High Court of KeralaDivision BenchWrit petition allowed; Ext.P1 quashed; petition...

A. Sivadasan v. Mattannur Municipality and Others

Case / Petition Number:WP(C).No. 33681 of 2004

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K. Balakrishnan Nair
  • M.C. Hari Rani
Judgment Date
2008-09-30
Court Decision / Holding
The petition is allowed. Ext. P1 is quashed, and the writ petition is allowed. The court notes the absence of clear rules and categorization and relies on the vagueness doctrine to quash the prosecution under Section 447. It clarifies that the Municipality may still close the shop with police assistance if the trade is operated without a licence. The Registry is directed to send a copy of the judgment to the Chief Secretary to remove vagueness in Section 447 of the Municipalities Act.
Final Disposition
Writ petition allowed; Ext.P1 quashed; petitioner permitted to operate without a license only in the context of the court's vagueness finding; Municipality may nevertheless close the shop if operated without a licence; directive to remove vagueness in 447

Parties to the Case

Appellants / Petitioners

  • A. Sivadasan

Respondents

  • Mattannur Municipality
  • The State of Kerala
  • Usman Chaliyadan (Junior Health Inspector, Mattannur Municipality)
  • Senior Environmental Engineer, Pollution Control Board, Kannur (Addl.R4)

Legal Representation & Advocates

Counsels for Petitioners

  • • R. Surendran
  • • P. Gopika

Counsels for Respondents

  • • M.K. Damodaran (Sr.)
  • • P.K. Vijayamohanan (for R1 & 3)
  • • P.A. Salim (for R2)
  • • M.K. Chandra Mohandas, SC (Pollution Control Board) (for R4)

Case Synopsis & Summary

The petitioner, A. Sivadasan, runs a service station under the name M/s Lakshmi Service Station at Mattannur since 1987. For renewal of his licence in 2003-04, the Mattannur Municipality refused, citing the lack of consent from the Pollution Control Board (PCB). A subsequent Ext. P2 notice proposed closure and prosecution under Section 447 read with Section 511 of the Kerala Municipalities Act, 1994. The petitioner replied with Ext. P3 and Ext. P4, arguing that without Rules under Section 447(1) there is no licensing obligation for his trade, citing Shaji v. State of Kerala. However, there is a conflicting decision in Unnikrishnan v. Paravur Municipality, which held that trade activities in municipalities require a licence even in the absence of Rules. The Municipality argued that a 1998 circular, published under Section 447(1) and a notification listing “Service Station” as item 163, continues to be valid. The court examined these arguments and held that Section 447(1) requires licensing for trades, notwithstanding the absence of Rules; it also recognized ambiguity in the classification of trades due to lack of Government rules. Relying on Kartar Singh v. State of Punjab to illustrate the vagueness doctrine, the court quashed the Ext. P1 complaint and allowed the writ petition, while noting that the Municipality may still close the shop with police assistance. The Registry was directed to advise action to remove vagueness in Section 447.

Provisions of Law Cited

Kerala Municipalities Act, 1994 - Section 447(1)Kerala Municipalities Act, 1994 - Section 447(3)Kerala Municipalities Act, 1994 - Section 447(3A)Kerala Municipalities Act, 1994 - Section 575(2)Section 23 of the Kerala Interpretation of General Clauses ActAmendment Act 14/1999 (modifications to Section 447)

Legal Doctrines & Maxims

  • Doctrine of vagueness in penal/administrative law: prohibitions must be clearly defined and provide fair warning (Kartar Singh v. State of Punjab)
  • Non-delegation/undefined classifications can render law unconstitutional if trade classifications are not clearly made (vague classification of trades under Section 447)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that without Rules under Section 447(1) there is no licensing obligation for his service station trade. Relying on Shaji v. State of Kerala (2004 (1) KLT 118), he argues that no licence is required in the absence of Rules; he cites Unnikrishnan v. Paravur Municipality (2008 (2) KLT 711) to show that a trade may require a licence; he also points to Exts. P1–P5, especially the 1998 notification, as evidence that the renewal should not be denied without clear classification and Rules. The petition seeks quashing of Ext. P1 and declaration of entitlement to operate without licence (or with a license not mandated by the current Rules) and protection from interference.

