Supreme Court Upholds Relief for Traders Operating from Shop Backyards in Chandigarh

Chandigarh : In a significant ruling, the Supreme Court of India has upheld a decision by the Punjab and Haryana High Court, providing relief to shopkeepers in Chandigarh who have been using the backyard of their shops for business purposes. The case revolves around the UT Estate Office’s resumption order, which had been issued due to the alleged misuse of backyard areas by traders operating grocery and food grain businesses.

Background of the Case

The petition was filed against the Estate Officer’s 1990 order, which called for the resumption of property and the forfeiture of a portion of the payment made by tenants. The tenants in question were operating a Fair Price Shop, licensed by the Civil Supplies Department of the Union Territory (UT), in the backyard of a shop-cum-flat (SCF) located in Sector 22. The dispute arose over the use of the backyard area, which was initially meant for storage or as a courtyard, not for commercial purposes.

The tenants claimed that the resumption proceedings were initiated by the landlords, who were attempting to evict them by alleging misuse of the backyard space. The petitioners contended that they were using the area for their business, but the store had been divided into two parts, and they were not violating any rules related to the use of the premises.

Court’s Decision

The Punjab and Haryana High Court, in its judgment passed in August 2017, quashed the Estate Officer’s resumption order, ruling that there was no misuse of the premises by the shopkeepers. The High Court observed that the primary issue at hand was whether the petitioners should be compelled to discontinue their businesses in the backyard, but it concluded that no misuse was taking place.

In its ruling, the court stated, “The question of resumption does not arise. The only question is whether the petitioners should be compelled to discontinue their business. For the reasons already stated, we are of the opinion that there is no misuse.”

On November 23, 2024, the Supreme Court dismissed the Special Leave Petition (SLP) filed by the UT Estate Office challenging the High Court’s order, thereby upholding the relief granted to the shopkeepers. The Supreme Court also stated, “We see no reason to interfere with the impugned orders passed by the High Court of Punjab and Haryana at Chandigarh.”

Impact of the Ruling

This ruling provides significant relief to traders who have been operating from the backyards of their shops, ensuring that they can continue their businesses without the fear of eviction based on allegations of misuse. The decision is also seen as a step towards ensuring greater clarity and fairness in the application of rules related to property use in Chandigarh.

For now, shopkeepers who had been facing the threat of eviction can continue their operations without the worry of immediate regulatory action, as long as their business activities remain within the permissible limits of the law.