Licensing agreements allow for extensions based on satisfactory performance but are not automatically guaranteed; discretion to extend lies with the authority considering public interest and market assessments.

JUDGMENT

Vipin Sanghi, J. (ORAL)

CM APPL. 13944/2021

Exemption allowed, subject to all just exceptions.

The application stands disposed of.

W.P.(C) 4547/2021 & CM APPL. 13943/2021

1. Issue notice. Ms. Pushkarna accepts notice on behalf of the respondents.

2. We have heard learned counsels at some length. At this stage itself, we proceed to dispose of the present writ petition.

3. The petitioner has preferred this petition to restrain the respondents from proceeding to call for bids in respect of the parking site for Car/Two Wheelers/Three Wheelers near Ruby Taxi Stand at Distt. Centre, Rajendra place vide e-tender dated 16.03.2021, NO. DC/RP CELL/NDMC/2021/D 539 and Corrigendum/addendum dated 26.03.2021, No. DC/RP CELL I NDMC/2021/D-601 listed at Item No. 75 of the Tender List.

4. The case of the petitioner is that the petitioner was awarded the contract for the aforesaid parking site for a period of two years by the Letter of Intent on 23.01.2019. The two year period expired on 22.01.2021. In terms of Clause 3 of the License Conditions, the petitioner applied for renewal of Licence. According to the petitioner, the petitioner is entitled to extension of license for a further period of two years - one year at a time, with enhancement of monthly license fee by 5%. For this purpose, the petitioner places reliance on Clause 3 of the Licence Conditions, which reads as follows:

"3. Duration of License:

The license of surface parking will be for duration of two years and in case of MLUG/Stack Parking(s) the duration would be of three years respectively, further extendable to two years on satisfactory completion of the existing contact (with effect from the date of handling over the parking site to the licensee). However, the agreement shall be renewed after the expiry of each one year with the enhancement of Monthly License Fee by 5% (Five Percent) for the next year, subject to the satisfactory completion of period of first year of contract. Satisfactory completion implies that there should not be any dues pending against the contractor. However, if the allottee/licensee continue to operate the site after expiry of period his security deposit and other parking facilities etc. provide to/by him will be forfeited and action be taken to vacate him from the site considering him as an encroacher. However, he shall be liable to pay to the Corporation the misuse/damages charges @ double the Monthly License Fee for such period of unauthorised occupation."

5. Learned counsel for the petitioner submits that after the filing of this Writ Petition, the petitioner has received a communication extending the licence period till the new H-1 Bidder takes over the parking site from the petitioner in terms of the impugned NIT. Thesaid communication has been shared with us, and the same reads as follows:

"North Delhi Municipal Corporation.

(Remunerative Project Cell)

16th Floor, Civic Centre

Minto Road, New Delhi-110002

Tel. No. 23226602.

No. DC/RP Cell/NDMC/2021/D-024

Dated:-09/04/2021.

To,

Sh. Sushil Kumar Singh,

R/o H. no. 178-A, Gali No. 4/2,

Karwal Nagar, Extn., Delhi 110042.

Sub:-Extension of the Contract of parking site situated at Near Ruby Taxy stand at Distt. Cnetre Rajender Place/Karol Bagh Zone.