High Court of KeralaSingle JudgeThe writ petition is allowed to the extent that...

Binu v. Kollam Municipal Corporation

Case / Petition Number:WP(C).No.10276 of 2019

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • ANIL K. NARENDRAN
Judgment Date
2019-06-24
Court Decision / Holding
Ext.P9 is set aside to the extent that it requires No Objection Certificate from the landlord for consideration of Ext.P7; the 1st respondent is directed to consider Ext.P7 with notice to the petitioner and the 2nd respondent and to pass a reasoned order, expeditiously and in any case within one month of receipt of a certified copy of this judgment.
Final Disposition
The writ petition is allowed to the extent that Ext.P9’s demand for landlord NOC is quashed; Ext.P7 should be considered with notice to both parties, and a reasoned order passed within one month; otherwise the reliefs granted are to be in accordance with the directions above.

Parties to the Case

Appellants / Petitioners

  • Binu

Respondents

  • Kollam Municipal Corporation represented by its Secretary
  • Ramachandran Pillai

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri K.S. Hariharaputhran
  • • Smt. Banu Thilak

Counsels for Respondents

  • • Sri M.K. Chandra Mohan Das
  • • Sri Arun Babu

Case Synopsis & Summary

The petitioner, Binu, runs a readymade dresses business from shop room MC XVII/222 in Vadakkumbhagam Cherry, Kollam East Village, leased by the 2nd respondent. He filed a writ petition under Article 226 seeking certiorari to quash Ext.P9 issued by the 1st respondent Kollam Municipal Corporation on 25.03.2019, which demanded production of a No Objection Certificate from the landlord before considering Ext.P7, the renewal application for 2019-2020. The core dispute is whether the 1st respondent could insist on landlord consent to renew a municipal licence where the tenancy itself allows lawful business use. The petitions were opposed by the 1st respondent with a statement and by the 2nd respondent by counter-affidavit, citing pendency of O.S.97/2018 in the Munsiff Court. The court recalls Marimuthu v. Director General of Police (1999) (KLT) holding that a statutory tenant cannot be evicted solely on the landlord withholding consent, and that a licence under Sec.492 of the Kerala Municipality Act is relevant for operation. It also notes Sudhakaran v. Corporation of Trivandrum (2016) and Babu v. Vijayan (2019) for the principle that landlord consent is not a prerequisite for renewal of a shop licence where tenancy exists. In light of these authorities, Ext.P9’s demand for NOC is set aside; Ext.P7 must be considered with due notice to both parties, and a reasoned order should be passed within a month.

Provisions of Law Cited

Article 226, Constitution of IndiaSec. 492, Kerala Municipality ActKerala Buildings (Lease and Rent Control) Act

Legal Doctrines & Maxims

  • Consent of landlord is not required for renewal of a shop licence under tenancy
  • Valid tenancy itself implies landlord’s implied authority for legitimate use of premises

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that Ext.P9's demand for a No Objection Certificate from the landlord is unwarranted and contrary to settled law. Renewal of a licence under the Kerala Municipality Act and the tenancy rights should allow operation without landlord consent. The petitioner seeks quashing of Ext.P9 and renewal consideration based on Ext.P7.

Contentions of Respondents

The respondents contend that Ext.P9 seeks the landlord’s NOC in the interest of proper regulation and suggests there may be existing disputes, including pending O.S.97/2018; the 1st respondent opposes the relief and the 2nd respondent’s objections reflect the landlord’s rights; the renewal process should be conditioned on landlord consent where applicable.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Marimuthu v. Director General of Police1999 (3) KLT 662PositiveCited as authority that a landlord cannot withhold consent to allow business and the corporation cannot demand written landlord consent for renewal where tenancy already permits use.
Sudhakaran v. Corporation of Trivandrum and another[2016 (3) KLT 247] ; [(2016) 14 SCC 263]PositiveNoted that the Supreme Court held landlord consent is not required for renewal of a shop licence and tenancy carries implied authority for use.
Babu v. Vijayan2019 (1) KLT 684PositiveDivision Bench followed the Apex Court’s stance on landlord consent, reinforcing that tenancy rights permit business activity without landlord consent for renewal.