Contentions of Respondents

The respondents submit that Section 447(1) governs places not to be used without a licence, and it extends to other trades even if no Rules are notified. They rely on the 1998 notification under Section 447(1) listing 'Service Station' (Item 163) and contend that the amended Section 447(1) and Sections 3 and 3A require licensing, with the precise classification of trades to be made by the Council (3) or Secretary (3A); they argue the circular by the Director of Municipalities and Section 575(2) preserves the notification. They contend a licence is necessary for running a trade like a service station and that the prosecution under Section 447 is valid unless held otherwise by the court.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Shaji v. State of Kerala2004 (1) KLT 118DistinguishedCourt held that Shaji’s proposition that no licence is necessary in the absence of rules is not correct for this case; distinction made with the facts and amended law.
Unnikrishnan v. Paravur Municipality2008 (2) KLT 711PositiveCourt agrees with the interpretation in Unnikrishnan that licensing is required for trade in municipal areas even without rules.
Kartar Singh v. State of Punjab1994 (3) S.C.C. 569PositiveCited to illustrate the vagueness doctrine and need for fair warning and precise prohibitions.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT :** **THE HONOURABLE MR. JUSTICE K.BALAKRISHNAN NAIR** **&** **THE HONOURABLE MRS. JUSTICE M.C.HARI RANI** **TUESDAY, THE 30TH SEPTEMBER 2008 / 8TH ASWINA 1930** **WP(C).No. 33681 of 2004(I)** **---------------------------------------** **PETITIONERS:** **-----------------------** **A. SIVADASAN, S/O. RAMAN, AGED 50 YEARS, BUSINESS, RESIDING AT `THAYYIL HOUSE', PAZHASSI AMSOM, MATTANNUR DESOM, MATTANNUR P.O., THALASSERY TALUK, KANNUR DISTRICT.** **BY ADV. SRI.R.SURENDRAN SMT.P.GOPIKA** **RESPONDENTS:** - **-------------------------** **1. MATTANNUR MUNICIPALITY, MATTANNUR, REPRESENTED BY THE SECRETARY, MATTANNUR MUNICIPALITY, MATANNUR, THALASSERY TALUK, KANNUR DISTRICT.** **2. THE STATE OF KERALA REPRESENTED BY THE SECRETARY TO GOVERNMENT OF KERALA, LOCAL ADMINISTRATION DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM.** **3. USMAN CHALIYADAN, JUNIOR HEALTH INSPECTOR, MATANNUR MUNICIPALITY, MATTANNUR, THALASSERY TALUK, KANNUR DISTRICT.** ## ***ADDL.R4 IS IMPLEADED:** ## **R4. THE SENIOR ENVIRONMENTAL ENGINEER, POLLUTION CONTROL BOARD, KANNUR.** ## **(*ADDL.R4 IS IMPLEADED AS PER ORDER DTD. 25/11/04 IN WPC)** **ADV. SRI.M.K.DAMODARAN (SR.) FOR R1 & 3 SRI.P.K.VIJAYAMOHANAN FOR R1 & 3 GOVERNMENT PLEADER SRI. P.A.SALIM FOR R2 SRI.M.K.CHANDRA MOHANDAS,SC,POLL.C.BOARD FOR R4** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 30/09/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** _Kss_ ## **WPC.NO.33681/2004 I** ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** **EXT.P1: COPY OF THE COMPLAINT IN S.T.C.NO.1531 OF 2004 ON THE FILE OF JUDICIAL FIRST CLASS MAGISTRATE COURT, MATTANNUR, DTD. 20/03/2004.** ## **RESPONDENT'S EXHIBITS: N I L** **/TRUE COPY/** **P.S.TO JUDGE** _Kss_ ## **C.R** ## **K. BALAKRISHNAN NAIR & M.C. HARI RANI,JJ** ============================== ## **W.P.(C)NO. 33681 OF 2004** ============================ ## **DATED THIS THE 30[th] September 2008** ## **JUDGMENT** ## **Balakrishnan Nair,J.** The petitioner is running a service station under the name and style of “M/s. Lakshmi Service Station”, for servicing automobiles. He submits, the main business done in the service station is washing of motor vehicles. The said establishment was being run since 1987. It was having licence from the first respondent Municipality, issued from time to time. For the year 2003-04, the petitioner submitted an application for renewal of the licence, on 22-2-2003. But, the said application was rejected by the Municipality, on the ground that the petitioner failed to produce the consent from the Pollution Control Board for operation of his establishment. Later, Ext.P2 notice was issued, proposing further action to close down the service station and prosecute him. He submitted Ext.P3 reply, which was followed by W.P.