Case Note & Summary
The dispute arose from a writ petition concerning the allotment of shops/stalls in Lodhi Road Complex I and II, New Delhi. The Supreme Court had previously directed the Union of India to revise its allotment policy and complete the allotment process by a specified timeline. Following the issuance of notices to vacate, the respondents failed to comply and were subsequently found to be unauthorized occupants. A contempt petition was initiated but dropped when possession was delivered. The Union of India sought damages for the unauthorized occupation, leading to the current application. The court noted that the respondents did not participate in the tender process and thus were not entitled to remain in possession. The respondents argued that the matter should be addressed under the Public Premises Act, but the court rejected this, emphasizing that the issue stemmed from contempt of its order. The court allowed the application for damages, directing the respondents to pay the arrears as per the provided chart within two months, with interest applicable for delayed payments. The decision underscored the court's authority to enforce compliance with its orders and the financial implications of contemptuous behavior.
Headnote
A) Contempt of Court - Unauthorized Occupation - Liability for Damages - Public Premises (Eviction of Unauthorised Occupants) Act, 1971, Section 7 - Respondents failed to vacate shops/stalls as per court order and remained unauthorized occupants, causing loss to the exchequer. Court held that they are liable to pay damages at the rate quoted by the highest bidder for their unauthorized use until they delivered vacant possession (Paras 1-8).
Issue of Consideration
Whether the respondents are liable to pay damages for unauthorized occupation of shops/stalls in violation of the court's order.
Final Decision
The court allowed I.A.No.54, directing the respondents to pay arrears of rent/damages as per the chart within two months. If not paid, the petitioner could recover amounts through coercive procedures, with interest at 6% per annum applicable from the date of the order.
Law Points
- Contempt of Court
- Unauthorized Occupation
- Damages
- Public Premises Act
- Eviction
