2017 Supreme(MP) 795
IN THE HIGH COURT OF MADHYA PRADESH
Hemant Gupta, C.J. and Rajeev Kumar Dubey, J.
Ajiz Khan (Miyan) and others v. Union of India and others
Writ Petition No. 11190 of 2016 (Jabalpur); Decided on 25.10.2017.
Shekhar Sharma for petitioners; Anuj Agrawal for petitioner No. 5;
D. K. Gupta, Advocate for respondent No. 1;
Ashok Lalwani, Advocate for respondents No. 2 to 5.
Headnote:(1) Lease and Licence -- license period expired -- thereafter, possession of petitioner shopkeepers is not protected in any manner -- mere fact that they were inducted as licensee at some stage, does not give them right to remain in possession without payment of increased license fee -- method of determining license fee on basis of Collector rate -- is a reasonable formula.
Held : Their possession of shops is as a licensee since long. The petitioners have got no right to continue in possession for indefinite period without increase of license fee or against the terms of license. The license itself is determinable at the instance of the Licensor. The possession of the licensee is not protected under the M.P. Accommodation Control Act, 1961 or under the Transfer of Property Act, 1882 or any other statute. The license is revocable on satisfaction of the conditions in the license deed or by serving notice in accordance with law. The license period of the petitioners expired on 31.3.2011. Thereafter, their possession is not protected in any manner. Mere fact that the petitioners were inducted as a licensee at some stage, does not give them a right to remain in possession without payment of increased license fee which is required to be determined with reference to Collector rate. Though the Collector rate is fixed for transfer of the immovable property, but the license fee is not fixed on the Collector rate but as per formula given in the Policy which is fraction of the Collector rate. Therefore, the method of determining of license fee on the basis of Collector rate is a reasonable formula.
The license fee is based upon a given formula, which non-discriminatory and is transparent. (1985) 3 SCC 545 and (2015) 11 SCC 161 distinguished.
(2) Lease and Licence -- license is not heritable -- it is an agreement between parties to allow use of a property -- legal heirs are not entitled to continue in possession after death of licensee -- condition that license will not be heritable -- cannot be said to be illegal or arbitrary.
Held : In view of the nature of possession of the petitioners, the arguments raised by the petitioners need to be examined. The argument is that under the previous policy, the license could be transferred in favour of the legal heirs, but such condition has not been kept in the new policy. We find that the license is not heritable. It is an agreement between parties to allow use of a property. It may be noticed that as per the judgment of the Supreme Court in the case of Chandavarkar Sita Ratna Rao v. Ashalata S. Guram, reported as [(1986)4 SCC 447], the licence is not an interest in property. It is purely a personal right. Therefore, in the absence of contract to the contrary, the legal heirs are not entitled to continue in possession after the death of the licensee. Therefore, the condition that license will not be heritable cannot be said to be illegal or arbitrary. Still further, the effect of not transferring the license in favour of the legal heirs is that the legal heirs have to compete along with other eligible candidates for grant of license on such license fee which may be prevalent on the date of grant of the license. Mere fact that he happens to be the legal heir of the deceased licensee does not confer any preferential right to continue with the permissive possession. AIR 1968 SC 175 and (1986) 4 SCC 447 followed.
(3) Transfer of Property Act, 1882 -- S.108 (h) -- land alone leased
-- licensee does not get a right to enjoy the superstructure after expiry of license -- in the event of determination of license for occupation of land, licensee would be entitled to remove superstructure at his own cost, but it cannot be said that license is granted in perpetuity.
