IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
G. Mahender and Others - Petitioners
Versus
TSRTC and Others - Respondents
W.P. No. 25451 Of 2023
Decided On : 30-10-2023
LICENCE TERMINATION - MGBS PARKING - DIGITALIZATION - JURISDICTION - SHOW CAUSE NOTICE - LEGITIMATE EXPECTATION - COLOURABLE EXERCISE OF POWER - PUBLIC INTEREST - CONTRACTUAL OBLIGATION - WRIT MAINTAINABILITY - PUBLIC POLICY - SUBSTANTIAL JUSTICE - JUDICIAL REVIEW - EQUITABLE JURISDICTION - HUMANITARIAN GROUNDS - RIGHT TO LIVELIHOOD - RIGHT TO OCCUPATION:
Fact of the Case:
Petitioners, holding licenses for two-wheeler and four-wheeler parking in MGBS, Hyderabad, challenged the termination of their licenses by the 3rd respondent, Deputy Regional Manager, TSRTC, for the purpose of introducing a modernized digital parking system. The petitioners argued lack of jurisdiction, absence of a show cause notice, violation of legitimate expectation, colourable exercise of power, and deprivation of substantial license period. The respondents contended that the termination was in accordance with the terms and conditions of the license deed, and that the decision was taken in the public interest to provide better services to customers.
Finding of the Court:
The court held that the termination of licenses was within the jurisdiction of the Deputy Regional Manager, TSRTC, as the nomenclature of Divisional Manager was changed to Deputy Regional Manager. The court also held that the issuance of a show cause notice was not mandatory as per the terms of the license agreement. The court further held that the petitioners' legitimate expectation of completing the full license period was outweighed by the public interest in providing modernized digital parking facilities. The court also rejected the argument of colourable exercise of power, finding that the termination was in accordance with the terms of the license agreement and was not arbitrary or mala fide.
Issues: 1. Whether the termination of licenses was within the jurisdiction of the Deputy Regional Manager, TSRTC? 2. Whether the issuance of a show cause notice was mandatory before termination of licenses? 3. Whether the petitioners' legitimate expectation of completing the full license period was violated? 4. Whether the termination of licenses was a colourable exercise of power?
Ratio Decidendi: 1. The court held that the termination of licenses was within the jurisdiction of the Deputy Regional Manager, TSRTC, as the nomenclature of Divisional Manager was changed to Deputy Regional Manager, and the same authority had issued the licenses. 2. The court held that the issuance of a show cause notice was not mandatory as per the terms of the license agreement, which permitted the Corporation to terminate the license by giving three months' advance notice. 3. The court held that the petitioners' legitimate expectation of completing the full license period was outweighed by the public interest in providing modernized digital parking facilities, and that the interest of general public/passengers outweighs the personal interest of the petitioners. 4. The court held that the termination of licenses was not a colourable exercise of power, as it was in accordance with the terms of the license agreement and was not arbitrary or mala fide.
Final Decision: The court dismissed the writ petition, holding that the termination of licenses was valid and in accordance with the terms and conditions of the license agreement. However, the court directed the respondents to consider the petitioners' request for handing over the subject sites of the stalls after completion of digitalization work, on humanitarian grounds, duly considering the fact that it is through the said stalls that the Petitioners earn their daily bread and butter so that Petitioners right to livelihood, right to occupation stands protected.
ORDER :
Heard the learned counsel Mr. C. Ramachandra Raju, appearing on behalf of the Petitioners and Mr.Harendar Prasad, learned Special Government Pleader representing Mr.Thoom Srinivas, learned standing counsel appearing on behalf of respondents.
2. This writ petition is filed to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus, declaring the action of the 3rd respondent, terminating the licences of the petitioners in respect of their respective Stall Nos.95, 97 and 93 respectively in MGBS, Hyderabad, vide his proceedings No.P4/122(75)/2021-RR, P4/122(32)/2022-RR and P4/122(73)/2021-RR, dated 15.06.2023, is without jurisdiction, highly unwarranted, highly unjust, arbitrary, illegal, violative of principles of natural justice, contrary to the terms and conditions of the licence deeds of the petitioners, colourable exercise of power and violative of Articles 14 and 21 of the Constitution of India.
PERUSED THE RECORD :
3. The counter affidavit filed by the Respondents, in particular, Paras 3, 4, 5, 8, 13, 18, and 19 read as under:
4) I respectfully state that in contractual matters, the terms and conditions of the deed of license will govern and the concept of legitimate expectation does not arise. The Respondent Corporation never assured the Petitioners with regard to the period or in any manner, as mentioned above the terms and conditions of the deed of license will govern. The clause 23 of the deed of license permits the Respondent Corporation to issue 3 months advance notice for termination, as such the same cannot be found fault. In the impugned notices, it is specifically mentioned that the digitalization of parking system is to provide better facilities to the passengers and in the public interest. The Petitioner herein having entered the deed of license with wide open eyes, cannot be permitted to dictate the terms stating that the corporation can suspend the license for time being and for limited purpose. It is for the Respondent Corporation to take appropriate decision in the interest of public, as to what are required to be done. The advice of the Petitioner does not warranted in this regard. Further, the Clause 23, mandates issuance of three months advance notice and there is no provision of issuing a show cause notice as per the terms and conditions of the agreement, as such the same is not mandatory. The issuance of impugned orders are in accordance with the terms and conditions entered between the Petitioners and Respondent Corporation.
5. I respectfully state that, though the petitioners made their representations to drop the proceedings, the same cannot be considered, since the Respondent Corporation has issued the impugned notices as per the terms and conditions of the deed of license and the impugned notices are issued for better services to the customers who park their vehicles and in the interest of public. I respectfully state that as per clause 25 of the agreement, the Licensee shall make his/ her own arrangements for procuring necessary equipment for carrying out his/ her business. In view of the above clause, the claim of the Petitioner, that they have invested huge amounts does not support his case. The Respondent Corporation never insisted the Petitioners to provide any software facility, as claimed in the Writ Petition/ It is the policy decision of the Corporation to provide better services to the customers who park their vehicles in the MGBS and as such the present notices were issu
The termination of a license agreement is valid if it is in accordance with the terms and conditions of the agreement, and the public interest outweighs the personal interest of the licensee.
The court held that the termination of a license by a public authority is not arbitrary or discriminatory if it is done in accordance with the terms of the license agreement and is necessary to achie....
Demand for license fee before business commencement violates natural justice principles and must be based on factual correctness.
Section 4 of Public Premises Act has provided for issue of show cause notice against order of eviction.
Termination of a license without a show cause notice or consideration of refundable fees violates natural justice and judicial directives.
The State and its instrumentalities, including the respondent Corporation, must act in a fair and reasonable manner, adhering to the principles of natural justice and fairness, even in the field of c....
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