Supreme Court of India

Gainda Ram And Ors. Etc vs M.C.D. Town Hall And Ors. Etc on 12 May, 1993

Supreme Court of India
Gainda Ram And Ors. Etc vs M.C.D. Town Hall And Ors. Etc on 12 May, 1993
Equivalent citations: 1993 SCR (3) 704, 1993 SCC (3) 178
Author: Ahmadi
Bench: Ahmadi, A.M. (J)
           PETITIONER:
GAINDA RAM AND ORS.  ETC.

	Vs.

RESPONDENT:
M.C.D. TOWN HALL AND ORS.  ETC.

DATE OF JUDGMENT12/05/1993

BENCH:
AHMADI, A.M. (J)
BENCH:
AHMADI, A.M. (J)
ANAND, A.S. (J)

CITATION:
 1993 SCR  (3) 704	  1993 SCC  (3) 178
 JT 1993 (3)   396	  1993 SCALE  (2)893


ACT:
Constitution of India, 1950:
Articles  14, 19 (1) (g) and  21-Squatters/hawkers-Grant  of
Tehbazari  Permission  by Municipal  Corporation  of  Delhi-
Scheme	evolved	 by  the Corporation on	 the  directions  of
Supreme Court--Clarifications and further directions given.
Delhi Municipal Corporation Act, 1957:
Section-420-Grant of Tehbazari Permission to squatters/hawk-
ers--Scheme   formulated  as  directed	by  Supreme   Court-
Clarifications and further directions issued.



HEADNOTE:
Certain guidelines were issued by this Court in Saudan Singh
v.  N.D.M.C.  & Ors. [1992] 2 S.C.R. 243 in respect  of	 the
squatters/hawkers carrying on business activity in the	area
under  the Municipal Corporation of Delhi.  Pursuant to	 the
said guidelines, the respondent M.C.D. evolved a Scheme	 and
undertook an exercise to complete the scrutiny of the claims
of the squatters/ hawkers for grant of tehbazari  permission
by  which  it  subclassified  the  persons  found  squatting
between	 1970 and 1982, and laid down the procedures  to  be
followed  in the implementation of the	Scheme.	  Aggrieved,
the  petitioner squatters/hawkers approached this Court	 for
appropriate  directions on their petitions pending  in	this
Court.
Disposing  of the cases, and clarifying directions given  in
Saudan Singh and giving further directions, this Court,
HELD  :	 1.1.  In  regard to persons  who  have	 been  found
squatting  between  1970  and  1982  and  whose	 names	were
contained  in  the Survey Report, and who  were	 to  receive
first  priority	 as per the guidelines	issued,	 the  M.C.D.
divided them into two classes viz., those who possessed	 the
survey	report-receipt	and  those who did  not	 posses	 the
receipt but could tender evidence or proof of squatting from
1970 to 1982.  According to M.C.D. the latter category would
be considered after the former.	 It is made clear that	both
the   classes	belong	to  one	 category   and	  the	sub-
classification is not
705
warranted. (708-F-G)
1.2In the name of the procedure set out by the M.C.D.,	they
would not be permitted to change the nature of the tehbazari
of  those  who	have been expressly  permitted	facility  of
covered	 the tehbazari/kiosks/shops/stalls in the  past	 but
those  who are not given that facility will not be  entitled
to it.	Temporary tarpaulin covers/umbrellas would not	fall
within the expression 'covered tehbazari because these would
be  necessary to combat the vagaries of nature.	  They	will
however, be liable to be evicted if under this pretext	they
try to put up a semi-permanent cover over the area on  which
they are permitted to squat.  By way of abundant caution and
