High Court · 2025

W.P.(MD) No.14380 of 20251.The Commissioner of Corporation, Tirunelveli Corporation, Tirunelveli. 2.The Assistant Commissioner of Corporation, Tirunelveli Corporation, Tirunelveli Zone. 3.The Deputy Commissioner of Corporation, Tirunelveli Corporation, Tirunelveli Zone. 4.The Assistant Revenue Officer, Tirunelveli Zonal, Tirunelveli Corporation. ... Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus to call for the records pertaining to the impugned demand notice dated 15.04.2025, and 12.05.2025 issued by the 4th respondent for shop Nos.1, 2, 7, 10, 13, 14, 15, 17, 18, 28, 29, 30, 38, 39, 43, 45, 46, 49, 51, 54, 55, 66, 69 of the members of the petitioners association Tirunelveli Managaratchi Seermighu Nagara Thitta Town Nethajibose Dinasari Santhai Kadai Elam Eduthor Viyabarikal Sangam, Situated at Tirunelveli Town and quash the same consequently to direct the respondents to communicate the confirmation and acceptance of the council as contemplated Rule 316(2) of Tamil Nadu Urban Local Bodies Act, 2023. For Petitioners: Mr.M.Ramu _________Page 2 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025For Respondents: Mr.S.P.Maharajan Standing CounselORDERIn these Writ Petition, the petitioners have challenged the Demand Notice dated 15.04.2025, 02.05.2025 and 12.05.2025 (hereinafter referred to as the ‘Impugned Demand Notices’) issued by the 4th respondent, the Assistant Revenue Officer in respect of Shop Nos.1, 2, 7, 10, 13, 14, 15, 17, 18, 28, 29, 30, 38, 39, 43, 45, 46, 49, 51, 54, 55, 66 and 69 in occupation by the members of “Tirunelveli Managaratchi Seermighu Nagara Thitta Town Nethajibose Dinasari Santhai Kadai Elam Eduthor Viyabarikal Sangam” situated at Tirunelveli Town. 2. It appears that all these writ petitioners had participated in the Tender floated by the respondent Corporation for auctioning rights for 75 shops for a period of 3 years under Small City Scheme at Netaji Bose Market situated in Tirunelveli Town.3. The petitioners were declared as successful bidders in the public auction conducted on 23.02.2024 and 08.03.2024. The rights were _________Page 3 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025conferred on these writ petitioners along with others and keys were handed over to the respective writ petitioners on 20.05.2024. While handing over the keys, the writ petitioners were also informed that they will have to pay the monthly rent as per the bid made by them from 01.06.2024. 4. Facts on record reveal that none of the writ petitioners have come forward to pay the stipulated rent. However, it was the complaint of the writ petitioners that one Pothys Super Market and P.K.S Vegetable and Fruits Market, were squatting in front of the aforesaid shopping complex, namely the Netaji Bose Market and thereby making it unviable for writ petitioners to carry on the business in the shops that were allotted to them. In this connection, it is noted that the writ petitioners have also filed W.P.(MD)No.12087 of 2025 for the following reliefs:- ''Writ of Mandamus, directing the respondents 1 to 4 to take immediate action assured by the 4th respondent in his proceeding in Na.Ka.No.A1/ 370/2023 dated 29.01.2025 by removing unauthorized vegetable shops/ market running near Nellaiyappar Gandhimathiamman Thirukovil Compound Wall, surrounding Nethaji Bose Market, Tirunelveli Town, Tirunelveli District within stipulated time as fixed by this Honble Court.'' _________Page 4 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 20255. The said writ petition was disposed of by this Court vide Order dated 05.08.2025 with the following observation:- "9. Accordingly, the official respondents are directed to examine whether the private respondents have violated Section 108 of the Tamil Nadu Urban or not and to take appropriate action. It is needless to state that before passing such order notice shall be issued to the private respondents also. The entire exercise shall be completed within a period of four weeks from the date of receipt of a copy of this order." 6. That apart, facts on record reveal that the writ petitioners and other members of the petitioner’s Association in their Representation to the respondent Corporation had requested for basic amenities such as toilet facilities, parking and drainage facilities for the said sjopping complex. However, no action was taken by the respondents on the said Representation and therefore one of the writ petitioners herein namely Krishnan was constrained to file W.P.