(C)NO.33681/2004 -2- Ext.P4. In Ext.P4 it was pointed out by the petitioner that other Municipalities are not insisting upon such a condition regarding consent of the Pollution Control Board for renewal of the licence. The petitioner was, later, told by Ext.P5 that as per the circular issued by the Director of Municipalities, for renewal of licence, consent of the Pollution Control Board was mandatory. Since the petitioner failed to produce the consent, his application was rejected. He was again informed that his application for renewal of the licence cannot be allowed. Later, he was served with Ext.P1 complaint from the Judicial First Class Magistrate's Court, Mattannur, filed by the Municipality, for prosecuting him for the offence punishable under Section 447 read with Section 511 of the Kerala Municipalities Act, 1994. Aggrieved by the above actions of the Municipality, this writ petition was filed seeking the following reliefs: “issue notice to the respondents and after hearing there may be (issued) a writ in the nature of certiorari, or other order or declaration, a) quashing Ext.P1 complaint and all proceedings in S.T.C.1531 of 2004, on the file of the Judicial First Class Magistrate's Court, Mattannur, W.P.(C)NO.33681/2004 -3- b)declaring that the petitioner is legally entitled to conduct trade or business of service station in his building bearing No. VII/1280 situated in the Mattannur Municipality without obtaining any licence from the first respondent, (c) restraining the respondents from interfering with the petitioner's business of 'service station' in building bearing No.VII/1280 situated in the Mattannur Municipality, in any manner, d) directing the first respondent to pay cost of this writ petition” 2. The petitioner contended that as long as no Rules are framed under Section 447 of the Kerala Municipalities Act, concerning his business, licence under Section 447(1) is not necessary. So, Ext.P1 complaint filed against the petitioner is unsustainable in law. In support of the above submission, the petitioner relied on the decision of this Court in **Shaji v.State of** **Kerala,[2004 (1)K.L.T.118]** . In the said decision it was held that a private hospital need not take any licence under Section 447(1) of the Act. In the absence of any rules framed by the State Government under that Section,it is contended that the W.P.(C)NO.33681/2004 -4- petitioner is not liable to take licence for running his establishment. When this writ petition came up for final hearing before the learned Single Judge, it was noticed that there is yet another decision of this Court in **Unnikrishnan v. Paravur Municipality [2008(2)K.L.T.711]** , which took a different view. It was held that even in the absence of any rules, a person running a trade in the Municipal area is bound to take licence. In view of the apparent conflict between these two decisions, the matter was referred to the Division Bench. 3. The Municipality has filed a counter affidavit, supporting the impugned proceedings. According to the Municipality, it has published a notification under Section 447(1) of the Act in the year 1998, in the Kerala Gazette dated 19-5-1998. Service Station is one of the items notified as per the said notification. That notification survives even after the amendment to Section 447, in view of Section 575(2) of the Kerala Municipalities Act and also in the light of Section 23 of the Kerala Interpretation of General Clauses Act, 1125, it is submitted. 4. We heard the learned counsel for the petitioner Mr. R.Surendran and also Mr. P.K. Vijayamohanan for the first W.P.(C)NO.33681/2004 -5- respondent Municipality. The learned counsel for the petitioner submitted that in view of the amendment introduced to Section 447 as per Act 14/1999 with effect from 24-3-1999, the notification published by the Municipality has become obsolete and unworkable. In the absence of any Rules framed under Section 447(1), the Municipality cannot insist that the petitioner should take a licence. At any rate, there should be a notification from the Municipality specifying which are the “dangerous or offensive trades” and which are “common trades”, as mentioned in sub-sections (3) and (3A) of Section 447, after the amendment. So, the learned counsel for the petitioner prays for granting all the reliefs sought for in the writ petition. 