A V G MARKETING AGENCIES PRIVATE LIMITED Vs. MUNICIPAL CORPORATION OF GUNTUR
LAWS(APH)-1999-7-22
HIGH COURT OF ANDHRA PRADESH
Decided on July 27,1999

A.V.G. MARKETING AGENCIES PRIVATE LIMITED Appellant
VERSUS
MUNICIPAL CORPORATION OF GUNTUR Respondents

JUDGEMENT

- (1.) The writ petition is filed by one Messers AVG Marketing Private Agencies Private Limited represented by its Managing Director Sri G. Ashok. The writ petition is filed for a writ of certiorari to call for the records in proceedings Roc No.738/98/A2 dated 3-2-199S issued by the first respondent, the Municipal Corporation of Guntur and for a consequential direction to the respondents to permit the petitioner to carry on business in the premises bearing Shop No.2 situated in Brahmananda Building, Lalapet, Guntur. The writ petition is filed on 28-12-1998 though the petitioner received the impugned proceedings on 14-2-1998.
(2.) The case of the petitioner is that he is engaged in the business of luggage articles. He became a successful lessee of Shop No.2 in Brahmananda building and according to him, he is also carrying on a small tea stall by name Hotel Ashok in the stair case room with the knowledge of the respondents. He was inducted as a lessee in the year 1980 and the lease was being extended from time to time on enhancement of rent at 33 1/2% once in three years. According to the petitioner such renewal was made for the year 1997-98. The petitioner took religious Deeksha to go to Shabari Malai. After returning from the holy place, he received a cover on 14-2-1998 which contain the impugned proceedings. By the impugned proceedings, the first respondent informed that the petitioner violated the lease regulations by sub-letting the leased premises in favour of the 3rd respondent and as the petitioner failed to respond to the show-cause notice, the tease was cancelled by the first respondent. The petitioner denies receipt of any show cause notice dated 20-1-1998. The petitioner challenges this order on the ground that the first respondent passed the order in violation of principles of natural justice and without application of mind and that he has not sub-let the premises to the 3rd respondents. The petitioner also makes a complaint that his material worth Rs.2.5 lakhs is in the premises and the third respondent was inducted into the premises in question by the Municipal Corporation without allowing him to take the material. The petitioner also makes a reference to OS No.197 of 1998 on the file of the Senior Civil Judge, Guntur filed by the 3rd respondent seeking a declaration that the enhancement of rent from Rs.7,587.00 to Rs.16,400.00 is bad in law. Though the affidavit says that a copy of the plaint is annexed, no such copy is annexed. However, the petitioner says that he filed an application to get himself impleaded in the said suit. The petitioner further submits that the unilateral decision of the Municipal Corporation is bad in law. In view of the fact that he is willing to pay a monthly rent of Rs. 18,018.00 per month, he should be allowed to continue the lease by re inducting him as a lessee.
(3.) The first respondent filed counter. A reading of the counter shows that the petitioner is guilty of suppressio veri, suggestio false. The first respondent admits the lease in favour of the petitioner G. Ashok who claims to be the Managing Director. According to the first respondent, the premises in question was never leased out to AVG Marketing Agencies and G. Ashok never carried on business of tea stall under the stair-case and the lease was extended till 1997-98. After having come to know that the petitioner sub-let the leased premises to third respondent by taking huge amounts as good-will without the knowledge to the officials of Corporation, the Corporation issued notice and as no reply was received from the petitioner G. Ashok, the Corporation passed the impugned order cancelling the lease. It is also stated that a news item was published in Eenadu news paper on 25-2-1998 to the effect that Sri. G. Ashok left Guntur after deceiving the public to a tune of Rs.2 crores.;


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