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2018 Supreme(Del) 2558
IN THE HIGH COURT OF DELHI AT NEW DELHI
SIDDHARTH MRIDUL, J.
Bela Sethi - Petitioner
Versus
North Delhi Municipal Corporation & Ors. - Respondents
W.P.(C) 6321 of 2018
Decided On : 06-09-2018
For the Petitioner: Mr. Raman Duggal, Ms. Aayushi Gupta and Mr. Insaaf Duggal.
For the Respondents: Mr. Sanjeev Sabharwal, Standing Counsel with Mr. Sudhir Gupta, UDC and Mr. Virender Singh, APHI for NDMC.
The central legal point established in the judgment is the requirement to observe principles of natural justice, including affording a reasonable opportunity to be heard before prejudicially affecting civil rights and interests.
Headnote:
Mutation Cancellation - Property Rights - Municipal Corporation of Delhi Act, 1957, Section 33 - The court discussed the principles of natural justice, the duty to act judicially, and the requirement to record reasons in decisions passed by quasi-judicial or administrative authorities. The court emphasized the importance of affording a reasonable opportunity to be heard before arriving at a decision that prejudicially affects civil rights and interests. The impugned order of cancellation of mutation was set aside due to non-observance of the principles of natural justice.
Fact of the Case:
The petitioner ran a guesthouse on a property and owned 60% undivided share in the property. The Municipal Corporation cancelled the mutation of the property without issuing a show cause notice. A show cause notice was also issued for revocation of the health trade license.
Finding of the Court:
The court found that the cancellation of mutation without issuing a show cause notice violated the principles of natural justice. The show cause notice for revocation of the license was found to be valid and not causing prejudice to the petitioner's rights.
Issues: The issues involved the cancellation of mutation without a show cause notice, the validity of the show cause notice for license revocation, and the application of principles of natural justice.
Ratio Decidendi: The court held that the cancellation of mutation without affording an opportunity to be heard was a nullity and set aside the impugned order. The show cause notice for license revocation was found to be valid and not causing prejudice to the petitioner's rights.
Final Decision: The writ petition was partly allowed, directing the restoration of the mutation of the property in the petitioner's name. The respondents were permitted to take appropriate action, but only after due issuance of a show cause notice and affording the petitioner a reasonable opportunity of being heard.
SIDDHARTH MRIDUL, J.
1. The present petition under Article 226 of the Constitution of India prays as follows:
“(i)issue a writ, direction or order in the nature of certiorari or any other writ, direction or order to call for the records pertaining to cancellation of mutation of property vide impugned order dated 25.04.2018 bearing Municipal No.7885/2, Plot No.33, M/s. Hotel Soma Deluxe, Basti Arakashan Scheme, Arakashan Road, Pahar Ganj, New Delhi110055 admeasuring 280.44 sq.yds. passed by Respondent No.2 against the Petitioner;
(ii) issue a writ, direction or order in the nature of mandamus or any other writ, direction or order to set-aside, hold and declare the impugned order dated 25.04.2018 being unlawful, illegal, unjustified, improper, misconceived, passed against the principle of natural justice, equity, good conscience and being null and void.
(iii)issue a writ, direction or order in the nature of mandamus or any other writ, direction or order directing Respondents Nos. 1 and 2 to restore the mutation of Property bearing Municipal No.7885/2, Plot No.33, M/s. Hotel Soma Deluxe, Basti Arakashan Scheme, Arakashan Road, Pahar Ganj, new Delhi-110055 admeasuring 280.44 sp.yds. vide Letter No.1504 dated 13.03.2009 of Respondent No.1 in its records in name of the Petitioner;
(iv)issue a writ, direction or order in the nature of mandamus or any other writ, direction or order quashing the Show Notice dated 25.05.2018 bearing No.583/DHO/CSP2, issued by Respondent No. 1 department for revocation of health Trade Licence issued in respect of Hotel Soma Dx. At Property No.7885/2, Plot No.33, Arakashan Road, Pahar Ganj, New Delhi-110055 in its records in name of the Petitioner being illegal, malafide in law, arbitrary, null and void;
(v)issue a Writ of Prohibition or any other appropriate Writ, Order or Direction, prohibiting/restraining the Respondents and /or their servants, agents, representatives, nominees, assigns, etc. from acting/giving effect to the impugned Order or show cause notice in future with respect to the said Property/business in the name and style of M/s Hotel Soma Dx. Run by the Petitioner with respect to the same;
(vi)Pass a direction/and Order of interim relief restraining the Respondents and/or their servants, agents, representatives, nominees, assigns, etc. from taking any coercive step whatsoever in furtherance of the said impugned Order dated 25.04.2018 and show cause notice dated 25.05.2018 against the Petitioner during the pendency of the present Petition;”
2. The facts as are necessary for the adjudication of the present petition, are briefly adumbrated as follows:-
(a)The petitioner runs the business of a guesthouse in the name and style of M/s Hotel Soma Deluxe on the property No.7885/2, Plot No.33, Arakashan Road, Pahar Ganj, New Delhi-110055 (hereinafter referred to as the ‘subject property’) and is stated to own 60% undivided share in the subject property.
(b)Respondent Nos. 3, 4 and 5 collectively own 40% share in the subject property subject to their individual shares thereof.
(c)Vide letter dated 13.03.2009, Respondent No.1 mutated the subject property in the name of the petitioner on its records.
(d)Subsequent thereto, after obtaining a No Objection Certificate dated 22.10.2009 from Lt. Smt. Satwant Kaur (the previous licence holder) qua transfer of the Health Trade License (hereinafter referred to as the ‘said licence’) in respect of M/s Hotel Soma Deluxe, the NDMC duly changed the name on the said license in favour of the petitioner.
(e)Vide order dated 25.04.2018, the North Delhi Municipal Corporation (for short `NDMC’) cancelled the mutation of the subject property in favour of the petitioner without issuing any show cause notice.
(f)On 25.05.2018, Respondent No. 1 issued a show cause notice to the petitioner to show cause as to why the said license issued in respect of the M/s Hotel Soma Deluxe, in favour of the latter be not revoked.
3. At the outset, a plain reading of the prayers above reflects
