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2022 Supreme(Jhk) 239

IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
Ajay Choudhary – Petitioner
Versus
The Ranchi Municipal Corporation – Respondent
W.P. (C) No. 2305 of 2020
Decided On : 07-06-2022

Advocates:
Advocate Appeared:
For the Petitioners: Ajit Kumar, Akriti Shree.
For the Respondents: Prashant Kumar Singh, Sumeet Gadodia.

The duty of public authorities to act in a fair, objective, non-arbitrary, transparent, and non-discriminatory manner in their dealings, and the importance of procedural fairness and principles of natural justice in administrative decisions.

Headnote:

Street Vendors - Allotment of Shops - Ranchi Municipal Corporation Act, 2001, Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, Jharkhand Street Vendors (Protection of Livelihood and Regulation of Street Vending) Rules, 2015, Jharkhand Street Vendors (Protection of Livelihood and Regulation) Scheme, 2017 - Section 407 of the Ranchi Municipal Corporation Act, 2001, Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, Section 36, 38, Jharkhand Street Vendors (Protection of Livelihood and Regulation of Street Vending) Rules, 2015 - The court discussed the provisions of the Ranchi Municipal Corporation Act, 2001, Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014, and the Jharkhand Street Vendors (Protection of Livelihood and Regulation) Scheme, 2017. The court highlighted the importance of procedural fairness, principles of natural justice, and the need for wide circulation of notices for public auction in the allotment process. The court also emphasized the duty of public authorities to act in a fair, objective, non-arbitrary, transparent, and non-discriminatory manner in their dealings.

Fact of the Case:

The petitioners were street vendors whose shops were allotted through a lottery process by the Ranchi Municipal Corporation. The allotment was later cancelled by the respondent authorities, leading to the filing of the writ petition.

Finding of the Court:

The court found that the allotment process suffered from procedural lapses, including the lack of wide circulation of the notice for public auction, which deprived several needy persons of participating in the process. The court held that the cancellation of the entire allotment process was justified due to the serious procedural lapse.

Issues: Violation of principles of natural justice, arbitrary cancellation of shop allotments, procedural irregularities in the allotment process, and lack of wide circulation of notices for public auction.

Ratio Decidendi: The court emphasized the importance of procedural fairness, principles of natural justice, and the duty of public authorities to act in a fair, objective, non-arbitrary, transparent, and non-discriminatory manner in their dealings. The court also held that cancellation of the entire allotment process was justified due to the serious procedural lapse.

Final Decision: The writ petition was dismissed as devoid of merit.

ORDER :

1. The present writ petition has been filed for quashing the letters dated 02.07.2020 (Annexure-10 series to the writ petition) issued by the Deputy Municipal Commissioner, Ranchi Municipal Corporation, Ranchi-respondent no. 3, whereby allotments of respective shops of the petitioners have been cancelled.

2. The factual background of the case, as stated in the writ petition, is that the petitioners/their fathers were street vendors engaged in selling fish, chicken etc. in Ratu Road area (Khadgarha Market) and businesses of some of the petitioners were recognized by the Ranchi Municipal Corporation by issuing licences under Section 407 of the Ranchi Municipal Corporation Act, 2001. Registration Certificates were also issued to some of the petitioners by Food Safety Administration, Department of Health, Government of Jharkhand, Ranchi under Food Safety and Standards Act, 2006. RMC launched an encroachment drive in the year 2011 and thereafter notice dated 08.11.2011 was served upon the petitioners for eviction within 3 days. Some of the petitioners and the private respondents challenged the said notice by filing a writ petition being W.P. (C) No. 6842 of 2011, which was disposed of vide order dated 19.12.2011 giving liberty to file representations before the Chief Executive Officer, RMC, Ranchi and on filing of such representations, the said authority was to consider the same and pass appropriate order. In compliance of the said order, the petitioners filed representation before the concerned authority of RMC whereupon they were informed that whenever any shop would be constructed they would have preferential right over the same. In the meantime, the Parliament promulgated the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 (hereinafter to be referred as ‘the Act 2014’) to protect the rights of urban street vendors, to regulate street vending activities and for matters connected therewith or incidental thereto. The State of Jharkhand by invoking powers under Section 36 of the Act, 2014 thereafter framed the Jharkhand Street Vendors (Protection of Livelihood and Regulation of Street Vending) Rules, 2015. Subsequently, the State of Jharkhand, in terms with Section 38 of the Act, 2014 prepared a scheme for Street Vendors known as Jharkhand Street Vendors (Protection of Livelihood and Regulation) Scheme, 2017. RMC made survey of the street vendors including the petitioners after dividing the Ranchi Municipal Area into 44 Urban Local Bodies and the vending zones were constructed at few places like Atal Smriti Vendor Market, Jaypal Singh Stadium, Ranchi and Madhukam, Khardgarha Market, Ratu Road, Ranchi. The petitioners, thereafter, made joint representation before the respondent no. 2 requesting inter-alia to make allotment of shops according to their names and addresses furnished by them. The pictures of respective temporary vending area were also enclosed with the representation so that no outsider might obtain allotment of the shop. Lottery was held by the RMC under the Chairmanship of Deputy Mayor on 26.10.2019 for allotment of 39 shops, which was also videographed. The respondent no. 3 vide letters dated 06/08.11.2019 informed the petitioners that they were allotted the respective shops through lottery process and asked them to deposit rent for six months amounting to Rs. 7,450/- plus GST @ 18% i.e. Rs. 1,341/- total Rs. 8,791/-. The petitioners immediately deposited the required amount and to that effect, acknowledgement receipts were also issued to them. They were also given possession of their respective shops in which they made investment for installing shutters, deep freezers as well as interior fittings. They also applied for obtaining electrical connections. Despite the said fact, the respondent no. 3 vide letters dated 02.07.2020 arbitrarily cancelled the allotment of the said shops, which gives rise to filing of the present writ petition.

3. The learned senior counsel for the pe

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