Himalayan Flora and Aromas Pvt Ltd v. Municipal Corporation of Delhi

TUSHAR RAO GEDELA , J MAY 26, 2025/ N.Khanna

* IN THE HIGH COURT OF DELHI AT NEW DELHI + Date of Decision: 26.05.2025 % HIMALAYAN FLORA AND AROMAS PVT LTD.....Appellant Through: Mr. Anand Mishra, Ms. Vandita Nain, Ms. Ayushi Rajput and Mr. Devansh Pundir, Advs. Versus MUNICIPAL CORPORATION OF DELHI .....Respondent Through: Mr. Tushar Sannu, SC, MCD with Mr. Priyankar Tiwari, Mr. Shivam Singh and Ms. Aqsa, Advs. CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA DEVENDRA KUMAR UPADHYAYA, CJ. (ORAL) CM APPL. 32828/2025 (exemption) 1. Exemption allowed, subject to all just exceptions. 2. The application stands disposed of. LPA 351/2025 & CM APPL. 32827/2025 (interim directions) 3. This Letters Patent Appeal seeks to take exception to common judgment and order dated 19.05.2025 passed by the learned Single Judge whereby the writ petition bearing W.P. (C) No. 5350/2025 preferred by the appellant has been dismissed. 4. The appellant by instituting the proceedings of the writ petition before the learned Single Judge had challenged an order dated 21.04.2025 issued by the respondent/ Municipal Corporation of Delhi (hereinafter referred to as "MCD") rejecting the prayer for extension of the contract/allotment of the appellant for display of advertisements through unipoles, for a further period of two years. 5. The learned Single Judge after noticing the facts of the case as also the Clauses 7 and 15 of the earlier contract dated 01.12.2021 entered into between the appellant and the MCD came to the conclusion that in terms of the said clause, the appellant does not have an absolute right to seek extension of the term of the earlier contract and further that it is the discretion of the authority concerned of the respondent Corporation to grant or not to grant extension. 6. Noticing several judgments of Hon"ble Supreme Court laying down the scope of interference in such matters in a petition under Article 226 of the Constitution of India, it has been held that considering the scope of judicial scrutiny in such matters any interference in the petition would not be possible. 7. Learned counsel for the appellant has drawn our attention to Clause 7 and 15 of the earlier contract pursuant to which the appellant has executed the work, term of which is coming to an end on 10.06.2025. Clauses 7 and 15 of the earlier contract dated 01.12.2021 are extracted hereinbelow: 7. Period of Concession The contract period shall be for a period of 03 years and further extendable for another 02 years subject to satisfactory performance of the firm and as decided by the Commissioner, EDMC and 10% enhancement in awarded MLF from 4th year and also 10% increase on awarded MLF every year during the extended period, if extended by the Commissioner EDMC. After expiry of the contract period, either on account of completion of the concession period or pre-termination of the contract on any account whatsoever, the contractor shall hand over , possession of the unipole(s) with complete structures, fittings and fixtures to the Commissioner, EDMC or any other person authorized by him. At the time of handing over of possession to the EDMC, it shall be ensured that the unipoles(s) is/are in proper condition and that no damage is caused by removing the fixtures and fittings, except the advertisement boards. Extension of Contract The contract of each cluster will be awarded to the successful H-1 bidder, initially for 3 years only, extendable for 2 terms of one year each, subject to satisfactory performance of contract. However, the contractor may apply for the extension of contract, 3 months prior to completion of three year contract period. Any application made during the last 3 months of contract, will not be entertained by the department. The application for extension of contract does not entitles any right of extension of contract, the commissioner EDMC or any authorized officer by him shall be at liberty to grant or reject request for extension of contract 8. It has been argued by learned counsel