Held : Even if, the land alone has been leased to the petitioners, in the event of expiry of license period, the right of the licensee is to remove the superstructure on revocation of license or after expiry of the term of the license. The licensee does not get a right to enjoy the superstructure after the expiry of license of land underneath it. The judgment of Single Bench of Bombay High Court in the case of Laxmipat Singhania (supra), is a case of a ejectment suit filed by landlord against his tenants in respect of a premises governed by Bombay Rents, Hotels and Lodging House Rates Control Act, 1947, whereby only land was leased to the tenant. The Bombay High Court has rightly held that there are two distinct ownerships, one of the land and the other of the structure. It was also held that in terms of section 108(h) of the Transfer of Property Act, 1882, the lessee after expiry of the lease is entitled to remove all things which he has attached to the earth, which of course include structures or buildings put up by him. Thus, in the event of determination of the license for occupation of the land, the licensee would be entitled to remove superstructure at his own cost, but it cannot be said that the license is granted in perpetuity. AIR 1951 Bom. 205 discussed.
(4) Constitution of India -- Article 226 -- classification of shops into essential and general business -- is a matter of policy -- no patent illegality in classification warranting interference in exercise of power of judicial review under Art.226. (2009) 165 DLT 65 discussed. [Para 16
(5) Constitution of India -- Article 226 -- power of judicial review -- exercise of -- High Court should not ordinarily interfere with policy decisions of the executive unless policy can be faulted on grounds of mala fide, unreasonableness, arbitrariness or unfairness etc. AIR 2001 SC 1447=(2001)3 SCC 635, AIR 2008 SC 1343=(2008)2 SCC 672 and (2010)9 SCC 434 followed. (2009) 165 DLT 65 discussed. [Para 16 to 19
(6) Lease and Licence -- policy framed by BHEL for allotment of shops and providing model license agreements -- approved by its Board - is within authority of Board to frame such policy -- policy is not in contravention of any statute or larger public policy as well. AIR 2001 SC 1447=(2001)3 SCC 635, AIR 2008 SC 1343=(2008)2 SCC 672, (2010)9 SCC 434 followed. [Para 19
¼1½ iVVk rFkk vuqKfIr && vuqKfIr dh vof/k lekIr && rRi'pkr~ ;kph nqdkunkjksa dk dCTkk fdlh izdkj lajf{kr ugha && dsoy bl rF; ls fd mUgsa fdlh izØe ij vuqKfIr/kkjh ds :i esa izfo"V fd;k x;k Fkk] mUgs c<+h gqbZ vuqKfIr Qhl ds lank; ds fcuk dCtk cuk, j[kus dk vf/kdkj izkIr ugha gksrk && dYkDVj nj ds vk/kkj ij vuqKfIRk Qhl ds vo/kkj.k dh i)fr && ;qfDr;qDr lw= gSA
