The tenure of a commercial licence must be computed from the date of effective commencement of operations rather than an artificial date, especially when delays were caused by external exigencies beyond the licensee's control, to ensure the fulfillment of the contractual object and prevent unjust truncation of the term.

O R D E R:

Petitioner is operating small catering stalls at Kacheguda Railway Station, which were allotted through the process of auction/tenders by Respondent No.2. They participated in Tender Notification dated 11.09.2019 issued by Respondent No.2 for award of licences for catering stalls at various Railway Stations under Respondent No.3 and was awarded licence for operation of General Minor Unit (GMU) Stall No. 008/KCG/01/FFJ, Fruit Juice Stall at Platform No.1, Kacheguda Railway Station under women quota for a period of five years at an annual licence fee of Rs.2,71,112/- per annum for the first three years and Rs.2,98,223/- for the 4th and the 5th years, as communicated vide Letter of Award dated 23.12.2019. A Master License Agreement dated 24.04.2020 was executed for a period of five years from 05.02.2020 to 04.02.2025.

1.1. Petitioner contends that Article 1.1 of the Master License Agreement dated 24.04.2020 provides that Railway shall provide space for erecting the stall and that the date of commencement of the contract shall be the actual date of completion of erection of the stall or 30 days from the date of receipt of communication of allotment of space, whichever is earlier. Article 2.1 provides that the plan for commencement of operations shall be undertaken by the parties and that it shall be the duty and exclusive obligation of the licensee to propose the plan for commencement of operations subject to approval of the Railway. Article 3.1 provides that the tenure of the agreement shall commence on the commencement date as provided in Article 1.1 and shall be for a period of five years from 05.02.2020 to 04.02.2025.

1.2. The allotment of location was communicated vide letter dated 24.04.2020 and Petitioner erected the modular catering stall in compliance with the tender conditions, however, the business could not be commenced due to the outbreak of COVID-19 followed by lockdown and declaration of dies-non period of 375 days by Respondent No.2.

1.3. After lifting of lockdown, the initially-allotted location was found to be adjacent to Pay & Use toilets, causing inconvenience to passengers, and therefore the Petitioner submitted a request dated 07.04.2021 to Respondent No.3 seeking allotment of an alternate location. The said request was considered by Respondent No.3 and vide letter dated 05.05.2022, approval for alternate location was communicated with advice to execute an agreement. Power connection was provided to the stall vide ADEE letter dated 17.05.2022 upon payment of applicable charges. Petitioner commenced business in the stall from 26.05.2022 and intimated the same to Respondent No.3 vide letter dated 26.05.2022, and accordingly the tenure of five years is to be reckoned from 26.05.2022 and would expire on 25.05.2027.

1.4. A Rider Agreement dated 30.08.2023 was drafted by Respondent No.3 stating that the contract was in vogue up to 04.02.2024 and that, on account of grant of 375 days of dies-non, the contract stood extended from 04.02.2024 to 14.02.2026. The said dates mentioned in the Rider Agreement are the result of a clerical and inadvertent error, as the original tenure of licence was up to 04.02.2025 and consequently, the dies-non extension ought to have been reflected from 04.02.2025 to 14.02.2026, and such clerical error has been orally acknowledged by Respondent No.3.

1.5. The erroneous mention of expiry date in the Rider Agreement unlawfully curtails the tenure of the Petitioner's licence by more than one year and, if acted upon, would result in grave and irreparable financial lo