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Supreme Court of India

GURJIT SINGH (D) THROUGH LRSversusUNION TERRITORY, CHANDIGARH & ORS.

Citation
2023 INSC 199
Decided
3 March 2023
Disposal
Dismissed

Holding

A licence holder has no inherent right to an auction platform adjacent to his shop; allocation must follow the Auction Platform Rules, 1981 and the Market Committee's guidelines, and the High Court's dismissal of the appellant's claim is affirmed.

Summary

The appellant, owner of Shop No. 27 in the Chandigarh Agricultural Produce Market, sought allocation of an auction platform adjacent to his shop, arguing that his licence and the "One Site One Shop" policy gave him a right to that specific site. The respondent, a senior licence holder since 1970, was allotted the platform based on the Market Committee's guidelines, which prioritize pre‑collapse allotments and follow the Auction Platform Rules, 1981. The appellant contended that seniority and an affidavit renouncing platform claims should give him priority, but the High Court held that licence to operate a shop and right to a platform are distinct and not automatically linked. The Supreme Court examined the absence of any specific rule granting such a right and affirmed that allocation must adhere to the established guidelines, rejecting the appellant's claim. Consequently, the Court dismissed the appeals, upholding the High Court's decision.

Issues considered

  • Whether a licence holder is entitled as a matter of right to an auction platform adjacent to or in front of his shop.
  • Whether the "One Site One Shop" policy creates a legal right to a specific platform allocation.
  • Whether seniority of licence holders confers priority in the allotment of auction platforms.
  • Whether the Market Committee's guidelines under the Auction Platform Rules, 1981 are determinative for platform allocation.

Legislation cited

Subjects

licenceauction platformallocationmarket committeepolicyseniorityOne Site One ShopAgricultural Produce MarketChandigarhguidelines

Judgment

1046                      [2023]REPORTS
                SUPREME COURT   6 S.C.R. 1046                 [2023] 6 S.C.R.


 A                    GURJIT SINGH (D) THROUGH LRS
                                          v.
                 UNION TERRITORY, CHANDIGARH & ORS.
                       (Civil Appeal Nos. 4826-4828 of 2022)
 B                               MARCH 03, 2023
                [M. R. SHAH AND B. V. NAGARATHNA, JJ.]
              Licence – A licence holder, if entitled to allotment of the
       auction platform adjacent to and/or in front of his shop as a matter
       of right – Held: To do business in the shop and to carry on business
 C
       on the auction platform, are both different and distinct – Merely
       because a person is having a licence and doing business in a
       particular shop, he is not entitled to the auction platform as a matter
       of right and that too, in front of and/or adjacent to his shop – No
       such rule and/or regulation and/or guideline supporting such a
 D     claim was brought by the appellant to the notice of the High Court
       or even Supreme Court – In absence of any specific rule in favour
       of the appellant, right to claim the allotment just in front of his shop
       and/or adjacent to the same when the allotment in favour of
       respondent No. 5 was made as per the policy and guidelines, High
       Court rightly held against the appellant – Therefore, in the absence
 E
       of any specific right in his favour, the appellant could not have
       prayed for the allotment of shed/auction platform just adjacent to
       and/or in front of his shop – Appeals lacks merit.
             CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 4826-
       4828 of 2022.
 F
             From the Judgment and Order dated 23.10.2013 in LPA Nos.2130,
       2131 of 2011 and dated 17.12.2013 in CM No.5249 of 2013 in LPA No.
       2130 of 2011 of the High Court of Punjab & Haryana at Chandigarh.
            P.S. Patwalia, Sr. Adv., Naresh Bakshi, Ms. Harshika Verma,
 G     Tushar Bakshi, Advs. for the Appellants.
            Vatsal Joshi, Sarad Kumar Singhania, Bhuvan Kapoor, Varun
       Chugh, G.S. Makker, Chandra Prakash, Ms. Dilmrig Nayani, Abhimanyu
       Tewari, Ms. Eliza Bar, Tushar Bathija, Shree Pal Singh, Advs. for the
       Respondents.
 H
                                        1046
  GURJIT SINGH (D) THROUGH LRS v. UNION TERRITORY,                            1047
                 CHANDIGARH & ORS.

