COMMON ORDER

These writ petitions have been filed challenging the tender notifications issued by the first respondent dated 18.03.2024, thereby floated two tenders to renovate, operate, maintain and transfer of 363 &

402 modern bus shelters in Chennai Corporation area.

2. The first respondent originally floated tender for construction, operation and maintenance of modern bus shelters in Chennai Corporation Area on Build, Operate and Transfer (hereinafter after referred to as “BOT”) basis. It was divided into three packages and each package has 50 bus shelter, thereby the first respondent desired to replace the existing bus shelters and construct new bus shelters with eco- friendly designed shelters. It was for a period of 15 years. As per the tender conditions, the tenderer shall construct modern bus stops within a period of three months and shall maintain it for 15 years. The tenderer have right to collect revenues from advertisements out of each bus shelter and shall remit a portion of the revenue to the respondents as annual concession fee.

3. The petitioners were successfully awarded the contract at the rate of Rs.1,85,300/- per bus shelter for one year. Thereafter, it was fixed as Rs.1,85,800/-. On negotiation, the final quote was fixed at the rate of Rs.2,11,580/- per bus shelter per year. Accordingly, the petitioners and the respondents had entered into Letter of Acceptance and executed an agreement on 31.12.2015. The petitioners have to pay the concession fee of Rs.2,11,580/- per bus shelter per year which would increase at the rate of 5% per year for the first ten years and 15% for the remaining five years. Accordingly, the petitioners constructed bus shelters and are paying concession fee every year. During Covid-19 pandemic situation, the petitioners sought for waiver of payment of concessionaire fees and the same was not considered by the first respondent. Due to which, a dispute arose between the petitioners and the first respondent and the arbitration proceedings are under process with regard to payment of concession fee.

4. While being so, the first respondent floated an another tender notification on 23.02.2023, for renovation, operations and maintenance of 844 bus shelters divided into 12 corridors. The contract was awarded for the sum of Rs.11,843/- per month for 844 bus shelters. It was lower than the price fixed by the first respondent insofar as the petitioners as concession fee and as such the petitioners approached this Court in W.P.No.7962 of 2023, challenging the tender notification dated 23.02.2023. However there were no bidders in the tender and as such it was not acted upon and the writ petition was also disposed of. The petitioners also filed application under Section 9 of the Arbitration and Conciliation Act, to restore the economic balance under the contracts executed between the petitioners and the first respondent dated 31.12.2015. It was also closed, since there was no bidders for the tender notification dated 23.02.2023. While being so, the first respondent now floated the tender notification dated 18.03.2024 for renovation, operation, maintenance and transfer of 402 & 363 modern bus shelters in two packages. Challenging the said tender notifications the petitioners filed the present writ petitions.

5. The learned counsel appearing for the petitioners submitted that as per the tender documents, the concessionaire fee was fixed at Rs.14.50 crores per year for each of the 402 & 363 bus shelters respectively. It is paltry and lower than the rate which was fixed at the petitioners in the year 2015. The monthly concessionaire fee comes around Rs.30,058/- for one bus shelter. It also includes the statutory license fee which is levied by the Municipal Administration and Water Supply Department. The license fee is Rs.6,600/- per sq.mtr and the new tenders are floated for bus shelter of a standard size of 22 sq.mtr. Therefore, the license fee payable per bus shelter is Rs.1,45,200 /- sq. mtr., per year,