Delhi High Court

Doctrine of Parity applies to Shop License Renewals; Discriminatory Sealing Violates Article 14 Equality Protections.

New Delhi Municipal Council vs Rajiv Kohli

Delhi High CourtJUDGMENT: April 20, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Respondent and his late brother were allotted Shop No. 3 at Mohan Singh Place Market, with a license valid until 31.03.2019.

Source reference: para. 5.1

Due to defaults in license fees, the NDMC (Appellant) refused renewal and sealed the shop on 19.07.2019, subsequently initiating eviction proceedings under the Public Premises (Eviction of Unauthorized Occupants) Act, 1971.

Source reference: para. 5.1

In a previous writ, the Court directed the NDMC to consider the Respondent's representation regarding parity with other de-sealed shops (Nos. 7, 76, and 96) and pass a speaking order.

Source reference: paras. 5.2, 15

The NDMC issued a speaking order on 04.04.2024 rejecting the renewal but failed to address the parity issue.

Source reference: paras. 5.3, 11

The Single Judge subsequently set aside that order, directing the NDMC to consider a fresh renewal application and de-seal the shop pending such consideration.

Source reference: para. 5.6

The NDMC appealed this "Impugned Order".

Source reference: para. 1
02

Issues

1. Whether the Appellant (NDMC) failed to comply with the Court’s direction to consider the Respondent’s case on the grounds of parity with other similarly situated shops.

Source reference: para. 20-21

2. Whether the Single Judge was justified in directing the de-sealing of the shop pending the consideration of a fresh renewal application.

Source reference: para. 24
03

Law Applied

The Court primarily applied Article 14 of the Constitution of India regarding the right to equality and non-discrimination, specifically the principle of parity in administrative actions.

Source reference: para. 11

It also relied on the principles of Natural Justice, requiring an authority to pass a reasoned "speaking order" that addresses the specific contentions raised in a representation.

Source reference: paras. 5.2, 8

Furthermore, the court emphasized the doctrine of judicial discipline, requiring administrative bodies to adhere strictly to timelines and specific directions issued by the Court in previous proceedings.

Source reference: paras. 17, 20
04

Reasoning

The Court observed that the NDMC failed to adhere to the mandate of the order dated 15.02.2023, which explicitly required the Council to examine if the Respondent was entitled to the same treatment as other shopkeepers whose premises were de-sealed despite expired licenses.

Source reference: paras. 16, 20

The Court noted that the NDMC's speaking order dated 04.04.2024 was issued under the threat of contempt and ignored the core issue of parity despite the Council's previous undertaking to consider it.

Source reference: paras. 17, 20

The Court rejected the NDMC’s argument that different factual circumstances justified the discrimination, noting that if such distinctions existed, they should have been detailed in the speaking order itself.

Source reference: para. 21

The Court found that the Single Judge correctly identified the arbitrary treatment of the Respondent compared to Shop Nos. 76 and 96, necessitating the de-sealing to restore status quo while the renewal is reconsidered.

Source reference: paras. 22, 24
05

Holding

The Court dismissed the appeal and upheld the Single Judge's order, holding that the NDMC’s failure to address the issue of parity in its speaking order rendered the order legally unsustainable.

The Court directed the Respondent to file a fresh renewal application and ordered the NDMC to consider it in light of the observations on parity; the de-sealing of the shop is maintained pending this consideration, subject to the Respondent cleared all outstanding and future arrears/license fees.

Source reference: para. 24
Delhi High Court

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New Delhi Municipal CouncilvsRajiv Kohli

Delhi High Court · April 20, 2026

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