(MD)No.21579 of 2024 for the following relief:- "Writ of Mandamus, directing the respondents to consider the petitioner's representation dated 30.07.2024 and to resolve the petitioner's grievance to conduct business in Nethajibose Vegetable Market situated at Tirunelveli Town, Tirunelveli." _________Page 5 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 20257. The said writ petition came to be disposed of by this Court vide Order dated 11.09.2024 by directing the respondent to consider the Representation dated 30.07.2024 of the Petitioner namely Krishnan. 8. It is stated that despite the aforesaid Order dated 11.09.2024 of the Court in W.P.(MD)No.21579 of 2024, no action was taken and therefore, the petitioner was constrained to file a Contempt Petition in Cont.P.(MD)No.122 of 2025 and that pending disposal of the aforesaid Contempt Petition, the respondent issued a Letter dated 29.01.2025, wherein they had explained the position regarding the constitution of the Town Vending Committee and identification of the vending zone to provide an alternate accomodation for the unauthorised shops surrounding the Netaji Bose Market. 9. The arguments of writ petitioners is that the respondents have not followed the procedure under Rules 316(10), 316(12) and 316(13) of the Tamil Nadu Urban Local Bodies Rules, 2023, which is also incorporated in the auction bulletin in Para 9 and 33 of the Tender Document._________Page 6 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 202510. The contention of writ petitioners appears to be that the writ petitioners and few other members of the writ petitioner's association have given several complaints dated 08.07.2024, 30.07.2024, 16.09.2024, 15.10.2024, 19.11.2024, 26.12.2024, 19.02.2025, 24.03.2025 i.e., from the beginning of the tender period for the aforesaid shopping complex. However, it is stated that there was no response from the respondent Corporation. 11. It is submitted that though the shops were auctioned to the writ petitioners on the dates mentioned above, the respondents have allowed the street vendors and unsuccessful bidders to squat on the streets surrounding the shopping complex as a result of which there was no footfall in the complex resulting in heavy loss to be sustained by the writ petitioners and other shop owners.12. On the other hand, learned counsel for the respondent would submit that there are no merits in the present writ petition. It is submitted that the writ petitioners pursuant to the public auction conducted on 23.02.2024 and 08.03.2024 received the keys for the shops in the _________Page 7 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025aforesaid shopping complex without any protest and the tender period to be with effect from 20.05.2024. 13. It is further submitted that the respondents vide Communication dated 20.05.2024 had informed the members of the petitioner's Association that they will have to start paying the lease rent as per the bid offer accepted by the respondents with effect from 01.07.2024. It is submitted that none of the writ petitioners have come forward to pay the rent amounts due. It is further submitted that despite the rental due, the writ petitioners and the members of the petitioner’s Assoication still continue to be in possession of the shops in the aforesaid shopping complex. 14. I have considered the arguments advanced by the learned counsel for the petitioners and the learned Standing Counsel for the respondents.15. There is no dispute that the petitioners have been agitating with the respondents regarding the presence of street vendors and one Pothys _________Page 8 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025Super Market and P.K.S Vegetable and Fruits Market in front of the licensed shops in the Netaji Bose Market were squatting, thereby, preventing the petitioners from reaping full benefit of the rights conferred upon them after they were declared as successful bidders in the tender floated by the respondents in the public auction held on 23.02.2024 and 08.03.2024. 16. In fact, the petitioners, who are the members of Tirunelveli Managaratchi Seermighu Nagara Thitta Town Nethajibose Dinasari Santhai Kadai Elam Eduthor Viyabarikal Sangam had approached the respondents through their representations dated 08.07.2024 and 30.07.2024 to look into their concern. 17. Since the representations dated 08.07.2024 and 30.07.2024 of the petitioners did not evoke any response, it led to filing of W.P.