vfHkfu/kkZfjr % nqdkuksa ij mudk dCtk vuqKfIr/kkjh ds :Ik esa yacs le; ls gSA ;kphx.k dks vuqKfIRk Qhl esa o`f) ds fcuk vFkok vuqKfIr ds fuac/kuksa ds foL)] vfuf'pr vof/k ds fy, dCtk cuk, j[kus dk dksbZ vf/kdkj ugha gSA Lo;a vuKfIr gh vuqKkid dh izsj.kk ij Ik;Zols; gSA vuqKfIr/kkjh dk dCtk e-iz- LFkku fu;a=.k vf/kfu;e] 1961 vFkok laifŸk varj.k vf/kfu;e] 1882 vFkok vU; fdlh dkuwu ds v/khu lajf{kr ugha gS vuqKfIr foys[k dh 'krksZ dh iwfrZ gksus ij vFkok fof/k ds vuqlkj lwpuki= dh rkehy djus ij vuqKfIr izfrlagj.kh; gSA ;kphx.k dh vuqKfIr vof/k dk volku 30-3-2011 dks gks x;kA rRi'pkr~ mudk dCtk fdlh izdkj lajf{kr ugha gSA dsoy bl rF; ls fd mUgsa fdlh izØe ij vuqKfIRk/kkjh ds :i esa izfo"V fd;k x;k Fkk] mUgs c<+h gqbZ vuqKfIr Qhl ds lank; ds fcuk] ftldk dyDVj nj ds izfr funsZ'k esa vo/kkj.k vkisf{kr gS] dCtk cuk, j[kus dk vf/kdkj izkIr ugha gksrkA ;|fi dyDVj nj LFkkoj ds varj.k ds fy, fu;r gS] rFkkfi] vuqKfIr Qhl dyDVj nj ij fu;r ugh gS vfirq uhfr esa fn, x, lw= ds vuqlkj gS] tks dYkDVj nj dk Hkkx gSA vr% dyDVj nj ds vk/kkj ij vuqKfIr Qhl ds vo/kkj.k dh i)fr ;qfDr;qDr lw= gSA
-----vuqKfIRk Qhl ,d fu;r lw= ij vk/kkfjr gS tks foHksndkjh ugha gS vkSj ikjn'khZ gSA ¼1985½3 ,l lh lh 545 rFkk ¼2015½ 11 ,l lh lh 161 izHksfnrA ¼iSjk 10 ,oa 11
¼2½ iVVk rFkk vuqKfIr && vuqKfIr fojklrh; ugha gksrk && og fdlh laifŸk dk mi;ksx vuqKkr djus ds fy, i{kdkjksa ds e/; fd;k x;k djkj gksrk gS && vuqKfIr/kkjh dh e`R;q ds i'pkr~ fof/kd okfjl dCtk cuk, j[kus ds gdnkj ugha && ;g 'krZ fd vuqKfIr fojklrh; ugha gksxh && voS/k ;k euekuh ugha dgh tk ldrhA
vfHkfu/kkZfjr % ;kphx.k ds dCtsa dh izd`fr dh n`f"V ls] ;kphx.k }kjk mBk, x, rdksZ dk ijh{k.k vko';d gSA rdZ ;g gS fd iwoZrj uhfr ds v/khu vuqKfIRk fof/kd okfjlksa ds i{k esa varfjr dh tk ldrh Fkh] ijarq ubZ uhfr esa ,slh 'krZ ugh j[kh xbZ gSA gekjk fu"d"kZ gS fd vuqKfIr fojklrh; ugha gksrh og fdlh laifŸk dk mi;ksx vuqKkr djus ds fy, i{kdkjksa ds e/; fd;k x;k djkj gksrk gS /;krO; gS fd ¼1986½ 4 ,l lhlh 447 es ;Fkk laizdkf'kr pankojdj lhrk jRu jko fo- vk'kkyrk ,l- xqje ds ekeysa ds mPpre U;k;ky; ds fu.kZ; ds vuqlkj vuqKfIRk laifŸk es fgr ugha gksrkA og 'kq)r% oS;fDrd vf/kdkj gksrk gSA vr% rRizfrdwy lafonk ds vHkko esa] vuqKfIRk/kkjh dh e`R;q ds i'pkr~ fof/kd okfjl dCtk cuk, j[kus ds gdnkj ugha gSA vr% ;g 'krZ fd vuqKfIr fojklrh; ugha gksxh] voS/k ;k euekuh ugh dgh tk ldrhA blds Hkh vfrfjDr] fof/kd okfjlksa ds i{k esa vuqKfIr Qhl ij tks vuqKfIr ds iznku ds fnukad dks fo|Ekku gks] vU; ik= vH;fFk;ksZ ds lkFk izfrLi)kZ djuk gksxhA dsoy bl RkF; ls fd og la;ksx ls e`rd vuqKfIr/kkjh dk fof/k okfjl gS] vuqKs; dCts esa cus jgus dk vf/kekuh vf/kdkj iznŸk ugha gksrkA , vkb vkj 1968 ,l lh 175 rFkk ¼1986½ 4 ,l lh lh 447 vuqlfjrA
¼3½ liafr varj.k vf/kfu;e] 1882 && /kkjk 108¼t½ && dsoy Hkwfe iVVs ij nh xbZ && vuqKfIr/kkjh dks vuqKfIRk ds volku ds i'pkr~ vf/kjpuk ds miHkksx dk vf/kdkj izkIr ugha gksrk && Hkwfe ds vf/kHkksx dh vuqKfIRk ds i;Zolku dh n'kk esa vuqKfIr/kkjh Lo;a ds [kpZ ij vf/kjpuk gVkus dk gdnkj gksxk] ijarq ;g ugha dgk tk ldrk fd vuqKfIRk 'kk'ofrd gSA
