shall be necessary for issue to the customers by the licensee of
parking contract NSG 1 and NSG 2 category railway stations and coupon should have details of
name/identification of parking lot, date and time a issue of coupons, the name of the
contractor, Serial Number on coupons with counterfoils and amount charged for
coupon/monthly pass. Zonal Railway shall encourage issue of computerized parking coupons at
other stations wherever feasible particularly at NSG 3 category.
ii) The Licensee/Licensees shall appoint reliable and honest staff in adequate number and only
such as are able to control the traffic and one of good moral character and shall furnish their
names to the Administration. The staff of parking contractor shall wear specified uniform at
their own cost and also wear on duty ID card issued by Divisional Authority.
iii) The Licensee/Licensees shall be solely responsible for safe Custody of vehicles parked with
him/them and for any loss or damage caused to/of any vehicles in his/their custody and shall
indemnify the Administration against all claims/demands/action in respect of any loss or
surcharge caused of/to any vehicles in his/their custody.
iv)The Licensee/Licensees shall at all times maintain good behavior and shall not allow the
doing of any such act on the premises as might cause injury or annoyance to others or as
might tend to cause a breach of peace.
v) The Licensee/Licensees shall pay not less than the fair wages to the workers engaged by
him/them, the fair wages being the wages paid for a similar works in the neighborhood and
shall otherwise comply with the provisions of the payment under "Payment of Wages Act
1936” or any statutory modification or re-enactment thereof or rules framed there under.
vi) The Licensee/Licensees shall keep a proper record of such payments etc. and submit a
certificate every month to the Administration of his having done so. The records shall be open
to inspection by the Railway Administration or any persons authorized by them.
vii) The sole liability of complying with all statutory norms prescribed guidelines and
regulations by the competent authorities is of the licensee concerned. No claims whatsoever
on any account shall be raised against the Railways for non-compliance of any statutory
provisions including labour laws.
viii) The Licensee/Licensees shall display a board duly painted/fluorescent board at Entry/Exit
gate and at conspicuous places inside the parking stand, exhibiting the daily and monthly
parking charges for two wheelers, four wheeler vehicles as laid down in this agreement. The
rates should also be displayed clearly through LED electronic board of appropriate size at
Entry/Exit point apart from Normal Rate Board at NSG 1, and NSG 2 category railway stations.
At other stations Florescent Rate Board of adequate size and font should be available at
Entry/Exit point along with other conspicuous places in the parking stand.
(ix) The Licensee shall be liable to pay applicable GST in addition to license fee and the same shall
be deposited along with the license fee. The licensee shall also be liable to pay Swachh Bharat
tax or any other taxes or cess or charges payable under the compliance of various acts of the
central as well as the state government. There shall be no tax liability on the railways
whatsoever on any account. The invoice for license fees and taxes is to be raised separately.
15 (A) The privileges in Clause I hereof mentioned are granted on the express
understanding that the licensee/licensees shall be at liberty to determine and to put an end
to the license, any time after the expiry of the period of 12 months from its coming to force,
without being liable for loss or damage which the Railway Administration may suffer by
reason of such determination, by giving the Railway Administration three months prior notice
in writing of his intention to terminate the agreement.
(B) It shall be lawful for the Railway Administration to determine the agreement and to put an
end at any time without assigning any reason and without being liable for loss or damage
which the licensee/licensees may suffer by reason of such determination by giving the licensee,
three months prior notice in writing of its intention to terminate the agreement.
(C) Any notice hereunder shall be deemed duly served on the licensee/Licensees, if delivered
or sent by Registered Post -Acknowledgement Due to his/their address mentioned below.
(D) If the license is determined before the expiry of the license period by the licensee in
pursuance of Clause 14 or by the Administration due to default of the licensee in pursuance of
Clause 22 or any other clause, the licensee will not be entitled to any refund of license fee for
the unexpired period. However, if the license is terminated before the expiry of license period
by the Administration without any default on the part of the Licensee, the Administration may
at its sole discretion refund such portion of license fee as may be considered reasonable and
the decision of the Administration in this regard shall be final and binding on the Licensee.
