Shaju P.D. v. Licensing Authority and Assistant Drug Controller, Drugs Control Department, Thrissur; The Drugs Inspector, Palakkad; Sree Simhanadha Bhagavathi Devaswom, Tharekkad Palakkad
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- Ashok Bhushan
- A. M. Shaffique
- Judgment Date
- 2015-06-04
- Court Decision / Holding
- Writ appeal allowed; setting aside the judgment of the learned Single Judge; the appellant is entitled to the licence in his name, and interim licence already granted stands; the licensing authority may issue or renew the licence in accordance with subsequent orders and the ongoing lis pendens.
- Final Disposition
- Writ appeal allowed; Single Judge's order set aside; license transfer/renewal in appellant’s name permitted in light of interim order and pending tenancy dispute.
Parties to the Case
Appellants / Petitioners
- Shaju P.D.
Respondents
- The Licensing Authority and Assistant Drug Controller, Drugs Control Department, Thrissur
- The Drugs Inspector, Zone One, Office of the Drugs Inspector, Palakkad
- Sree Simhanadha Bhagavathi Devaswom, Tharekkad Palakkad
Legal Representation & Advocates
Counsels for Petitioners
- • Sri Jacob Sebastian
- • Shamseera
- • C. Ashraf
- • Sri T. U. Sujith Kumar
- • Smt. Anu Jacob
Counsels for Respondents
- • Sri P. I. Davis
- • Sri S. Ananthakrishnan
Case Synopsis & Summary
Shaju P.D., a proprietor of Jas Medicals, appeals against a writ petition decision concerning the grant/renewal of a drugs licence in his name. The matter arises from a tenancy dispute between the appellant and the landlord, with the licence initially held in the name of a partnership firm that subsequently became a proprietary concern. The Drugs Inspector refused the transfer of the licence to the appellant’s name, citing lack of tenancy records due to the pending O.S. 313/2012 and no evidence of lease, and the learned Single Judge dismissed the petition relying on M.C.Chokkalingam and Ram Bharosey Lal Gupta, which represented that a tenant holding over may not be entitled to renewal. During the interlocutory stage, this Court directed the licensing authorities to consider renewal without requiring landlord consent, and a licence was issued on 28/05/2015 (valid 17/10/2014 to 16/10/2019) in the appellant’s name. The Division Bench held that Rule 65A requires occupancy verification but also recognizes that the phrase “or other basis of the premises” covers statutory tenancy. Given the lis pendens and over ten years of occupancy under the firm’s licence, equity favours the appellant; the writ appeal is allowed and the Single Judge’s order is set aside. Interim licence validity stands, and further grounds may be challenged."
Provisions of Law Cited
Submissions & Arguments
Contentions of Appellants / Petitioners
The appellant contends that he is the proprietor of Jas Medicals and seeks licence transfer to his name. Though a tenancy dispute exists (O.S.313/2012), Rule 65A permits the licensing authority to verify ownership/occupancy and other relevant matters; the phrase 'ownership or occupation on rental or other basis' includes bearing a statutory tenancy. The applicant asserts that he has operated for over ten years under the firm’s licence and now in sole name; equity favors him, and the interim grant/renewal ordered by this Court should be upheld despite pending litigation. He argues that the Single Judge erred in treating possession as unlawfully without recognizing the lis pendens and the statutory tenancy status. The interim licence dated 28/05/2015 demonstrates the Court’s inclination to balance business needs and tenancy disputes. The licence should be allowed to stand while disputes continue.
Contentions of Respondents
The respondents rely on the principles in M.C.Chokkalingam and Ors. v. V. Manickavasagam and Ors. (AIR 1974 SC 104) and Ram Bharosey Lal Gupta (D) Lrs. v. Hindustan Petroleum Corp. Ltd. (2013) 9 SCC 174 to argue that a tenant holding over is not entitled to renewal of the licence when there is no valid lease. They emphasize the pending lis between landlord and tenant and contend that licensing authority must be cautious not to grant a licence where tenancy rights are unsettled. They contend that Rule 65A contemplates verification of occupancy only where the occupancy is legitimate and not where eviction or termination proceedings render possession unlawful. The court’s prior reliance on those decisions was appropriate given the factual matrix, and the writ petition should not disturb that statutory framework absent a clear factual finding of tenancy termination or lawful possession.
Cited Precedents (2)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| M.C.Chokkalingam and Ors. v. V.Manickavasagam and Ors | AIR 1974 SC 104 | Distinguished | High Court relied on this case in the past but distinguished it on facts given the pending tenancy dispute and equity in favour of the applicant. |
| Ram Bharosey Lal Gupta (D) Lrs. and Ors. v. Hindustan Petroleum Corporation Ltd and another | 2013(9) SCC 174 | Distinguished | Court stated the judgment has no application to the present factual circumstances. |
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