A. P. SRTC Vs. S. JAYARAM

JUDGEMENT

(1.) This appeal is against concurrent findings of facts as also on law, arrived at by the trial court and upheld by the High Court. The relevant facts touching the questions arising for decision in the present appeal, briefly stated are that the premises for running a canteen on contract under the appellant Corporation came to be shifted to new premises on 26.2.1979. A tender was floated inviting bids for lease of the canteen premises for a period of 3 years. The respondent was the highest bidder and his bid for obtaining the canteen premises on lease money called rent of Rs. 4000.00 per month was accepted. A lease deed for the period 1.4.1979 to 31.3.1982 was executed.

(2.) The appellant Corporation, in the interest of avoiding litigation and complaints which are often made, took a policy decision that the existing contractors in the premises owned by the Corporation will be allowed an extension of one term i.e. for a further period of 3 years at enhanced rates of rent @ 15%, 17% and 20% for the first, second and third year respectively over the rent fixed for the preceding year. The circular also contained a provision that the Corporation shall make an offer to the contractor occupying the premises to take benefit of the policy decision of the Corporation. A circular in this regard, being Circular No. 45/81, was issued on 9.9.1981. The finding of fact arrived at by the courts below is that this circular was not brought to the knowledge of the respondent and certainly it is not the case of the appellant Corporation that at any time an offer was made to the respondent to exercise option for renewal of term subject to enhancement of lease rent in terms of the said circular.

(3.) Instead, the appellant Corporation invited fresh tenders for lease of the canteen premises for the period 1.4.1982 to 31.3.1985. The respondent, unmindful of the right available to him under the circular, as he was not aware of the same, participated in the process of tenders and made a bid which in the process of negotiations he revised to Rs. 20,025.00 per month. His bid was accepted by the Corporation. On becoming aware of Circular No. 45/81 the respondent filed a civil suit seeking benefit of the circular and renewal for one term of 3 years on the terms and conditions proposed by the Corporation in the said circular and consequently being relieved from his obligation which he had incurred by making a bid through tender. The said suit has been decreed by the trial court and the decree in favour of the respondent has been upheld by the High Court.