Chandrashekhar Mewalal Jayaswal vs. Dhule Municipal Corporation Through Its Commissiioner

Held

The Court directed the Dhule Municipal Corporation to consider the request of the petitioners to accommodate them, taking into account their businesses. Furthermore, the Court granted an extension of time for the petitioners to deposit arrears. Specifically, 50% of the outstanding amount is to be deposited by January 15, 2026, and the balance amount by February 15, 2026. The Court did not explicitly rule on the legality of the resolution concerning GST or the precise rent calculation, but rather focused on ensuring the petitioners' accommodation and providing a revised timeline for payment of dues. The resolution itself, as placed on record, outlines the Corporation's policy for the new construction and rent recovery, including GST.

Facts

These writ petitions concern shopkeepers in the Lal Bahadur Shastri Bhajipala Market No. 2 area, who are to be relocated to a new construction. The Dhule Municipal Corporation passed a resolution stating that shopkeepers would be given equivalent area shops in the new building. Rent would be recovered at the ready reckoner rate plus GST and other taxes from the date they stopped paying rent. Priority for allotment would be given to existing occupants and their legal heirs, subject to payment of outstanding dues and compliance with terms. Allotment to eligible occupants would be by lottery, without tenders. Temporary arrangements were to be provided during construction. The petitioners highlighted an undertaking stating monthly rent would be between Rs. 3,000/- to Rs. 4,000/-, with deposits of Rs. 2 lacs to Rs. 2.5 lacs. The court also noted that the deadline for depositing arrears had passed.

Key Issues

1. Whether the Dhule Municipal Corporation's resolution regarding the allotment of new shops and the recovery of rent, including GST, is legally tenable, particularly concerning the priority of allotment and the basis for rent calculation? (Mixed question of law and fact, potentially touching upon municipal laws and GST provisions). 2. Whether the petitioners are entitled to accommodation in the new commercial complex considering their existing businesses and the terms of allotment? (Question of fact and law). Petitioner's contentions: The petitioners, through their counsel, highlighted an undertaking that indicated a monthly rent between Rs. 3,000/- to Rs. 4,000/- and deposits of Rs. 2 lacs to Rs. 2.5 lacs, implying a potentially different rent structure than what might be implied by the ready reckoner rate plus GST. They sought accommodation considering their businesses. Respondent's contentions: The Dhule Municipal Corporation, through its counsel, placed on record a resolution detailing the terms for relocation, including rent recovery at the ready reckoner rate plus GST and other taxes, and a priority allotment system for existing occupants and their legal heirs.