SOUTHERN RAILWAY CHENNAI Vs. DELIGHT MANUFACTURING COMPANY

JUDGEMENT

(1.) Heard the learned counsel for the parties.

(2.) This appeal is directed against the judgment and order dated 29th September, 2004 passed by a Division Bench of the High Court of Judicature at Madras in Writ Appeal No.303 of 2004, whereby the High Court has upheld the view taken by the learned Single Judge and dismissed the appeal of the appellants herein.

(3.) The respondent Delight Manufacturing Company took a vacant plot of land on lease belonging to the Southern Railway in 1948 and is in occupation thereof since then. The respondent has been operating a restaurant by bringing up a superstructure thereon. When the rent was revised to Rs.3,000/-, the respondent challenged this by filing a writ petition before the Madras High Court. The learned Single Judge of the High Court allowed the writ petition and held that what had been leased to the respondent was not a shop but a vacant plot of land. Hence, licence fee would be payable under Clause 3.1(b) of the Guidelines for commercial licensing of Railway lands as revised by Railway Board's letters dated 17.9.1985 and 8.10.1987.