Point of Law: Clause 4 of the Policy dealing with change of trade, stipulates that change of trade from licence to non licence trade is permissible subject to certain conditions i.e. obtaining NOC from certain departments, prior permission of NDMC and 50% enhancement in licence fee.

JUDGMENT :

SANJEEV SACHDEVA, J.

1. Petitioners impugn order dated 25.09.2020 whereby the application of the petitioners seeking change of trade and deletion of name of Petitioner No. 1, from the partnership, has been rejected on the ground that no prior written approval of New Delhi Municipal Council (NDMC for short) was taken before dissolving the partnership and that Petitioners had defaulted in payment of the licence fee.

2. By allotment letter dated 09.04.2015, Petitioner No. 1 was allotted Shop No. 1, AIIMS Subway, New Delhi on licence basis. On 24.06.2016 Licence Deed was executed for a period of ten years at a monthly licence fee of Rs. 1,53,000/- in addition to sanitation charges and service tax for running the trade of surgical items which is a non-licensable trade.

3. Petitioner no. 1 requested the respondent to accept the Partnership of the Petitioner no. 1 with the Petitioner no. 2 as per their policy, which was accepted by letter dated 25.05.2017 subject to completion of all codal formalities as mentioned therein.

4. It is alleged by the Petitioners that in terms of the Policy of the Respondents dated 16.08.2016, Petitioners applied for change of trade in respect of the said Shop from non-licensable trade to licensable trade of running a chemist shop. Representations are alleged to have been given on 27.03.2018, 11.06.2018, 25.08.2018 and 12.11.2018.

5. It is contended that instead of deciding the application for change of trade, Respondents issued notice dated 05.12.2018 for payment of arrears of licence fee failing which, it was stated that proceedings under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971, would be initiated.

6. Petitioners again, vide letter dated 11.12.2018, requested for change of trade to licensable trade and also requested for payment of arrears of licence fee in six equal instalments.

7. Thereafter requests for change of trade were also made by letters dated 19.03.2019, 22.04.2019 and 29.04.2019.

8. Since there was no decision on the representations, Petitioners filed a Writ Petition before this court, being W.P. (C) No. 4907/2019, seeking a direction to the respondents to change the trade from surgical to surgical cum chemist as well as change the licence deed in favour of the petitioner no. 2 as per the policy dated 16.08.2016.

9. It is contended by the Petitioners, that the only objection taken by the respondents, in the said proceedings, was that without clearing the dues, petitioners could not insist on grant of change of licence from non licence to licence trade and it was contended that on clearance of the arrears of licence fee, the case of the petitioner for change of trade would be considered by the competent authority in accordance with the Policy.

10. Noticing the above stand of the Respondents, Petition was disposed of by order dated 02.08.2019.

11. It is contended that the Petitioner has already obtained the requisite No Objection Certificate from Health, Water, Sewerage and Electricity Departments.

12. Respondents by the impugned order dated 25.09.2020, rejected the application of the Petitioner for change of trade on the ground that no prior written approval of NDMC was taken before dissolving the partnership and that Petitioners had defaulted in payment of the licence fee.

13. Impugning the order dated 25.09.2020, Petitioners have filed this Petition.

14. Subsequently, during pendency of this petition, another order has been passed by the Respondents on 20.07.2021, once again rejecting the request for change of trade.

15. In the impugned order, it is held that Petitioners had sought to dissolve their partnership by a dissolution of partnership agreement dated 06.06.2019, which was executed without prior permission from the NDMC. Order dated 20.07.2021 further records that affidavit dated 03.03.2021 was filed by the Petitioner, withdrawing the dissolution of partnership. Reference is then made to Section 39 of the Partnership Act to hold that the conditions of the agreem