Thirumalai Murugan P vs. The Commissioner

Facts

The petitioner, P. Thirumalai Murugan, is a lessee of a shop at the Tirunelveli Bus Stand. The lease, initially for three years from 2003, was renewed. The rent was revised upwards by the respondents (Tirunelveli Corporation and its Assistant Commissioner) to Rs. 225/- per sq. ft. per month, along with a demand for an additional security deposit. The petitioner challenged this revision and a subsequent eviction order, which was initially allowed but later dismissed by a Division Bench. The matter reached the Supreme Court, which, in December 2023, directed the petitioner and others to furnish an undertaking to pay rent at Rs. 140/- per sq. ft. within three weeks, ensuring they would not be dispossessed. Despite this, the petitioner received a Demand Notice dated 15.07.2025, demanding arrears at Rs. 225/- per sq. ft. and an enhanced rate of Rs. 258.75 per sq. ft. The petitioner seeks to quash this notice and have the rent refixed at Rs. 140/- per sq. ft., with excess collections adjusted towards future rent.

Held

The Court held that the Demand Notice dated 15.07.2025 issued by the second respondent was contrary to the order of the Hon'ble Supreme Court dated 13.12.2023. The Supreme Court had fixed the rent at Rs. 140/- per sq. ft. based on the representation made by the first respondent (Corporation). Therefore, the demand for rent at Rs. 225/- per sq. ft. and the enhanced rate of Rs. 258.75 per sq. ft. was in violation of the Supreme Court's directive. 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 ordered by the Supreme Court. Furthermore, the Court directed the respondents 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.

Key Issues

1. Whether the Demand Notice dated 15.07.2025 issued by the second respondent, demanding rent at Rs. 225/- per sq. ft. and an enhanced rate of Rs. 258.75 per sq. ft., is contrary to the order of the Hon'ble Supreme Court dated 13.12.2023, which fixed the rent at Rs. 140/- per sq. ft. (under Section 226 of the Constitution of India). Petitioner's arguments: The petitioner contends that the demand in the notice directly violates the Supreme Court's order, which was based on the Corporation's own representation of reducing the lease rental to Rs. 140/- per sq. ft. The petitioner also relies on a High Court judgment in a similar matter (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 interpretation or applicability of the Supreme Court's order or the validity of the demand notice.