to avoid harassment it would be desirable for them to put up
only a temporary cover to beat the sun or the remand  remove
it when they leave the place after business hours.(709C-D)
1.3   Having regard to the segment of the society  to  which
many  of  the squatters/hawkers belong, they  may  not	have
retained  the tehbazari receipts and it would also be  well-
nigh  impossible for the M.C.D. to verify their records	 and
determine whether or not such squatters/hawkers had in	fact
paid  the  tehbazari.	Therefore, option is  given  to	 the
squattest hawkers who face this difficulty, to pay a lumpsum
of Rs. 3000 in four quarterly installments of Rs. 750  each.
The  first installment will be paid within one	month  after
the receipt of the order or intimation of allotment from the
M.C.D. The subsequent installments will be paid every  three
months thereafter.  If any squatter/ hawker commits  default
in  the payment of the installments, his allotment  will  be
table to be cancelled one month after a reminder is sent  to
him  and the next person in the order of seniority  will  he
allotted that space. (709-F-H)
1.4By  way of a special consideration, time of one month  is
granted	 to such claimants whose cases were pending  on	 the
date  of decision in Saudan Singh's case, but who  have	 not
filed formal claims, to file their claims before the  M.C.D.
Committee  with	 all accompaniments  and  particulars.	 The
M.C.D. Committee will examine such claims.  The claims to be
filed  need not be in any prescribed form, but	may  furnish
the    particulars   along   with   the	  copy	 of    their
petition/appeal/suit pending on or before 13th March,  1992,
duly  attested	by the Advocate for the party.	In  case  of
doubt,	M.C.D. will be at liberty to demand from that  party
the production of a certified copy. (710-C-E)
1.5These   directions	would  apply  to   claims   of	 all
squatters/hawkers who fall in the four categories enumerated
in  Saudan  Singh,  and others have no right  as  they	fall
outside the scheme and are not entitled to any protection.
706
Since all those who claim to be covered under the scheme and
whose  claims  are awaiting scrutiny are protected  by	this
order,	all  the writ petitions/ appeals/SLPs  Suits,  etc.,
pending	 in  this Court/the High Court of Delhi	 and  Courts
subordinate  to	 it shall stand	 terminated  forthwith.	  No
further	 litigation by or on behalf of	any  squatter/hawker
will  be entertained but if the M.C.D. violates any part  of
this order, the concerned party governed by this order	will
be  entitled  to file an I.A. for directions.	The  interim
stay orders granted in those cases shall also stand vacated.
The  M.C.D. will, however, maintain the status quo till	 the
verification is completed. (710-F-H, 712-A-B)
Saudan Singh V.NDMC & Ors., [1992] 2 SCC 458, relied on	 and
the directions given therein clarified.
The Court observed that the M.C.D. would ensure that  future
encroachments  do  not take place defeating  the  rights  of
existing  squatters/hawkers governed under the	scheme,	 and
that  it would also protect the interest of the	 shopkeepers
as  they  too have a similar right under Article 21  of	 the
Constitution.



