M.Madhavan vs. The Commissioner

Facts

The petitioner, a shop allottee in a bus stand, challenged a Demand Notice dated 29.07.2025 issued by the Assistant Commissioner, Tirunelveli Corporation. The petitioner's shop was leased for a period from 2021, with an initial rent. Subsequently, the Corporation attempted to revise the rent to Rs. 225/- per sq. ft. per month, on par with newly opened shops. The petitioner and other shopkeepers opposed this revision. An eviction order was issued on 17.05.2022, which was challenged and subsequently allowed by this Court. The Division Bench dismissed the writ appeal. Aggrieved, shopkeepers filed SLPs before the Supreme Court. During the pendency of SLPs, the Corporation reduced the lease rent to Rs. 140/- per sq. ft. The Supreme Court, by order dated 13.12.2023, directed petitioners to furnish an undertaking to pay Rs. 140/- per sq. ft. and not to be dispossessed. Despite this, the petitioner claims the respondents continued to collect Rs. 225/- per sq. ft. plus GST, leading to the current writ petition seeking quashing of the demand notice and refixing of rent.

Held

The Court allowed the writ petition. The primary issue was the conflict between the Demand Notice issued by the respondents and the order of the Supreme Court dated 13.12.2023. The Court noted that the Supreme Court had fixed the rent at Rs. 140/- per sq. ft. based on a representation made by the first respondent itself. Therefore, the demand made by the respondents at a higher rate was contrary to the Supreme Court's order. The Court found that the petitioner's case was supported by the Supreme Court's directive and a similar judgment from this Court. Consequently, the impugned Demand Notice dated 15.07.2025 issued by the second respondent was quashed. The Court directed the respondents to refix the rent at Rs. 140/- per sq. ft. per month, as mandated by the Supreme Court. Furthermore, the Court ordered the adjustment of any excess rental amount collected from the petitioner during the period from January 2022 to May 2025 towards future rent payable by the petitioner. No costs were awarded.

Key Issues

1. Whether the Demand Notice dated 29.07.2025 issued by the second respondent is liable to be quashed in light of the Supreme Court's order dated 13.12.2023 in SLP(C) Nos. 27248-27249 of 2023? 2. Whether the rent payable by the petitioner should be refixed at Rs. 140/- per sq. ft. per month as directed by the Supreme Court? 3. Whether the excess rental amount collected from the petitioner from January 2022 to May 2025 should be adjusted towards future rental payments? Petitioner's Arguments: The petitioner argued that the Demand Notice is in direct violation of the Supreme Court's order dated 13.12.2023, which fixed the rent at Rs. 140/- per sq. ft. They contended that the respondents have been forcibly collecting Rs. 225/- per sq. ft. plus GST, despite the Supreme Court's direction. The petitioner also relied on a previous judgment of this Court in W.P.(MD) No. 21972 of 2025, etc. (batch) dated 12.08.2025, dealing with a similar matter. Respondents' Arguments: The respondents did not record any specific arguments against the petitioner's contentions in the provided text. The judgment notes that the learned counsel for the respondents took notice.