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2019 Supreme(Mad) 2359
IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
R. Kamaraj, Chennai & Another - Petitioners
Versus
The Commissioner, Corporation of Chennai & Others - Respondents
Writ Petition No. 21216 of 2019 & W.M.P. No. 20424 of 2019
Decided On : 04-10-2019
For the Petitioner:Ashok Menon, Advocate
For the Respondents:Karthika Ashok, Standing Counsel, S. Ayyathurai, Advocate
The Corporation has the power to regulate trades and can insist on necessary documents for granting a trade license.
Headnote:
Trade License - Fast Food Business - Chennai City Municipal Corporation Act, 1919 - Section 379-A - Writ Petition dismissed
Fact of the Case:
The petitioner, a fast food business owner, sought a writ to quash conditions imposed by the Corporation for obtaining a trade license. The Corporation had insisted on documents such as a rental agreement, No Objection Certificate from the landlord, tax receipt for the building, affidavit of undertaking, NOC from Fire Safety and Rescue Department, and professional tax receipts.
Finding of the Court:
The court found that the petitioner had no legal right to insist on the Corporation granting a trade license without the necessary documents mentioned in the impugned order. The petition was dismissed with no costs.
Issues: The main issue was whether the petitioner had the legal right to obtain a trade license without fulfilling the requirements set by the Corporation.
Ratio Decidendi: The court held that the Corporation had the power to regulate trades involving hazardous materials, fire, sanitary, and hygiene, and therefore, could insist on a 'No Objection Certificate' and other necessary documents for granting a trade license.
Final Decision: The Writ Petition was dismissed, and no costs were imposed on the petitioner.
JUDGMENT :
(Prayer: Writ Petition is filed under Article 226 of the Constitution of India, to issue Writ of Certiorarified Mandamus, to call for the records of the impugned notice dated 17.12.2018 issued by the respondents 2&3 under Ref.No.Ma.A.6.Na.Ka.No.R/2618/2018, dated 17.12.2018 and to quash the conditions 2 and 3 therein, in respect of the fast food business under the name and style of “Ganesh Fast Food” at Door No.120, Madhavaram High Road, Perambur, Chennai 600 011, and consequently direct the 3rd respondent to forthwith issue trade license to the petitioners under the name and style of “Ganesh Fast Food.”)
1. Heard the Learned Counsel for the Petitioners and the Learned Counsel for the Respondents.
2. The 1st petitioner and the 4th respondent had entered into a rental agreement on 01.07.2016 in respect of the premises bearing door No.120/1, (Ground floor), Madhavaram High Road, Perambur, Chennai. The 4th respondent the owner of the building, has agreed to rent out the premises for a monthly rent of Rs.35,000/- to the 1st petitioner to run a Fast Food Hotel. The rental agreement commenced on 10.07.2016. The initial tenure of the agreement was 11 months which is renewable thereafter, if both parties agree. The tenant was restraint from subletting the premises.
3. While so, on expiry of the 11th month, the agreement was not renewed. The petitioner has filed suit for injunction against the landlord not to evict and the said suit O.S.No.6745 of 2018 before the V Assistant Judge, City Civil Judge, Chennai is pending. By virtue of injunction order, the petitioner continues to be in occupation. The 4th and 5th respondents have filed petition for eviction before the Rent Control Tribunal, in R.C.O.P.No.169 of 2019 before the Small Causes court, Chennai and same is also pending.
4. The petitioners have obtained licence from the Tamil Nadu Food Safety and Drug Administration Department, Government of Tamil Nadu, which was valid upto 06.05.2019. The petitioners contention in this Writ Petition is that, they applied for Trade License from the Corporation on 20.08.2019. The Corporation, instead of considering their application for Trade License, has caused notice dated 04.12.2018, as if, the petitioners are running fast food business without license and if they don’t apply for License within 7 days, action will be taken under Section 379-A of the Chennai City Municipal Corporation Act, 1919.
5. On receipt of the notice, the 1st petitioner replied to the Corporation vide his letter dated 10.12.2018, pointing that his application for license is pending with them and sought one month time to furnish documents which are required. The Corporation, on considering his request, rejected the application, vide proceedings Ma.A.6 Na.Ka.No.R/3618/2018, dated 17/12/2018, listing out 6 documents not furnished and informed the petitioners, that they have to close down their shop or else it will be sealed, required for getting Trade License.
6. Aggrieved by the above proceedings of the Chennai Corporation, dated 17.12.2018, the petitioners have filed the above petition stating that, since the landlord has already filed petition for eviction, he has induced the Corporation to cause the impugned notice and sealed the premises. The landlord, refuse to give 'No Objection Certificate' and the tax receipt for the building. Therefore, the Corporation should consider his application for Trade License without insisting for NOC from the land lord and Tax receipt for the building and grant the same.
7. The Learned Counsel for the Petitioners submitted that, nowhere in the Chennai City Municipal Corporation Act, or any other act, it has been stipulated that, a tenant has to produce 'No Objection Certificate' from the landlord and evidence, the landlord has paid tax for the building. Further, in a similar case, this Court in W.P.No.12729 of 2013 (K.Devan Vs. The Commissioner, Corporation of Chennai and others) has directed the Corporation of Chennai, to consider the
