Bombay High Court Dismisses Petition Challenging Licence Revocation for Non-Payment of Stallage Charges. Licence Cancellation for Breach of Payment Conditions Upheld as Petitioner Failed to Pay Dues Despite Multiple Notices Under Sections 401, 411, 479 of Mumbai Municipal Corporation Act, 1888.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The petitioner, Dilip Vasant Shinde, was allotted Shop No.55 in Hirachand Desai Municipal Market, Ghatkopar, Mumbai, in 1988 on a licence issued under Sections 401, 411, and 479 of the Mumbai Municipal Corporation Act, 1888. The licence required payment of stallage charges of Rs.765 per month in advance within the first 15 days of each month, with a receipt from the Assistant Superintendent of Markets. The licence conditions stipulated that failure to pay within the specified period would result in cancellation of the licence, after which the licensee must vacate the shop. The petitioner failed to pay stallage charges from January 1997. A notice dated 11 October 1999 and a reminder dated 18 October 1999 were served, but no payment was made. The Assistant Superintendent of Markets stated that the Superintendent of Markets prepared a report forwarded to the Deputy Municipal Commissioner, Zone II, who sanctioned revocation of the licence. A show cause notice was issued, and on 16 December 1999, a further notice was issued to the petitioner to explain why the licence should not be revoked. The petitioner challenged the revocation by filing a writ petition. The court considered the facts and the licence conditions, noting that the petitioner had not paid the stallage charges for a prolonged period despite notices. The court held that the revocation was justified as the petitioner breached the licence conditions by not paying the dues. The petition was dismissed.

Headnote

A) Municipal Law - Licence Revocation - Non-Payment of Stallage Charges - Sections 401, 411, 479 Mumbai Municipal Corporation Act, 1888 - Petitioner was allotted a shop on licence in a municipal market and failed to pay stallage charges from January 1997 despite notices - Licence was revoked after show cause notice - Court held that the revocation was justified as the petitioner breached the licence conditions by not paying dues - Petition dismissed (Paras 1-3).

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Issue of Consideration

Whether the revocation of the petitioner's licence for non-payment of stallage charges was valid and in accordance with the terms and conditions of the licence.

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Final Decision

The petition is dismissed. The revocation of the petitioner's licence is upheld.

Law Points

  • Licence revocation for non-payment of stallage charges
  • breach of licence conditions
  • Sections 401
  • 411
  • 479 of Mumbai Municipal Corporation Act
  • 1888
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Case Details

2005 LawText (BOM) (03) 162

WRIT PETITION NO. 14 OF 2002

2005-03-11

DR. D.Y. CHANDRACHUD, J.

Mr. Santosh Shetty i/b. M.P. Vashi & Associates for the Petitioner, Mrs. A.R. Josh for the Respondents

Dilip Vasant Shinde

Brihanmumbai Municipal Corporation & Ors.

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Nature of Litigation

Writ petition challenging revocation of licence for non-payment of stallage charges.

Remedy Sought

Petitioner sought to challenge the revocation of his licence and restoration of the shop.

Filing Reason

Petitioner's licence was revoked for non-payment of stallage charges from January 1997.

Issues

Whether the revocation of the petitioner's licence for non-payment of stallage charges was valid.

Submissions/Arguments

Petitioner argued that the revocation was unjustified. Respondents argued that the petitioner failed to pay stallage charges despite notices, breaching licence conditions.

Ratio Decidendi

The licence was validly revoked due to the petitioner's breach of licence conditions by non-payment of stallage charges for a prolonged period despite notices.

Judgment Excerpts

A shop (Shop No.55) in the Municipal Market known as Hirachand Desai Municipal Market at H. D. Road, Ghatkopar, Mumbai, was allotted to the Petitioner in 1988 on licence. Since charges for the period from January 1997 were not paid, a notice dated 11th October 1999 was served upon the Petitioner calling upon him to pay the outstanding dues. The DMC (Zone II) accorded sanction to revoke the licence of the Petitioner for non payment of charges and for violating the conditions of licence.

Procedural History

The petitioner was allotted a shop on licence in 1988. From January 1997, he failed to pay stallage charges. Notices were issued in October 1999. A show cause notice was issued, and on 16 December 1999, a further notice was issued. The licence was revoked. The petitioner filed a writ petition in 2002 challenging the revocation.

Acts & Sections

  • Mumbai Municipal Corporation Act, 1888: 401, 411, 479
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