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2022 Supreme(Online)(Guj) 4616

HIGH COURT OF GUJARAT
MANSUKHBHAI GOVINDBHAI JADAV – Appellant
Versus
STATE OF GUJARAT – Respondent
SCA/12456/2019



Occupants of a demolished structure are entitled to priority in the allotment of shops in a new shopping center that is redeveloped on the site of the demolished structure.

Headnote:

AUCTION - PRIORITY - OCCUPANT - MUNICIPALITY - [The court directed the municipality to give priority to the petitioner in the auction process for a shop in a shopping center, as the petitioner was an occupant of the previous structure that was demolished to redevelop the shopping center.]

Fact of the Case:

The petitioner was an occupant of a shopping complex that was demolished to redevelop into the 'Azad Chowk Shopping Centre'. The petitioner sought a direction to the respondent municipality to allot him a shop in the new shopping center on the ground that he was the original occupant of the demolished structure.

Finding of the Court:

The court noted that similarly situated persons who were occupants of the original structure had been allotted shops in the new shopping center. The court also noted that the municipality had to obtain permission from the state government before leasing or selling any property for more than 10 years.

Issues: Whether the petitioner was entitled to be allotted a shop in the new shopping center.

Ratio Decidendi: The court held that the petitioner was entitled to be given priority in the auction process for a shop in the new shopping center, as he was an occupant of the previous structure that was demolished to redevelop the shopping center.

Final Decision: The court directed the municipality to give priority to the petitioner in the auction process for a shop in the new shopping center.

ORAL ORDER

1. RULE. Learned Assistant Government Pleader waives service of rule on behalf of the respondent-state.

2. This petition is filed under Article-226 of the Constitution of India is filed for seeking direction to the respondent No.2–Thangadh Nagarpalika for allotment of the Shop No.27 to the petitioner on the ground that the petitioner was the original occupant of Shopping Complex which existed and popularly known as 'Azad Chowk Shopping Centre' which was created after demolition of existing structure where the petitioner also was one of the occupant.

3. Learned Advocate has drawn attention of this Court to separate petition filed by similarly situated persons, who were also occupant of the structure which was demolished for the purpose of redeveloping into the 'Azad Chowk Shopping Centre' and in view of the directions issued from time to time in their petition being Special Civil Application No.13974 of 2007 with Special Civil Application No.13975 of 2007 and Special Civil Application No.3909 of 2009 and pursuant to which now the identically situated persons have been alloted shops on the criteria of being occupant in original structure.

4. Learned Advocate for the respondents draws attention of this Court to the Affidavit in reply on behalf of the original respondent No.2 and submitted that Municipality being governed under the Municipality Act and in case of giving any property on lease for more than 10 years or before selling any property, the municipality has to take the previous permission from the State governed u/s 65(2) of the Gujarat Municipalities Act, 1963 for the same. It is submitted that the proposal has already been sent to the Town Planner to fix the upset price for the land in question vide letter dated 30-09-2019 and as and when the upset price will be fixed by the Valuation Committee and thereafter the municipality will follow the auction procedure and if the petitioner is to be considered as a highest bidder in that case, the case of the petitioner will be considered in accordance with law at the earliest.

5. At this stage, learned Advocate for the petitioner states under instruction that if priority is given to the petitioner in case of auction, as being afforded to the other occupants of the original structure, the petitioner is ready and willing to pay the price that may be fixed by the Valuation Committee and approved by the State Government and participate in auction. However, it is requested that such process of fixing upset price by the Valuation Committee and other Government Authority may be expedited.

6. Considering the fact that issue has been pending since long and the persons identically situated as the petitioner has now given benefit, the Court is inclined to direct the respondent Authority namely Thangadh Nagarpalika to undertake to proceed with the exercise of fixing upset price, which is already ongoing, within stipulated period and complete such process including sanction from the Urban Housing and Urban Development Department within period of three months from today and thereafter, undertake the auction procedure wherein the auction procedure, it is directed that the petitioner will be given priority in view of the admitted position that the petitioner was occupant of the previous structure, which was demolished to redevelop the present existing 'Azad Chowk Shopping Centre'. Such auction procedure should be completed within period of three months of fixing of upset price by the respondent No.2–Thangadh Nagarpalika as well as the State Government in accordance with the law.

7. In view of the aforesaid, the petition stands partly allowed to the aforesaid extent. Rule is made absolute with no order as to costs.

Direct service is permitted.

(A.Y. KOGJE, J)

PARESH SOMPURA

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