RAGHAVBHAI ARJANBHAI Vs. AMRELI NAGARPALIKA

JUDGEMENT

(1.) Petitioners were occupying shops Nos. 15 and 16 belonging to respondent No. 1 - Amreli Municipality. They were put in possession of the shops pursuant to Resolutions Nos. 22 and 23 dated July, 22/23, 1992 passed by respondent No. 1 - Amreli Municipality. Respondent No. 2 Collector, Amreli, has cancelled the resolution by order dated December, 18/21, 1992 in case No. 17 of 1992. It has also been directed that possession of the shops be taken over from the petitioners and the amount paid by them be refunded to them. As per the order, possession of the shops has been taken over on 24/12/1992. Petitioners have challenged the legality and validity of this order by filing this petition on 28/12/1993. Learned single Judge of this Court initially ordered to issue notice and directed respondents to maintain status quo as it existed on the date of filing of the petition. Later on petitioners prayed for amendment in the petition and challenged the constitutional validity of the provisions of Sec. 258 of the Gujarat Municipalities Act, 1963 (hereinafter referred to as "the Act"). Hence, the petition has been placed before Division Bench. It may be noted that the Collector had passed order under purported exercise of powers under Sec. 258 of the Act. The petitioners also prayed for declaration to extend the term of lease for a period for which they have been kept out of possession of the respective shops. A prayer has also been made for direction that compensation at the rate of Rs. 5,000/- (Rupees five thousand) per month be ordered to be paid to each of the petitioners for the period during which they have been kept out of possession of the shops. Facts in brief:

(2.) In the Municipal area, respondent No. 1 - Municipality had constructed about 16 shops. By resolutions Nos. 22 and 23 dated 23/07/1992 passed by the General Board of respondent No. 1 - Municipality it was resolved that shops Nos. 15 and 16 be given on lease for a period of ten years to the petitioners. Pursuant to these resolutions shop No. 15 was given to petitioner No. 2. Similarly, shop No. 16 was given to petitioner No. I. The rent or licence fee or occupation charges were fixed at Rs. 600 (Rupees six hundred) per month. An amount of Rs. 50,400/ -(Rupees fifty thousand four hundred) in each case was recovered from the petitioners as advance rent or licence fee or occupation charges for a period of seven years. Petitioner No. 1 paid Rs. 50,400.00 on 22/02/1992. Petitioner No. 2 paid the amount of Rs. 50,400.00 on 23/09/1992. Petitioner No. 1 was handed over possession of the shop on 23/10/1992, while petitioner No. 2 was handed over possession of the shop on 23/09/1992.

(3.) Some time after the resolutions were passed, and possession of the shop was handed over to the petitioners, the term of the elected body of the Municipality came to an end. Therefore, in exercise of the powers under Sec. 263A of the Act the State Government appointed Administrator. The Administrator felt that the resolutions passed by the General Board of the Municipality were not in accordance with law. Therefore, he made a report to the Collector by letter dated 3/12/1992, and requested for cancellation of the resolutions. Respondent No. 2 Collector in purported exercise of powers under Sec. 258 of the Act initially passed interim order dated 3/12/1992. In this order it is stated that the resolutions have been taken in revision for considering the propriety thereof. It is further stated that further implementation of the resolutions Nos. 22 and 23 dated 23/07/1992 was stayed.