5. The learned counsel for the Municipality, on the other hand, submitted, even in the absence of any rules, since the petitioner is running a trade, he cannot do it without a licence, in view of the express prohibition contained in Section 447(1). It is also submitted that he should take licence at least from the Secretary under sub-section (3A) of Section 447. The relevant portion of Section 447, as it stood before the amendment introduced as per Act 14/1999, reads as follows: W.P.(C)NO.33681/2004 -6- “ 447. Purpose for which places may not be used without licence, (1) A Municipality may notify by publication in the Gazette or in any other manner as may be prescribed that no place within the municipal area shall be used for any one or more of the purposes specified in the Sixth Schedule or for any other trade without a licence and except in accordance with the conditions specified therein and where the licence is for running hostels, restaurants, eating houses, coffee houses, Abkari shop, laundries, travel agency or barber saloons, the licence shall always contain and be deemed to contain a condition that admission or service therein shall be available to any member of the public. xx xx xx xx xx xx xx xx (3)The Secretary may, by order and subject to such restrictions and regulations as he thinks fit, grant or in the interest of the public refuse to grant such licence.” The above provision after the amendment reads as follows: “447. Purpose for which places may not be used without licence,(1)A Municipality may notify by publication in the Gazette or in any other manner as may be prescribed that no place within the Municipal area shall be used for any one or more of the W.P.(C)NO.33681/2004 -7- purposes specified in the rules made in this behalf or for any other trade without a licence and except in accordance with the conditions specified therein and where the licence is for running hostels, restaurants, eating houses, coffee houses, Abkari shop, laundries, travel agency or barber saloons, the licence shall always contain and be deemed to contain a condition that admission or service therein shall be available to any member of the public. xx xx xx xx xx xx xx xx (3)The Council shall, within thirty days from the date of receipt of the application, by order and subject to such terms and conditions as it deems fit, either grant a licence for the use of a place for conducting a dangerous or offensive trade or in the interest of the public refuse to grant grant such licence. (3A) The Secretary shall, within fifteen days from the date of receipt of the application, by order and subject to such terms and conditions as he deems fit, either grant licence for using a place to conduct a common trade or in the interest of the public refuse to grant such licence. 6. A reading of sub-section 447(1) would show that for running a business covered by the rules, if any, prescribed and W.P.(C)NO.33681/2004 -8- for other trades also, licence is necessary. The petitioner is, admittedly, running a trade. So, even if no rules are notified, covering the trade run by the petitioner, still he is liable to take the licence, in view of Section 447(1), which not only deals with the purposes specified by the rules, but also with other trades. Therefore, the decision in **Shaji v. State of Kerala (supra),** to the extent it says that no licence is necessary for running a trade under Section 447(1), in the absence of any rules framed by the Government, does not lay down the correct legal position. The decision in **Unnikrishnan v. Paravur Municipality (supra)** has correctly interpreted the provision. 7. The learned counsel for the petitioner has raised a contention that the existence of a valid notification issued by the Municipality is a condition precedent for insisting for a licence to run a trade, even if it is not covered by the rules. But, we agree with the contention of the Municipality that its notification published in 1998, to the extent it is not repugnant to the amended provision, will survive. Item No.163 in that notification is “Service Station”. So, the petitioner's business will come under the said heading “Service Station”, which is listed as item W.P.