SHIVAAI INDUSTRIES P LTD Vs. RITES LTD

JUDGEMENT

(1.) The petitioner in this petition, filed under Section 9 of the Arbitration and Conciliation Act, 1996 (for short, "the Act"), is aggrieved against the action of the respondent No.2 Delhi Transport Corporation (hereinafter referred to as "DTC") in inviting tenders from national and international firms/joint ventures/consortium for allotment of about 225 shelters/sites on BOT basis against display of commercial advertisement thereon, as according to the petitioner it is given the contract for these sites and during the currency of the license agreement with the petitioner, the respondent No.2 cannot take such a step.

(2.) First, the factual matrix to appreciate the grievance of the petitioner. As per the averments in the petition, DTC had earlier issued a tender pursuant where to the petitioner had also submitted its bid. This tender was for grant of advertisement rights on all the shelters (BQS/TKB) of the DTC falling in various zones and was for a period of three years. The petitioner was successful bidder in respect of ten zones and the DTC issues letter of award in respect of these zones on the monthly license fee. The particulars of these zones, security deposit by the petitioner in respect thereof, monthly license fee payable and the contract period for these zones are indicated in the following table :- <FRM>JUDGEMENT_278_ILRDLH16_2007Html1.htm</FRM> The monthly license fee, as per the terms of the allotment, was payable in equal proportion to the DTC and the Municipal Corporation of Delhi (MCD), which according to the petitioner it has been paying from time to time. In the year 2000, DTC had invited bids in respect of certain other zones and the petitioner bagged contract in respect of two such zones, particulars whereof are as under :- <FRM>JUDGEMENT_278_ILRDLH16_2007Html2.htm</FRM> However, thereafter the petitioner surrendered five zones and it is now having contract in respect of seven zones, namely, City-I, Civil Lines-II, Najafgarh-I, South-III, South-IV, South-I and South-II. The contract for these zones is upto 7.11.2007, except in respect of South-I, which is upto 8.11.2007, and South-II, which is upto 12.1.2008.

(3.) It is the case of the petitioner that during the subsistence of the aforesaid contracts the DTC had no right to invite tenders in respect of those Bus Queue Shelters (for short, 'BQS'), which fall in the aforesaid zones. According to the petitioner, there are approximately 1800 sites covered by these seven zones and in the impugned tender floated on 15.1.2007, the DTC is going to take away as many as 225 shelters/sites, which fall in the aforesaid zones.