Madras High Court
Administrative and Public LawProperty and Real Estate Law

A trade licence does not confer any right to occupy Panchayat land.

DHANALAKSHMI vs The Special Officer/ Block Development Officer,

Madras High CourtJUDGMENT: October 07, 20262 MIN READSOURCE JUDGMENT
A trade licence does not confer any right to occupy Panchayat land.. DHANALAKSHMI vs The Special Officer/  Block Development  Officer,. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners operated shops at Aaderly Street, Dolphin Nose, Burliar Village Panchayat.

Source reference: p. 3

They challenged eviction notices dated 7 September 2026, alleging that the notices were illegal and violated natural justice; they sought to prevent their eviction and interference with their businesses

Source reference: pp. 3–4

The Panchayat had decided to construct a commercial complex for tourists and, after identifying encroachments during a land survey, issued the notices to remove them

Source reference: p. 4

The petitioners contended that they had installed bunk shops and obtained trade licences. The respondent maintained that they had no lease or allotment of the land or shops from the competent authority

Source reference: p. 5
02

Issues

Whether the petitioners’ trade licences entitled them to possess or occupy Panchayat land

Source reference: p. 5

Whether the challenged eviction notices should be quashed, or the petitioners’ eviction otherwise restrained, in light of their claim that the notices violated natural justice

Source reference: pp. 3–5
03

Law Applied

The Court stated that a trade licence does not confer a right to possess land belonging to the Panchayat.

Source reference: p. 5

It also noted that the petitioners were neither lessees nor recipients of an allotment of the land or bunk shops from the competent authority

Source reference: p. 5

The judgment does not cite any specific statute or precedent; it addresses the challenge under Article 226 of the Constitution, as invoked in the writ petitions

Source reference: pp. 2–4
04

Reasoning

The Court accepted the Panchayat’s stated purpose of constructing a commercial complex and treated the petitioners’ occupation as encroachment because they had no lease or allotment, notwithstanding their claimed trade licences

Source reference: pp. 4–5

It therefore did not quash the notices or grant a restraint against eviction. Instead, it allowed the petitioners one week from receipt of the order to submit representations with supporting documents and directed the Panchayat to consider any representations received before proceeding with enforcement action

Source reference: p. 5
05

Holding

The Court held that the trade licences did not establish a right to occupy Panchayat land and dismissed all four writ petitions.

It permitted the petitioners to submit representations within one week, which the Panchayat must consider before proceeding to remove the encroachments.

Source reference: p. 5

The Court also stated that, if a commercial complex is constructed, the petitioners may participate in a public auction conducted according to law.

Source reference: pp. 5–6

No costs were ordered, and the connected miscellaneous petitions were closed

Source reference: pp. 5–6
Madras High Court

Original Court PDF

DHANALAKSHMIvsThe Special Officer/ Block Development Officer,

Madras High Court · October 07, 2026

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