vfHkfu/kkZfjr % Hkys gh ;kphx.k dks dsoy Hkwfe iVVs ij nh xbZ gks] vuqKfIRk vof/k ds volku dh n'kk esa vuqKfIRk/kkjh dk vf/kdkj vuqKfIr dh izfrlagj.k ij vFkok vuqKfIRk dh vof/k ds volku ds i'pkr~ vf/kjpuk gVkus dk gSA vuqKfIr/kkjh dks vf/kjpuk mlds uhps dh Hkwfe dh vuqKfIr ds volku ds Ik'pkr~ vf/kjpuk dk miHkksx djus dk vf/kdkj izkIr ugha gksrkA y{Ekhir fl?kkafu;k ¼iwoksZDr½ ds ekeys esa cacbZ mPPk U;k;ky; dh ,dy U;k;ihB dk fu.kZ; ckWEcs jsUV~l] gksVsy ,aM ykWftax gkml jsV~l daVªksy ,DV] 1947 }kjk 'kkflr ifjlj ds lac/ka esa edkuekfyd }kjk vius vfHk/kkfj;ksa ds fo:) Qkby fd, x, csn[kyh okn dk ekeyk gS ftlesa vfHk/kkjh dks dsoy Hkwfe fdjk, ij nh xbZ FkhA cacbZ mPp U;k;ky; }kjk Bhd gh vfHkfu/kkZfjr fd;k x;k gS fd nks lqfHkUu LokfEkRo gksrs gS] ,d Hkwfe dk vkSj ,d bekjr dkA ;g Hkh vfHkfu/kkZfjr fd;k x;k fd laifŸk varj.k vf/kfu;e] 1882 dh /kkjk 108¼t½ ds vuqlkj vuqKfIr ds volku ds i'pkr~ vuqKfIr/kkjh mu leLr oLrqvksa dks gVkus dk gdnkj gS tks mlus Hkw c) dh gS ftuesa mlds }kjk [kM+h dh xbZ bekjrsa vFkok Hkou fuLlnsag lfEEkfyr gSA vr%] Hkwfe ds vf/kHkksx dh vuqKfIr ds i;Zolku dh n'kk esa vuqKfIr/kkjh Lo; ds [kpZ ij vf/kjpuk gVkus dk gdnkj gksxk] ijarq ;g ugha dgk tk ldrk fd vuqKfIr 'kk'ofrd gSA , vkb vkj 1951 cacbZ 205 foosfprA
¼4½ Hkkjr dk lafo/kku && vuq-226 && nqdkuksa dk vko';d vkSj lk/kkj.k dkjckj esa oxhZdj.k && uhfr dk fo"k; gS && oxhZdj.k esa ,slh dksbZ izR;{k voS/krk ugha ftlls vuq-226 ds v/khu U;kf;d iqufoZyksdu dh 'kfDr ds iz;ksx esa gLr{ksi okaNuh; gSA ¼2009½ 165 Mh ,y Vh 65 foosfprA ¼iSjk 16
¼5½ Hkkjr dk lafo/kku && vuq-226 && U;kf;d iqufoyksdu dh 'kfDr && dk iz;ksx && mPp U;k;ky; dks dk;Zikfydk ds uhfrxr fofu'p;ksa esa lkekU;r% gLr{ksi ugha djuk pkfg, tc rd fd uhfr esa vlnHkko] v;qfDr;qDrrk] euekuh ;k v_tqrk ds vk/kkj ij nks"k ugha fudkyk tk ldsA , vkb vkj 2001 ,l lh 1447 % ¼2001½ 3 ,l lh lh 635] , vkb vkj 2008 ,l lh 1343 % ¼2008½ 2 ,l lh lh 672] rFkk ¼2010½ 9 ,l lh lh 434 vuqlfjrA ¼2009½ 1 Mh,yVh 65 foosfprA¼iSjk 16 ls 19
¼6½ iVVk rk vuqKfIr && nqdkuks ds vkcaVu vkSj vkn'kZ vuqKfIRk djkj micaf/kr djus ds fy, ch ,p bZ ,y }kjk uhfr fojfpr && mlds cksMZ }kjk vuqeksfnr && ,slh uhfr fojfpr djuk cksMZ ds izkf/kdkj ds varxZr && uhfr fdlh dkuwu ;k c`gŸkj yksd uhfr ds mYya?ku esa Hkh ugha gSA , vkb vkj 2001 ,l lh 1447 % ¼2001½ 3 ,l lh lh 635] , vkb vkj 2008 ,l lh 1343 % ¼2008½ 2 ,l lh lh 672] rFkk ¼2010½ 9 ,l lh lh 434 vuqlfjrA ¼iSjk 19
Gupta, C. J. -- 1. Challenge in the present writ petition is to the policy framed by Bharat Heavy Electricals Ltd. (for short BHEL) on 26.4.2014 of allotment of shops and also providing Model License Agreements as approved in its 462nd Meeting held on 29.5.2014.
