Decided on November 07,2019

Y. P. Naidu Appellant


M. Ganga Rao, J. - (1.)This writ petition is filed to issue writ of mandamus declaring the action of the 2nd respondent in passing the impugned termination of licence vide proceedings No.P4/797/(9-1)/15-RM/VSP, dated 18.05.2019 and the consequential action of the 3rd respondent in stopping supplying of power and water on 19-05-2019 as illegal and arbitrary.
(2.)The petitioner was a licensee in respect of open space Shop No.37 in Dwaraka Bus Station Complex, Visakhapatnam for running a business of Fast Foods, having been allotted pursuant to a tender notice dated 30-01-2015, on monthly rental at the rate of Rs.1,23,000/- initially for a period of three (3) years which would be extended for a further period of two (2) years, altogether the lease is valid for five (5) years for conducting the said business. As per the terms and conditions of the lease, the petitioner deposited an amount of Rs.4,56,570/- at the time of participating tenders and after confirmation of tenders in his favour, he has also deposited an amount of Rs.6,00,000/-. The lease was executed by the 2nd respondent on 08-05-2015 on payment of Rs.31,675/- as stamp duty on the lease deed for five years. Due to violation of the agreement conditions, a show cause notice of termination of licence was issued on 13-05-2019 alleging that in violation of the agreement conditions, he was selling Full Meals and Water bottles in its premises. The petitioner submitted his explanation on 14-05-2019. Considering the said explanation, wherein he admitted selling full meals and water bottles, the licence was terminated vide proceedings No.P4/797(9- 1)/15-RM/VSP, dated 18-05-2019. Being aggrieved by the termination of licence, the present writ petition came to be filed.
(3.)The respondents filed their counter contending that the petitioner was allotted Open Space No.37 in Dwaraka Bus Station, Visakhapatnam in pursuance of the tender notification dated 30.01.2015 on monthly rental basis of Rs.1,23,000/- to carry out the business of Fast Food Centre and he deposited Rs.10,56,570/-. The initial lease period is for three years, which will be extended for a further period of two years. The monthly rent will be increased by 10% for 4th year and increased by 15% for the 5th year over the fourth year licence fee. At the time of finalization of tenders, the petitioner paid Earnest Money Deposit (EMD) of Rs.6,00,000/- as per tender notification. As per the terms and conditions, the licencee has to pay Security Deposit of Rs.9,33,570/- and one month Advance Licence Fee of Rs.1,23,000/-. The petitioner was issued a allotment order vide proceedings P4/797/(9.1)/2015-RM/VSP, dated 13-02-2015 and the petitioner was advised to pay difference of Security Deposit amount of Rs.4,56,570/-. The petitioner deposited the amount and entered into agreement with the Corporation on 08.05.2015 for a period of five years from 01-05-2015 to 30-04-2020 and paid stamp duty of Rs.31,675/-. As per the terms and conditions of the agreement, the petitioner is to sell fast food items, viz., idly, vada, upma, chapatti, vegetable biryani, curd rice, lemon rice, mysore bajji, tomato bath, poori, pakoda, dal vada, utappam, tea, coffee, milk, butter milk, bornvita, boost, maltova, horlicks. But, contrary to the terms of agreement, the petitioner sold unpermitted items like full meals and water bottles and violated the terms and conditions of the licence. The petitioner was issued notices not to sell unpermitted items in his business premises and also imposed penalty, the details of which are furnished below:
1) On 08-12-2015, notice was issued for selling full meals and water bottles, cool drinks instead of permitted business of Fast Foods;

2) On 15-12-2016, issued notice to licencee for selling meals in day time and night time and imposed penalty of Rs.1000/-;

3) On 30-12-2016 issued notice to licencee for selling Cool drinks, water bottles, meals instead of permitted business of Fast Foods;

4) On 17-12-2017, a notice was issued to the licencee for dumping the waste material in the canal which resulting in emanating of bad smell and also imposed fine of Rs.1000/- to that extent;

5) On 31-05-2017 issued notice duly imposing penalty of Rs.2,000/- for dumping waste materials i.e. Rice, Potatoes and onions in the canal in front of his shop which resulted in emanating of bad smell;

6) On 03-01-2019 issued notice for violation as he was selling meals and imposed penalty of Rs.2,000/-;

7) On 07-02-2019 notice was issued for business violations i.e., selling unhygienic food;

8) On 22-03-2019 another notice was issued for business violations of selling and water bottles.


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