      The Judgment of the Court was delivered by                              A
      M. R. SHAH, J.
      1. Feeling aggrieved and dissatisfied with the impugned
judgment and order dated 23.10.2013 passed by the High Court of
Punjab and Haryana at Chandigarh in Letters Patent Appeal Nos.
2130/2011 and 2131/2011 and the subsequent order dated 17.12.2013             B
passed in CM No. 5249/2013 in LPA No. 2130/2011, by which, the
Division Bench of the High Court has dismissed the Said Letters
Patent Appeals thereby confirming the judgment and order passed
by the learned Single Judge dismissing the writ petitions, the original
writ petitioner has preferred the present appeals.                            C
      2. The facts leading to the present appeals in a nutshell are as
under: -
       2.1 That the appellant became the owner of Shop No. 27
situated in the Agricultural Produce Market, Chandigarh. Respondent
No. 5 herein was the tenant of the said shop. Both the appellant as           D
well as respondent No. 5 were holding the requisite licences to do
business in the market area. Ejectment proceedings were initiated
by the appellant against respondent No. 5. The order of ejectment
came to be confirmed by the High Court. Therefore, respondent No.
5 shifted as a tenant to Shop No. 12 in the year 2007 and applied for         E
change of address to the new shop, however, the same was rejected
and respondent No. 5 was asked to surrender his licence and apply
for new one. The appellant applied for licence for selling fruits/
vegetables and State Agricultural Marketing Board issued the same.
Since then, the appellant is running the business from Shop No. 27
owned by him. Respondent No. 5 filed a writ petition before the               F
High Court challenging the order dated 05.07.2007 by which his
application for change of address to the new Shop No. 12 was
rejected. The order dated 05.07.2007 was stayed. The stay was
continued up to 31.03.2009 i.e., till the validity of licence of respondent
No. 5. That thereafter, the Market Committee, Chandigarh rejected             G
the application of respondent No. 5 for renewal of licence. The same
was the subject matter of another writ petition before the High Court
being Writ Petition No. 5886/2009. That pursuant to the order passed
by the High Court, respondent No. 5 continued to function as per the
old licence. That the Licence Committee constituted under Licensing
                                                                              H
1048            SUPREME COURT REPORTS                         [2023] 6 S.C.R.


 A     of Auction Platform Rules, 1981 decided that the site in the platform
       would be allotted on the basis of “One Site One Shop” and the name
       of respondent No. 5 was shown as co-allottee along with the appellant.
       Aggrieved with this, the appellant filed a writ petition before the High
       Court, being Writ Petition No. 12684/2009. The High Court by a
       common judgment and order dated 26.09.2011 allowed Writ Petition
 B
       No. 5886/2009 filed by respondent No. 5 and directed that the licence
       of respondent No. 5 be renewed. The High Court also held that
       respondent No. 5 is entitled to use the platform in front of Shop No.
       27 till any alternative policy comes by way of amendment in the Act
       or the Rules, pertaining to the issue of rights to use the platform. The
 C     learned Single Judge also held that right to use the platform and to
       have the licence to do the business in the market area both are distinct
       and different and the two rights were not directly linked.
              2.2 Feeling aggrieved and dissatisfied with the common
       judgment and order passed by the learned Single Judge of the High
 D     Court the appellant preferred the letters patent appeals before the
       Division Bench of the High Court. By the impugned common judgment
       and order the Division Bench of the High Court has dismissed the
       said letters patent appeals and has confirmed the order passed by
       the learned Single Judge holding that right to use the shop and/or
       having a licence and right to use the platform are not directly related.
 E     The Division Bench of the High court also observed that respondent
       No. 5 is using the platform since 1970 i.e., much prior to the appellant
       getting the licence and therefore, being a senior licencee, he gets the
       right to use the platform allotted to him i.e., in front of Shop No. 27.
             2.3 Feeling aggrieved and dissatisfied with the impugned
 F     common judgment and order passed by the Division Bench of the
       High Court the original writ petitioner – licence holder and owner of
       Shop No. 27 who is also claiming the right to use the platform in
       front of Shop No. 27 has preferred the present appeals.
             3. Shri P.S. Patwalia, learned Senior Advocate, appearing on
 G     behalf of the appellant(s) has vehemently submitted that the learned
       Single Judge as well as the Division Bench of the High Court have
       materially erred in confirming the allotment of the auction platform
       in question, in favour of original respondent No. 5.
             3.1 It is submitted that the appellant herein was granted the
 H     licence in the year 2007, however, so far as respondent No. 5 is
  GURJIT SINGH (D) THROUGH LRS v. UNION TERRITORY,                            1049
          CHANDIGARH & ORS. [M. R. SHAH, J.]

