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2008 Supreme(Mad) 1230

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE P. JYOTHIMANI
K. Poruthammal
Versus
The Assistant Director Drugs Control
W.P.No.5721 of 2005
Decided on : 10-04-2008

Advocates Appeared:
For the Petitioner:K.P. Gopalakrishnan, Advocate.
For the Respondent:R1 & R2, L.S.M. Hasan Fizal, Government Advocate, R3, M. Balasubramanian, Advocate.

The court emphasized that the ongoing litigation over tenancy and ownership influenced the decision regarding the renewal of the pharmaceutical and druggist business licence.

Headnote:

Licence - Dispute over tenancy and ownership - Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, Drugs & Cosmetics Act - Section 11(4) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, Rule 64 of the Drugs and Cosmetics Rules, 1945, Rule 65A of the Drugs and Cosmetics Rules, 1945

Fact of the Case:

The petitioners, owners of the premises, filed a writ petition challenging the renewal of a pharmaceutical and druggist business licence to the third respondent. The petitioners claimed that the tenancy with the third respondent was terminated and sought cancellation of the licence.

Finding of the Court:

The court found that the third respondent, despite an order of eviction, was not a trespasser and had filed an appeal with an order of stay. The court held that there was no illegality in the renewal of the licence and dismissed the writ petition.

Issues: Dispute over tenancy and ownership, validity of the licence renewal, interpretation of tenancy laws and licensing rules

Ratio Decidendi: The court held that the third respondent, despite an order of eviction, was not a trespasser and had filed an appeal with an order of stay. The court found no illegality in the renewal of the licence, considering the ongoing litigation over tenancy and ownership.

Final Decision: The writ petition challenging the renewal of the pharmaceutical and druggist business licence was dismissed by the court.

Judgment :

The writ petition is filed challenging the proceedings of the second respondent dated 02.09.2002 and the consequential licence issued on 02.09.2002 in respect of M/s.Balaji Medicals at No.239/18-C Muthurenga Mudali Street, Tambaram West, Chennai 600 045.

2. The petitioners are the owners of the premises bearing Door No.18-C, Muthurenga Mudali Street, Tambaram West, Chennai 600 045, and the writ petition is filed by the petitioners through their Power Agent. The petitioners have purchased the above said property under sale deed dated 22.08.1997. Prior to their purchase, the third respondent was a tenant under the petitioners vendor. In the premises, the third respondent was carrying on the business of pharmaceutical and druggist under the name and style, M/s.Balaji Medicals. After the purchase of property by the petitioners, they continued the tenancy with the third respondent and receiving rent at the rate of Rs.750/- per month through the previous owner.

2(a). According to the petitioners, since the third respondent stopped payment of rent from September,1999, they have filed RCOP.No.9 of 2000 on the file of learned Rent Controller (District Munsif) Tambaram, for eviction against the third respondent. The petitioners have also filed a petition under Section 11(4) of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 for direction to the third respondent to deposit the rent and that was ordered on 011. 2001, directing the third respondent to pay the entire arrears of rent from September,1999 to October 2001, within two weeks and posted the RCOP on 211. 2001. Since the third respondent has not complied with the said conditional order, consequential order of eviction was passed on 012. 2001.

2(b). It was against the said order of eviction, the third respondent filed an appeal. For the purpose of carrying on the business of Druggist & Pharmacist, the third respondent requires licence under the provisions of Drugs & Cosmetics Act read with Rules framed thereunder. According to the petitioners, for obtaining such licence, the third respondent must prove that there is a valid rental agreement, in case where the licensee is not the owner of the premises. That apart, an approved plan in respect of the premises must be produced. After the purchase of the premises by the petitioners, the tenancy in favour of the third respondent was not renewed. Even otherwise, such tenancy was terminated by notice dated 210. 1999. In those circumstances, the petitioners have made representation to the first and second respondents about the factual position of termination of tenancy, etc. and requested the first and second respondents to cancel the licence or refrain from granting licence or renewing the licence to the third respondent for running the Pharmacy business.

2(c). Since their representation was not considered, the petitioners have approached this Court by filing W.P.No.23053 of 2002 and this Court by order dated 16.07.2002, has directed the first and second respondents to consider the representations of the petitioners dated 110. 2001 and 10.01.2002 and to pass orders after giving opportunity to the third respondent also. The petitioners have also enclosed the copy of order of this Court referred to above to the first and second respondents along with their representations and the first and second respondents have not passed any orders. Again, the petitioners filed W.P.No.24503 of 2004 for direction to the first and second respondents to pass orders pursuant to the enquiry conducted on 27.08.2002. That writ petition was again disposed of on 012. 2004 with direction to respondents 1 and 2 to pass orders within two weeks.

2(d). It was thereafter, the first respondent, by proceedings dated 18.01.2005, forwarded a copy of the letter dated 03.01.2005 said to have been given by the deponent of this writ petition, who is the power agent of the petitioners and a copy of the proceedings dated 02.09.2002 by the first respondent, As





























































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