THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY Writ Petition No.8906 of 2009 ORDER: The petitioner was the successful bidder for running a ferry through boat across the Krishna River between Mattapalli Village, Nalgonda District and Ramayagudem Village, Guntur District, for a sum of Rs.3,83,000/-. The lease expired by 31.03.2009. Before expiry, the petitioner submitted an application to the respondents with a prayer to extend the lease by one more year on payment of 10% over and above the lease amount for the previous year. The request was acceded to and the lease was renewed. Subsequently, the respondents cancelled the order of renewal vide proceedings dated 24.03.2009. On that basis, they have seized the boat as well as the punt being operated by the petitioner. The same is challenged in this writ petition. Heard the learned counsel for the petitioner and the learned counsel for the respondents. The respondents themselves granted extension of lease on receiving the lease amount with enhancement of 10%. With that, a valid right accrues to the petitioner to operate the ferry for one more year. In case, the respondents wanted to cancel the renewal order, it was open to them to do so, after issuing a show cause notice. The record discloses that no notice was issued, before the respondents passed the order dated 24.03.2000 cancelling the order of extension. The same cannot be sustained in law. The petitioner would be entitled to operate the ferry according to the same terms, on which it was granted for the previous year. However, through proceedings, dated 13.03.2009, the 1st respondent permitted the petitioner to operate a punt also. This is totally outside the scope of the lease. In case, the respondents wanted to permit the operation of punt, either tenders ought to have been invited, or separate exercise was to be undertaken. Under the guise of renewing the lease of the petitioner for more than one year, they cannot add another item, which is of substantial importance. Therefore, the writ petition is disposed of directing that the proceedings dated 24.03.2009 through which the respondents cancelled the order of renewal of lease in favour of the petitioner is set aside and it is left open to the respondents to pass orders after issuing notice to the petitioner. It shall be open to the petitioner to operate the ferry through boat, and not punt, as long as the order of renewal in his favour subsists. The respondents shall release the punt forthwith after the petitioner submits an undertaking that he would not operate the same. It shall open to the respondents to conduct auction for operation of the punt in the area and the petitioner shall be entitled to participate in the same. There shall be no order as to costs. _________ 29.04.2009 Note: Issue C.C. in three days. (B/o) JSU THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY Writ Petition No.8906 of 2009 Date: 29.04.2009 JSU