The State and its instrumentalities, including the respondent Corporation, must act in a fair and reasonable manner, adhering to the principles of natural justice and fairness, even in the field of contracts and eviction proceedings.

JUDGMENT

(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorarified Mandamus, to call for the records pertaining to the impugned Order in Na.Ka.No.7485/2015/MCA5 dated 27.07.2021 on the file of the respondent No.2 and quash the same as illegal and consequently, to forbear the respondent No.2 from evicting the petitioner from his shop at Thanjavur New Bus Stand, Tanjore District without following due process of law.)

Common Order:

These batch of Writ Petitions pertain to the disputes involving the shops let out to the respective petitioners by the respondent Corporation at Tanjore Bus Stand, Tanjore.

2. The first batch of 32 Writ Petitions were filed by the tenants challenging the auction notification, dated 27.07.2021 issued by the respondent Corporation calling for bidders, who are willing to take the shops at Corporation Bus Stand, on lease. The details of the Writ Petitions challenging the auction notification, dated 27.07.2021, are as follows:

“TABLE”

3. The second batch of 28 Writ Petitions were filed challenging the show cause notice, dated 08.09.2021 and the consequential, termination order, dated 16.09.2021, terminating the lease granted in favour of the respective petitioners. The details of the second batch of Writ Petitions are as follows:

“TABLE”

4. During the pendency of the first batch of Writ Petitions, wherein, auction notification, dated 27.07.2021, was challenged, W.M.P(MD)No.11995 of 2021 in W.P.(MD)No.15081 of 2021 was filed and by order, dated 24.08.2021, the learned Single Judge of this Court granted interim stay with regard to the publication of results of the impugned tender. However, the learned Single Judge of this Court permitted the respondent Corporation to proceed with the tender, which was scheduled to take place on 25.08.2021. Aggrieved by the interim stay granted by the learned Single judge of this Court on 24.08.2021, the respondent Corporation preferred a Writ Appeal in W.A.(MD)No.1727 of 2021. By judgment, dated 08.09.2021, the Writ Appeal was disposed of by modifying the order of the learned Single Judge, dated 24.08.2021, to the limited extent of permitting the respondent Corporation to receive tenders and conduct auction in respect of the shops, but, however, they were directed not to confirm the tender/auction till the disposal of the Writ Petition in W.P.(MD)No.15081 of 2021. The respondent Corporation was also permitted to file a vacate stay petition before the learned Single Judge. Accordingly, the respondent Corporation has also filed a vacate stay petition.

5. Since the dispute pertaining to the first batch of Writ Petitions and the second batch of Writ Petitions arise out of the shops at Tanjore Bus Stand, which arises out of the very same auction notification, both the batch of Writ Petitions are disposed of by this Court by a common order.

6. Insofar as the first batch of Writ Petitions challenging the impugned auction notification, dated 27.07.2021, are concerned, the impugned auction notification has been challenged on the following grounds:

(a) The impugned notification is ex facie illegal and suffers from the vice of arbitrariness, as the state even in its role as a landlord continues to be bound by the constitutional mandate of non-arbitrariness and compliance with the doctrine of procedural due process conceived under Article 14 of the Constitution of India.

(b) Having called for a pre-construction bid for allocation of shops with a clear understanding that the period of the grant of largesse is for 9 years with enhancement made every three years and also having acted on the same by accepting the bid amount and allowing the respective petitioners to occupy and invest in the shops, the exercise of calling for auction qua the same shops is not only legally sustainable but also defies all canons of reasonableness, fair play and legitimate expectation.

(c) The grant of largesse for a fixed tenure is a right/property, protected by the c