The AMC and Ahmedabad Municipal Transport Service (AMTS) lost a 33-year-old civil suit filed in city civil court against an advertising agency which had been given a tender for advertisements on buses. The court rejected AMTS- AMC’s claim demanding about Rs 24.17 lakh as outstanding from the ad agency. Among the contentious issues, a major one was related to the compensation sought by the advertising agency over suspension of bus services on several routes owing to communal riots in the city in 1985. The ad agency’s compensation claim was, however, declined by the court.
As per the case details, AMTS had invited tenders from different advertising agencies for advertisements on and inside buses in 1982. The tender was allotted to Tej Ads for Rs 36.12 lakh for a period of three years from December 1982 to December 1985. The AMTS had issued several bills, including money related to licence fee from June to December 1985 along with interest, also late payment fee totaling Rs 24.17 lakh. The AMC and AMTS filed a civil suit against Tej Ads in March 1988.
Several pieces of evi- dence were placed and witnesses deposed from sides before the court delivered its verdict. In one of the issues related to recovery of Rs 2.46 lakh as board rentals and Rs 5.34 lakh as interest on outstanding amount, the court observed that evidence was not sufficient to establish the facts.
About compensation claimed by the advertising agency, when buses on several routes were suspended due to riots in 1985, the court observed that the advertising agency is not entitled for compensation owing to a clause in the agreement that the AMTS would not be responsible for shut down of bus service, partially or fully. In its order, the court disagreed with the contentions and submissions made by the AMC as well as the AMTS and dismissed the suit.