The mandatory nature of Article 226(3) of the Constitution of India and the need to prevent abuse of interim orders.

ORDER :

(Common Prayer : Writ Petition filed Under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records with respect to the impugned notice dated 25.10.2021 in Na.Ka.N:A4/670/2016 issued by the respondents 2 & 3 and quash the same.)

The notices issued to the petitioners dated 25.10.2021 issued by the Commissioner, Coonoor Municipality are under challenge in the present writ petitions.

2. The impugned notices were issued based on the Government Order issued in G.O.Ms.No.92, Municipal Administration and Water Supply Department dated 03.07.2007 and based on the resolution passed by the Municipal Council on 15.02.2021.

3. In respect of W.P.No.10599 of 2023, the petitioner states that she is a licensee of a shop bearing No.505 belonging to Coonoor Municipality and the monthly rent for the said shop during the year 2016 after periodical enhancement was Rs.1156/-, excluding GST. The petitioner states that she is paying the monthly rent regularly to the respondent till August 2021. Third September 2021 onwards, the respondents have not received the rent and issued a notice on 25.10.2021, enhancing the rent from Rs.1156/- to Rs.7400/- with effect from 01.07.2016 to 30.06.2019. Thereafter from 01.07.2019 to 30.06.2022, the rent was increased to Rs.8510/-.

3.1. In respect of W.P.No.10602 of 2023, the petitioner states that she is a licensee of a shop bearing No.2-GF-M belonging to Coonoor Municipality and the monthly rent for the said shop during the year 2016 after periodical enhancement was Rs.1704/-, excluding GST. The petitioner states that she is paying the monthly rent regularly to the respondent till August 2021. Third September 2021 onwards, the respondents have not received the rent and issued a notice on 25.10.2021, enhancing the rent from Rs.1704/- to Rs.8450/- with effect from 01.07.2016 to 30.06.2019. Thereafter from 01.07.2019 to 30.06.2022, the rent was increased to Rs.9718/-.

4. The similarly placed shop owners in the said market filed writ petitions and the said writ petitions were dismissed by the High Court. Against the dismissal, Writ Appeals were filed and an interim stay was granted by this Court on condition to pay 50% of the enhanced rent during the pendency of the writ appeals.

5. Relying on the interim order passed by this Court, the learned counsel for the petitioners made a submission that the interim stay is to be granted in the present cases also and the petitioners are ready to pay 50% of the enhanced rent.

6. Admittedly, earlier writ petitions filed by the similarly placed shop owners were dismissed on merits. The discretionary interim orders cannot be construed as a binding precedent. In the event of keeping the writ petitions pending for long years, the same will affect the Revenue of the Municipality. In such circumstances, the Municipal Administration would not be in a position to implement the welfare schemes in the interest of public in that locality. The Revenue of the State is of paramount importance and Courts are to be cautious, while granting such interim orders in State Revenue matters. The Hon'ble Supreme Court of India time and again emphasized that interim orders, affecting the Revenue of the State is to be granted only on exceptional circumstances, where there is an unconstitutionality or direct violations of the Statues in force. Routine grant of interim orders and keeping the matters pending for years together would cause irreparable financial loss to the State Exchequer and in the present cases to the Revenue of the Municipal Administration.

7. Article 226 (3) of the Constitution of India states as follows:

“where any party against whom an interim order, whether by way of injunction or stay or in any other manner, is made on, or in any proceedings relating to, a petition under clause (1), without—

(a) furnishing to such party copies of such petition and all documents in support of the plea for such interim order; and

(b) giving such party an opportunity of