16. Upon such a notice of determination being given as aforesaid, licensee/ licensees shall
put down and remove the said land at their own expense on the determination of this license
all structures erected as or above and restore to its former condition, the land forming the site
thereof and if default shall he made herein, the Administration may after the expiry of the
said period, carry out so much of such pulling down, removal and restoration as the
licensee/licensees may fail to complete and all expenses incurred herein as increased by usual
supervision charges shall be paid by the licensee/licensees to the Administration on demand
being made thereof.
17. Nothing herein contained shall be construed to create a tenancy or any claim or any right
or interest or easement in favour of licensee/licensees or in or over the said premises or to
permit the license/licensees to transfer or to sub-let the benefit under this license.
i) In all cases where the said plot of land is adjacent to railway lines or sidings of the
Administration over which trains are worked or shunting operation are conducted, the
licensee/licensees shall appoint responsible person (s) who shall be rested at all time whenever
any labour is engaged on the said plot to take all precautions to prevent accidents to life and
property and more especially to see that all children are kept at a safe distance from the lines
of the Administration.
ii) The Administration shall not be responsible for any loss or damage of any sort which may
happen to the property of the licensee/licensees or to which the licensee/licensees may be put
from any cause whatsoever.
18. The Licensee/Licensees hereby declare/declares that the name Shri -------------------------------
-------------------- is the name in or under which he/they carry on business by himself/themselves
and that it is not the name of any other firm in which he/they carries/carry on business in
partnership and that he/they do/does not carry on business in partnership with any other
person or persons and that in case it shall at any time hereinafter appear that the said
declaration herein contained or any part thereof is not true. In fact, the Administration shall
not be bound to recognize any person or persons other than the Licensee/Licensees are being
in any way interested or concerned in this license or in any benefit to accrue there under and
that the Administration shall in addition be at liberty by a notice in writing under the hand of
Divisional Railway Manager, .. Railway, addressed to the Licensee/Licensees or to either or any
of them or to his/their or any of his/their heirs, executors or assignees in insolvency as the case
may be immediately to put an end to this license or that the licensee/licensees and any person
or persons who may alleged that they have any interest in this license, shall have no claim on
the Administration by reason of this license being terminated in pursuance of the provisions
contained herein.
19. The Licensee/Licensees jointly and each of them severally shall at all times keep the
Administration, their offices and servants harmless indemnified against and shall reimburse to
the Administration their Officers and servants of any of them all claims, demands, suits, losses,
damages, costs, charges and expenses whatsoever including any claims under the Workmen’s
Compensation Act, 1923 and any amendments thereof which the Administration, their Officers
or servants may sustain or incur or become liable to pay by reason or in consequence of any
injury or accident to any person or to any property whatsoever, whether owing to the neglect,
carelessness or any other conduct whatsoever of the licensee/licensees his/their or either of
his/their agents, servants and others in his/their employment during the use by him/them of
the license of the said premises or by any part thereof.
20. If the licensee/licensees or either or any of them shall die or be adjudicated an insolvent
during the continuance of the license hereby, granted this license shall absolutely ceases and
determine so for as it concerns the estate of the party or parties so dying and the heirs,
executors or Administration or other legal personal representatives of the party or parties so
dying or assignees in insolvency as the case may be shall have no interest whatsoever under
this license. And provided also that nothing therein in this clause contained shall be deemed to
prejudice or to affect any claim which the Administration may have against such heirs,
executors or Administrators or other legal personal representatives or assignees in insolvency
as the case may be for or in respect of any breach of any of the terms and conditions herein
contained by the party or parties so dying as aforesaid during his/their life time or lifetimes or
any right of indemnity the Administration may have under and by virtue of the provisions of
Clause 16 hereof. And provided also that this clause shall not be deemed to prevent surviving
licensee/licensees from enjoying the privileges of the license in the same manner as he/they
should have been entitled to do if none of the licensee/licensees had died during the
continuance of this license.
