Case Note & Summary
The dispute involved Sodan Singh, an eligible squatter, who sought to change his trade from tea to garments due to health issues. The NDMC had previously restricted him to tea business based on a committee's findings. The Thareja Committee had noted that while the NDMC could consider changes in trade, it should not have absolute discretion to deny such requests. The court emphasized that as long as the trade was permissible, the NDMC could not refuse the change. The court also addressed various other applications concerning squatters, affirming the Thareja Committee's decisions in several cases while allowing Sodan Singh's application for change of trade. The court directed the NDMC to issue orders permitting the change, highlighting the need for lawful conditions but rejecting the notion of arbitrary discretion. The ruling reinforced the rights of eligible squatters to engage in permissible trades without undue restrictions.
Headnote
A) Administrative Law - Change of Trade - Rights of Eligible Squatters - Not applicable under Article 19(6) - Court held that an eligible squatter cannot be restricted to a single trade if they qualify for others. The NDMC's discretion to deny change of trade was deemed likely to be abused, and the court directed that the application for change to garments must be granted (Paras 1-2).
Issue of Consideration
Whether the NDMC can deny an eligible squatter's application for change of trade from tea to garments.
Final Decision
The court allowed the application for change of trade from tea to garments, directing the NDMC to issue necessary orders. It emphasized that the NDMC's discretion should not be absolute and must not lead to abuse.
Law Points
- Eligibility for trade
- Change of trade
- Discretion of NDMC
- Rights of squatters
- Permissible trades


