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1995 Supreme(All) 348

IN THE HIGH COURT OF ALLAHABAD
R. A. SHARMA, D. K. SETH
HARI PRAKASH GUPTA - Appellant
Versus
ZILLA PANCHAYAT (ZILLA PARISHAD), JALAUN AT ORAI - Respondents
C. M. W. P. 7885 Of 1995
Decided On : 03/20/1995

Advocates Appeared:
Avinash, Dharam Pal Singh

A business rival cannot seek to prevent another person from exercising their right to carry on a business.

Headnote:

COMPETITION - CATTLE MARKET LICENCE - The court held that the petitioner did not have the right to object to the renewal of licences for holding cattle market in neighboring villages, as it would not adversely affect his business and he was not prevented from holding his own cattle market. The judgment cited various Supreme Court and High Court decisions to support the principle that a business rival cannot seek to prevent another person from exercising their right to carry on a business.

Fact of the Case:

The petitioner was granted a licence for holding a cattle market in a village, and filed a writ petition to restrain the respondents from renewing the licences for holding cattle market in neighboring villages, citing adverse effects on his business and lack of consideration for his representation.

Finding of the Court:

The court found that the petitioner did not have the right to object to the renewal of licences for holding cattle market in neighboring villages, as it would not adversely affect his business and he was not prevented from holding his own cattle market. The writ petition was dismissed.

Issues: The issues involved the petitioner's right to object to the renewal of licences for holding cattle market in neighboring villages and the consideration of his representation.

Ratio Decidendi: The court cited various Supreme Court and High Court decisions to support the principle that a business rival cannot seek to prevent another person from exercising their right to carry on a business.

Final Decision: The writ petition was dismissed.

R. A. SHARMA, J.

( 1 ) PETITIONER was granted a licence for holding a cattle market in village Pachokhara by Zilla Panchayat Jalaun at Orai, for the period from 3-9-1994 to 31-3-1995. This licence is said to have been renewed for the year 1995-96. For village Ait, licence for holding cattle market for 1994-95 was granted by Zilla Panchayat to the Gaon Sabha. For another village Birsani licence for holding cattle market was granted to two persons for the year 1994-95. Petitioner has filed this writ petition for writ of mandamus restraining the respondents from renewing the licences for the year 1995-96 for holding cattle market in village Ait and Birsani. His grievance, as put through his learned counsel, is two fold, viz. (i) renewal of licences for holding cattle market in neighbouring villages will adversely affect his business; and (ii) licences cannot be renewed without considering his representation. These contentions are devoid of merit.

( 2 ) U. P. Kshetriya Samities and Zilla Parishads Adhiniyam, 1961 and Bye-laws framed thereunder by Zilla Panchayat have not conferred any right on the petitioner to raise objection against the grant or renewal of licence for holding cattle market to a business rival. Unless such a right is conferred on a person it is not open to him to object against grant of lience to another person. Supreme Court in N. R. and E. Mills v. N. T. C. and Bros. has laid down that a competitor in the business cannot seek to prevent a rival business man from exercising his right to carry on a business. Relevant extract from the judgment of Supreme Court is reproduced below:-"competition in the trade or business would be subject to such restrictions as are permissible and are imposed by the State by a law enacted in the interest of general public under Art. 19 (6), but a person cannot claim independently of such restriction that another person shall not carry on a business or trade so as to affect his trade business adversely. The appellant complied with the statutory requirements for carrying on rice milling operations in the building on the new site. Even assuming that no previous permission was obtained, the respondents would have no locus standi for challenging the grant of the permission, because no right vested in the respondents was infringed. "in J. M. Desai v. Roshan Kumar (AIR 1976 SC 578), it was held that owner of a cinema hall does not have locus standi to challange the grant of No Objection Certificate in favour of his rival in trade. Same principle was reiterated by Supreme Court in Mithilesh Garg v. Union of India (AIR 1992 SC 443), wherein it was laid down that under new Motor Vehicles Act, 1988 a transport operator cannot challenge grant of permit to an other operator, because his rights guaranteed to him under Art. 19 (1) (g) of the Constitution is not affected when another permit is granted to another operator. It was so held because unlike old Motor Vehicle Act the new Motor Vehicles Act does not contain any Provision giving right to an existing operator to raise objection against grant of new permits. A Division Bench of this Court in Shyam Bihari Tewari v. State of U. P. 1994 (23) ALR 520) held that cinema owner has no locus standi to challenge the establishment and grant-in-aid for new cinema hall. In this connection this Court has laid down as under:-"article 19 (1) (g) of the Constitution or any other provision of law does not guarantee protection from competition to the petitioners. The loss of income on account of competition does not result in injury to the legal right of the business man. "

( 3 ) NO provision of law including the Bye-laws framed by the Zilla Panchayat which confers right on the petitioner to raise objection against grant of licence to hold cattle market in other village has been placed before us. Even if such cattle markets are held on the same day no legal right of the petitioner is infringed. He is not prevented from holding his own cattle market. The loss of i




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