(MD) No.21579 of 2024 followed by W.P.(MD)No.12087 of 2025 for the removal of unauthorized vegetable shops surrounding Nethaji Bose Market, Tirunelveli._________Page 9 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 202518. Earlier, an order dated 11.09.2024 was passed in W.P.(MD)No.21579 of 2024. By the said order, the respondents were directed to consider the representation dated 30.07.2024. Since no further action was taken, despite possession having been handed over to the petitioners as early as 20.05.2024 and the aforesaid order dated 11.09.2024, Cont.P.(MD)No.122 of 2025 was filed. 19. The fourth respondent thereafter issued a communication dated 29.01.2025 and stated that steps were being taken to remove the street vendors by identifying a Vending Zone for alternate accommodation for street vendors and that a Town Vending Committee was formed. 20. Relevant portion of the Letter dated 29.01.2025 of the fourth respondent with English Translation is reproduced below:- Letter dated 29.01.2025 in TamilLetter dated 29.01.2025 in EnglishnkYk; jpUbey;ntyp lt[z; nkyujtPjpapy; cs;s fl;olj;jpw;F jpUbey;ntyp khefuhl;rp jpUbey;ntyp kz;ly cjtp bghwpahsh; K:ykhf (Under Sec.56 or 57 of the Tamil Nadu Act.1971 (Tamil Further a notice under sec 56 or 57 of the Tamil Nadu Act 1971 (Tamil Nadu Act 35 of 1972) has been served through Tirunelveli Zonal Assistant Engineer, Tirunelveli City Municipal _________Page 10 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025 Letter dated 29.01.2025 in TamilLetter dated 29.01.2025 in EnglishNadu Act 35 of 1972) go fle;j 9/12/2024 mwptpg;g[ tH';fg;gl;L eltof;ifapy; cs;sJ/ khefu ey mYtyh; Kd;dpiyapy; rhiynahu tpahghhpfSf;fhd Vending Zone mikg;gjw;Fk; Town Vending Committee mikg;gjw;Fk; Tl;lk; 27/1/2025 md;W Tl;lk; eilbgw;wJ/ mDkjpapd;wp mikf;fg;gl;Ls;s filfis mg;g[wg;gLj;Jk; nghJ mth;fSf;F khw;W ,lk; (Vending Zone) mikg;gJ bjhlh;ghf tpiutpy; FG mikj;J eltof;if vLf;f chpa eltof;if vLf;fg;gl;L tUfpd;wJ/vdnt ehd;F ujtPjpapy; Rw;wpa[s;s gFjpfspYk; nejh$p ngh!; khh;f;bfl; gFjpfspYk; mDkjpapd;wp cs;s filfis rl;l tHpKiwfis gpd;gw;wp mfw;w nkw;brhd;dthW nghJkhd eltof;iffs; vLf;fg;gl;L tUfpd;wJ/ nkw;brhd;dthwhd rl;l hPjpahd eltof;iffis JhpjgLj;jp mDkjpaw;w filfis tpiutpy; mfw;wg;gLk; vd;gij ,jd; Corporation for the building located at Melarathaveedhi in Tirunelveli on 09.12.2024 and action is under progress. A meeting was held by the Town Planning Officer on 27.01.2025 for establishment of Town Vending Committee for provision of vending zone for street vendors. For removing the shops located without permission, a committee will be constituted at the earliest and steps would be taken for identifying alternate vending zone for the shops removed as such. Therefore, suitable actions have been taken to remove the shops located in the surrounding area of Nangurathaveedhi and in Netaji Bose Market area without permission, by following legal procedures. We hereby inform that the shops located without permission shall be removed at the earliest by expediting the aforesaid legal procedures._________Page 11 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025 Letter dated 29.01.2025 in TamilLetter dated 29.01.2025 in EnglishK:yk; bjhptpj;Jf;bfhs;fpnwhk;/21. This communication dated 29.01.2025 of the fourth respondent regarding the steps for removing the unauthorised street vendors surrounding the complex comes nearly seven months after the keys were handed over to the petitioners on 20.05.2024 implying that the petitioners were unable to utilize the facility given to them during May 2024. 22. Clause 9 of the Tender Document clearly stipulates that once the auction results are declared and placed before the Council and the list of successful bidders are approved, no offer for higher bid amount will be received from other bidders and same will also not be considered. Thus, the petitioners were under a constraint right after the keys for the shops were handed over on 20.05.2024 to the petitioners. 23. Clause 33 of the Tender Document also indicates that an agreement should be executed on Rs.100/- stamp paper within seven _________Page 12 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025days from the date of advance payment for the auction pursuant to the notice from the respondents before the Assistant Commissioner/second respondent. 