Andhra Pradesh High Court
Judges : MOTILAL B.NAIK, T.RANGA RAO
A.P.S.R.T.C., Mushirabad - Appellant
Versus
N.R.Nagappaiah - Respondent
Decided On : 12-15-97
( 1 ) THESE two C. M. As. are filed against the common orders dated 25-6-1997 in I. A. Nos. 656/97 and 657/1997 in O. S. No. 348 of 1997 on the file of the III Additional Subordinate Judge, Vijayawada
( 2 ) THE facts in giving rise to the filing of these appeals are, briefly, as follows: The first appellant, A. P. S. R. T. C. (for short corporation ) which is a statutory body, having bus stations, offices throughout the State of Andhra Pradesh, for the convenience of passengers provides many stalls, canteens, parking places, etc. The policy making authority of the Corporation issues guidelines from time to time indicating the procedure to be followed in granting licences to run the said stalls, canteens, etc. The Corporation issued Circular 5 of 1990 dated 12-1-90 prescribing new procedures for granting of licences to run the canteen for a period of sixyears with a maximum licence period of 12 years subject to the satisfactory performance and fulfillment of other terms and conditions, with increase in licence fee at the end of every three years at 20%, 30% and 30% at the commencement of 4th, 7th and 10th year respectively. The appellant published tender notification on 30-8-90 inviting sealed tenders from reputed commercial organisations to run the canteen and departmental stores at Pandit Nehru Bus Station, Vijayawada and the respondent became successful bidder to run the said canteen on a monthly rent of Rs. 85,333. 00 for a period of three years from 16-7-91 to 15-7-94, as per the terms and conditions a deed of licence was executed and he carried on business on the said premises and the said licence was renewed for a further period of three years from 16-7-94 to 15-7-97 and executed another deed of licence on 25-7-94. The Appellant-Corporation issued a revised guidelines Circular No. 64 of 1996, dated 10-10-96 to come into immediate effect, changing the policy of granting licences in modification of the earlier Circular 5 of 1990, dated 12-1-90 fixing the licence period for stalls, canteens, etc, at 5 years and the licence fee shall be the same for the first three years and shall be increased by 10% for the 4th year, 15% for the 5th year payable by the licencee in third and 4th years of licence respectively. It also provides that all the existing licences shall be deemed to have been terminated at the end of their subsisting period of agreement and no extension shall be given and fresh tenders shall be called for. The respondent submitted representation to the Corporation to renew the licence for a further period of three years from 16-7-97 to 15-7-2000. But the appellant in pursuance of the new guidelines, called for sealed tenders dated 9-6-97 to run the canteen at the said Bus Station and published in local news papers on 15-6-97.
( 3 ) THE respondent-plaintiff filed a suit in O. S. No. 348/1997 before the Subordinate Judge, Vijayawada, contending that as per the terms and conditions of the tender notification, the period of contract is 12 years and there is a concluded contract in between him and the Corporation basing on the said terms and conditions of the tender Notification dated 30-8-90 and granted licence to run the canteen in the said Bus Station and formally entered into deed of licence in pursuance of the said concluded contract for a period of three years commencing from 16-7-1991 to 15-7-94 and it was further renewed for a period of three years on enhanced rentals, as per the Corporation Rules from 16-7-94 to 15-7-97 and the Appellant Corporation cannot unilaterally alter the concluded contract to the detriment of the plaintiff and he is ready and willing to pay the enhanced fee as fixed in the Tender Notification, as he has already invested nearly Rs. 14 lakhs as the contract is for a period of 12 years and thus sought a direction against the Corporation to execute the deed of licence in favour of the respondent-plaintiff to run the canteen in the said bus station for a further block period
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