Back
2025 Supreme(Online)(MAD) 16832
IN THE HIGH COURT OF JUDICATURE AT MADRAS
J. SATHYA NARAYANA PRASAD, J.
M/s. Saravana Selvarathinam Retail Private Limited and Anr. – Petitioners
Versus
The Commissioner, Tambaram Municipality, Tambaram, Chennai - Respondent
W.P. No.3998 of 2025 and WMP. Nos.4453 & 4455 of 2025
Decided On : 27-02-2025
Advocates Appeared :
For the Petitioners : Mr. G. Karthikeyan, Senior Counsel for M/s. A. Jagadeeswari
For the Respondent : Mr. P. Srinivas, Standing Counsel.
Advocate Appeared:
For the Appellant : Mr.G.Karthikeyan, Senior Counsel for M/s.A.Jagadeeswari
For the Respondent: Mr.P.Srinivas, Standing Counsel.
The cancellation of a trade license without proper justification and adherence to procedural requirements violates principles of natural justice.
Headnote:(A) Tamil Nadu Urban Local Bodies Act, 2023 - Sections 289, 290, 301, 302, 303, and 304 - Writ petition for renewal of trade license - Respondent's order cancelling trade license due to alleged non-submission of documents was quashed - The petitioner had validly renewed the license and complied with necessary payments - The impugned order was found to lack justification and application of mind. (Paras 2, 4, 22, 23)
(B) Administrative Law - Principles of natural justice - The cancellation of the trade license without proper notice or justification violates principles of fairness and due process. (Paras 6, 22)
Facts of the case:
The petitioner, operating a retail showroom, applied for renewal of a trade license, which was previously issued and valid until 31.03.2025. The respondent issued a cancellation notice citing non-submission of required documents, which the petitioner contested as unjustified. (Paras 3, 5, 22)
Findings of Court:
The court found that the cancellation of the trade license was illegal and directed the respondent to renew the license within four weeks. (Paras 22, 23)
Issues: The main issues included whether the cancellation of the trade license was justified and whether the required documents were necessary for renewal. (Paras 6, 20)
Ratio Decidendi: The court ruled that the respondent's order lacked justification and failed to adhere to the procedural requirements for cancellation, thus violating the principles of natural justice. (Paras 22, 23)
Result: Writ petition allowed, and the impugned order quashed.
ORDER :
(J. SATHYA NARAYANA PRASAD, J.)
This writ petition has been filed to call for the records on the file of the respondent in his proceedings in Na.Ka.No.050/2025/H1(M2) dated 28.01.2025 and to quash the same as illegal and further to direct the respondent to renew the Trade License applied vide application dated 28.01.2025.
2.The respondent passed the impugned order dated 28.01.2025 stating that the petitioner has filed application for renewal in online application on 28.01.2025 without enclosing the relevant documents prescribed under Section 289 , 290, 301, 302 and 303 of Tamil Nadu Urban Local Bodies Act 2023. Aggrieved over the said impugned order passed by the respondent, the petitioner has come forward with the present writ petition.
3. The learned counsel for the petitioner would submit that the petitioner company is running a business of retail show room for sale of Textiles, household articles, jewellery etc in and around Chennai city. For expansion of business, the petitioner established a retail showroom in the property bearing Door No.9, Thoraipakkam – Pallavaram, Chennai – 600 047 has been purchased. He would submit that after obtaining requisite approvals from the concerned Development Authorities, the showroom was constructed consisting of Basement Level 1, Basement Level 2, stilt + 13 floors in two blocks. The total extent of the built up area of two blocks is 10,22,756 sq.ft. The building was fully constructed and put to use only during the month of October 2022. The trade license for the petitioners business was applied under the Tambaram City Municipal Corporation Act, 2008. The trade license was duly issued by the respondent for a period of one year from 01.04.2023 to 31.03.2024, and further for a period of one year from 01.04.2024 to 31.03.2025 and the license was renewed by the respondent vide dated 17.02.2024.
4. The learned counsel would further submit that the license fees was duly paid and licence for trade is renewed rightly on payment of necessary licence fee. The petitioner is prompt in its payments and obedient to law and its procedure. In the meantime, the trade in the licensed addressed was commenced and the trade licence renewed in the year 2023, under the Tamil Nadu Urban Local Bodies Act , 2023 which came into effect repealing the Tambaram City Municipal Corporation Act, 2008, under its provisions the applications for issuance of Trade License and renewal of the same is being entertained and the same is being processed. The respondent/corporation informed that the upgrading of its website is under process and so the applications are processed under the old format. It is pertinent to state that as per the Tamil Nadu Urban Local Bodies Rules 2023, the Trade License is to be issued for a period of three years and renewed for three years, whereas, the respondent continued to issue license only for one year.
5. The trade license renewed vide license dated 17.02.2024 in the name of the petitioner is in force upto 31.03.2025. But to the shock and surprise of the petitioner, the respondent had issued notice under the Rules 289, 301, 302, 303 and 304 of the Tamil Nadu Urban Local Bodies Act , 2023 dated 24.01.2025, calling upon the petitioner to pay the license fee with an information that the petitioner is running its respective business without any Trade license and in case of failure to remit the license fee within a period of 7 days, with a warning for locking and sealing the business premises was given. On receipt of such notice dated 24.01.2025, the petitioner had replied the respondent vide letter dated 28.01.2025, pointing out that the license fee had been paid and renewed the license on 17.02.2024 for the year 2025-2026, the petitioners had remitted the payment and applied for renewal.
6. In the notice dated 24.01.2025, had no information as to the period, it was orally informed by the respondent office concerned that the respondent demanded for renewal of license for the next subseque
