A writ petition under Article 226 is maintainable when a State entity continues to occupy private property after the expiry of a lease and cancellation of necessary licenses, as such unauthorized occupation is considered arbitrary and illegal.

ORDER:

This writ petition is filed seeking the following relief:

“ … to issue a Writ, order or direction more particularly one in nature of Writ of Mandamus declaring the action of the Respondents 2 and 3 in not vacating the premises bearing Plot Nos.5 and 6, Northern Part, in Block X, forming part of Survey Nos.58 to 68 admeasuring 1186 Sq.Yds., situated at Ward No.5, Block No.5, Vijayawada National Highway Road No.9 of Sahebnagar Khurd Village, Hayathnagar Revenue Mandal, Ranga Reddy District under L.B.Nagar Municipality, occupied pursuant to the registered Lease Deed bearing Document No. 829 of 2004 dated 23.09.2004 registered with the office of Sub-Registrar, Saroornagar running in the name of Om Sai Service Centre, a retail outlet under IBP, now merged with Indian Oil Corporation Limited, despite the expiry of the Lease period on 23.09.2024, and petitioners Notices and/or letters 12.02.2024 and 02.05.2025, expressing unwillingness for extension of Lease Period and demanding to vacate and hand over the subject premises, as illegal, arbitrary and violative of Articles 14, 21 and 300-A of the Constitution of India and consequently direct the Respondents 2 and 3, to vacate and hand over the subject premises forthwith, and …..”

2. Heard Sri P. Ramachandran, learned counsel for the petitioners, Sri N. Bhujanga Rao, learned Deputy Solicitor General of India appearing for respondent No.1 and Ms. Pravallika, learned counsel representing Sri Dominic Fernandes, learned standing counsel for IOCL for respondent Nos.2 and 3.

3. The brief facts of the case are that the petitioner No.1 along with parents of respondent No.4 and petitioner Nos.2 to 6 are the absolute owners of the subject property consisting of Plot Nos.5 and 6, Northern Part, in Block X, forming part of Sy.Nos.58 to 68, admeasuring 1186 Sq.Yds., situated at Ward No.5, Block No.5, Vijayawada National Highway Road No.9, of Sahebnagar Khurd Village, Hayathnagar Revenue Mandal, Ranga Reddy District under L.B. Nagar Municipality. Said property was acquired under registered sale deed bearing Document Nos.2388 and 2390 of 2003 dated 28.05.2003. The subject property was offered to respondents 4 and 5 who are also family members for lease by executing a registered lease deed bearing Document No.919 of 2004 dated 17.02.2004. Said lease deed included right to create sublease in favour of any petroleum company. On the basis of said lease deed, respondent Nos.4 and 5 entered into a lease agreement with respondent No.2 - M/s. IBP Co. Ltd., a Government of India undertaking, now merged with IOCL, for a period of 20 years, commencing from 23.09.2004 to 22.09.2024 under Registered lease agreement dated 23.09.2004 bearing Document No.4829 of 2004. On production of required documents, M/s. Om Sai Service Centre was granted with license by the Joint Collector, R.R.District to sell and store petroleum products. Said lease with IOCL expired on 23.09.2024. The respondent No.3 addressed a letter dated 11.12.2023 to M/s. Om Sai Service Centre, who is holding Form-B License for purchase, sale and storage of petroleum products, requesting to submit their offer to renew the lease period within 30 days from date of receipt of letter, for a further period of 19 years 11 months. In reply, M/s. Om Sai Service Centre represented by respondent No.4 held deliberations with the owners of the subject property. The owners have unanimously informed respondent No.3 that they are not willing to extend the lease period and demanded respondent No.3 to vacate and hand over the subject property. A letter dated 12.0