concerned, he applied for a fresh licence/renewal in the year 2009            A
and he was issued a fresh licence in the year 2010 and therefore, as
per seniority the appellant herein was entitled to priority.
       3.2 It is further submitted that even at the time of submitting
the application for fresh licence/renewal in the year 2009, respondent
No. 5 submitted an affidavit dated 20.08.2009 deposing that he will           B
not claim any right over the auction platform. That in fact the licence
was issued only after the said affidavit.
      3.3 It is next submitted that the High Court has materially erred
in observing and holding that carrying on the business in the shop and
on the auction platform both are distinct and separate. That the right        C
to use a particular site in the platform is connected with the right to
use the particular corresponding shop in view of the clear policy of
the board i.e., “One Site One Shop”.
       3.4 It is contended that the appellant herein is doing the business,
has the licence and he is allotted shop no. 27 and therefore, he is           D
entitled to the allotment of the auction platform adjacent to and/or in
front of shop No. 27.
       3.5 It is further contended that so far as respondent No. 5 is
concerned, he is doing business in shop No. 12 therefore, not to permit
the appellant(s) to do business on the auction platform which is              E
adjacent to shop No. 27 and allotting auction platform to respondent
No. 5 who is doing business in shop no. 12, just adjacent to shop No.
27 is unreasonable and arbitrary.
       3.6 It is next contended that the appellant(s) herein approached
the learned Single Judge challenging the co- allotment of the site to         F
respondent No. 5. That in any case the appellant(s) do not succeed
in such challenge, they cannot be worse of compared to the position
which they were in prior to filing of the writ petition.
       4. Present appeals are vehemently opposed by Shri Vatsal Joshi,
learned counsel appearing on behalf of the Chandigarh Market
                                                                              G
Committee. It is vehemently submitted that after the interim order
dated 05.08.2016 was passed by this Court, the representation made
by the appellant herein has been dealt with and considered by the
Market Committee and a detailed reasoned order has been passed
by the Market Committee rejecting the representation of the appellant.
                                                                              H
1050            SUPREME COURT REPORTS                          [2023] 6 S.C.R.


 A            4.1 It is further submitted that the allotment of auction platform
       is to be made as per the policy. That it is rightly observed and held by
       the High Court that to do business in the shop and on the auction
       platform are different and distinct. That as such there is no policy
       and/or rule pointed out on behalf of the appellant that a licence holder
       is entitled to carry on the business and/or allotment of the auction
 B
       platform just adjacent to and/or in front of shop occupied by him.
              4.2 It is next submitted that as respondent No. 5 was found to
       be doing business since 1970 and thereafter, he applied for renewal
       of the licence in the year 2009; he has been allotted the platform in
       front of shop No. 27.
 C
              4.3 It is vehemently submitted that the appellant and/or any
       other licence holder doing business in the respective shop cannot as
       a matter of right claim allotment of the auction platform at a particular
       place.