JUDGMENT:

ORIGINAL JURISDICTION: Writ Petition (c) No. 1699 of 1987.
Under Articles 32 of the Constitution of India.

WITH
Writ Petition (C) Nos. 1059/87, 324, 311, 841, 318, 315,
299, 334, 335, 457, 414, 435, 436, 438, 31, 157, 213, 215,
217, 188,809,441,483, 150, of 1990,616, 1065, 376 of 1989,
372/87,323/90,269/90,317/86,700/86,1096/87,435/89,479, 552,
837, 903, 1097 of 1987, 33/88, 228, 313, 125 of 1989,
627/88, SLP (C) No. 5127/90, WP (C) 475/87, 281, 909 of
1987, 51/88, SLP (C) 4501/87, WP(C) 394, 1158 of 1989, 494,
488, 322, 500, 712 of 1990, 264/86, 752, 798, 791, 793, 790,
776 of 1990, 398/89, 984 of 1990, 719, 1301, 349 of 1987,
138, 418, 1263, 964 of 1989, 11096-97/94, 1011, 752 of 88,
SLP (C) 12418/87, 501/87, 13156/86, CMP 1278 of 1987 in WP
248/87,924/87, 1531/87,479/87,522/89,1042/89,109/ 90,
131/90, 141/90, 146, 156, 157, 164, 180, 238,313,317,351,
359 of 1990, I.A. 361 of 1990, in WP 360 of
1990,362,436,438,445,447,454,455, 457, 478, 483, 488, 494,
498,565,663,664,712,743,776,790,809,814,823,835,886,905,923,
940,944,985, 989, 995, 996, 1007, 1008,1009, 1010, 1049,
1097,1132,1125, 1161, 1180, 1185, 1186, 1187
,1192,1194,1195,1212,1214,1231,1281,1295, 1294, 1233, 1251,
1258, 1283, 127 1 of 1990, 1476, 313, 1316, 1251 of the
1987, 321/86, 237/90, SLP (C) 6925/87, 14496/89, WP 1001,
1004, 1007, 595, 747, 1146, 1156 of 1992, 7, 8, 19 of 1992,
13712-13 of 1984, 54, 62, 109 of 1992 15,
707
45, 137,144,146,145, 147,148, 180,221, 263, 267,347,348,401,
349,350,35 1, 352, 353, 355, 357, 372, 393, 520, 614, 629,
628, 755, 1055,1059,1060,1062, 1066,1117 of1991,1344
of1990,161/84,11096-97/84,134,216,362,401,348, 700, 1203,
1210, 1258, 1273, 1278, 1291, 1305, 1214 of 1987, 163, 434
of 1989, 897/89,1341/89,1436/86,1651,1754of 1986,12492-
541/84,1304/90,1472/87, 1126/87,479/87,138/90,1266/90,13712-
13/84,342,462,539,701,799,931,287 of 1990, 677/89, 168, 200,
217, 253,256,320,365, 374, 375,376of 1992, 20/91, 10 1, 136,
154, 272, 354, 387, 400, 425, 436, 1054 of 199 1, SLP (C)
3119/93.

Govinda Mukhoty, V.M. Tarkunde, Arun Jaitley V.C. Mahajan,
K.N. Rai, A.P. Singh, G.K. Bansal, P.H. Parekh, B.N.
Agarwala, Ms. Simi Kumar, Ms. Sanriti Mishra, M.M. Kashyap,
Ms. Meenakshi Arora, K.R. Nagaraja Ms. Sarla Chandra, R.C.
Kaushik, Satish Chandra Agarwal, L.K. Gupta, D.K. Gara, Ms.
Renu Gupta, P.Narsimhan, B.B. Tawakley, S.K. Sabharwal, An-
dan Ghosh, R.C. Verma, B.D. Sharma, A.K. Sangh, PK.
Manohar, A.P. Mohanty, Bharat Sangal, Ms. Lalita Kaushik
(N.P.), Shree Pal Singh, N. Ganpathy, S.N. Bhatt, Ms. Rani
Jethmalani, S.K. Bisaria, Ms. H. Wahi, Ms. Rani Chabra, Uma
Datta, Shakil Ahmed, Anil Kumar Gupta (11), Ms. Manjeet
Chawla, Arun K. Sinha, Ms. Indra Sawhney, L.K. Pandey, S.
Sreenivasan, Anis Suhrawardy, S.P. Tambwekar, S.P. Pandey
for Pandey and Associates, A.S. Pundir, M.B. Lal & Co. Manoj
Prasad, J.P. Verghese, M.P. Raju, Vishnu Mathur, Manoj
Swarup, Sandeep Narain, Shree Narain, Ms. P. Gopinath,
Ranjit Kumar R.K. Maheshwari, Vineet Maheshwari, V.B.
Saharya for Saharya & Co., Ms. Rekha Pandey, Ms. Bina Gupta,
K.B. Rohtagi S.R. Setia, K.K. Mohan, S,K. Nandy, R.D.
Upadhyay, Ms. Kamini Jaiswal, S.M. Ashri, S.N. Sikka, B.K.
Prasad, P. Parmeshwaran, Ms. Sushma Suri, Ms. A. Suhashini,
Sudersh Menon, G.S. Chatterjee and M.C. Dhingra Advocates
with them for the appearing parties.

