Termination of a license agreement must strictly adhere to the contractually mandated notice period; failure to provide the required advance notice renders the termination illegal and arbitrary, regardless of the grounds for termination.

ORDER:

Heard Sri C. Ramachandra Raju, learned counsel for the petitioner and Sri R. Anurag, learned Standing Counsel for respondents-TGRTC.

Perused the entire record.

2. The writ petition is filed with the following prayer:

“…to issue a Writ, Order or Direction more particularly one in nature of Writ of Mandamus, declaring the action of the 3rd respondent vide his order dated 29.04.2026, terminating the license of the petitioner in respect of his Stall No.14 in Jadcherla Bus Station is highly unwarranted, unjust, malafide, arbitrary, violative of principles of natural justice and contrary to Clause No.27 (a) of the License Deed and contrary to the Circular of the Corporation No.31/2017 dated 02.11.2017 and violative of Articles 14 and 21 of the Constitution of India, is illegal and unsustainable, and pass such other order or orders…”

3. The petitioner is a licensee of fast food and snacks stall No.14 open space (10X10) at TGSRTC Bus Station at Jedcherla. The said allotment was made pursuant to compromise recorded before the Lok Adalat on 28.09.2024 in W.P.No.32934 of 2018. As per said compromise, the TGSRTC could not provide kitchen-related facilities such as commercial LPG bunk, RO water connection, inlet-outlet, and drainage arrangements. The petitioner waived his right to such facilities and agreed to operate the stall on the terms enumerated in the compromise. As per said compromise, the petitioner is paying license fee of Rs.2,75,000/- per month exclusive of GST i.e. Rs.3,24,500/- inclusive of GST which translates into Rs.3,245/- per square feet per month. Such license fee is the highest among all TGSRTC licenses. The petitioner submitted representations dated 11.07.2025, 25.07.2025, 13.08.2025, 25.08.2025 and 16.09.2025 through email with proof as to rampant violation of conditions by other stall holders and continued non-enforcement by TGSRTC. However, the respondents have not taken any substantive action against the remaining stall holders for breach of license. In the circumstances, the petitioner filed writ petitions to direct the respondents to consider his case for revision of monthly rent/license fee and other reliefs.

4. During the pendency of the said writ petitions, the respondents issued termination of deed of license dated 28.04.2026 referring to default in payment of license fee by the petitioner for the months from October, 2025 to February, 2026 Rs.16,14,669/- excluding electricity and other charges. On account of consecutive non-payment of license fee for more than three months, respondent no. 2 has issued show-cause notice dated 07.03.2026 for termination of deed of license calling for explanation. The petitioner was informed to pay all the due amounts within one week. The petitioner submitted explanation vide communication dated 20.03.2026 requiring the respondents to arrange to stop the sale of unauthorized items by surrounding stall owners and take necessary steps to stop the buses on the designated platforms. The respondents have initiated necessary action and imposed penalties on all the unauthorized businesses.

5. According to respondents, no stall is selling items permitted to be sold by the petitioner and therefore, there is no direct link between the sale of unauthorized items in surrounding stalls and inability of petitioner to pay the monthly license fee. In that context, the respondents have adjusted the security deposit of Rs.23,01,198/- as against dues of Rs.23,71,558/-. The petitioner was informed about the outstanding license fee of Rs.23,7