THE HON’BLE MR JUSTICE L. NARASIMHA REDDY Writ Petition No.375 of 2010 ORDER: The Secunderabad Division of the South Central Railways invited tenders in the year 2007 for assignment of the contract for booking cargo in various passenger trains. The petitioner emerged as the highest bidder for the A.P.Sampark Kranthi Express. A lease agreement was entered into on 08.02.2007, granting lease in favour of the petitioner for a period of three years ending with 04.02.2010. Clause 20 of the agreement provides for extension of the lease. The respondents issued a tender notice dated 14.12.2009 in respect of that very facility. The petitioner challenges the same. Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondents. It is a matter of record that the petitioner was granted lease to book parcel vans in respect of train No.2707- 2708, A.P.Sampark Kranthi Express from Secunderabad- H.Nizammuddin-Secunderabad and the lease is for a period of three years. Clause 20 of the lease agreement reads as under: 20.0 Extension of lease contract: 20.1 Extension of lease is permissible only in case of long term lease of 3 years wherein the same can be extended only once, by 2 more years at a lease rate of 25% more than the lumpsum leased freight rate subject to satisfactory performance by the leaseholder, without any penalty for overloading or violation of any provision of the contract. The petitioner submitted his application/representation for extension of lease on 09.08.2009 long before the original lease expired. The respondents were under obligation to consider the same. A valuable right had accrued to the petitioner on the strength of the clause and it can be denied, if only the circumstances warrant. There was no justification for the respondents in issuing tender notice dated 14.12.2009 in respect of the said train, unless the representation made by the petitioner is disposed of. Therefore, the writ petition is allowed and the notification dated 14.12.2009 insofar as it relates to train No.2707-2708, A.P.Sampark Kranthi Express from Secunderabad-H.Nizammuddin-Secunderabad is set aside. The respondents are directed to consider the representation submitted by the petitioner for extension of lease in terms of Clause 20 of the lease agreement and pass appropriate orders within a period of four (4) weeks from today and till such time, the contract with the petitioner shall be continued by enhancing the freight charges by 25% with effect from 04.02.2010. There shall be no order as to costs. __________ 23.02.2010 JSU THE HON’BLE MR JUSTICE L. NARASIMHA REDDY Writ Petition No.375 of 2010 Date: 23.02.2010 JSU