21. Following Sub-sections of Section 108 of the Transfer of Property Act, 1882 save in so far as
the same may be reproduced by those present shall not apply to the rights and liabilities of the
parties hereto respectively under this Agreement namely Sub-section (a) to (j); (m) to (o), (p)
and (q).
22. The Licensee/Licensees shall be liable to pay such penalty as the Railway Administration
may inflict for complaints against the Licensee/Licensees Managers etc., which in the opinion of
the Railway Administration are bonafide and substantiated. Without prejudice to the other
remedial, which may be available under the agreement, the licensee/licensees shall be liable to
pay at the sole discretion of the Railway Administration also penalty not exceeding a sum of Rs
………../- for any action in contravention of any of the clauses of this agreement.
The penalty so levied shall be paid by the licensee/licensees within reasonable time,
which can at maximum be one month, of demand for payment and failing which this agreement
may be terminated.
23. If the licensee/licensees or either or any of them shall commit any breach of any of the
provisions of this license of the event of the failure of the licensee/licensees to pay sum due
from them under this license, the Administration shall be entitled to determine this license at
once by a notice in writing under the hand of Division Railway Manager (Comml) of the ……..
Railway addressed to the Licensee/Licensees whereupon this license shall absolutely cease and
determine and the Administration shall thereupon be entitled to pull down and to remove
structure or structures which may have been erected by the Licensee/Licensees upon the said
land in pursuance of Clause 3 hereof and to seal any materials and things so removed and to
apply the proceeds of sale in or towards the expenses of restoring the said piece of land or
ground upon which they are effected to its former conditions and towards all other expenses
incurred by the Administration in this behalf as increased by the usual supervision charges and
towards any loss or damages caused to the Administration in consequence of the breach of this
license by the Licensee/Licensees and to recover any deficiency from the Licensee/Licensees on
demand being made there for.
24. Any money recoverable from the contractor either under this contract or any other
contract can be recovered from any money payable to the contractor under this contract or any
other contract.
25. The licensee/licensees shall pay all legal expenses, stamp duty, registration and translation
charges and all other costs, charges and expenses incurred in connection with those present.
26. Any notice to be given to the Licensee/Licensees under the provision of these present shall
be addressed to Shri ------------------------------------------------------------------------
27. Subject to otherwise provided in this agreement all notices to be given on behalf of the
President of the Union of India and all other actions to be taken on his behalf may be given or
taken on his behalf by the Principal Chief Commercial Manager of East Central Railway.
28. Demand for Arbitration:
28.(1)(i): In the event of any dispute or difference between the parties hereto as to the
construction or operation of this contract, or the respective rights and liabilities of the parties
on any matter in question, dispute or difference on any account or as to the withholding by the
Railway of any certificate to which the Contractor may claim to be entitled to, or if the Railway
fails to make a decision within 120 days, then and in any such case, but except in any of the
“excepted matters” referred to in Clause 63.1 of Indian Railway Standard General Condition of
Contract (Matters finally determined by the Railways), the Contractor, after 120 days but within
180 days of his presenting his final claim on disputed matters shall demand in writing that the
dispute or difference be referred to arbitration.
28.(1)(ii)(a): The demand for arbitration shall specify the matters which are in question, or
subject of the dispute or difference as also the amount of claim item-wise. Only such dispute or
difference, in respect of which the demand has been made, together with counter claims or set
off, given by the Railway, shall be referred to arbitration and other matters shall not be
included in the reference.
28.(1)(ii)(b): The parties may waive off the applicability of Sub-Section 12(5) of Arbitration and
Conciliation (Amendment) Act 2015, if they agree for such waiver in writing, after dispute
having arisen between them, in the format given under Annexure XV of these conditions.