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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 ANIL K.NARENDRAN** **MONDAY, THE 24TH DAY OF JUNE 2019 / 3RD ASHADHA, 1941** ## **WP(C).No.10276 of 2019** ## **PETITIONER:** **BINU, AGED 43 YEARS,S/O.VELAYUDHAN PILLAI, BINU NIVAS, EDAKULANGARA, THODIYOOR P.O., THODIYOOR VILLAGE, KARUNAGAPPALLY TALUK, KOLLAM- 690523.** ## **BY ADVS. SRI.K.S.HARIHARAPUTHRAN SMT.BHANU THILAK** ## **RESPONDENTS:** **1 KOLLAM MUNCIPAL CORPORATION REPRESENTED BY ITS SECRETARY, KOLLAM-691001. 2 RAMACHANDRAN PILLAI, AGED 76 YEARS,S/O.GOVINDAN PILLAI, KAVINTE VADAKKATHIL VEEDU, VADAKKUMMURI PADINJARU, KUTHIRAPANTHI P.O., THAZHAVA VILLAGE, KARUNAGAPPALLY TALUK, KOLLAM-690523.** **BY ADVS. SRI.M.K.CHANDRA MOHAN DAS,STANDING COUNSEL, KOLLAM MUNICIPAL CORPORATION SRI.ARUN BABU** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.06.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **WP(C).No.10276 of 2019** -2- ## **JUDGMENT** The petitioner, who is conducting business in shop room No.MC XVII/222 of Vadakkumbhagam Cherry of Kollam East Village, which is owned by the 2[nd] respondent, has filed this writ petition under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P9 notice dated 25.03.2019 issued by the 1[st] respondent and to consider Ext.P7 application for renewal of licence accordingly. 2. The grievance of the petitioner in this writ petition is that, vide Ext.P9 notice, the 1[st] respondent insisted production of No Objection Certificate from the 2[nd] respondent landlord for consideration of Ext.P7 application for renewal of licence. 3. On 02.04.2019, when this writ petition came up for admission, the learned Standing Counsel took notice for the 1[st] respondent. Urgent notice on admission by speed post was ordered to the 2[nd] respondent, returnable within ten days. The learned Standing Counsel was directed to get **WP(C).No.10276 of 2019** -3- instructions. 4. A statement has been filed by the 1[st] respondent, opposing the reliefs sought for in this writ petition. The 2[nd] respondent has filed a counter affidavit, pointing out the pendency of O.S.No.97 of 2018 before the Munsiff's Court, Kollam. 5. Heard the learned counsel for the petitioner, the learned Standing Counsel for the 1[st] respondent Corporation and also the learned counsel for the 2[nd] respondent. 6. The sole issue that arises for consideration in this writ petition is as to whether any interference is warranted on Ext.P9 notice dated 25.03.2019 issued by the 1[st] respondent, whereby the petitioner has been asked to produce No Objection Certificate from the 2[nd] respondent landlord for consideration of Ext.P7 application for renewal of licence. 7. In **Marimuthu v. Director General of Police [1999 (3) KLT 662]** , a Division Bench of this Court held that, a statutory tenant under the Kerala Buildings (Lease **WP(C).No.10276 of 2019** -4- and Rent Control) Act can be evicted only as per the provisions of the said Act, on the grounds enumerated therein. Since the possession of the tenant is lawful, the landlord is not entitled to withhold his consent for the conduct of the business for which the premises were given on rent. Paragraph 16 of the said judgment reads thus; “16. A statutory tenant under the Kerala Buildings (Lease and Rent Control) Act can be evicted only as per the provisions of the said Act, on the grounds enumerated therein. Since the possession of the tenant is lawful, the landlord is not entitled to withhold his consent for the conduct of the business for which the premises were given on rent. In the instant case, we are satisfied that the landlord is purposefully and with malafide intention withholding consent inspite of the directions from this court. Under such circumstances, the Corporation also cannot insist upon production of written consent from the landlord for the purpose of issuance of licence for the conduct of business in the premises in question. For carrying on business in readymade dresses a licence issued under Sec.492 of the Kerala Municipality Act is necessary. As on date, the petitioner is not having any licence to carry on such business. A person in occupation can be allowed to carry on a trade or business which requires a licence, only after obtaining such licence. In view of **WP(C).No.10276 of 2019** -5- the facts and