The Following Order of the Court was delivered
In Saudan Singh v. NDMC & Ors, [1992] 2SCC 458 we laid down
certain guidelines in paragraph 11 of the judgment
concerning squatters/hawkers carrying on business activity
in the area within the administrative control of MCD. The
guidelines laid down were four in number, namely
(1) Persons who have been found squatting between 1970 and
1982 and whose names are contained in the survey report
prepared after the survey conducted in 1982 will receive
first priority for grant of tehbazari permission subject to
the scrutiny of their claims;

708

(2) Insofar as casual tehbazari on weekly
holidays, festivals/melas, etc., is concerned,
as well as at the 67 weekly bazars held,
persons availing of the said benefit will
continue to be granted the casual or weekly
tehbazari;

(3) Squatters who have started
squatting/hawking in 1983 onwards and who were
not found on the date of survey would also be
considered for grant of open tehbazari of
6’x4′ subject to the production of proof of
continuous squatting and proof of residence
and nationality. Such squatters/hawkers would
be granted open tehbazari subject to
availability of space provided they have
cleared the dues of the MCD; and
(4) Personal who do not, fall within the
aforesaid three categories would be permitted
to apply for hawking licences under section
420 of the Delhi Municipal Corporation Act,
1957 and their applications would be
considered on merit for permission to hawk
not squat by moving in specified areas with
their goods on their heads or on cycles. They
will be entitled to hawk with their
goods,anywhere in the zone in respect of which
they have not been granted a licence.
However, such permission will be subject to
any restrictions that may be imposed by the
residential associations of different
colonies.”

Pursuant to the said guidelines, the MCD issued public
notices in newspapers and through handbills, posters, etc.,
between the months of June and August, 1992. In regard to
the category of hawkers/squatters mentioned in the
guidelines, the MCD has undertaken an exercise to complete
the scrutiny expeditiously. In regard to hawkers/squatters
falling under category (1), the MCD has divided them into
two classes, namely, those who possess survey- report-
receipt dated 23.12.82 and those who do not possess that
receipt but are in a position to tender evidence or proof of
their squatting from 1970 to 1982. It is stated that the
latter category will stand and will be treated and
considered after the former. We would like to make it clear
that they all belong to one category and this
subclassification is not
warranted.

Even in regard to those who do not possess the survey report
receipt dated 23. 12. 82 but tender satisfactory proof in
regard to their squatting from 1970 to 1982 should be
considered along with those who possess the receipt and be
arranged in the order of their respective seniorities. We
do not think that the sub-

709

classification is necessary.

The MCD has also stated that no covered
tehbazari/kiosks/stalls/shops will be given to any person
under the present scheme and only open to sky tehbazari on
area admeasuring 6’x4′ should be permitted to eligible
squatters and the seniority list will be prepared
accordingly on submission of proof. Counsel for the
squatters/hawkers contended that earlier covered
tehbazari/kiosks/shops/stalls was permitted to some of them
like Jai Jawan Stores, etc., and if by this procedure it is
intended to disturb them that should not be permitted. We
read this procedure only to mean that those who have not
been expressly given such facility will not be given covered
tehbazari/kiosks/shops/stalls, etc., under the scheme which
is being flnalised. We would like to clarify that in the
name of the procedure set out by the MCD, which they propose
follow to finalise claims, they would not be permitted to
change the nature of the tehbazari of those, who have been
expressly permitted facility of covered
tehbazari/kiosks/shops/stalls in the past but those who are
not given that facility will not be entitled to it. We may
also clarify that temporary tarpaulin covers/umbrellas would
not fall within the expression ‘covered tehbazari because
these would be necessary to combat the vagaries of nature.
They will, however, be liable to be evicted if under this
pretext they try to put up a semi-permanent cover the area
on which they are permitted to squat. Byway of abundant
caution and to avoid harassment it would be desirable for
them to put up only a temporary cover to beat the sun or
therein and remove it when they leave the place after
business hours.

