2011 (1) CTC 584
High Court of Judicature at Madras
V. DHANAPALAN
P.N. Chinnasamy & Others
Versus
The Assistant Director of Town Panchayat & Others
W.P.Nos.12778 & 20304 of 2010
Decided on : 10-01-2011
(Para 15)
B. CONTRA ACTS BY STATES, CORPORATION - CONSTITUTION OF INDIA - ARTICLE 226 - Law is well settled that contracts by State, its corporation, instrumentalities and agencies must be normally granted through public auction by inviting tenders from eligible persons - It should be advertised after following principle laid down in conducting public auction in order to promote healthy competition among tenderers to provide for fair and equitable treatment of all tenderers, and to eliminate irregularities, interference and corrupt practices by authorities concerned - In rarest of rare cases, when there is violation of principles of natural justice, interfering in a matter of contract and invoking jurisdiction under Article 226 is very limited (Para 16) - Validity of impugned order, upheld.
Result: W.P. dismissed.
1. As the issues and questions involved in these writ petitions are common and as they arise out of the same cause of action, they are taken up together for disposal and decided by a common order.
2. Heard Mr.S.Ramesh, learned counsel appearing for the petitioners; Mr.S.Gopinathan, learned Additional Government Pleader and Mr.R.Neelakandan, learned Government Advocate appearing for the 1st respondent in W.P.No.12778 of 2010 and for the 1st and 2nd respondents in W.P.No.20304 of 2010; Mr.L.S.M.Hasan Fizal, learned Government Advocate appearing for the 2nd respondent in W.P.No.12778 of 2010 and the 3rd respondent in W.P.No.20304 of 2010 and Mr.A.Mohammed Ismail, learned counsel appearing for respondents 3 to 11 in W.P.No.12778 of 2010.
3. Challenging the impugned notifications dated 07.06.2010 and 16.08.2010 passed by the Executive Officer, Periyanaickenpalayam Selection Grade Town Panchayat, Coimbatore, seeking to quash the same and for a direction to the respondents to renew the shops belonging to them for a further period of 3 years from 01.06.2010 to 30.06.2013 and from 01.09.2010 to 31.08.2013, respectively, by accepting 15% enhanced rent, the petitioners have filed these writ petitions.
4. It is the case of the petitioners that they are lessees of shops in Annai Indira Gandhi Commercial Complex, Periyanaickenpalayam Coimbatore District, which were leased out by the Executive Officer, Periyanaickenpalayam Selection Grade Town Panchayat, Coimbatore by conducting public auction, initially for a period of three years and thereafter, the same being extended periodically by accepting the enhanced rate of rent as per G.O.(2D) No.147, Municipal Administration & Water Supply Department, dated 30.12.2000. As per the said Government Order, it is for the concerned local body to conduct public auction to grant lease or to renew the lease in respect of existing lessees by accepting enhanced rent @ 15% over and above the existing rent. Subsequent orders have been passed by the Government in G.O.Ms.No.92, Municipal Administration and Water Supply (MA4) Department, dated 03.07.2007 directing that the period of lease should be automatically extended for every three years by accepting the enhanced rent @ 15% for a period of three years and even after the expiry of 9 years period, the lease has to be extended in favour of the existing lessees by revising the rent on the basis of market value. 4a. According to the petitioners, the orders of the Government came to be passed with a laudable object of protecting the members who took the shops in lease from various local bodies by incurring huge expenditure/investment and to gain goodwill from the public, and they should not be made to suffer by dispossessing them within a short span of time. The petitioners submit that they have also paid the rent to the respondent Panchayat without any default. When the period of lease came to an end on 30.06.2010 and on 30.09.2010, respectively, the petitioners made individual representations to the Executive Officer, Periyanaickenpalayam Selection Grade Town Panchayat by Registered Post seeking renewal of lease for a further period of 3 years by accepting 15% enhanced rent as per the orders of the Government in G.O.Ms.No.92, dated 03.07.2007 and G.O.Ms.No.181, dated 19.09.2008. However, the Executive Officer, Periyanaickenpalayam Selection Grade Town Panchayat, has not passed any orders granting extension of lease in favour of the petitioners by considering the representations made by them. 4b. While that be so, in contradiction to the orders passed by the Government, the Executive Officer, Periyanaickenpalayam Selection Grade Town Panchayat, issued auction notifications dated 07.06.2010 and 16.08.2010, respectively, to conduct public auction in respect of 19 shops and 7 shops, respectively in Annai Indira Gandhi Commercial Complex by scheduling the auction on 21.06.2010 and 07.09.2010, respectively. The petitioners would contend that the impugned auct
6. AIR 2005 MADRAS 264 in the case of DCW Ltd. vs. The State of Tamil Nadu and others
8. Fernandez vs. State of Mysore
9. State of Maharashtra v. Lok Shikshan Sanstha
13. Nagendra Nath v. Commissioner
15. Chandra Singh v. State of Rajasthan (JT 2003 (6) SC 20 : (AIR 2003 SC 2889) (vide paragraph 42):
18. 2006 (5) CTC 236 in the case of C.Jayanthi vs. The Commissioner, Mettur Municipality, Mettur Dam
22. (1985) 3 SCC 267 in the case of Ram and Shyam Company vs. State of Haryana and others.
1. AIR 2000 Madras 393 in the case of Tamil Nadu Municipal Shop Merchants
5. 2005 (1) CTC 81 in the case of S.Selvarani vs. The Commissioner, Karaikudi Municipality
7. J.R.Raghupathy v. State of A.P. AIR 1988 SC 1681
10. Regina v. St. A.H.E. School
12. Abdulla Rowther v. S.T. A.T. (AIR 1959 SC 896) (vide para-11);
14. Abdullah Rowther v. S.T.A.T., AIR 1959 SC 896 (paragraphs - 11 & 18); Raman v. State of Madras
16. Mafatlal Industries Limited v. Union of India (1997 (89) ELT 247 SC);
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