28. (1) (iii)(a): The Arbitration proceedings shall be assumed to have commenced from the day,
a written and valid demand for arbitration is received by the Railway.
28.(1)(iii)(b): The claimant shall submit his claims stating the facts supporting the claims along
with all the relevant documents and the relief or remedy sought against each claim within a
period of 30 days from the date of appointment of the Arbitral Tribunal.
28.(1)(iii)(c): The Railway shall submit its defense statement and counter claim(s), if any, within
a period of 60 days of receipt of copy of claims from Tribunal, unless otherwise extension has
been granted by Tribunal.
28. (1) (iii) (d): Place of Arbitration: The place of arbitration would be within the geographical
limits of the Division of the Railway where the cause of action arose or the Headquarters of the
concerned Railway or any other place with the written consent of both the parties.
28. (1) (IV): No new claim shall be added during proceedings by either party. However, a party
may amend or supplement the original claim or defense thereof during the course of
arbitration proceedings subject to acceptance by Tribunal having due regard to the delay in
making it.
28. (1) (v): If the Contractor(s) does/do not prefer his/their specific and final claims in writing,
within a period of 90 days of receiving the intimation from the Railways that the final bill is
ready for payment, he/they will be deemed to have waived his/their claim(s) and the Railway
shall be discharged and released of all liabilities under the contract in respect of these claims.
28. (2): Obligation During Pendency of Arbitration: Work under the contract shall, unless
otherwise directed by the Engineer (Administrator), continue during the arbitration
proceedings, and no payment due or payable by the Railway shall be withheld on account of
such proceedings, provided, however, it shall be open for Arbitral Tribunal to consider and
decide whether or not such work should continue during arbitration proceedings.
28. (3): Appointment of Arbitrator:
28. (3) (a): Appointment of Arbitrator where applicability of section 12 (5) of Arbitration and
Conciliation Act has been waived off:
28.(3)(a)(i): In cases where the total value of all claims in question added together does not
exceed ₹ 1,00,00,000/- (Rupees One Crore), the Arbitral Tribunal shall consist of a Sole
Arbitrator who shall be a Gazetted Officer of Railway not below Junior Administrative Grade,
nominated by the General Manager. The sole arbitrator shall be appointed within 60 days from
the day when a written and valid demand for arbitration is received by General Manager.
28. (3) (a) (ii): In cases not covered by the Clause 28(3)(a)(i), the Arbitral Tribunal shall consist of
a panel of three Gazetted Railway Officers not below Junior Administrative Grade or 2 Railway
Gazetted Officers not below Junior Administrative Grade and a retired Railway Officer, retired
not below the rank of Senior Administrative Grade Officer, as the arbitrators. For this purpose,
the Railway will send a panel of at least four (4) names of Gazetted Railway Officers of one or
more departments of the Railway which may also include the name(s) of retired Railway
Officer(s) empanelled to work as Railway Arbitrator to the Contractor within 60 days from the
day when a written and valid demand for arbitration is received by the General Manager.
Contractor will be asked to suggest to General Manager at least 2 names out of the panel for
appointment as Contractor’s nominee within 30 days from the date of dispatch of the request
by Railway. The General Manager shall appoint at least one out of them as the Contractor’s
nominee and will, also simultaneously appoint the balance number of arbitrators either from
the panel or from outside the panel, duly indicating the ‘presiding arbitrator’ from amongst the
3 arbitrators so appointed. General Manager shall complete this exercise of appointing the
Arbitral Tribunal within 30 days from the receipt of the names of Contractor’s nominees. While
nominating the arbitrators, it will be necessary to ensure that one of them is from the Accounts
Department. An officer of Selection Grade of the Accounts Department shall be considered of
equal status to the officers in Senior Administrative Grade of other departments of the Railway
for the purpose of appointment of arbitrator.