 D            4.4 It is contended that as such, existing sheds in the Market
       Committee collapsed on 10.06.2007 and thereafter, sheds were
       reconstructed in the year 2009. That thereafter, the Secretary
       Agriculture, U.T. Chandigarh laid down the principles and guidelines
       at the first instance, all those allottees, who were allotted sheds for
       working prior to collapse of sheds on 10.06.2007 were entitled to be
 E     allotted shed/space as they existed on the date when the shed
       collapsed. That the appellant was issued the licence on 16.07.2007
       whereas the sheds collapsed on 10.06.2007, therefore, the appellant
       was not in possession of the shed earlier to the collapse on 10.06.2007
       and therefore, his case is not covered under the aforesaid policy.
 F           4.5 It is further contended that the action of the Market
       Committee in allotting the sheds is absolutely in consonance with the
       guidelines/policy laid down by the Secretary, Agriculture Department,
       Chandigarh.
              5. While opposing the present appeals, learned counsel
 G     appearing on behalf of respondent No. 5 has argued that as such
       respondent No. 5 was carrying on business on the platform even at
       the time of the collapse of shed on 10.06.2007 and was having a
       valid licence since 1970. However, at the time of allotment of newly
       constructed sheds, licence of the firm was not valid due to non-renewal
       and the case for grant of licence was pending for consideration in
 H
  GURJIT SINGH (D) THROUGH LRS v. UNION TERRITORY,                            1051
          CHANDIGARH & ORS. [M. R. SHAH, J.]

the office of the Committee, and the same was finally granted in the          A
month of February, 2010. It is submitted that thereafter on constitution
of the Committee the allotment of the shed was made to respondent
No. 5, being a licencee of the Committee and possession holder of
the shed prior to the collapse of the shed. Making the above
submissions it is prayed that the present appeals be dismissed.
                                                                              B
       6. We have heard learned counsel appearing on behalf of the
respective parties at length. We have gone through the impugned
judgment(s) and order(s) passed by the learned Single Judge as well
as the Division Bench of the High Court.
        6.1 At the outset, it is required to be noted that the appellant is   C
claiming shed/auction platform which is just adjacent to and/or in
front of shop No. 27 and/or at any other place. However, the appellant
is unable to establish and/or show any specific rules and/or regulations
with respect to the allotment of the shed/auction platform and that
too, just adjacent and/or in front of shop in which a particular person
is carrying on the business. Therefore, in the absence of any specific        D
right in his favour, the appellant could not have prayed for the allotment
of shed/auction platform just adjacent to and/or in front of his shop
No. 27.
        6.2 At this stage, it is required to be noted that even other
persons are allotted the shops/auction platforms at different places.         E
It is also required to be noted that number of persons doing business
is more than the availability of auction platforms.
       6.3 At this stage, it is also required to be noted that as such
pursuant to orders passed by this Court on 06.05.2016 and 05.08.2016,
petitioner – appellant made the representation. The orders are as             F
under: -
      “Mr. Patwalia, learned senior counsel states that there are
      certain other platforms which are available. If that is so,
      Respondent Nos. 2 to 4 may consider whether one such
      platform can be allotted to the petitioner or not.                      G
      Petitioner is entitled to make a representation in this behalf
      within one week.
      List the matter in the month of August, 2016.”
                                   xxx                                        H
1052              SUPREME COURT REPORTS                        [2023] 6 S.C.R.


 A           “It is stated by Mr. P. S. Patwalia, learned senior counsel
             appearing for the petitioner, that platform No. 13 is available.
             Learned counsel for the respondents submits that the matter is
             pending consideration and shall be decided within a period of
             four weeks.
 B           We hope that the respondents shall consider it favourably.
             List the petitions after four weeks.”
             Even the representation was permitted to be made to consider
       on the statement made by learned counsel appearing on behalf of the
 C     appellant that there are certain other platforms which are available
       and to that, this Court observed that if that is so, respondent Nos. 2
       to 4 may consider whether one such platform can be allotted to the
       appellant or not. That thereafter, a representation was made by the
       appellant which has been dealt with and rejected by the Committee
       by a detailed order which is self- explanatory.
 D
              6.4 In the representation/order, it is specifically mentioned that
       earlier the shed collapsed on 10.06.2007 and thereafter, the shed
       was reconstructed in the year 2009 and a policy decision was taken
       pursuant to the directions issued by the Secretary, Agriculture, that
       at the first instance, all those allottees, who were allotted sheds for
 E     working prior to collapse of sheds on 10.06.2007 were entitled to be
       allotted shed/space as they existed on the date when the shed
       collapsed. Thereafter, the allotment has been made as per the
       principles and guidelines regarding allotment of auction platforms as
       directed by the Secretary. The guidelines are as under: -
 F           “1.    At the first instance, all those allottees, who were allotted
                    sheds for working prior to collapse of shed on 10.06.2007
                    will be allotted sheds/spaces as they exited as on the
                    date when the shed collapsed.
             2.     In case after that, there are more spaces available, those
 G                  spaces shall be advertised and fresh applications from
                    the bonafide license holders as on the date of inviting
                    the applications or those licensees whose licenses are
                    due for renewal and are pending for renewal with the
                    competent authority as on date of calling applications
                    shall be called, after giving due notice of at least 20 days.
 H
  GURJIT SINGH (D) THROUGH LRS v. UNION TERRITORY,                           1053
          CHANDIGARH & ORS. [M. R. SHAH, J.]

