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2026 Supreme(AP) 161

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
GANNAMANENI RAMAKRISHNA PRASAD, J.
V. Rabbani Basha – Appellant
Versus
The State of Andhra Pradesh – Respondent
Writ Petition Nos. 31871, 32835 of 2022, 30041 of 2023, 1690 of 2024
Decided On : 05-01-2026

Advocates Appeared:
For the Appellant : Vutupalli Rajanna
For the Respondent: Mattegunta Sudhir

State actions regarding license distribution must comply with fairness, non-arbitrariness, and promote public interest by avoiding monopolies.

Headnote:(A) Constitution of India - Articles 14, 19, 21, 38 and 39 - Writ Petition challenging termination of business licences and tender notification - Allegations of violation of licence terms and sub-letting to third parties - Court emphasizes that action of state must conform to principles of fairness and non-arbitrariness. (Paras 12, 13, 22, 23)

(B) Public Interest - The State should ensure that licenses are granted without creating monopolies and vested interests, thereby promoting equitable distribution of resources. (Para 22)

Facts of the case:
The writ petitioner challenged termination orders for his business licences at Erraguntla Bus Station, alleging arbitrary action by the Respondent. Prior to this, the Respondent Corporation had mismanaged tenders, permitting the petitioner to sub-let premises, violating licence conditions.

Findings of Court:
The Court found substantial evidence against the petitioner regarding the violation of licence conditions and sub-letting. Hence, the petition for relief was dismissed, with recognition of the detrimental practice of issuing multiple licences to one person.

Issues: Whether the termination of the petitioner’s licenses was justified given the allegations of sub-letting and licence violations, and the legality of the tender notification.

Ratio Decidendi: The Court concluded that state action must be fair, reasonable, and not arbitrary, aligning with Articles 14 and 39 of the Constitution. The practice of awarding numerous licenses to a single individual creates vested interests and contradicts public interest.

Result: Writ Petition dismissed; Tender notification quashed.

Table of Content
1. hearing and procedural initiation of the writ petitions. (Para 1 , 2)
2. aggrieved party's claims regarding licence terminations and tender process. (Para 3 , 4 , 5)
3. respondent's counterclaims about licence violations and sub-letting. (Para 6 , 7)
4. court's analysis of violation of licence conditions. (Para 8 , 9 , 10)
5. conclusion on the infructuous nature of certain writ petitions. (Para 11 , 12)
6. legal principles governing governmental action and rights related to public largesse. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
7. judgment on quashing the tender notification and ensuring fairness in future bidding. (Para 22 , 23 , 24)

ORDER :

1. Heard Sri Venkateswarlu Kolla, learned Counsel for the Writ Petitioners in W.P.No.1690 of 2024, 30041 of 2023, Smt. G. Urmila, learned Counsel appearing on behalf of Smt. P. Vijaya Kumari, learned Counsel for the Writ Petitioner in W.P.No.32835 of 2022 and Sri Aravala Rama Rao, learned Standing Counsel for APSRTC.

2. The Writ Petitioner is the same person in all the four Writ Petitions. As no cause survives in W.P.Nos.31871, 32835 of 2022 & 30041 of 2023, these Writ Petitions have become infructuous.

3. The Writ Petition bearing W.P.No.1690 of 2024 is filed seeking the following relief :

“…….to issue Writ, Order or Orders more particularly in the nature of Writ of Mandamus declaring the action of District Public Transport Officer (Respondent 3) in issuing termination orders of my licence dated 08-12-2023 for open space No. 03, 04 , 06 ,07, 10 and also open space No. 05 & 08 dated 15-11-2023 and also inviting fresh tenders dated 4-1-2024 for open spaces in Erraguntla Bus Station of Kadapa, YSR District as illegal, arbitrary, capricious and against principles of natural justice offending articles 14, 19, 21 and article 300 of the Constitution of India and consequently quash or set aside the termination orders dated 8-12-2023 for open space No. 03, 04, 06, 07, 10 and 15-11-2023 for open space No. 05 & 08 and also the tender notification dated 4-1-2024 issued by the District Public Transport Officer Kadapa, YSR District and pass such other Order or Orders as may deem fit and necessary in the circumstances of the case.”

FACTS AS PER WRIT PETITIONER:

4. The above prayer would indicate that the Writ Petitioner is aggrieved of the Termination Orders of his licences in respect of Open Space Nos.3,4,5,6, 7,8,10. The Writ Petitioner is also aggrieved of the issuance of the latest Tender Notification dated 04.01.2024 for the above mentioned Open Spaces (Ex.P.1). The above prayer would indicate that the Termination Orders were passed in the months of November and December, 2023, and thereafter, the Respondents have issued Tender Notification dated 04.01.2024. Previously, the Respondent APSRTC Kadapa Region has called for bidding of Open Spaces and issued Tender Notification dated 05.01.2022 for grant of licences for doing different kind of businesses at Yerraguntla Bus Station by fixing a monthly licence fee. The Writ Petitioner had participated in the Tender process and secured allotment letters for Open Spaces dated 31.03.2022 for Open Stall Nos.5 to 10 for the purpose of running different businesses for a period of five years. Licence fee for each of the Open Spaces was payable on monthly basis. The Writ Petitioner entered into an Agreement for running the said Open Spaces on 16.06.2022. The Writ Petitioner has also entered into an Agreement on 25.04.2023. It is submitted by the learned Counsel for the Writ Petitioner that the Respondents have issued Show Cause Notices dated 10.10.2023, 2011.2023 & 24.11.2023 in respect of payment of monthly licence fee for the months of November, 2023.

5. The Writ Petitioner has filed W.P.No.28876 of 2023 challenging the said Show Cause Notices dated 10.10.2023, 2011.2023 & 24.11.2023. Vide Order dated 03.11.2023, this Court has disposed of the W.P.No.28876 of 2023 directing the Writ Petitioner to submit the explanation to the Show Cause Notice

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