Army entitled not to renew leases: Gauhati High Court

The Gauhati High Court has held that civilian traders who set up shops on lease basis upon Defence property are not entitled to seek mandatory renewal of lease and that the Army authority is at liberty not to renew such leases.
Army entitled not to renew leases: Gauhati High Court

 Shops run by civilians on Defence land

STAFF REPORTER

GUWAHATI: The Gauhati High Court has held that civilian traders who set up shops on lease basis upon Defence property are not entitled to seek mandatory renewal of lease and that the Army authority is at liberty not to renew such leases.

A single Bench of the High Court issued an order to this effect on Thursday last while disposing of six linked Writ Petitions filed by 37 aggrieved traders who had been running shops in Army cantonments in Dinjan and Tezpur.

The counsels for the petitioners had submitted before the court that they are lessees of shop premises in shopping centres and regimental shops located within certain Army Cantonment and Military Service Station areas of Assam and they have been running their businesses for a number of years on the basis of licenses made for 11 months at a time and issued to them by the Army authority. However, the petitioners were suddenly asked to vacate their shops by the Army authority at expiry of the last 11-month lease period.

On the other hand, the counsels for the Army authority argued that the decision of not renewing the leases in question was taken as per Notifications dated 17.01.2018 and 07.02.2018 which stipulated that there would be 100 per cent reservation of regimental shops for war widows, widows of Defence personnel killed while on duty, disabled soldiers, ex-Servicemen and their spouses, widows of ex-Servicemen etc.

The counsels also pointed out that the shops allotted to some of the petitioners in shopping centres would come under the meaning of regimental shops, as has been interpreted by the Division Bench of the Punjab & Haryana High Court in Civil Writ Petition No18833/2019 (O&M), which was subsequently upheld by the Supreme Court.

On its part, the Bench of the Gauhati High Court noted that the relevant guidelines of the Defence Ministry clearly define regimental shops as 'unit shops and shopping centres' that are (a) constructed on A1 Defence land, (b) constructed through public and non-public funds, (c) and cater exclusively to military personnel and their families.

The single Bench observed: "… The Division Bench of the Punjab & Haryana High Court found no ground to interfere with the Notification dated 17.01.2018, providing 100 per cent reservation of allotment of regimental shops, which included unit shops and shopping centres to military personnel, their spouses, widows etc., thereby excluding allotment to civilians. The judgment of the Punjab & Haryana High Court was not interfered with by the Hon'ble Supreme Court…"

The Bench stated that, therefore, "This Court is of the view that no case been made out for this Court to exercise its discretion, especially when the licenses of the petitioners have expired more than a year back."

While vacating all interim orders passed earlier in the case, the Bench, however, directed the Army authority to give the petitioners at least two months' time to vacate their allotted shops.

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