             Once that is done and in case legally bonaf ide                 A
             applications are more than the number of available space,
             draw of lots will be held in the presence of Chairman,
             Market Committee, Joint Secretary, Agricultural
             Marketing Board and applicants who desire to be present.
             Based on draw of lots further allotment of sites/working
                                                                             B
             spaces shall be made.
      3.     These directives shall be followed till such time the
             Government makes a new rule under the Act and gives
             new guidelines.
             Further keeping in view my finding in this case, I am of        C
             the considered opinion that any allotment which has been
             made to other than the erstwhile allottees who were
             sitting and doing their business as on 10.06.2007 is not
             just and valid and needs to be set aside.
             I direct the Market Committee to issue notice for               D
             cancellation of allotted site/shed to those allotees who
             were not allottees as on 10.06.2007 and after giving them
             due opportunity of being heard, may pass appropriate
             orders keeping in view the principle which I have laid
             down in this order.”
                                                                             E
      6.5 That thereafter, the allotments have been made in
accordance with the guidelines/principles laid down by the Secretary,
Agriculture. Under the circumstances, the appellant is not entitled to
any preferential treatment and/or allotment dehors observance of
principles and guidelines issued by the Secretary regarding allotment
of the auction platforms. The appellant is to be treated at par and          F
equally with other persons doing business in the market and on the
auction platform.
       6.6 Even as rightly observed by the High Court, to do business
in the shop and to carry on business on the auction platform, are both
different and distinct. Merely because a person is having a licence          G
and doing business in a particular shop, he is not entitled to the auction
platform as a matter of right and that too, in front of and/or adjacent
to his shop. No such rule and/or regulation and/or guideline supporting
such a claim has been brought to the notice of the High Court or
even this Court.
                                                                             H
1054             SUPREME COURT REPORTS                        [2023] 6 S.C.R.


 A            6.7 Now so far as the allotment of the auction platform in
       favour of respondent No. 5 is concerned, it is required to be noted
       that according to the Market Committee and respondent No. 5,
       respondent No. 5 has been holding the licence and doing business
       since 1970, whereas the appellant herein got the licence on 16.07.2007.
       It appears that at the relevant time when the allotment of the newly
 B
       constructed shed was made, the licence of respondent No.5 was not
       renewed and/or not valid due to non-renewal and the case for grant
       of licence was pending for consideration in the office of the
       Committee, which was granted in the month of February, 2010.
       Thereafter, the shed has been allotted in favour of respondent No. 5
 C     being a licencee of the Market Committee and being in possession of
       the shed prior to collapse of the shed. All these aspects in detail have
       been considered by the Market Committee while deciding the
       representation.
              7. In view of the above and for the reasons stated above and
 D     in absence of any specific rule/regulation to the contrary and when
       the allotment of the sheds is made as per the principles/guidelines of
       the Secretary, Agriculture, reproduced hereinabove, and in absence
       of any specific rule in favour of appellant(s), right to claim the
       allotment just in front of his shop and/or adjacent to the same and
       when the allotment in favour of respondent No. 5 is made as per the
 E     policy and guidelines, both the learned Single Judge and Division
       Bench of the High Court have rightly held against the appellant and
       have rightly dismissed the writ petition(s) and appeal(s). We are in
       complete agreement with the view taken by the High Court.
             8. In view of the above and for the reasons stated above, the
 F     present appeals lack merit and the same deserve to be dismissed and
       are accordingly dismissed. No costs.

       Divya Pandey                                            Appeals dismissed.
       (Assisted by : Shevali Monga, LCRA)
 G




 H


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