stated that the petitioner herein had breached Clause-7 of the franchise agreement, Clause-9 of the franchise agreement, Clause-10 of the franchise agreement and Clause-14 of the franchise agreement. The parties had entered into an agreement on 29.05.2007 and the first respondent TNTDC was called the franchisor and the petitioner “Appu Hotels” were called the franchisee. According to the agreement, the franchisee had to undertake to run a hotel unit at Kumbakonam as a franchisee of TNDTC. According to Clause-7, the period of franchise was 15 years. According to clause-9, if the Franchisee fails to remit the franchise fee of the subsequent years before 90 calendar days from the date of expiry of the earlier franchise period, apart from invoking Bank Guarantee, the franchisee can enter the premises and take possession. According to Clause-10, at the end of the 7th year, a Bank Guarantee equivalent to 50% of the lease amount should be provided. According to Clause-14, the franchisee shall bear all the taxes and other statutory payments required to the authorities including the State Government. According to Clause-25, in case of breach of any of the above terms, then, the franchisor (TNTDC) shall have an opportunity to issue a notice in writing and thereafter, may terminate the agreement. Accordingly, the impugned order has been issued stating that the petitioner herein had violated the Clauses 7, 9, 10 and 14 and therefore, as per Clause-25, the agreement was terminated. This notice has been challenged by filing this writ petition.
