The State has wide discretion in policy matters relating to costs and license fees, especially for commercial properties, and the court's power of judicial review in such matters is limited.

Sanjiv Khanna, J.

The Writ Petitions have similar facts and raise common questions of law. They were heard together and are being disposed of by this common judgment, with Writ Petition No.3383/2008 titled Rajesh Maan versus Delhi Metro Rail Corporation (hereinafter referred to as DMRC, for short) as the lead case.

2. The respondent-DMRC in September 2004 had invited applications for usage of spaces on license basis at metro stations on pre- determined rates on first cum first served basis. The petitioners herein had applied for allotment/usage of spaces at metro stations at pre-determined rates. Their applications were accepted and they were allotted the specified area for which they were liable to pay license fee at predetermined rates on per sq.mtr. basis. The license deeds executed are identical though the quantum of license fee being charged on per sq. mtr. basis was different depending upon the metro station where the space is located. The license deed was for a period of three years containing the following clause:-

“18. That the Agreement provided herein shall terminate at the end of the period agreed to herein i.e. three years reckoned from the days, 30 days after the date of issuance of letter of Acceptance by DMRC, except that the agreement may also be terminated earlier in accordance with the terms of this Deed.”

3. It is an accepted stand of the parties that the period of three years for which the initial license was issued has expired.

4. In Writ Petition No.3383/2008, the petitioner was permitted to use carpet area of 6 sq.mts for a kiosk at the Pitampura rail corridor station on fixed license fee of Rs.1200/-p.sq.mtr./p.m. in addition to quarterly maintenance fee of Rs.50/-. The area allotted to Mr.Rajesh Maan-the petitioner in Writ Petition no.3383/2008 was increased on his request. When the license period expired in October, 2007, the petitioner-Mr. Rajesh Maan was asked to vacate by notice dated 18th October, 2007. The Petitioner requested for extension of time and the said request was acceded to and the period of license was extended to April, 2008. By letter dated 17th April, 2008, the respondent-DMRC informed Mr.Rajesh Maan that DMRC could extend the period of license on payment of enhanced license fee @ Rs.2500/- p.sq.mtr/p.m. By letter dated 25th April, 2008, new terms and conditions of re-allotment were sent by the respondent-DMRC to Mr.Rajesh Maan. The petitioner objects to the enhanced license fee as demanded for extension/renewal of the license.

5. Learned counsel for the petitioners submitted that the increase in license fee by respondent-DMRC is exorbitant and is not based upon any rational or logic. It was submitted this constitutes 600% increase in the original license fee of Rs.400/-p.sq.mtr/p.m. It was further submitted that the respondent-DMRC being a State cannot act in an arbitrary manner and claim enhanced license fee.

.6. In the counter affidavit filed by the respondent-DMRC, they have submitted that the license fee received from others who were allotted licenses between October, 2004 and April, 2008 formed the basis and rationale for the increase in license fee. It is stated that the respondents have re-classified metro stations into categories A, B and C depending upon commercial viability and income from kiosks located in the said stations. It is stated that fee now fixed for A, B and C category metro stations is a well informed and a considered decision which cannot be categorized as arbitrary.

7. In the rejoinder affidavit filed by the petitioners, additional and new allegations have been made against the said categorization of stations as A, B and C. It is stated that some of the metro stations like Kashmere Gate have been wrongly categorized as stations falling under category A and the ridership on line 1 is much lower than what is being projected. It is also stated that some of the kiosks are located in non-paid area i.e. the area where a person need not have a valid ti