24. Clause 33 of the Tender Document also makes it clear that rent is to be calculated only from the date of issuance of the acceptance letter by the respondents. Thus, only after the aforesaid agreement is accepted and signed, the acceptance letter could have been issued to the respective successful bidders. No acceptance letter has been issued till date. 25. Paragraphs 9 and 33 of the Tender Document with English Translation is reproduced below:-Paragraph 9 of Tender Document in TamilParagraph 9 of Tender Document in EnglishVyk; Koe;j gpwF Vyg;gl;oaiy khefuhl;rp rl;lj;jpd;go khkd;wj;jpd; xg;g[jYf;F itf;fg;gLk;/ KobtLf;Fk; chpik khkd;wj;jpw;F cz;L/ khkd;wk; xg;g[f;bfhz;l gpwF ntW ahuhtJ TLjy; bjhiff;F nfl;lhy; mJ xg;g[f;bfhs;sg;glkhl;lhJ/As per the Corporation Act, after the completion of auction process, the list of auction is placed before the council for approval. The council has the authority to take decision. After the validation of the council, if any one’s bid is for higher amount, it would not be accepted. _________Page 13 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025Paragraph 9 of Tender Document in TamilParagraph 9 of Tender Document in EnglishParagraph 33 of Tender Document in TamilParagraph 33 of Tender Document in EnglishFj;jif bgw;wthpd; brhe;j brytpy; muR tpjpKiwfSf;nfw;g U:/100/- kjpg;g[s;s Kj;jpiu jhs; bgw;W gjptYtyf tpjpKiwfspd;go xg;ge;jk; jahh; bra;J Kd;gzk; brYj;jp mYtyf mwptpg;g[ fpilf;fg;bgw;w VG jpd';fSf;Fs; jpUbey;ntyp cjtp Mizahshpd; Kd; ifbaGj;J bra;J bfhLf;f ntz;Lk; (mij gjpt[ bra;ag;glntz;Lbkd Mizahsh; fUjpdhy; gjpt[ mYtyf fl;lzj;ij Fj;jifjhuh; Vw;W gjpt[ bra;J bfhLf;f ntz;Lk;/ nkw;go xg;ge;jk; (Agreement) gpwg;g[tpj;J bfhLj;j gpwFjhd; Fj;jif Vw;W elj;j mYtyfj;jpypUe;J mDkjpahiz tH';fg;gLk;/ me;j ehspypUe;J thlif fzf;fplg;gLk;/As per the Government guidelines, the lessee shall obtain Rs.100/- stamp paper, draft an agreement as per the format and Regulation of the Registration office, pay the advance and subscribe in the presence of the Assistant Commissioner within 7 days of receipt of the official notice. (If the commissioner considers it to be registered, then the lessee shall bear the registration fees and shall register it. Only after the execution of the said agreement, and permission order shall be granted from the office to accept and hold a lease. The rent shall be calculated from that date onwards.26. That apart, Rules 316(10), 316(12) and 316(13) of the Tamil Nadu Urban Local Bodies Rules, 2023 contemplate certain obligations. Rule 316(10) of the Tamil Nadu Urban Local Bodies Rules, 2023 cast an obligation on the Commissioner to place before the Council, a list of bids _________Page 14 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025at the auction-cum-tender before the highest bidder is granted the licence or lease. 27. As per Section 316(12) of the Tamil Nadu Urban Local Bodies Rules, 2023, immediately after the auction has been confirmed, the intimation about the acceptance shall be communicated to the bidder to pay the entire amount of the first installment within the date stipulated and the necessary particulars shall be entered in the Demand Register.28. As per 316(13) of the Tamil Nadu Urban Local Bodies Rules, 2023, the licensee or lessee shall enter into an agreement with the municipality, within one week of confirmation of auction-cum-tender by the Council. Rules 316(10), 316(12) and 316(13) of the Tamil Nadu Urban Local Bodies Rules, 2023 read as under:-Section 316(10)Section 316(12)Section 316(13)The Commissioner shall, after the auction cum-tender is completed, place before the Council, a list of bids at the auction-cum-tender and the highest bidder shall be Immediately after the auction has been confirmed, the intimation about the acceptance shall be communicated to the bidder to pay the entire amount of the first installment within the The licensee or lessee shall enter into an agreement with the municipality, within one week of confirmation of auction-cum-tender by the council._________Page 15 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025Section 316(10)Section 316(12)Section 316(13)granted the licence or lease:Provided that if the highest bid has to be rejected for any reason, the reasons for the same shall be recorded in writing.date stipulated and the necessary particulars shall be entered in the Demand Register.29. In this case, since no agreement was signed even after possession was handed over to the successful bidders on 20.05.2024, the keys for the shops appear to have been handed over to the petitioners due to exigencies, including