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 but 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: S. No. Zone Security License Fee/month Contract period(Rs.) (Rs.)1. Rohini -II 36,12,504 12,04,168 3.11.04 - 8.11.072. Shahdara(N) -I 15,12,504 5,04,168 8.11.04 - 7.11.073. City Zone -I 66,87,504 22,29,168 8.11.04 - 7.11.074. West Zone -I 23,75,004 7,91,668 8.11.04 - 7.11.075. Civil Line -II 24,48,126 8,16,042 8.11.04 - 7.11.076. City Zone -II 20,87,502 6,95,834 9.11.04 - 8.11.077. Najafgarh(R) -I 18,12,504 6,04,168 8.11.04 - 7.11.078. South -I 61,62,504 20,54,168 7.11.04 - 8.11.079. South -III 81,75,000 27,25,000 8.11.04 - 7.11.0710. South -IV 82,55,001 26,51,668 8.11.04 - 7.11.07TOTAL 4,31,28,153 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: S. No. Zone Security License Fee/month Contract period(Rs.) (Rs.)1. South Zone -I 51,00,000 17,00,000 13.1.2005 - 12.1.20082. Shahdara(S) -I 38,25,000 12,75,000 13.1.2005 - 12.1.2008 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 up to 7.11.2007, except in respect of South -I, which is up to 8.11.2007, and South -II, which is up to 12.1.2008.

(3.) IT may be noted that the DTC, in its reply, has given the justification in inviting fresh tenders on the ground of public policy. It is urged by the DTC that the DTC being an undertaking of Government of NCT of Delhi is entrusted with the task of providing Public Bus Transport and for creating facilities like BQS for community convenience. Improving Public Transport infrastructure is essential to ease traffic congestion by encouraging public to use this mode instead of private vehicles. Improving street furniture (which includes BQS) is also essential in the context of the Commonwealth Games scheduled in 2010. As a matter of public policy and with a view to improving civil facilities, specially as a part of preparation for the Commonwealth Games, the Government and the Corporation are undertaking numerous new developmental projects. Construction of approximately 225 new, aesthetically designed, sleek, disabled friendly and environment friendly BQS with modern facilities and features is one of such projects. DTC has engaged M/s. RITES (respondent No. 1 herein), a Government of India Enterprise, as Bid -Process Manager for this new project.