SHRI T.N. RAJAGOPALAN Vs. UNION OF INDIA

JUDGEMENT

(1.) The respondent called for tenders for manning the vehicle parking stand at Velacherry Railway Station in an area of 5300 sq. mts for a period of three years on payment of highest licence fees. The highest offer of Rs. 1,16,75,003/- was made by the petitioner and thus, an agreement was entered into on 24.04.2012 duly fixing the period of contract from 03.02.2012 to 02.02.2015.

(2.) Having found that the petitioner was using extra area of 540 sq.mts., the licence fee was revised by the respondent vide letter dated 15.10.2013 from Rs. 1,16,75,003/- to 1,28,86,955/-. However, the petitioner continued to pay the original fees. The contract came to an end on 02.05.2015 after granting extension for a period of three months. The respondent made a claim invoking arbitration clause seeking differential payment between the original fee fixed and the subsequent one occasioned due to the excess usage of land by the petitioner.

(3.) Before the Tribunal, it was contended by the respondent that the petitioner did agree the encroachment made. He did not challenge the enhancement made specifically. He made the fine imposed by letter dated 06.09.2012 apart from encroachment fine of Rs. 20,000/-. As per Clause 7(c) of the Agreement, it is for the petitioner to erect a covered structure within the area allotted and therefore, the contention regarding water logging cannot be countenanced. Once, the fine amounts were remitted, there is no defence available to the petitioner.