Suresh Kumar V vs. The Commissioner

Facts

The petitioner, V. Sureshkumar, leased a shop from the Tirunelveli Corporation. Initially, the rent was subject to a 15% enhancement every nine years. In December 2021, the Corporation orally directed shopkeepers to pay rent at a revised rate of Rs. 225/- per sq. ft. per month, along with an additional security deposit. The petitioner opposed this. The Corporation issued a rental revision order and collected the deposit. Subsequently, an eviction order was passed without a show cause notice, which was challenged and allowed by this Court. The Division Bench dismissed the appeal, and the matter went to the Supreme Court. The Supreme Court, by orders dated 13.12.2023 and 14.12.2023, directed the petitioners to furnish an undertaking to pay rent at Rs. 140/- per sq. ft. and not to be dispossessed. Despite this, the petitioner received a Demand Notice dated 29.07.2025, demanding arrears at Rs. 225/- per sq. ft. and an enhanced rate of Rs. 258.75 per sq. ft.

Held

The Court held that the Demand Notice dated 29.07.2025 issued by the second respondent was in direct violation of the order passed by the Hon'ble Supreme Court of India in SLP (C) Nos. 27248–27249 and 27739–27756 of 2023, by order dated 13.12.2023. The Supreme Court had fixed the rate of rent at Rs. 140/- per sq. ft. based on the representation made by the first respondent. Therefore, the present demand was contrary to the Supreme Court's 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 directed by the Hon'ble Supreme Court. Furthermore, the respondents were directed to adjust the excess rental amount collected from the petitioner during the period from January 2022 to May 2025 towards the future rent payable by the petitioner. No costs were awarded. The issue of the original rent fixed and the enhancement clause was not expressly decided as the matter was resolved based on the Supreme Court's order.

Key Issues

1. Whether the Demand Notice dated 29.07.2025 issued by the second respondent, demanding rent at Rs. 225/- per sq. ft. and Rs. 258.75 per sq. ft., is in violation of the orders of the Hon'ble Supreme Court. (Question of law) 2. Whether the rent is liable to be refixed at Rs. 140/- per sq. ft. per month as directed by the Hon'ble Supreme Court, and whether excess rent collected should be adjusted towards future rent. (Question of mixed law and fact) Petitioner's arguments: The petitioner argued that the Demand Notice directly contravenes the Supreme Court's order dated 13.12.2023, which fixed the rent at Rs. 140/- per sq. ft. and prohibited dispossession. They relied on the Supreme Court's direction that the Corporation itself had reduced the lease rental to a much lower rate, and the petitioners were willing to match the reduced rate of Rs. 140/- per sq. ft. 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 Supreme Court's order or the rent fixation.