I.P.MUKERJI,J. - (1.) Blue Dreamz Advertising Private Limited, the writ petitioner does the business of displaying advertisements of their clients. They do so in various places of West Bengal including the area covered by the Kolkata Municipal Corporation.
(2.) The respondent Corporation on 6th February, 2014 invited tenders for display of advertisements on bus shelters, kiosks and hoardings which were under their control and ownership. The writ petitioner was successful in this tender process. On 28th February, 2014 they were awarded a contract by the respondent Corporation to display advertisements in five clusters, each comprising of 50 hoardings, in total 250 hoardings in the Kolkata Municipal Corporation area. It was for a period of one year commencing from 1st July, 2014 till 30th June, 2015. The writ petitioner had to make payment of a sum of Rs. 3,70,00,000/- per cluster for the entire contract period. Payment was to be made quarterly in advance. Payment per quarter was Rs. 4,62,50,000/-. The letter of the writ petitioner dated 14th November, 2014 to the respondent Corporation is very important. They said that it was the obligation of the respondent to identify and handover these 250 street hoardings and the bus shelters to the petitioner. 250 street hoardings could not be located by them. They were only able to locate 200 of them. The respondent Corporation should only demand payment for 174 hoardings. In other words the writ petitioner claimed novation of the contract by reduction of the number of hoardings and the licence fee.
(3.) At this point of time it is very important to note that the disputes between the parties were referred to the Joint Municipal Commissioner (Revenue), Kolkata Municipal Corporation as the arbitrator. The learned arbitrator held a hearing on 13th December, 2014. A joint inspection by the respondent Corporation and the writ petitioner was also made. It further appears that the petitioner made an application before the learned arbitrator under Section 12 of the said Act which is still pending.;