Madras High Court
Administrative and Public LawContract Law

Existing wayside amenity operators may continue until tender completion upon payment of occupation charges.

P.Muthukumar vs The Regional Officer,

Madras High CourtJUDGMENT: September 22, 20262 MIN READSOURCE JUDGMENT
Existing wayside amenity operators may continue until tender completion upon payment of occupation charges.. P.Muthukumar vs The Regional Officer,. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners operated a restaurant and related wayside amenities under a licence granted by the outgoing concessionaire, TN (DK) Expressways Limited.

Source reference: p. 2–4

The concessionaire’s contract was due to end on 30 September 2026.

Source reference: p. 2–4

The petitioners challenged the second respondent’s proceedings dated 10 August 2026, seeking permission to continue operating the facilities during the transition to a new tender.

Source reference: p. 2–4

They stated that they had invested substantially in the premises and offered to pay ₹1,50,000 per month as use and occupation charges.

Source reference: p. 2–4

The respondents stated that the tender process would be initiated and completed within approximately two to three months, and that the petitioners could participate in it

Source reference: p. 2–4
02

Issues

Whether the petitioners could continue operating the wayside amenities pending completion of the fresh tender process

Source reference: p. 3–5

Whether such continuation should be subject to payment of use and occupation charges and participation in the tender, with vacation required if another bidder succeeded

Source reference: p. 4–5
03

Law Applied

The judgment does not cite any statute, precedent, or specific substantive legal doctrine.

Source reference: p. 4–5

The Court applied a case-specific balancing of the petitioners’ interest in continuing their existing operations against the respondents’ interest in conducting a fresh tender and selecting a successful bidder.

Source reference: p. 4–5

It conditioned interim continuation on payment of the stated use and occupation charges and participation in the tender process.

Source reference: p. 4–5
04

Reasoning

The Court considered that the petitioners’ licence through the outgoing concessionaire was ending, while the respondents’ fresh tender process would take another two to three months.

Source reference: p. 3–5

Balancing the parties’ interests during that interval, it permitted continued operation on payment of ₹1,50,000 per month directly to the second respondent.

Source reference: p. 3–5

It also required the petitioners to participate in the tender and preserved the respondents’ ability to award the contract through that process

Source reference: p. 3–5
05

Holding

The Court disposed of the writ petition, directing the respondents to permit the petitioners to operate the wayside amenities until completion of the tender process, subject to monthly payment of ₹1,50,000.

The petitioners were directed to participate in the tender; if another person was declared the successful bidder, they were required to vacate the premises forthwith.

Source reference: p. 5

No costs were awarded, and the connected miscellaneous petitions were closed.

Source reference: p. 5
Madras High Court

Original Court PDF

P.MuthukumarvsThe Regional Officer,

Madras High Court · September 22, 2026

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