(C)NO.33681/2004 -9- 163 in the notification published by the Municipality under Section 447(1) read with other relevant provisions, as they stood in 1998. But, it is true that the said notification does not specify whether the trades notified are dangerous or offensive trades or other common trades. If it is a dangerous or offensive trade, the petitioner has to move the Council for licence under Sub-Section (3) of Section 447 and if it is a common trade, he has to move the Secretary of the Municipality under Sub-Section (3A) of Section 447. Going by the above provisions, it is clear that the petitioner has to take, at least, a licence from the Municipality for “common trade” to run his establishment. So, the contention of the petitioner that the notification is obliterated, in view of Act 14/1999, cannot be accepted. As long as the classification of the trades into “dangerous or offensive trades” and “common trades” is not made, the petitioner can, of course, say that his trade is a common trade and he need take licence only for that. 8. But, when the question of prosecution of the petitioner comes, we think different considerations arise. Law has to be strictly interpreted and applied. It is common case that so far the Government have not issued any Rules under sub-section (1) of W.P.(C)NO.33681/2004 -10- Section 447. No provision under the Act or the Rules framed thereunder or any notification has been brought to our notice, classifying “dangerous or offensive trades” and “common trades”. Sub-section (3) or Sub-Section (3A) does not specify who is authorised to make the classification. If the classification is to be done by prescription by Rules, it can be done by the Government. Since the provisions are vague as to who should author the classification, it may be done by the Municipality also, though there is no specific authorisation for that in the Act. Whatever be that, in this case the Municipality has not classified the trades. So, the law under Section 447, in the absence of any Rules or classification of trades, is in a vague and nebulous stage. Therefore, for violation of that section, if a person is prosecuted, we feel that the same will offend certain basic principles governing penal law. It is one of the fundamental principles of criminal law that commissions and omissions which entail penal consequences should be defined, with precision and notified in advance, so that, the citizens can avoid violating that law. If the injunctions of a law are vague, innocent persons may infringe the law unwittingly. Such persons will be accused ex-post facto W.P.(C)NO.33681/2004 -11- that what he did was an offence. When the law is vague, the same impermissibly delegates to the police and the Judge, as the case may be, to decide from case to case what is an offence and what is not an offence. Such a law cannot stand scrutiny in the light of Article 14 of the Constitution of India. In this context, it is apposite to quote the observations of the Apex Court in **Kartar Singh v. State of Punjab, (1994)3 S.C.C.569.** **“** 130. It is the basic principle of legal jurisprudence that an enactment is void for vagueness if its prohibitions are not clearly defined. Vague laws offend several important values. It is insisted or emphasised that laws should give the person of ordinary intelligence a reasonable opportunity to know what is prohibited, so that he may act accordingly. Vague laws may trap the innocent by not providing fair warning. Such a law impermissibly delegates basic policy matters to policemen and also judges for resolution on an ad hoc and subjective basis, with the attendant dangers of arbitrary and discriminatory application. More so uncertain and undefined words deployed inevitably lead citizens to “steer far wider of the unlawful zone... than if the boundaries of the forbidden areas were clearly marked”. **”** 9. In view of the principles laid down above, we feel that it W.P.(C)NO.33681/2004 -12- is quite unsafe to sustain the prosecution of the petitioner for violation of the provisions of Section 447. We, therefore, quash Ext.P1 complaint and the writ petition is allowed as above. This does not mean that if the petitioner runs his trade without licence, the Municipality is helpless. It can close down the shop with police assistance. The Registry is directed to send a copy of this judgment to the Chief Secretary of the State to take appropriate action,if so advised, to remove the vagueness in Section 447 of the Municipalities Act. ## **K. BALAKRISHNAN NAIR, JUDGE** **M.C. HARI RANI JUDGE** **ks.**