28.3.(a).iii: The serving railway officer working in arbitral tribunal in the ongoing arbitration
cases as per clause 28.(3)(a)(i) and clause 28.(3)(a)(ii) above, can continue as arbitrator in the
tribunal even after his retirement.
28. (3) (b): Appointment of Arbitrator where applicability of Section 12 (5) of Arbitration and
Conciliation Act has not been waived off:
(i) In cases where the total value of all claims in question added together does not exceed ₹
50,00,000/- (Rupees Fifty Lakh), the Arbitral Tribunal shall consist of a Retired Railway Officer,
retired not below the rank of Senior Administrative Grade Officer, as the arbitrator. For this
purpose, the Railway will send a panel of at least four (4) names of retired Railway Officer(s)
empanelled to work as Railway Arbitrator duly indicating their retirement dates to the
Contractor within 60 days from the day when a written and valid demand for arbitration is
received by the General Manager.
Contractor will be asked to suggest to General Manager at least 2 names out of the
panel for appointment as arbitrator within 30 days from the date of dispatch of the request by
Railway. The General Manager shall appoint at least one out of them as the arbitrator.
(ii) In cases where the total value of all claims in question added together exceed ₹ 50,00,000/-
(Rupees Fifty Lakh), the Arbitral Tribunal shall consist of a Panel of three (3) retired Railway
Officer, retired not below the rank of Senior Administrative Grade Officer, as the arbitrators.
For this purpose, the Railway will send a panel of at least four (4) names of retired Railway
Officer(s) empanelled to work as Railway Arbitrator duly indicating their retirement date to the
Contractor within 60 days from the day when a written and valid demand for arbitration is
received by the General Manager.
Contractor will be asked to suggest to General Manager at least 2 names out of the
panel for appointment as Contractor’s nominee within 30 days from the date of dispatch of the
request by Railway. The General Manager shall appoint at least one out of them as the
Contractor’s nominee and will, also simultaneously appoint the balance number of arbitrators
either from the panel or from outside the panel, duly indicating the ‘Presiding Arbitrator’ from
amongst the 3 arbitrators so appointed. General Manager shall complete this exercise of
appointing the Arbitral Tribunal within 30 days from the receipt of the names of Contractor’s
nominees. While nominating the arbitrators, it will be necessary to ensure that one of them has
served in the Accounts Department.
28.(3)(c)(i): If one or more of the arbitrators appointed as above refuses to act as arbitrator,
withdraws from his office as arbitrator, or vacates his/their office/offices or is/are unable or
unwilling to perform his functions as arbitrator for any reason whatsoever or dies or in the
opinion of the General Manager fails to act without undue delay, the General Manager shall
appoint new arbitrator/arbitrators to act in his/their place in the same manner in which the
earlier arbitrator/arbitrators had been appointed. Such re-constituted Tribunal may, at its
discretion, proceed with the reference from the stage at which it was left by the previous
arbitrator (s).
28. (3) (c) (ii): (a) The Arbitral Tribunal shall have power to call for such evidence by way of
affidavits or otherwise as the Arbitral Tribunal shall think proper, and it shall be the duty of the
parties hereto to do or cause to be done all such things as may be necessary to enable the
Arbitral Tribunal to make the award without any delay. The proceedings shall normally be
conducted on the basis of documents and written statements.
(b) Before proceeding into the merits of any dispute, the Arbitral Tribunal shall first decide and
pass its orders over any plea submitted/objections raised by any party, if any, regarding
appointment of Arbitral Tribunal, validity of arbitration agreement, jurisdiction and scope of the
Tribunal to deal with the dispute (s) submitted to arbitration, applicability of time ‘limitation’ to
any dispute, any violation of agreed procedure regarding conduct of the arbitral proceedings or
plea for interim measures of protection and record its orders in day to day proceedings. A copy
of the proceedings duly signed by all the members of tribunal should be provided to both the
parties.
