IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Arup Kumar Goswami, Gautam Chourdiya, JJ.
M/S MMP Water Sports Pvt. Ltd, through Mr. B. Vijay Kumar authorized Representative, R/o Buddha Talab Main Gate - Appellant
Versus
Chhattisgarh Tourism Board, through Managing Directore, Raipur - Respondent
WPC No. 1844, 2479 of 2020
Decided On : 12-05-2022
Constitution of India,1950 - Article 226 Privity of contract - Execution of the deliverables - Integrated leisure destination’ - License Agreement Facts of case as pleaded by writ petitioner in WPC, inter alia, are that petitioner is a marine specialist company dealing with ports and marine infrastructure, ship building and ship repair, water front developments including floating marinas, water sports facilities and water activities with experience of 21 years - Respondent No. 1 had issued an Expression of Interest “for setting up, development, management and operation ‘integrated leisure destination’ and its peripheral - On being declared as a successful bidder, a License Agreement was executed between petitioner and respondent - Activities covered under planned scope of licensed premises included jetty with jet boats, floating party boat, water sports, adventure and amusement activities, etc - Held, In instant case, apart from fact that notice of termination was issued on wholly irrelevant and non-existence ground, there was no arbitration agreement of petitioner with respondent No. 2 and respondent No.3 - In that view of matter, we are of considered opinion that availability of alternative remedy is not an efficacious remedy in instant case - In view of above discussions, notice of termination is set aside and quashed - Respondent No. 1 is directed to take steps for delivery of deliverables to the petitioner at earliest - Musical fountain work has since been completed, successful bidder and respondent No.3 are allowed to complete musical fountain - Writ petitions stand allowed.
JUDGMENT :
Arup Kumar Goswami, J.
WPC No. 1844 of 2020 and WPC No. 2479 of 2020 are filed by the same petitioner against the same respondents and the subject matter in both the writ petitions are substantially same. In WPC No. 2479 of 2020, cause of action that had accrued subsequent to the filing of WPC No. 1844 of 2020 are incorporated.
2. These two petitions have been listed together and, accordingly, both the writ petitions are disposed of by this common order.
3. The facts of the case as pleaded by the writ petitioner in WPC No.1844 of 2020, inter alia, are that the petitioner is a marine specialist company dealing with ports and marine infrastructure, ship building and ship repair, water front developments including floating marinas, water sports facilities and water activities with experience of 21 years.
4. Respondent No. 1 had issued an Expression of Interest dated 06.12.2015 “for setting up, development, management and operation ‘integrated leisure destination’ and its peripheral area situated at Swami Vivekanand Sarovar (Budha Talab), Raipur, Chhattisgarh, (herein after referred to as ‘licensed premises’)”.
5. On being declared as a successful bidder, a License Agreement dated 25.10.2016 was executed between the petitioner and respondent No.1. The activities covered under the planned scope of licensed premises included jetty with jet boats, floating party boat, water sports, adventure and amusement activities, etc. The petitioner is to invest a sum of Rs. 12 crores in the project and that petitioner had already invested an amount of Rs. 5 crores. The project was to be operationalised in phased manner subject to receipt of permissions/approvals from the concerned authorities within the time-frame as provided in clause 4. In terms of clause 5, license period was 30 years from the date of commencement with a right of renewal for further 30 years.
6. Clause 5.3 provides that a period of eighteen months shall be given to furnish and develop the recreational facilities as per Phase-I (subject to delivery of deliverables) in order to start the Commercial Operations and that date after eighteen months of signing the License Agreement is termed as ‘Commercial Operation Date’ (COD).
7. After execution of the License Agreement, the petitioner, by an e-mail dated 23.11.2016 and letter dated 24.11.2016, requested the respondent No. 1 for commencing execution of the deliverables as per clause 2B of License Agreement which included parking provisions, lighting, power load, water connection, cleaning of water, sewerage connection, etc. It had also submitted vide letter dated 27.04.2017 the final site plan for the Swami Vivekanand Sarovar (Budha Talab) with the respondent No. 1 for approval for development of an integrated leisure destination, and for approval of the Building Plan and Development Plant of the License Area (Premises) in line with the terms of the License Agreement.
8. By a letter dated 19.06.2017, the respondent No.1 had granted partial approval for undertaking cleaning of the licensed premises, beautification of the pier and for starting the water sports and fountain under the supervision of respondent No. 3 and consultant. It was informed that approvals for balance work would be communicated to the petitioner later on.
9. Subsequently, the lease agreement was amended on 25.10.2017 to give effect to incorporation of Special Purpose Vehicle (SPV) for the execution of the project as required under clause 9.42 of the License Agreement. This amendment was executed in terms of clause 9.44. The amendment, amongst others, replaced “Modern Maintenance Products (India) Private limited” with whom respondent No. 1 had executed the contract dated 25.10.2016 by “MMP Water Sports Private Limited” in the License Agreement, which is the petitioner in the two writ petitions.
10. A Resolution dated 05.08.2017 was passed in a meeting of Mayor in-Council, approving the selection of the petitioner under Public-Private Partnership (PPP) mode for th
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