2. The petitioners are the shopkeepers in the shops constructed in the BHEL campus specifically at Habibganj, Gandhi Market Piplani and D-Sector Govindpura. The said shops were allotted about 25 to 30 years back as per the then existing policy. The petitioners claim that they were allotted land and that they have raised construction over the said piece of land from their own resources. The petitioners allege that there are approximately 1340 shops in 30 markets to cater the needs of residents/employees of BHEL. The policy is challenged, inter alia, on the ground that it is not renewable and the license fee is to be determined in consonance with the formula based upon the Collector rate. It is pleaded that Collector rate is a rate for transfer of land, therefore, the Collector rate for lease should have been incorporated. It is also pleaded that there is no intelligible differentia while formulating the formula for determination of the license fee. The formula framed will increase the license fee manifold then the license fee being paid now. The petitioners have pleaded that such decision has been taken unilaterally at the back of the shopkeepers, therefore, such decision which has been taken without taking the shopkeepers in confidence is not justified.
3. The petitioners have further pointed out that the policy does not provide for transfer of the license or the basis of formula of payment of licence fee and that there is total non-application of mind of classification of the businesses apart from the fact that there is exorbitant increase in the license fee.
4. A perusal of the terms of the policy Annexure P-1 shows that the shop has been defined to include BHEL constructed shops and also where only the land was allotted by the Company and permanent Construction has been undertaken. There is stipulation that in future no land will be allotted except for mobile towers. The minimum monthly reserve license fee is to be fixed by the Town Tender and Allotment Committee at the unit level which, in no case, should be as per the formula contain in Clause 4.3 of the policy. The businesses carried out in the shops allotted have been put in three different categories, as per Clause 4.3. The relevant table read as under :
"The list of Essential & Banned Businesses will be prepared by TTAC at Unit level with the approval of GM/HR of the Unit. In case of level of GM (HR) is not available in the Unit, approval of Head of Unit will be obtained. Other permissible businesses will be termed as 'General Businesses'.
General Businesses
Essential Businesses
Banned Businesses
Departmental Stores Electronic shop Consumer durable shop Garment & cloth shop Stationary shop/Book shop/Magazine shop Tuition centre and similar businesses
Chemist & Druggist Grocery shop Milk booth Shoe-maker/repair Washerman/Drapers AIR
Liquor shop Casino & similar Bar & Pubs Dance bars Night Clubs & lik
Tailor Mobile and accessories shop Courier shop Restaurant & refreshment shop Shoe shoppee And similar trades & vocations
Mobile Towers And similar trades & vocations
Including activities/ businesses which are illegal under Criminal Law/as per applicable statues.
xxx xxx xxx"
5. The relevant terms of the policy in respect of existing licenses/Leases for General Businesses is as under :
"5.1.1 Businesses under the existing licenses/leases which do not figure in the list of essential businesses and in banned businesses will be termed as 'General Businesses'.
5.1.2 in recognition of the fact that large number of allotments were made p