JOHN TRADERS Vs. GOVERNMENT OF TAMIL NADU

JUDGEMENT

(1.) SINCE both the writ appeals arise under the same facts and question of law they are being disposed of by a common judgment. Both the writ appeals are filed against the common order of the learned single Judge made in a batch of writ petitions dated 23.10.1998 whereby the prayer to quash the letter dated 12.1.1996 and further direction to allot available vacant shops types A-1 to A-5 in Koyambedu Wholesale Market Complex to the members of the petitioner Association, was rejected with certain directions.

(2.) IT is alleged that the petitioner is a registered association carrying on wholesale business at Kothwal Market, George Town for the last 200 years. The said market was shifted to Koyambedu by constructing a big wholesale complex for perishable goods to avoid traffic congestion, pollution and health hazards and various types of shops were constructed fixing the rate initially at Rs.375 per sq.ft. IT is alleged that the Madras Perishable Goods Merchants Association went before the Honourable Supreme Court in S.L.P. (Civil) No.7753 of 1986, which was disposed of with certain directions, directing that special weightage has to be given not only in price but also in instalments for the George Town Traders in Kothwal Market area than others. In compliance thereof the rate was fixed at 365 per sq.ft. The grievance of the petitioners is that after coming into force of the Tamil Nadu Specified Commodities Markets (Regulation of Location) Act, 1996 (hereinafter referred to as the Act) with effect from 26.8.1996 the Government without complying the provisions of Secs.20 and 22 and without providing alternative accommodation in the new wholesale market at Koyambedu, cannot disturb the petitioners from their old place and further cannot be charged higher rate of Rs.2,500 per sq.ft. as demanded by the advertisement dated 29.4.1997. The learned counsel for the petitioners submitted that the increase is not reasonable in view of the decision reported in Labha Ram and Sons v. State of Punjab A.I.R. 1998 S.C. 2086, and is very much excessive compared to the original rate of Rs.365 per sq.ft. and therefore the letter dated 12.1.1996 is bad and the order of the learned Single Judge is liable to be set aside. The learned counsel for the petitioners submitted that the State is not to generate the revenue by uprooting the traders like petitioners on the basis of statutory notification.