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2015 Supreme(Mad) 2543

IN THE HIGH COURT OF JUDICATURE AT MADRAS
SATISH K. AGNIHOTRI AND M.VENUGOPAL, JJ.
The Chennai Fruit Commission Agent's Association T/D 101, Anna Fruit Market Koyambedu Chennai – Appellant
Vs.
The Member Secretary Chennai Metropolitan Development Authority Thalamuthu Natarajan Building No.1, Gandhi Irwin Road Egmore Chennai – Respondent
W.P. Nos.28520 and 28521 of 2011 and M.P. Nos.1 of 2011 and 1 of 2013
Decided On : 28.07.2015

Advocates:
Advocate Appeared:
For petitioner in both the WPs: Mr. S. Thankasivan
For respondent in both the WPs:Mr. P.H. Arvindh Pandian Additional Advocate General for Mr. N. Sampath
For petitioner in Impleading Petition Mr. R. Vijayaraghavan

The court clarified the ownership of common areas and emphasized the need for strict adherence to the provisions of the Tamil Nadu Specified Commodities (Regulation and Location) Market Act, 1996 in case of any future allotments.

Headnote:

Ownership of Common Area - Dispute over Allotment of Shops - Tamil Nadu Specified Commodities (Regulation and Location) Market Act, 1996 - [10(a), 10(b), 9, 11, 15, 24, 25, 26]

Fact of the Case:

The petitioners sought a mandamus to prevent the respondent from granting rights to retail vendors or third parties other than the allottees of the shops constructed in the Koyambedu Wholesale Fruit Market Complex. The petitioners claimed joint ownership of the common areas and objected to the allotment of platform shops to third parties.

Finding of the Court:

The court found that the common areas were not conveyed, transferred, or sold under joint ownership to the allottees/purchasers. The court held that the allottees/purchasers merely had the right to enjoy the common areas and could not claim ownership of the same. The court also emphasized the need for strict adherence to the provisions of the Tamil Nadu Specified Commodities (Regulation and Location) Market Act, 1996 in case of any future allotments.

Issues: Dispute over ownership of common areas, legality of allotting platform shops to third parties, and adherence to the provisions of the Tamil Nadu Specified Commodities (Regulation and Location) Market Act, 1996.

Ratio Decidendi: The court held that the common areas were not jointly owned by the allottees/purchasers and emphasized the need for strict adherence to the provisions of the Tamil Nadu Specified Commodities (Regulation and Location) Market Act, 1996 in case of any future allotments.

Final Decision: The writ petitions were dismissed, and the court directed the respondent authority to ensure that the market complex is neat and clean with a clear service road, and to regulate any future allotments in a way that does not create congestion in the open space available for the benefit of all.

ORDER

SATISH K. AGNIHOTRI, J.

The petitioner in W.P. No.28520 of 2011, stated to be an association of the Fruit Commission Agents, represented through its President S. Srinivasan of Anna Fruit Market, Koyambedu and the petitioner in W.P. No.28521 of 2011, stated to be an individual allot tee, have come up with the instant writ petitions, seeking a mandamus forbearing the respondent from granting any right in the form of permission, licence, allotment or sale to the retail vendors or any third parties other than the allottees of the shops constructed as per the respondent's approved Koyambedu Wholesale Fruit Market Complex Plan dated 12th December 1988 or permitting such third parties to carry on any trade in the common built up area like platforms, shopping and service streets, court yard, etc. provided within the Koyambedu Wholesale Fruit Market Complex.

2. The relevant facts necessary for adjudication, in brief, are that the Government of Tamil Nadu conceived a wholesale market complex at Koyambedu to shift and replace the shopkeepers in the Kothavalchavadi George Town congested area for vegetables, fruits and flower wholesale market. Indisputably, the said market was developed and constructed under self financing scheme at the cost of the allot tees. According to the petitioners, all the allot tees paid the cost of god owns, open parking place for vehicles, drainage facilities, court yard and toilet facilities in the shops, separate verandahs to be held and vast common area to be under their ownership. The entire complex comprises 456 shops as per the approved plan. The fixation of the cost of the said shops was questioned by the petitioner association in Civil Suit being C.S. No.250 of 1988, wherein, it was clearly stated by the respondent that the project was conceived, planned and developed as a socio-welfare measure on no profit basis. The actual cost is paid by the allottees alone to their benefit. According to the petitioners, the complex was completed in the year 1991 and it was opened for allotment to the members of the petitioner association from 1996 onwards. Thereafter, the allot tees have been carrying on their wholesale trade in the said complex. However, handing and taking over took place formally in July 2006. Ultimately, the sale deed was executed in December 2006. The allot tees continued thereafter as lawful owners of the shops as specified in Schedule B and all other common built up area like platforms, shopping and service streets, court yard, etc. under common ownership. These writ petitions, as a fore stated, seek a direction forbearing respondent from granting any right in the form of permission, licence, allotment or sale to the retail vendors or any third parties other than the allot tees of the shops constructed.

3 Mr. S. Thankasivan, learned counsel for the petitioners would submit that it is evident from the counter affidavit filed by the respondent in Application No.1205 of 1988 in C.S. No.250 of 1988, as a fore stated, that the entire project was constructed at the cost of the allot tees under self-financing scheme. The very purpose to release congestion in George Town area by constructing this complex would stand defeated, if the platform shops are allotted to the retailers or any third parties. If such allotment is made, it would alter the approved plan and also amount to infringement of the ownership and title passed on to the allot tees in common, as the entire complex was developed under self-financing scheme. In the individual sale deed executed in December 2006, it is clearly stated that on payment of the sale consideration, the allot tees would become the absolute owner of the property mentioned in the B Schedule. The purchasers will have easements, rights in common and privileges mentioned in the Schedules D and E and with all the fixtures, electrical installation, water and drainage connection, rights, easements and appurtenances of the ways, paths, liberties, advantages and privileges

































































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