KASHMIRI LAL Vs. PRESIDENT MUNICIPAL COMMITTEE

JUDGEMENT

(1.) MUNICIPAL Committee Dera Baba Nanak, constructed three shops in the year 1993. These shops have provided the cause for these two petitions. Civil Writ Petition No. 14234 of 1993 has been filed by Gopal Dass and another stating that the Committee is illegally wanting to allot these shops to Kashmiri Lal etc. and that these shops should be leased out only by open auction. As a counter blast, Kashmiri Lal etc. have filed Civil Writ Petition No. 15345 of 1993 praying that the shops should be leased out to them only as they were the tenants on the land on which the shops were constructed in the year 1993.

(2.) A few facts : Kashmiri Lal etc. have averred that they had set up three 'khokhas' (temporary structures of wood etc.) on the land belonging to the Municipal Committee in the main Bazar and were in occupation thereof for the last more than 50 years. They had executed regular lease deeds. During the recent rains which were followed by floods, the 'khokhas' got washed away. They approached the municipal authorities for construction of shops. These shops having been constructed, the committee passed a resolution on August 30, 1993 deciding to give these shops on rent at Rs. 100/- per month to each of these three petitioners. However, the operation of the resolution was suspended by the Deputy Director, Local Government on September 10, 1993. Thereafter, the committee passed another resolution on September 28, 1993. Even the operation of this resolution was suspended by the Deputy Director and orders for leasing out these shops by open auction were issued. It was directed that the auction shall be held on October 5, 1993. However, on account of one reason or the other, the auction was postponed. Averring that the action of the respondents is barred by the principles of promissory estoppel, these three petitioners pray that the respondents be directed not to auction or rent out the shops in question to any one except to them. On the other hand, the claim in Civil Writ Petition No. 14234 of 1993 is that the shops possess a great business potential and that the residents of the area including the petitioners are willing to pay much higher rent than the amount at which the committee is wanting to give them away to M/s Kashmiri Lat etc. This action has been challenged as being arbitrary, violative of Article 14 and against public interest. It has been thus prayed that the shops in question be leased out only by way of auction.

(3.) I have heard learned counsel for the parties.