Appellants cannot seek status of permanent tenants contrary to statutory rules.

The Judgment of the Court was delivered by R.Jayasimha Babu, J.:

1. We do not find any error in the order of learned single Judge who dismissed the appellants’ writ petition on the ground that they derive no right from the Government Order in G.O.Ms.No.285, Municipal Administration and Water Supply Department, dated 24. 1985, to claim a right to remain in the Municipal premises in perpetuity, subject to their paying a higher rent, higher by 15% over the pre-existing levels, once in three years.

2. G.O.Ms.No.285 was issued after considering the petitions from shall-holders in various Municipalities. The Government decided that those stall-holders would be allowed to continue in the premises for one more year from 4. 1985 to 33. 1986, subject to their agreeing to pay 15% increase in rent. The Government further directed that, “the Municipal Councils resort to public auction of the lease once in every three years and that the system of public auction of the municipal properties mentioned above shall be implemented from 4. 1986. A successful bidder shall not be allowed to take part in the public auction, at the most, for more than two times.”

3. To the said Government Order was annexed a notification issued in exercise of the Governments power under Sec.303(1) and Sec.303(2)(d) of the Tamil Nadu District Municipalities Act, 1920 by which the rules relating to receipts and expenditure of the Municipal Councils were amended. By that notification issued in exercise of Governments power under Secs.303(1) and 303(2)(d) of the Tamil Nadu District Municipalities Act, 1920, in Rule 12(1), Sub-rule (3) for clauses (b) and (c) of the Rules relating to the Receipts and Expenditure of the Municipal Councils published with the local self Government Notification No.618, dated the 1st May 1933, at pages 215 to 218 of Part I-A of the Fort St.George Gazette, dated the 13th June, 1933 as subsequently amended, the clauses set out in the notification were substituted. The clauses so substituted read thus:

“(b) The lease of vacant lands and buildings, including bunks and stalls etc. shall be granted only in public auction once in every three years in the first instance, commencing from 4. 1986. The leaseholder shall pay the lease amount for the first year at the rate of highest bid in the public auction. The lease amount for the second year shall be at an increased rate at 15% (fifteen per cent) over and above the lease amount for the year, in addition to the lease amount for the first year. The lease amount for the third year shall be at an increased rate at 15% (fifteen per cent) over and above the lease amount for the second year, in addition to the lease amount for the second year.

Provided that the existing leases in respect of the properties mentioned above shall be extended for the year 1985-86 and the lease amount shall be collected for 1985-86 at an increased rate at 15% more than the lease amount for 1985-85, in addition to the lease amount for that year. The lease amount for twelve months from 4. 1985 to 33. 1986 shall be 15% (fifteen per cent) over and above the lease amount for the year 1984-85.

Provided further that this sub-rule shall not apply to the co-operative organisations, Government Departments and Government undertakings, which if they so desire, can, without participating in the public auction taken on lease the lands and buildings, including bunks and stalls, etc., at the lease rates fixed by the Public Works Department.

C. A successful bidder in the public auction of the properties mentioned in the preceding sub-clause, shall at the most, participate in the public auction not more than two times. Application for renewal of lease should reach the Executive Authority 90 (ninety) days prior to the expiry of the lease period.”

4. It is thus clear that what the Government Order contemplated was given statutory basis, by amending the statutory rules. It is clear that that the statutory rules now hold the field, and t