the deadline set by the Government for inaugurating the Nethaji Bose Market, Tirunelveli.30. Since no agreement has been signed, it has to be held that there was no concluded contract. Thus, there are several mitigating circumstances in favour of the petitioners. The relationship between the petitioners and the respondents was nebulous as it was not formalized by an Agreement. Thus, the relationship between them is in the nature of quasi contract under Section 73 of the Indian Contract Act, 1872._________Page 16 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 202531. Under Section 73 of the Indian Contract Act, 1872, when an obligation resembling those created by contract has been incurred and has not been discharged, any person injured by the failure to discharge that obligation, is entitled to receive compensation from the party in default, as if that party had breached a contract. The estimation of loss or damage arising from such a breach must also be taken into account.32. In the present case, the respondent Corporation was aware of the loss incurred by the petitioners and other shop owners, which is evident from the Letter dated 29.01.2025 of the respondent Corporation regarding removing the unauthorised shops and vendors from the surroundings of the Netaji Bose Market. 33. Section 73 of the Indian Contract Act, 1872 and the decisions of the Hon’ble Supreme Court clearly provide that knowledge of circumstances leading to loss of profits to one of the parties imposes liability on the party default. _________Page 17 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 202534. In M.Lachia Setty & Sons Limited Vs. Coffee Board Bangalore., AIR 1981 SC 162, the Hon’ble Supreme Court of India has decided that the principle of mitigation does not give any right to a party in breach of contract but it is a circumstance to be borne in mind in assessing damages.35. Since no formal agreement was signed and the relationship is one of quasi-contract, the respondents are indeed entitled to charge the petitioners rent or licence fee for the petitioners having been in possession. However, such charges cannot be based solely on the amounts bid by the petitioners, as the respondents failed to fulfil their obligation by clearing the street vendors and unauthorised shops surrounding the Nethaji Bose Market.36. Since possession was handed over to the petitioners as early as 20.05.2024 and they have remained in possession of the shops since then albeit without being able to fully utilize the facilities due to the continued presence of street vendors and unauthorised shops, the petitioners cannot claim complete exemption._________Page 18 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 202537. Therefore, the impugned demand notices are liable to be quashed and are hereby quashed and remitted back to the fourth respondent to issue a revised demand notices to the petitioners, taking into account the inconvenience and loss suffered by the petitioners due to the continued presence of street vendors and unauthorised shops surrounding the market strictly following Section 73 of the Indian Contract Act, 1872.38. The fourth respondent is therefore directed to recalculate the amount strictly in accordance with Section 73 of the Indian Contract Act, 1872 within a period of six weeks of from the date of receipt of a copy of this order. 39. If the amount so determined is found to be exorbitant or usurious, it is always open for the petitioners to work out their remedies in the manner known to law. However, the petitioners cannot continue to occupy the property without paying the amounts that may be justly demanded by the respondents, especially in the absence of a concluded contract._________Page 19 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 202540. The Writ Petition stands disposed of accordingly. No costs. Consequently, connected Miscellaneous Petitions are closed. 29.08.2025 (2/2)NCC : Yes / NoIndex : Yes / Nopnn / smn2 / arbTo1.The Commissioner of Corporation, Tirunelveli Corporation, Tirunelveli. 2.The Assistant Commissioner of Corporation, Tirunelveli Corporation, Tirunelveli Zone. 3.The Deputy Commissioner of Corporation, Tirunelveli Corporation, Tirunelveli Zone. 4.The Assistant Revenue Officer, Tirunelveli Zonal, Tirunelveli Corporation. _________Page 20 of 21 https://www.mhc.tn.gov.in/judis W.P.(MD) No.14380 of 2025C.SARAVANAN, J.pnn / smn2 / arbW.P(MD)No.14380 of 202529.08.2025(2/2)_________Page 21 of 21