circumstances of the case as above, we direct the Corporation of Thiruvananthapuram to consider Ext.P7 application for licence without insisting upon the production of a written consent of the owner of the premises and pass appropriate orders after giving an opportunity to the petitioners or their representative or their advocate, within two weeks from today. The petitioners are at liberty to file any further documents, if need be, before the Corporation authorities. The Corporation shall pass a reasoned order after hearing the necessary parties and communicate the same to the petitioners within two weeks from today. We make it clear that till such time the petitioners shall not conduct the textile business in the premises in question. Ext.P8 order of the Corporation of Thiruvananthapuram is set aside and Ext.P7 is restored to file for fresh consideration as directed above.” The judgment of this Court in **Marimuthu's case supra** was affirmed by the Apex Court in **Sudhakaran v. Corporation of Trivandrum [2016 (3) KLT 247]** . 8. In **Sudhakaran's case (** _**supra**_ **)** , the Apex Court held that consent of the landlord is not required by the tenant for renewal of municipal license to run a shop. Even in the case of application for obtaining license for the first **WP(C).No.10276 of 2019** -6- time, the tenant cannot be deprived of running lawful business merely because the landlord withheld the consent. Valid tenancy itself has implied authority of the landlord for legitimate use of the premises by the tenant as per the tenancy agreement. 9. The law laid down by the Apex Court in the aforesaid decision has been followed by a Division Bench of this Court in **Babu v. Vijayan [2019 (1) KLT 684]** . Paragraph 8 of the said decision reads thus; “8. On the above legal issue, we may benefit by referring to the pronouncement in **Sudhakaran v. Corporation of Trivandrum and another** reported in **[(2016) 14 SCC 263]** where the Supreme Court on the issue of the renewal of a trade licence, stated that a tenant cannot be deprived of running a lawful business merely because the landlord withheld his consent, and further that, a valid tenancy itself has implied authority of the landlord for legitimate use of the premises by the tenant.” 10. In view of the law laid down in the decisions referred to _supra_ , the application for renewal of licence **WP(C).No.10276 of 2019** -7- cannot be kept pending by the local authority, insisting production of No Objection Certificate. In the result, Ext.P9 notice, to the extent of directing the petitioner to produce No Objection Certificate from the 2[nd] respondent landlord for consideration of Ext.P7 application for renewal of licence, is set aside and the 1[st] respondent is directed to consider Ext.P7 application, with notice to the petitioner and also to the 2[nd] respondent and take an appropriate decision, as expeditiously as possible, at any rate, within a period of one month from the date of receipt of a certified copy of this judgment. Sd/- **ANIL K. NARENDRAN JUDGE** bpr **WP(C).No.10276 of 2019** -8- ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** - **EXHIBIT P1 TRUE COPY OF THE CONSENT LETTER DATED 23.03.2016 SIGNED BY THE 2ND RESPONDENT.** - **EXHIBIT P2 TRUE COPY OF THE PROFESSION TAX RECEIPTS DATED 01.02.2018.** - **EXHIBIT P2(A) TRUE COPY OF THE PROFESSION TAX RECEIPTS DATED 28.02.2019.** - **EXHIBIT P3 TRUE COPY OF THE RENEWED LICENSE DATED 06.02.2018.** - **EXHIBIT P4 TRUE COPY OF THE PLAINT IN O.S.NO.97/2018 DATED 02.02.2018 OF O.S.NO.97/2018 BY THE LEARNED MUNSIFF COURT, KOLLAM.** - **EXHIBIT P5 TRUE COPY OF THE ORDER DATED 08.02.2018 IN I.A.NO.613/2018 OF O.S.NO.97/2018 BY THE LEARNED PRINCIPAL MUNSIFF COURT, KOLLAM.** - **EXHIBIT P6 TRUE COPY OF THE NOTICE DATED 22.03.2018 SEND BY THE 2ND RESPONDENT THROUGH HIS COUNSEL.** - **EXHIBIT P7 TRUE COPY OF THE APPLICATION BEFORE THE 1ST RESPONDENT FOR RENEWING THE LICENCE FOR THE YEAR 2019-2020 DATED 02.03.2019.** - **EXHIBIT P8 TRUE COPY OF THE LETTER DATED 08.03.2019 SEND BY THE PETITIONER THROUGH HIS COUNSEL TO THE 2ND RESPONDENT.** - **EXHIBIT P9 TRUE COPY OF THE NOTICE DATED 25.03.2019 ISSUED BY THE 1ST RESPONDENT.** - **RESPONDENTS' EXHIBITS:** - **EXHIBIT R2(A)** **THE TRUE COPY OF THE OBJECTION DATED 19/03/2018 IN O.S.97/2018 BEFORE THE MUNSIFF COURT,KOLLAM.**