The Municipality had the statutory authority to declare the streets as a market area and levy fees in accordance with the Tamil Nadu District Municipalities Act, 1920.

1. The notification issued by the Thirumanglam Municipality calling for public auction cum- tender for grant of licence to collect fees from the shop owners of seven streets made the Thirumangalam Nagar Vyabarigal Sangam to file this Writ Petition.

BRIEF FACTS:

2. The members of the petitioner-Sangam are having shops both as owners and as tenants. There is a market in the Town of Thirumangalam. There are streets by name Chinnakadai Veethi, Thelungar Street, Gurunathan Koil Street, Valayalkara Street, Uthandan Street, Mappillai Vinayagar Koil Street and Market Street, adjacent to the public market. The members of the petitioner-Sangam are carrying on trading activities from their shops situated near the market. The petitioner earlier filed a suit in O.S.No.119 of 1978 before the District Munsif Court, Thirumangalam challenging the resolution passed by the Municipality to collect licence fees for the goods purchased and brought by the members to their shops. The suit was decreed as prayed for as per judgment and decree dated 04 November, 1978. The petitioner has filed another Writ Petition in W.P.(MD)No.8250 of 2009, challenging the proposal to collect charges from the members of Sangam. The immediate provocation for filing this Writ Petition was the issuance of tender notification on 21 November, 2011 calling for tenders to grant the privilege to collect fees from the shop owners of the above said streets.

3. According to the petitioner, the streets in question were not declared as public market and as such, the local body has no jurisdiction to collect licence fees from the traders. It is their further contention that the members of the petitioner Sangam are not doing business from the public market and their business is confined to their respective shops. Therefore, they challenge the very right of the Municipality to collect licence fees.

4. The Commissioner, Thirumangalam Municipality filed a detailed counter-affidavit in answer to the contentions raised in the affidavit filed in support of the Writ Petition. According to the Commissioner, the local body has constructed a market complex just about 300 metres away from the said streets. The members of the petitioner-Sangam refused to occupy the market and as such, the market is now kept idle. The majority of the members are carrying out trade in vegetables, banana leaves, fruits, flower and groceries and they are dumping the waste in the public road. The Municipality has improved the streets by concreting the streets and by laying paver blocks. The local body has provided public convenience in Chinnakadai Street and the same is being maintained. Two bore wells have been sunk and sintex water tanks were provided for taking water for the traders. Sufficient street lights have been provided in all these streets and the garbage of the market waste are being cleared by the employees of the Municipality. The members of the petitioner Sangam have been using the public streets as market. The Municipality has to incur the expenses for maintaining the streets. The Municipality earlier took a decision to treat this as market and the same was challenged in W.P.(MD)No.1498 of 2007. The Writ Petition was dismissed on 13 June, 2007. Therefore, the petitioner cannot maintain a second Writ Petition on the very same cause of action. The Municipality has specifically contended that the streets in question are used as market and as such, the local body has every right to collect fees by passing necessary resolution.

SUBMISSION IN NUTSHELL:

5. The learned counsel for the petitioner contended that the streets in question were not declared as public market within the meaning of Section 259 of the Tamil Nadu District Municipalities Act, 1920 [hereinafter referred to as "the Act"]. Therefore, the Municipality was not correct in their contention that it is open to them to collect market fee. According to the learned counsel, the members of the petitioner Sangam are not using the public stree