RAJPUT ADVERTISING SERVICE Vs. UNION OF INDIA
LAWS(ALL)-2009-5-790
HIGH COURT OF ALLAHABAD
Decided on May 26,2009

RAJPUT ADVERTISING SERVICE Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

Sunil Ambwani, Virendra Singh - (1.) THE petitioner is a registered proprietorship firm carrying on business of advertising. THE firm is registered with North Eastern Railways for displaying hoardings after entering into contract at Kalyanpur surrounding areas since 1990. By this writ petition the petitioner has prayed for quashing the order dated 13.2.2009, passed by Asstt. Commercial Manager, Izzat Nagar, Bareilly, U. P. and for renewing the contract for the year 2009-10 on an increase at 10% of the agreed rate for the previous year. Notices were accepted by Shri Govind Saran for all the respondents except respondent No. 5, a private firm. Shri Govind Saran has filed a counter-affidavit to which a rejoinder-affidavit is filed by the petitioner.
(2.) WE have heard Shri Anil Kumar Singh, the counsel for the petitioner and Shri Govind Saran for respondent Nos. 2, 3 and 4. It is admitted that prior to July, 2007 the petitioner firm had entered into a contract with the Divisional Railway Manager, Commercial, North Eastern Railway, Izzat Nagar for display of the hoardings. The dispute started with the invitation of tenders for the year 2007-08 for entering into contract for displaying hoardings for 4000 sq. ft. It is stated in para 8 of the writ petition that the petitioner was given the contract for an amount of Rs. 91,798 at the rate of Rs. 22.95 per sq. ft. For the year 2008-09 tenders are invited for a period of three years. The petitioner submitted the tender by increasing the rates at 10% at Rs. 33.33 per sq. ft. of Rs. 4,00,124 for 4000 sq. ft. It is stated that the tender were neither accepted nor rejected, and that the existing contract was renewed for a period of one year at 10% enhancement of the previous years rates, fixing the rate at Rs. 25.24 per sq. ft. for total amount of Rs. 1,00,978 for 4000 sq. ft. An advertisement was published on 7.1.2008 in the daily newspapers inviting fresh tenders for displaying hoarding at Kalyanpur surrounding areas for an area of 4000 sq. ft. on deposit of earnest money of Rs. 8,000. It is stated that the petitioner had received the letter of renewal of the contract on 11.3.2008 and was required to pay Rs. 1,00,978. The petitioner deposited the amount by a bank draft with letter dated 21.4.2008, which was acknowledged by the Asstt. Commercial Manager, Izzat Nagar, Bareilly on 12.5.2008. It is stated in para 15 of the writ petition that this acceptance of amount was for renewal of contract from 28.3.2008 to 27.3.2009.
(3.) THE petitioner received a letter from Asstt. Commercial Manager, Izzat Nagar dated 12.5.2008 reminding that the firm was allowed to display hoarding from 28.3.2008 to 27.3.2009. If the renewal fees is not deposited within a week at the end of the contract, his hoardings shall be removed and some one else will be allotted the space. THE petitioner lodged a protest on 22.10.2008 with the Chief Manager (Commercial), North Eastern Railway, Headquarter Gorakhpur, stating that he had submitted the tender with increased rates at 10% in pursuance of the advertisement dated 7.1.2008 for a period of three years and had deposited the amount calculated with increase of 10% on demand for a period initially for one year. THEreafter inspite of several letters he did not receive any response for renewal of contract for a period of three years upto 27.3.2011. THE petitioner requested that the amount of Rs. 1,00,978 deposited by him should be adjusted towards the amount for a period of one year of the three year contract. THE petitioner also protested to the oral orders of Shri D. D. Misra for deposit of Rs. 31,000 more for renewal fees. Once again the petitioner sent a letter on 31.1.2009 in response to the letter dated 22.1.2009 requesting that his renewal should be accepted upto 27.3.2010. The petitioner was informed on 13.2.2009 that the period of the contract will come to an end on 27.3.2009, and that for the subsequent period beginning from 1.4.2009 M/s. M. Kumar Aid and Publicity, Bareilly, U. P.-respondent No. 5 has been allotted the space. The petitioner should immediately remove the hoardings, details of which were given in the letter, on the date when the contract was to end. The letter would show that the petitioner was displaying hoarding at 20 sites in the Kalyanpur area. The petitioner then filed this writ petition after giving a notice to General Manager, North Eastern Railway and Divisional Railway Manager, Commercial, North Eastern Railway, Izzat Nagar Division requesting them again to accept his renewal upto 27.3.2010 and to send the payment for deposit at increase of 10%.;


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