Tenants have a Right to First Refusal in public auctions of commercial properties, which must be exercised within prescribed timelines.

ORAL ORDER

1. Learned AGA accepts notice for respondents No.1 and 2.

2. Sri.G.M.Ananda., learned counsel is directed to accept notice for respondent No.3 and 4.

3. The petitioner is before this Court seeking for the following reliefs:

i) Call for records pertains to Commercial Shops Public E-auction publication publication bearing No. Pu.Ka.Kru/Kam/Sha/E-Auction/01/2025-26 dated: 19.01.2026 issued by respondent no.3.

ii) Issue writ in the nature of certiorari to quash the Commercial Shops Public E-auction publication bearing No. Pu.Ka.Kru/Kam/Sha/E- Auction/01/2025-26 dated: 19.01.2026 issued by respondent no.3 as per Annexure-A as illegal bad in law. in so fear of petitioners concerned.

iii) Pass any appropriate order deems fit to the facts and circumstances of the case and to meet the interest of justice.

4. The grievance of the petitioner is that the petitioners being the tenants of various shops in Commercial Shopping Complex at K.R.Pet, the respondents are now proposing to auction the said commercial shops by way of e-auction and thereafter disposes the petitioner from their respective shops.

5. Merely, because, the petitioners are tenants as regard the commercial shop, they cannot continue to be using the said premises after the expiry of the lease. In terms of the guidelines issued in the year 2019, it is but required for the TMCs to deal with the public properties by way of public auction and during that stage, a existing tenant has an option to participate in the auction and if successful to continue to retain the possession by making payment in terms of the auction notification. In the event of the existing tenant not being successful, possession would have to be handed over within a reasonable period of time.

6. The tenant also has another option of exercising Right to First Refusal by choosing not to participate in the auction and making payment of 5% over and above the highest amount bid at the said auction.

7. Again, needless to say, if the said Right to First Refusal is not exercised within time period prescribed under guidelines, then the tenant would be required to hand over the possession of the premises within 30 days of such auction being held.

8. Faced with the above situation, learned counsel for the petitioner on instructions, submit that the petitioner would exercise their Right to First Refusal and they would not participate in the auction.

9. In that view of the matter, I pass the following;

ORDER

i. The writ petition is disposed of.

ii. Liberty is reserved to the petitioners to excise their Right to First Refusal, post the e-auction being held on 18.02.2026 and make their offer in terms of guidelines within time frames stipulated therein.

iii. If no such offer is made by the petitioner, the respondent would be free to take such action for eviction of the petitioner as may be permissible under law after the expiry of 30 days from the date of auction being held.