JUDGEMENT
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(1.) This Writ Petition is filed seeking to declare the action of respondent in not
vacating the site admeasuring 1926 x 93 x 136 x 100 i.e., approximately 1700 Square Yards covered
by T.S.No.4073 situated at T.P. Area, Tirupati, Chittoor District, as illegal and arbitrary and
consequently, to direct the respondent to vacate the subject premises.
(2.) The case of the petitioners is that their grandfather is the owner of the subject premises and in the year 1953, he has given the subject premises on lease in favour of M/s. Caltex (India) Limited for a
period of ten years. After his demise, petitioners father has extended the lease for a further period of
ten years in the year 1960 and after expiry of the said lease period, a fresh lease was entered into for
a further period of 20 years and by efflux of time, the same expired by 16.11.1990. Thereafter, since
their father refused to extend the lease further, the respondent Corporation by invoking the
provisions of Section 7 (3) of Central Act 17 of 1977 (for short, the Act, 1977) got statutory renewal
for a further period of 20 years, which expired by 17.11.2010, and continued in the subject premises
as a lessee. In the subject premises, the respondent Corporation has established a retail outlet in the
name and style M/s. Vijaya Service Station, Tirupati for sale of petroleum products by appointing a
dealer. Thereafter, the petitioners made a representation to the Joint Collector, Chittoor District,
stating that the respondent - Corporation is in unlawful possession of the subject premises and
hence, the Corporation is not entitled to renewal of licence as per the provisions of Petroleum Rules,
1976, and A.P. Petroleum Products (Licensing and Regulation of Supplies) Order, 1980 (for short, Order, 1980). The Joint Collector, vide proceedings Roc.B2/250/2010, dated 25.02.2011, rejected
the application of the dealer for renewal of B - Form licence and vide proceedings, dated 15.04.2011,
after issuing notice to the respondent, cancelled the No Objection Certificate (NOC) issued in favour
of the respondent. Aggrieved by the order, dated 25.02.2011, the dealer has filed an appeal, which
was dismissed by the Commissioner of Civil Supplies vide proceedings, dated 01.07.2011. The Joint
Chief Controller of Explosives, South Circle Office, Chennai, also cancelled the licence granted in
favour of the respondent under the Petroleum Act. It is stated that against the order of Joint
Collector rejecting the request of the dealer for renewal of B -Form licence, as confirmed by the order
of Commissioner of Civil Supplies, the dealer has filed W.P.No.23676 of 2011 and against the order
of cancelling the NOC, the respondent Corporation has filed W.P.No.12501 of 2011. It is also
asserted that the respondent being a State within the meaning of Article 12 of the Constitution of
India, ought to have vacated the subject premises after expiry of the lease period, but is continuing
as a trespasser, in spite of not conducting any business. It is also asserted that opposite to the
subject premises, the respondent has taken another site on lease and is running a retail outlet. The
respondent is paying a paltry sum of Rs.200/ - per month as rent for the subject premises
admeasuring approximately 1700 Square Yards, in spite of leasing a portion of the subject premises
to two SBI ATMs and deriving rent at Rs.20,000/ - per month. The respondent is not vacating the
subject premises, even after lease period is over. Hence, the present Writ Petition.
(3.) Respondent Corporation filed counter admitting the lease of subject premises, its renewal from time to time and ultimately, its expiry on 17.11.2010. It is stated that the outlet is being run by
appointing a dealer as per the dealership agreement, dated 11.09.1985, and when the application of
the dealer for renewal of B -Form licence was rejected, the dealer has filed W.P.No.558 of 2011,
which was allowed with a direction to the Joint Collector to give an opportunity of hearing to the
dealer and then pass fresh order. Pursuant to the same, the Joint Collector confirmed the
cancellation of B -Form licence vide order, dated 25.02.2011, and thereafter, the respondent -
Corporation, in terms of the provisions of Order, 1980, started operating the retail outlet on its own,
since it does not require to obtain any B -Form licence to run the outlet. However, such operation of
retail outlet was closed as per the directions of the District Supply Officer, Chittoor. It is also stated
that the respondent Corporation is in possession and enjoyment of the subject premises as a tenant
holding over and as such, the only remedy available to the petitioners is to approach the civil Court
for eviction. It is also stated that the lease agreement between the petitioners and the respondent is
governed by the provisions of Transfer of Property Act, more particularly as the respondent is a
tenant governed by the Contract Act. It is also stated that when the petitioners tried to evict the
respondent from the subject premises, it has filed O.S.No.480 of 1991 before the I Additional
District Munsif, Tirupati, for grant of permanent injunction restraining the petitioners from
interfering with its peaceful possession and enjoyment of the subject premises and the same was
decreed by judgment and decree, dated 06.11.1996, and the appeal filed by the petitioners against
the same was dismissed and as such, the permanent injunction granted by the trial Court has
become final. It is also stated that the respondent Corporation is a public sector undertaking dealing
with refining and marketing of petroleum products, which are essential commodities, and closing of
the same will cause lot of inconvenience to the motoring public at large and hence, sought to dismiss
the Writ Petition.;