Chhattisgarh HC Quashes Order Cancelling Gharghoda Shopkeeper’s Two-Shop Allotment, Allows Fresh Decision After Hearing

Nagar Panchayat Gharghoda allotted Shop Nos. 9 and 10 to the petitioner for three years under a registered agreement dated 16 July 2019.

After granting permission for renovation/reconstruction on 10 September 2020, the Nagar Panchayat cancelled that permission on 11 December 2020.

It later cancelled the allotment and directed the petitioner to hand over possession by order dated 2 June 2021, relying on the Collector’s order of 25 May 2021.

The petitioner challenged both orders, alleging that the allotment was cancelled without notice or an opportunity to be heard.

The Nagar Panchayat maintained that the allotment and construction were unlawful and also argued that the lease term had expired.

The Court applied the principles of natural justice, including the requirement to afford an affected allottee an opportunity of hearing before cancelling an allotment.

It also held that an allotment made through a legally enforceable registered agreement cannot be unilaterally cancelled without valid reasons.

No specific statutory provision or judicial precedent was cited in the Court’s reasoning.

The Court found that the petitioner occupied the shops under a registered agreement and that the impugned order disclosed no cogent reason for cancelling the allotment.

The cancellation was made without an opportunity of hearing, contrary to natural justice, and was therefore legally unsustainable.

The Court rejected the reliance on expiry of the lease term because the cancellation had occurred before completion of that term and was itself arbitrary.

It reserved liberty to the authorities to pass fresh appropriate orders, if so advised, after following due process and affording the petitioner a proper opportunity of hearing.

The petition was disposed of; the order does not expressly quash the separate order dated 11 December 2020.