The court emphasized the need for proper consideration of vendor rights and lawful possession in urban license disputes.

1. The present petition has been filed seeking directions to the respondents to restore the shop of the petitioner, i.e., Shop No. 27, measuring 8.8 sq meters out of Khasra No. 52, situated in Revenue Estate of Village Najafargh, Delhi-110043, in the same position as it was before the demolition was carried out.

2. On 23rd April, 2025, this Court had passed detailed directions, in the following manner:

“1. Learned counsel appearing for the Municipal Corporation of Delhi (“MCD”), draws the attention of this Court to the order dated 26th October, 2021, passed in CONT.CAS(C) 343/2020, to submit that the action for demolition of the shop of the petitioner, was taken pursuant to the directions of the Court in the said order. The relevant portion of order dated 26th October, 2021, reads as under:

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1. The court's attention is drawn to the non-removal of a construction in the middle of the road maintained by Public Works Department ('PWD'), GNCTD, as shown at Annexure P-38, as well as other electricity installations in the right of way. Photographs of the same are reproduced hereunder:

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10.The learned ASC for GNCTD submits that the 120 feet wide road is maintained by PWD; however, hawking-licences are issued by the Corporation concerned and latter is duty bound to remove the unauthorised hawkers. He also submits that licences can be issued only for a site, where hawking does not impede the free flow of traffic and movement of the pedestrians. He further submits that PWD would also be ready and willing to provide the assistance, so would Delhi Police to clear up the encroachments and impediments, but it would have to be initiated and completed by the SDMC. Let the matter be looked into by the Deputy Commissioner (Zone), SDMC and an affidavit be filed by the said officer, ensuring that the roads are cleared up of all impediments within 2 weeks. The DCP of the area shall ensure that due police assistance is provided to the encroachment clearance to be earned out by the SDMC. The PWD shall assist in the process, as may be requested by the SDMC.

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2. Learned counsel appearing for MCD also draws the attention of this Court to the Status Report filed on behalf of the MCD, wherein, it has been stated as under:

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5. That, furthermore, as per the records of the Licensing Department (NGZ) of Respondent No.1, Teh Bazari rights were allotted to only 26 shopkeepers at the location namely 'Veer Bhagat Singh Market' near Health Centre, Najafgarh, Delhi. That, thus, except all such 26 shopkeepers all the other unauthorized hawkers, including the Petitioner, were removed in the said joint action.

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3. By referring to the aforesaid, it is the case of the learned counsel for the MCD that only 26 shops were licensed by the MCD, wherein, Teh Bazari rights had been granted at the location namely, Shaheed Bhagat Singh Market, Near Health Centre, Najafgarh, New Delhi-110043. He submits that the shop of the petitioner was in the nature of encroachment, on account of which, action was taken by the MCD.

4. Per contra, learned counsel appearing for the petitioner submits that the petitioner had purchased the shop in question through a valid sale deed dated 20th July, 2021, and that they were in lawful possession of the same.

5. Considering the fact that it is the case of the MCD that Teh Bazari rights have been granted to the other 26 shops, let the documents with regard thereto, be filed by the MCD, within a period of six weeks, from today.

6. Further, the MCD shall also indicate as to whether any survey of the area in question has been done, and as to whether the other 26 shopkeepers, as well as the petitioner, are part of the