High Court Kerala High Court

T.Sreekumar vs The Divisional Railway Manager on 19 December, 2007

Kerala High Court
T.Sreekumar vs The Divisional Railway Manager on 19 December, 2007
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C) No. 17713 of 2007(H)


1. T.SREEKUMAR,
                      ...  Petitioner

                        Vs



1. THE DIVISIONAL RAILWAY MANAGER,
                       ...       Respondent

2. THE SENIOR DIVISIONAL COMMERCIAL

3. DRISYA ADVERTISERS,

                For Petitioner  :SRI.GEORGE CHERIAN (THIRUVALLA)

                For Respondent  :SRI.VARGHESE P.THOMAS, SR.SC,RAILWAYS

The Hon'ble MR. Justice ANTONY DOMINIC

 Dated :19/12/2007

 O R D E R
                     ANTONY DOMINIC, J.
                    ===============
                 W.P.(C) NO. 17713 OF 2007 H
               =====================

         Dated this the 19th day of December, 2007

                         J U D G M E N T

The prayer sought for in this writ petition is for directing

the respondents not to allot the hoarding created by the

petitioner to any person including the 3rd respondent. The

petitioner also seeks an order requiring respondents 1 and 2 to

consider Exts. P6 and P7 representations submitted by him.

2. Petitioner claims to have erected a hoarding in the

railway compound at Kollam some time in 1999. It is also his

case that he was allowed to display advertisements for about two

years. In 2000, in a tender that was invited by the Railways for

erecting hoardings, though the petitioner was the sole tenderer,

that was cancelled following Ext.P3 judgment of this court in WA

No.3332/2001. It is stated that since 2004, petitioner had

continued displaying advertisements based on an agreement

with the beneficiary of the judgment in WA 3332/2001,

Smt.Dhanalakshmi. Petitioner has produced as Exts. P4 and P5,

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:2 :

indicating the payment that were made to Smt.Dhanalakshmy, to

whom the advertisement rights were issued pursuant to Ext.P3

judgment.

3. Petitioner submits that in 2007, he came to know that

the railways are going to terminate the arrangement with

Smt.Dhanalakshmy and thereupon filed Exts. P6 and P7

representations requesting for permitting him to continue the

arrangement with him. He submits that while these

representations are pending, his hoardings were removed on

4/6/07. It is contended that while allowing all other advertisers

to retain their hoardings, the hoarding of the petitioner alone was

removed and that the place has been alloted to the 3rd

respondent. On these pleadings, petitioner seeks the reliefs

mentioned earlier.

4. The Railways have filed a statement from which it is

disclosed that they had permitted the petitioner to erect a

hoarding for the period from 6/12/1998 and this continued till

about 2002. It is stated that following Ext.P3 judgment of this

court, contract for hoarding at Kollam was awarded to

Smt.Dhanalakshmi, M/s Seematti Textiles, Kollam and that this

was for the period 1/6/04 to 31/5/2007. According to them, they

WPC 17713/07
:3 :

are not concerned with the business transactions between

Smt.Dhanalakshmi and other agencies and that on expiry of the

contract with Smt.Dhanalakshmy on 31/5/07, all permissions

that were granted for displaying the hoardings also stood

terminated and the contractor was asked to remove the

hoardings. It is stated that since the expiry of the previous

contract, for the future period sites were alloted on the basis of

first come first served basis to those who are willing to pay

higher charges than the normal tariff. It is stated that on this

basis, they have realised double the revenue. In so far as the

hoarding of the petitioner is concerned, they would submit that

the proposal from the petitioner was received by them only on

21/5/2007 , whereas based on a proposal that was received from

M/s Drishya Advertisers, Adithya Nagar, Kollam, site was allotted

to them and that the party had made remittance of Rs.2,18,867/-

on 14/5/2007.

5. Thus, from the facts, it is obvious that when this writ

petition was filed on 8/6/07, much earlier to that, the site in

question was allotted to the 3rd respondent based on the proposal

that was received and on the remittance that was made by them.

6. From the facts as stated above, it is obvious that for

WPC 17713/07
:4 :

the hoardings he displayed, there was no contract between the

petitioner and the railways. Therefore, the petitioner cannot

assert any claim as he did not have any privity of contract

between himself and the railways. As his contract was only with

Smt.Dhanalakshmi and as her contract with railways having been

terminated on 31/5/2007, petitioner has no legal right to insist

that he should be permitted to carry on the arrangement for any

period thereafter.

7. Petitioner is not seeking an order directing that the

railways should not allot the hoardings otherwise than by tender.

On the other hand, what the petitioner was attempting is only to

take advantage of the situation by making Exts. P6 and P7

representations to the railways requesting for allotment in his

favour. It is the case of the railways that they have adopted the

system of first come first served basis. In such an arrangement,

petitioner has lost only because he made the proposal belatedly.

From the statement, it is evident that the 3rd respondent made

his proposal on 25/4/2007 and remitted the amount on

14/5/2007 whereas the petitioner made his proposal only on

21/5/07. Thus, it is only because of the delay on the petitioner’s

side that he could not successfully bid for the hoarding in

WPC 17713/07
:5 :

question. Further petitioner also took his chance in the direct

allotment system adopted by the railways and lost out because

his proposal was made belatedly.

8. It certainly is disturbing to note that the Undertaking

like the railways are resorting to this kind of adhoc system in the

matter of distributing their spaces for advertisement purposes.

Being a Public Sector, it is obligatory on the part of the railways

to ensure that they realise the best revenue as possible, that too

in a most transparent method. As against the accepted method of

open tenders, it is not been explained as to why railways have

opted for the system of direct allotment and that too, on first

come first serve basis. Needless to say that this arrangement

will often lead to criticisms whether necessary or unnecessary

and it is not a desirable tendency. This certainly is a matter for

the railways to take into account atleast for their future guidance.

Writ petition will stand dismissed without any order as to

costs.

ANTONY DOMINIC, JUDGE.

Rp