ERODE MUNICIPALITY Vs. N ARUMUGHAM

JUDGEMENT

(1.) The appellant in the second appeal is the first defendant in O.S.No.340 of 1986 laid by the plaintiffs/ respondents herein for (i) directing the 1st defendant by way of mandatory injunction to give effect to the allotments of shops made in the suit property in pursuance of G.O.Ms.No.615, dated 21.4.1984 as described in the plaint schedule; and (ii) restraining defendants 3 to 14 (committee members) by means of a permanent injunction from acting in pursuance of the resolution No.472 dated 23.7.86 of the 2nd defendant.

(2.) Contending that inspite of the Government Order in G.O.Ms.No.615, Rural Development and Local Administration Department dated 21.4.1984 marked as Ex.A1 which provides for allotment of newly built up shops in the market owned by the municipality for a term of three years to those who were in occupation of the shops of the municipality for more than 10 years at the prevailing rate without bringing the same for public auction and for renewal of the lease in the light of G.O.Ms.No.194 Rural development and Local Administration Department dated 16.2.1982 for a further term of three years with the enhancement of 30% of the rent of the previous term, the plaintiffs/respondents herein, alleging that the first defendant-Municipality/appellant herein by a resolution No.472 dated 23.7.86 constituted a committee for allotment of shops and proposed to bring the shops for public auction, laid the said suit in O.S.NO.340 of 1986 on the file of Subordinate Judge, Erode.

(3.) The first defendant-Municipality/appellant herein resisted the suit on the ground that G.O.Ms.No.615 dated 21.4.1984 is applicable only in the case of those who vacated the old market for the purpose of constructing new building, but not to the plaintiffs/respondents herein, who continue to be in possession and occupation of the old market. It is further stated that the Commissioner of the first defendant-Municipality/appellant herein forwarded a recommendation to allot the shops in the new market building, without bringing the same for the public auction only in the case of those who were in possession and occupation of the old building for more than 10 years at the market rate.