Municipal authorities cannot insist on landlord’s No Objection Certificate for issuing trade license to a tenant.

The petitioner, a 70-year-old widow, runs an optical shop, "Nisa Optics," originally established by her late husband, a tenant under Shri Hemen Das

Following her husband's death in 2023, the petitioner sought to renew the shop's trade license in her name to continue her livelihood

However, the Bongaigaon Municipal Board (Respondent No. 2) refused to issue the license because the landlord refused to provide a "No Objection Certificate" (NOC) due to a pending eviction suit (Title Suit No. 131/2023)

The petitioner challenged this refusal, arguing that an NOC requirement is arbitrary when the petitioner is a lawful tenant seeking to continue a business

Whether the Municipal Board has the authority to insist upon a No Objection Certificate from a landlord as a condition precedent for issuing or renewing a trade license to a tenant

Whether the insistence on an NOC from a landlord during an ongoing tenancy dispute amounts to an arbitrary exercise of power

The court examined the constitutional powers of Municipal Boards under Entry 60 and Entry 66 of List II of the Seventh Schedule, which permit the collection of taxes and fees

It relied on the principle that municipal bodies do not possess the statutory mandate to regulate landlord-tenant relationships

The court referenced Dilip (Dead) Through Lrs. vs. Satish & Others (2022 SCC OnLine SC 810) and Mohit Kumar Deb Roy vs. Gaurangalal Roy (1986 (1) GLR 442) to establish that essential business licenses cannot be withheld based on landlord-tenant disputes

Furthermore, the court noted that eviction is strictly governed by the Assam Urban Areas Rent Control Act, 1972

The Court reasoned that the primary purpose of a trade license is revenue collection (tax/fees), not the adjudication of property rights or tenancy

By requiring an NOC, the Municipal Board effectively assumed the power to regulate tenancies, which lies beyond its jurisdiction

The Court observed that in the context of a pending civil suit, a landlord is unlikely to grant an NOC; therefore, making the license contingent upon such a certificate would allow the landlord to achieve a "de facto" eviction of the tenant without following the due process of the Assam Urban Areas Rent Control Act, 1972

The Court concluded that such a requirement is arbitrary, unreasonable, and lacks legal authority

The Court directed the Bongaigaon Municipal Board to issue the trade license to the petitioner within 15 days, provided she satisfies all other statutory requirements

The Court clarified that this order would not prejudice the rights of either party in the pending Civil Suit (Title Suit No. 131/2023)