Case Note & Summary
The petitioner, M/s. P.C. Guddad & Sons, a partnership firm, is a licensed market functionary and trader operating in the Agricultural Produce Market Committee (APMC) yard in Dharwad. In 1985, the petitioner was allotted shop No.41 on a leave and license basis. Subsequently, in 1998, the petitioner was allotted shop No.84 on a lease-cum-sale basis. Rule 12(2) of the Karnataka Agricultural Produce Marketing (Regulation of Allotment of Property in Market Yards) Rules, 2004 provides for the conversion of shops allotted on leave and license basis to lease-cum-sale agreements upon satisfaction of certain conditions. The petitioner, claiming to have satisfied those conditions, requested the respondent authorities to convert the leave and license agreement for shop No.41 into a lease-cum-sale agreement. However, instead of acceding to the request, the second respondent (the Agricultural Produce Marketing Committee) passed a resolution dated 21.01.2015 and issued a notice dated 16.02.2015 directing the petitioner to vacate shop No.41. Aggrieved, the petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India seeking quashing of the resolution and notice, and a mandamus directing the respondents to convert the agreement. The court examined Rule 12(2) and noted that it mandates conversion upon satisfaction of conditions. The court found that the petitioner had satisfied the conditions, and the respondents had no justification to refuse conversion. The court held that the resolution and notice directing vacation were arbitrary and illegal. Consequently, the court allowed the petition, quashed the impugned resolution and notice, and directed the respondents to convert the leave and license agreement into a lease-cum-sale agreement in respect of shop No.41 within a reasonable time.
Headnote
A) Agricultural Produce Marketing - Conversion of Tenure - Rule 12(2) of Karnataka Agricultural Produce Marketing (Regulation of Allotment of Property in Market Yards) Rules, 2004 - The petitioner, a licensed market functionary, was allotted shop No.41 on leave and license basis in 1985 and later shop No.84 on lease-cum-sale basis in 1998. He sought conversion of shop No.41 to lease-cum-sale under Rule 12(2). The respondent authorities directed him to vacate the shop instead. The court held that Rule 12(2) mandates conversion upon satisfaction of conditions, and the petitioner having satisfied them, the authorities were bound to convert. The resolution and notice directing vacation were quashed, and the respondents were directed to convert the agreement (Paras 1-5).
Issue of Consideration
Whether the petitioner is entitled to conversion of his leave and license agreement into a lease-cum-sale agreement in respect of shop No.41 under Rule 12(2) of the Karnataka Agricultural Produce Marketing (Regulation of Allotment of Property in Market Yards) Rules, 2004
Final Decision
The writ petition is allowed. The resolution dated 21.01.2015 (Annexure-H) and the notice dated 16.02.2015 (Annexure-J) are quashed. The respondents are directed to convert the leave and license agreement into a lease-cum-sale agreement in respect of shop No.41 in favour of the petitioner within a reasonable time.
Law Points
- Rule 12(2) of the Karnataka Agricultural Produce Marketing (Regulation of Allotment of Property in Market Yards) Rules
- 2004 provides for conversion of leave and license to lease-cum-sale upon satisfaction of conditions
- and the authority cannot refuse conversion if conditions are met
