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2022 Supreme(Online)(KER) 46669
HIGH COURT OF KERALA
V. G. Arun, J
M/S. ARENCO CATERING, – Appellant
Versus
SOUTHERN RAILWAY, – Respondent
WP(C)/42420/2022
K.SANEESH KUMAR, V.B.SANTHINI
The court affirmed the right to seek renewal of license agreements and emphasized the importance of public interest over administrative actions.
Headnote:
Contract - Catering Stall - Writ Petition - Licence Fee Dispute - Court Directions
Fact of the Case:
The petitioner firm was awarded a contract for a catering stall at a railway station, with a fixed licence fee. As the contract was approaching expiry, the petitioner sought renewal due to concerns over potential closure amid a dispute regarding the fee.
Finding of the Court:
The court acknowledged the public interest in maintaining the catering stall and directed that the stall could continue operations upon the petitioner depositing a specified amount and remitting the current license fee. The court emphasized the necessity for a decision on the renewal application.
Issues: Whether the petitioner is entitled to continue operations of the catering stall pending a decision on the renewal application and the disputed licence fee.
Ratio Decidendi: The court determined that the continuation of the stall serves public interest and that the authority must decide on the renewal application, indicating that license agreements can be subject to renewal as per established clauses.
Final Decision: Writ petition allowed with conditions for operation continuation.
JUDGMENT
Dated this the 23rd day of December, 2022 The petitioner firm was awarded the contract for conducting a catering stall in Kozhikode Railway Station for a period of five years. The licence fee was fixed as Rs.16,51,000/- per annum. The stall was commissioned on 31.03.2016. As the period of licence was to expire on 31.03.2021, the petitioner submitted Ext. P13 application for renewal by invoking Clause 3.2 of Ext. P4 agreement. The petitioner apprehends that the respondents may close down the unit without notice as the quantum of licence fee payable is under dispute. Hence, this writ petition seeking a direction to the respondents to consider Ext. P13 representation and extend the license period accordingly.
2. Heard the learned Counsel for the petitioner and the learned Deputy Solicitor General.
Considering that closure of catering stall will be against public interest, the writ petition is disposed of with the following direction;
The petitioner shall be allowed to conduct the catering stall subject to the petitioner depositing Rs.7.5 Lakhs within one month. The petitioner should also remit the present license fee without default. The railway authorities are at liberty to initiate fresh tender proceedings. The petitioner's right to continue will culminate on finalization of the tender proceedings, if any, initiated. In the meanwhile, the competent authority in the Railways shall take a decision on petitioner's application for renewal and Ext. P13 representation.
Sd/-
V.G.ARUN JUDGE
APPENDIX OF WP(C) 42420/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE LETTER OF AWARD DATED
29.4.2015 ISSUED BY THE 2ND RESPONDENT.
Exhibit P2 A TRUE COPY OF THE LETTER INTIMATING THE PAYMENT OF THE FIRST -YEAR LICENSE FEE TO THE
2ND RESPONDENT DATED 5.8.2015.
Exhibit P3 A TRUE COPY OF THE LETTER DATED 1.4.2016 INTIMATING THE COMMISSIONING OF THE CATERING STALL NO. 116 AT CALICUT.
Exhibit P4 PETITIONER HEREWITH PRODUCES THE RELEVANT PAGES OF THE MASTER LICENSE AGREEMENT DATED NIL.
Exhibit P5 A TRUE COPY OF THE JUDGMENT IN W.P.C
13914/2017 DATED 25.4.2017 BY THE HON'BLE HIGH COURT OF KERALA.
Exhibit P6 A TRUE COPY OF THE LETTER ISSUED BY THE 2ND RESPONDENT DATED 7.11.2022.
Exhibit P7 A TRUE COPY OF THE LETTER DATED 9.5.2017, ISSUED BY THE 1ST RESPONDENT STATING THAT THE PERIOD OF LICENSE IS TO BE RECKONED WITH EFFECT FROM 6.6.2015 TO 5.6.2020.
Exhibit P8 A TRUE COPY OF THE LETTER DATED 23.7.2021 ISSUED BY THE 1ST RESPONDENT TO THE SOLE ARBITRATOR WITH COPY TO THE PETITIONER.
Exhibit P9 A TRUE COPY OF THE LETTER ISSUED BY THE 1ST RESPONDENT DEMANDING THE DISPUTED LICENSE FEE TO THE TUNE OF RS. 22,30,536/- DATED
23.11.2022.
Exhibit P10 A TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER ON 30.11.2022 BEFORE THE
2ND RESPONDENT.
Exhibit P11 A TRUE COPY OF THE LETTER DATED 7.12.2022 ISSUED BY THE 2ND RESPONDENT.
Exhibit P12 A TRUE COPY OF THE RECEIPT EVIDENCING THE PAYMENT OF LICENSE FEE.
Exhibit P13 A TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER ON 13.12.2022.
