Raj vs. The Commissioner

Facts

The petitioner, a shopkeeper in a property leased by the Tirunelveli Corporation, challenged a demand notice dated 25.06.2025 issued by the Assistant Commissioner. The petitioner's shop, measuring 102 sq. ft., was leased from 2021 with a renewal clause and a 15% rent enhancement every nine years. The Corporation had initially attempted to revise the rent to Rs. 225/- per sq. ft. and demanded an additional security deposit. This led to litigation, including a writ petition and an appeal, culminating in the Supreme Court's order dated 13.12.2023 in SLP(C) Nos. 27248-27249 of 2023. The Supreme Court directed the rent to be refixed at Rs. 140/- per sq. ft. upon the petitioner furnishing an undertaking, and prohibited dispossession. Despite this, the petitioner received a demand notice for arrears at Rs. 225/- per sq. ft. and a further enhanced rate of Rs. 258.75 per sq. ft.

Held

The Court held that the demand notice dated 25.06.2025 issued by the second respondent was 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. The Supreme Court had explicitly directed that the rent be refixed at Rs. 140/- per sq. ft. based on a representation made by the first respondent itself. Therefore, any demand for rent exceeding this rate was contrary to the Supreme Court's clear mandate. The Court found that the petitioner had fulfilled the condition of furnishing an undertaking to pay the rent at Rs. 140/- per sq. ft. The ratio decidendi is that any demand contrary to a specific order of the Supreme Court, particularly concerning rent fixation in lease agreements, is unsustainable and must be quashed. 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 mandated by the Supreme Court. No costs were imposed.

Key Issues

1. Whether the demand notice dated 25.06.2025 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. Petitioner's contention: The petitioner argued that the demand notice, demanding rent at Rs. 225/- per sq. ft. and further at Rs. 258.75 per sq. ft., is in direct contravention of the Supreme Court's order which fixed the rent at Rs. 140/- per sq. ft. They relied on the Supreme Court's direction to refix the rent and not to dispossess the shopkeepers. The petitioner also cited a similar judgment from this High Court in W.P.(MD) No. 21972 of 2025. Respondents' contention: The judgment does not record any specific arguments made by the respondents against the petitioner's claim regarding the Supreme Court's order. However, the issuance of the demand notice itself indicates their stance on the rent payable.