M.Sethuraj vs. The Commissioner

Facts

The petitioner, M. Sethuraj, is a lessee of a shop at the Tirunelveli Bus Stand. The lease commenced in 2021 with an initial rent of Rs. 1,66,000/-. In December 2021, the respondents orally directed the petitioner and other shopkeepers to pay rent at a revised rate of Rs. 225/- per sq. ft. per month, and also demanded an additional security deposit of Rs. 1,00,000/-. The petitioner opposed this revision. Subsequently, the respondents issued a Demand Notice dated 29.07.2025, demanding arrears of rent at Rs. 225/- per sq. ft. and at an enhanced rate of Rs. 258.75 per sq. ft. The petitioner contends this demand violates a Supreme Court order dated 13.12.2023, which directed the rent to be refixed at Rs. 140/- per sq. ft. The petitioner seeks to quash the demand notice and direct the respondents to adjust excess rent collected.

Held

The Court held that the Demand Notice dated 29.07.2025 issued by the second respondent is contrary to the order passed by the Hon’ble Supreme Court. The Supreme Court, in its order dated 13.12.2023 in SLP (C) Nos. 27248–27249 of 2023, had fixed the rent at Rs. 140/- per sq. ft. This rate was determined based on a representation made by the first respondent itself, acknowledging that the Corporation could not secure tenants willing to pay the demanded lease rate of Rs. 225/- per sq. ft. and had reduced the lease rental to a lower rate. The Court found that the petitioner had agreed to pay rent at Rs. 140/- per sq. ft. and was not to be dispossessed. Therefore, the demand for rent at higher rates was in direct violation of this binding order. The Court allowed the writ petition, quashed the impugned Demand Notice, and directed the respondents to refix the rent at Rs. 140/- per sq. ft. per month as per the Supreme Court's directive. No costs were awarded.

Key Issues

1. Whether the Demand Notice dated 29.07.2025 issued by the second respondent is in violation of the order dated 13.12.2023 passed by the Hon’ble Supreme Court of India in SLP (C) Nos. 27248–27249 of 2023, which directed the rent to be refixed at Rs. 140/- per sq. ft. (Question of law). Petitioner's Arguments: The petitioner argued that the Demand Notice demanding rent at Rs. 225/- per sq. ft. and Rs. 258.75 per sq. ft. directly contravenes the Supreme Court's order, which mandated a rent of Rs. 140/- per sq. ft. They relied on the Supreme Court's order dated 13.12.2023, which was based on the Corporation's own representation to reduce the lease rent. The petitioner also cited a similar judgment from this Court in W.P.(MD) No. 21972 of 2025, etc., batch, dated 12.08.2025. Respondents' Arguments: The judgment records no specific arguments from the respondents regarding the Demand Notice or its compliance with the Supreme Court's order. The court noted that the Supreme Court's rate was fixed based on the first respondent's representation.