License Is Treated As Contract And Extension Of License Is Purely A Matter Of Discretion And The Courts Cannot Intervene: Andhra Pradesh High Court
In a recent case, Justice R. Raghunandan Rao held that the courts cannot intervene in matters of extension of license as license is treated as a contract. The petitioner had obtained a license for running a Mobile Canteen in the premises of HOD Building Complex, Vijayawada. On account of pandemic and consequent lockdown during the second and third waves and on account of unseasonal...
In a recent case, Justice R. Raghunandan Rao held that the courts cannot intervene in matters of extension of license as license is treated as a contract.
The petitioner had obtained a license for running a Mobile Canteen in the premises of HOD Building Complex, Vijayawada. On account of pandemic and consequent lockdown during the second and third waves and on account of unseasonal rains and cyclones, the petitioner had suffered huge losses. On account of the said losses, the petitioner had given representation to the respondent seeing extension of the license period for a further term of 6 months.
The petitioner approached the Court by way of the present Writ Petition with the complaint that the respondent without considering the representation of the petitioner was taking steps for conducting an auction of the license. It was true that various businesses had suffered on account of COVID-19 pandemic and consequent lockdowns.
However, the license has to be treated as contract and the mater of extension is purely a matter of discretion of the contracting parties.
The Writ Petition was disposed of with a direction to the respondent to consider the representation of the petitioner and pass orders within a week.
Case Title : Gadda Ramesh Versus The State of Andhra Pradesh
Citation :2022 LiveLaw (AP) 52