28.3(c) (iii): (i) Qualification of Arbitrator (s):
(a) Serving Gazetted Railway Officers of not below JA Grade level.
(b) Retired Railway Officers not below SA Grade level, one year after his date of retirement.
(c) Age of arbitrator at the time of appointment shall be below 70 years.
(ii) An arbitrator may be appointed notwithstanding the total number of arbitration cases in
which he has been appointed in the past.
(iii) While appointing arbitrator(s) under Sub-Clause 28.(3)(a)(i), 28.(3)(a)(ii), 28.(3)(b)(i) &
28.(3)(b)(ii) above, due care shall be taken that he/they is/are not the one/those who had an
opportunity to deal with the matters to which the contract relates or who in the course of
his/their duties as Railway servant(s) expressed views on all or any of the matters under dispute
or differences. A certification to this effect as per annexure- XVI shall be taken from Arbitrators
also. The proceedings of the Arbitral tribunal or the award made by such Tribunal will, however,
not be invalid merely for the reason that one or more arbitrator had, in the course of his
service, opportunity to deal with the matters to which the contract relates or who in the course
of his/their duties expressed views on all or any of the matters under dispute.
28.(3)(d)(i): The arbitral award shall state item wise, the sum and reasons upon which it is
based. The analysis and reasons shall be detailed enough so that the award could be inferred
there from.
28.(3)(d)(ii): A party may apply for corrections of any computational errors, any typographical
or clerical errors or any other error of similar nature occurring in the award of a Tribunal and
interpretation of a specific point of award to Tribunal within 60 days of receipt of the award.
28.(3)(d)(iii): A party may apply to Tribunal within 60 days of receipt of award to make an
additional award as to claims presented in the arbitral proceedings but omitted from the
arbitral award.
28. (4): In case of the Tribunal, comprising of three members, any ruling on award shall be
made by a majority of members of Tribunal. In the absence of such a majority, the views of the
Presiding Arbitrator shall prevail.
28. (5): Where the arbitral award is for the payment of money, no interest shall be payable on
whole or any part of the money for any period till the date on which the award is made.
28. (6): The cost of arbitration shall be borne by the respective parties. The cost shall inter-alia
include fee of the arbitrator(s), as per the rates fixed by Railway Board from time to time and
the fee shall be borne equally by both the parties, provided parties sign an agreement in the
format given at Annexure XV to these condition after/ while referring these disputes to
Arbitration. Further, the fee payable to the arbitrator(s) would be governed by the instructions
issued on the subject by Railway Board from time to time irrespective of the fact whether the
arbitrator(s) is/are appointed by the Railway Administration or by the court of law unless
specifically directed by Hon’ble court otherwise on the matter.
29. East Central Railway reserves the right to alter or add or delete any of the above rules,
clauses or stipulations at any time and such alteration/addition/deletion shall be binding on the
Licensee. This shall be made with appropriate notice.
30. IN WITNESS WHEREOF, Divisional Railway Manager (C) of the …………………. Railway, for and
on behalf of the Union of India and Shri --------------------------------------------------------------------------
------------ Licensee has here up to set their respective hands on the day and year above written.
Signed by
Sr. Divisional Commercial Manager,
Sr. Divisional Commercial Manager of …………………….. Railway,
Of the ……………….. Railway in presence of For & On behalf of the President
of the UNION OF INDIA.
Witness: 1. (From Railway)…………………………………………………
Address:…………………………………………….
Signed by above named …..…………
Witness: 2. (From Railway)…………………………………………………
Address:…………………………………………….
Signed by above named …..…………
Signed by
……………………………………………
Witness: 1. (From Licensee) ………………….. LICENSEE/LICENSEES
Address:…………………………………………….
Signed by above named …..…………
Witness: 2. (From Licensee)…………………………………
Address:…………………………………………….
Signed by above named …..…………
In the presence of Station Manager of ………. Railway………..
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