Municipality Can't Forcibly Evict Lessee/Licensee On Expiry Of Lease/License Without Order Of Judicial Or Quasi Judicial Authority: Karnataka HC

The Karnataka High Court has held that on expiry of lease/licence executed by a Municipal Corporation such Corporation cannot forcibly vacate the persons in occupation, but is required to follow the procedure prescribed under the Public Premises Act, 1971, or Transfer of Property Act. The Court also directed that premises that had been forcibly taken over by the Municipality were required to be handed back to the petitioners within 10 days to enable them to carry on their business until their eviction takes place in a lawful manner. On going through the records, the bench noted that the premises in question have been constructed by using IDSMT funds and that the petitioners have been put in possession of their respective shops by the Municipality where the petitioners are carrying on business of vending fruits and vegetables, cereals or the like, suffice to state that petitioners are all petty traders dealing with day-to-day requirements. The bench noted that in terms of the Karnataka Grama Panchayat and Panchayathraj Rules, 2017, whenever a term of a lease of a shop or premises were to expire, it would but be required for the concerned Municipal Authority to bring it for auction where the current lease/license holder could also participate and if successful, lease/licence could be executed in favour of such persons. The authorities cannot take the law into their own hands and cause forcible eviction of the lessee/licensee but are required to follow the due process of law by initiating necessary proceedings and obtain judicial/quasi-judicial orders for eviction and thereafter enforce the same.” It rejected the contention of the Municipality that on the expiry of the lease/licence it could evict the lessee/licensee without any particular order of judicial or quasi judicial authority.