Under category (3) -in paragraph 1 1 of the Judgment, we
have in the concluding lines stated that such
squatters/hawkers would be granted open tehbazari subject to
availability of space provided they have cleared the dues of
the MCD. Counsel submitted that this requirement of
clearing the dues is likely to cause avoidable Hardship
since the period covered would be almost of a decade and at
times more. Many of the squatters/.hawkers having regard to
the segment of society to which they belong may not have
retained the receipts and it would also be well-nigh
impossible for the MCD to verify their records and determine
whether or not such. squatters/hawkers had in fact paid the
tehbazari. We see considerable force in this submission and
we, therefore, provide an option to the squatters/hawkers,
who face this difficulty to pay a lump sum of Rs. 3,000 in
four quarterly instalments of Rs. 750 each. The first
instalment will be paid within one month after the receipt
of the order or intimation of allotment from the MCD. The
subsequent instalments will be paid every three months
thereafter. If any squatter/ hawker commits a default in
the payment of the instalments, his allotment will be liable
to be cancelled one month after a reminder is sent to him
and the next person in the order of seniority will be
allotted that space.

710

Lastly, it was submitted by counsel for the
squatters/hawkers that some of them who had already filed
petitions/appeals in this Court or in the High Court or
suits in the Trial Courts prior to the date of this Court’s
judgment in Saudan Singh dated 13th March, 1992 and who on
that account bona fide thought that it was not necessary to
make a formal application to the Committee appointed for the
purpose of scrutinising and verifying their claims, may be
permitted to do so. Although we are generally reluctant to
extend the time but having regard to the bonafide
misunderstanding pointed out by counsel on behalf of the
squatters/hawkers, we put it to the learned counsel for the
MCD if the MCD would have no objection to the extension of
time and he fairly stated that he would have no objection
provided the facility is limited to those whose
petitions/appeals/suits were pending in any of the courts on
13th March, 1992. By Way of a special consideration we
grant time of one month from today to such claimants to file
their claims before the MCD Committee with all
accompaniments and particulars. The MCD Committee will
examine such claims. The claims to be filed need not be in
any prescribed form, but may furnish the particulars and be
accompanied with the copy of the petition/ appeal suit with
their numbers which they claim were pending on or before
13th March, 1992, duly attested as a true copy by the
Advocate for the party. If there is any doubt, MCD will be
at liberty to demand from that party the production of
a certified copy. We would expect the MCD to complete the
process of verification as early as possible. The procedure
indicated by MCD, except for the modifications which we have
made hereinabove, may be followed. Mr. Maheshwari states
that the endeavour of the MCD would be to complete the
verification within four months from today. We think that
this is a reasonable period. Let it be so done.
The directions given hereinabove being of general
application would apply to claims of all squatters/hawkers
who fall within the categories enumerated in paragraph 11 of
Saudan Singh’s judgment dated 13th March, 1992. Those who
do not fall in any one of the said four categories have no
right as they fall outside the scheme and are not entitled
to any protection. Since all those who claim to be covered
under the scheme and whose claims are awaiting scrutiny are
protected by this order, we see no reason why their
petitions/appeals/suits, etc., should be kept pending. We,
therefore, propose to dispose them of by this order.
Intimation of this order will be sent to the Registrar of
the High Court of Delhi who will immediately apprise the
Judges of the subordinate judiciary for compliance. The
Registrar will ensure compliance. With these observations,
all the writ petitions/ appeals/SLPs/suits, etc., pending in
this Court/the High Court of Delhi and Courts subordinate to
it shall stand terminated by this forthwith. In other words
no civil litigation commenced by or on behalf of the
squatters/hawkers pending in the Courts of Delhi shall
survive. No further litigation by or on behalf of any
squatter/ hawker will be entertained but if the MCD violates
any part of this order the
711
concerned party governed by this order will be entitled to
file an I.A. for directions. The interim stay orders
granted in those cases shall also stand vacated. The MCD
will, however, maintain the status quo till the verification
is completed and only in regard to those hawkers/squatters
whose claim are negatived, will it be open to the MCD to
take action for their eviction ten days after the claim is
rejected. The MCD will also ensure that future
encroachments do not take place defeating the rights of
existing squatters/hawkers governed under the scheme. It
will also protect the interest of the shop-keepers as they
too have a similar right under Article 21 of the
Constitution. No order as to costs in all cases.
G.N.

Petitions disposed of.

712