A lessee does not have a vested right to continue in occupation of the premises in question and a panchayat is entitled to lease out its properties by public auction.

AR. LAKSHMANAN, J.

Heard Ms. A. Jagadeswari learned counsel for the appellant and Mr. R. Nagarajan, Government advocate for the respondents. The writ Appeal is directed against the order made in W.P. No. 3455 of 1997 dated 14-3-1997 by the learned single Judge who dismissed the writ petition.

2. The case of the appellant is that his lease for the period 1994-97 ended on 31-3-1997 and that the respondents have asked the appellant to vacate the premises on 31-3-1997. According to the appellant in the year 1988, the premises was brought under auction and he was the successful bidder in the auction bidding for Rs. 1,565/-. He was running the stall for three years i.e., from 1988 to 1991 and again in the year 1991 he applied to the second respondent requesting him not to re-auction the same and further requested that the lease may be extended for a further period of three years on his paying 15% excess amount from the previous year. Since the second respondent did not agree to his request, he filed writ petition, W.P. No. 3864 of 1991 praying for the issue of a writ of certiorarified mandamus to quash the auction notice and to direct the respondents to extend the lease to him. This Court passed an order directing the respondents to collect Rs. 14,100/- per annum from him which was the auction for the period permitted him to run the beef stall for another period of three years i.e., from 1-4-1991 to 31-3-1994. Again in the year 1994 when the period was due for fresh auction he applied for renewal of lease and he was permitted by the respondents to run the same for the period between 1-4-1997 and 31-3-1997 on paying 30 per cent excess than the previous period. The appellant has been running the stall and made further representations to the second respondent to renew the lease period on his paying 15 per cent additional amount from the previous year's amount by letter dated 10-2-1997 which was acknowledged by the second respondent on 12-2-1997. However, the second respondent sent a reply on 14-9-1997 stating that it is not possible for him to accept his offer to extend the lease period for another three years on his paying 15 per cent additional amount since the appellant had been given twice the benefit of extending the lease on payment of additional amount and asked the appellant to take part in the auction. According to the appellant, he is entitled for a further period of three years from 1-4-1997 to 31-3-1997. Therefore he filed the writ petition for a mandamus directing the second respondent, Avinasi Town Panchayat to quash the public auction notice dated 28-2-1997 and subsequently direct the respondents to extend the lease period of the appellant to run the beef stall near the fertiliser godown at Shandy Road, Avinasi on payment of 15 per cent additional amount for the period between 1-4-1997 and 31-3-2000. When the writ petition came up for hearing before the learned single Judge, the same was dismissed by his order dated 14-3-1997. Learned single Judge while dismissing the writ petition however, permitted the appellant herein to offer his bid in the public auction and if the appellant is the highest bidder he will undoubtedly be in a position to continue his occupation. The writ petition was accordingly rejected. Aggrieved by the said order the writ petitioner filed the above writ petition.

2. Notice of motion was ordered on 21-3-1997. Interim injunction was granted on 26-3-1997 and it was extended on 7-4-1997, until further orders. We are of the view that the appellant has no vested right to continue in occupation of the premises in question. Admittedly, the premises in question belong to the second respondent/panchayat which is entitled to lease out the properties owned by it by public auction. As rightly pointed by the learned single Judge, properties owned by the Municipality are also a source of revenue to the Municipality and the interest of the Municipality has to be balanced as against the interest of the sho