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2024 Supreme(Online)(DEL) 31547

HIGH COURT OF DELHI
Sanjeev Narula, J
M/S DROPADI FOODS THROUGH ITS PARTNER – Appellant
Versus
GOVERNMENT OF NCT OF DELHI THROUGH SECRETARY CUM COMMISSIONER & ANR. – Respondent
W.P.(C)-14023/2024



Advocates:
Mr. Himanshu Pathak, Mr. Aman Jha, Mr. Rishi, Mr. Amit Singh, Mr. Anuj Kapoor, Ms. Kriti Kapoor, Mr. K.K. Varma, Mr. Hemank Chawla, Mr. Bharat Sharma, Mr. Prashant Manchanda, Ms. Nancy Shah, Mr. Rohan Pratap Singh, Ms. Dimpy Chillar, Ms. Nimit Bhimjiyani, Mr. Ripudaman Bhardwaj, Mr. Kushagra Kumar, Mr. Abhinav Bhardwaj

The court upheld the validity of license termination for redevelopment, emphasizing that legitimate expectation cannot override explicit contractual terms.

Headnote:(A) Writ Jurisdiction - Termination of License - The Petitioners challenged the termination notice dated 10th September, 2024, claiming it was arbitrary and unsubstantiated due to alleged redevelopment at the ISBT, Anand Vihar - The Respondents asserted that the termination was justified under the tender conditions allowing termination with one month’s notice for redevelopment - The Court found that the Petitioners were aware of the risk of termination and that the redevelopment project was legitimate and ongoing. (Paras 1-10)

(B) Legitimate Expectation - The Petitioners argued they had a legitimate expectation to continue operating their kiosks; however, the Court ruled that such expectation cannot override explicit contractual terms allowing termination. (Paras 11-14)

Facts of the case:
The Petitioners, licensees of kiosks at ISBT, Anand Vihar, challenged the termination of their licenses on grounds of unsubstantiated redevelopment claims, asserting their rights were violated. (Paras 1-3)

Findings of Court:
The Court found the termination notice valid under the tender conditions, emphasizing the Petitioners' awareness of the potential for termination due to redevelopment. (Paras 10-12)

Issues: The main issues included the legitimacy of the termination notice and the Petitioners' claim of legitimate expectation against the explicit terms of the license agreement. (Paras 1, 11)

Ratio Decidendi: The Court held that the explicit terms of the license agreement permitted termination for redevelopment, and legitimate expectation could not override these terms. (Paras 11-14)

Result: The petitions were disposed of with a one-month grace period for the Petitioners to vacate their kiosks.

JUDGMENT

SANJEEV NARULA, J. (Oral):

1. The Petitioners, who are licensees of kiosks at the Inter State Bus Terminals1 in Anand Vihar, Delhi, have filed this writ petition challenging the termination notice dated 10th September, 20242. The Impugned notice(s), issued by Respondent No. 2, terminate their licenses on the purported grounds of redevelopment of the ISBT. However, the Petitioners contend that this reason is unsubstantiated, arguing that no large-scale redevelopment is taking place at the site. They claim that only minor repair work is underway, which is being carried out in phases, and does not warrant the termination of their licenses. Additionally, they argue that no formal tender for redevelopment has been issued by Respondent No. 2, further 1 “ISTBs”

Signature Not Verified Digitally Signed W.P.(C) 14023/2024 & connected matters Page 2 of 11 undermining the legitimacy of the termination notice. In light of these facts, the Petitioners argue that the termination is arbitrary, devoid of reason, and in clear violation of their rights.

2. The Petitioners further argue that under the 2016 policy,3 Respondent No. 2 is duty bound to provide alternative space/ shop in case of re- development. Respondent No.2 must therefore be directed to provide alternative space/shops at the ISBTs to the Petitioners as they are under an obligation to do so. Considering that alternative spaces or shops are available and Respondent No. 2 has opted to terminate the license rather than provide these alternatives, the Impugned notice of termination is inherently illegal.

3. Additionally, the Petitioners argue that the kiosk in question is their primary source of livelihood, and its forced termination would result in severe financial hardship for their families. The Petitioners had a legitimate expectation of continuing to operate the shop for the entire duration of the contract and the sudden and premature termination frustrates the legitimate expectation which is protected under law. Reliance is also placed on the order dated 24th September, 2024 passed in case titled as Mukesh Singh v.

Government of NCT of. Delhi & Anr.4

4. These instant petitions are taken up along with another writ petition W.P.(C) 13930/2024 titled as Tara Singh Jeena v. Government of NCT of Delhi & Anr. In W.P.(C) 13930/2024 and W.P.(C) 13929/2024, this Court on 3rd October, 2024, placing reliance on order dated 24th September, 2024 in W.P.(C) 13372/2024, had granted interim protection to the Petitioners

2 “Impugned notice”

3 Office Memorandum bearing no F.No. DTIDC/2012-13/280/479 dated 1st August 2016 Signature Not Verified Digitally Signed W.P.(C) 14023/2024 & connected matters Page 3 of 11 which was directed to continue till today.

5. The Respondents have filed their counter-affidavit in W.P.(C) 13930/2024. Given that all the petitions raise similar grounds of challenge, the Respondents request that counter-affidavit be treated as part of the record for all the connected petitions. Accordingly, the Respondents are instructed to ensure that a copy of the counter-affidavit is placed on record in each of the pending petitions. The Respondents have clarified that the termination of the allotments is due to the impending redevelopment work at the ISBT, Anand Vihar. In support of this claim, they have submitted several documents with their affidavit, including a cabinet note. A careful perusal of the said documents reveals that the planning for the redevelopment of the existing Sarai Kale Khan ISBTs and Anand Vihar ISBTs has been in progress for several years. Unfortunately, despite being in the pipeline for the last 14 years, the redevelopment work had not materialized until now. However, as per the cabinet decision dated 10th May, 2023, the responsibility for the redevelopment of both the Anand Vihar and Sarai Kale Khan ISBTs has been formally assigned to the Delhi Metro Rail Corporation.5 DMRC has been entrusted with the comprehensive planning, supervision of construction, and D

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