Gujarat High Court

### Unauthorized Retention of Government Accommodation by Retired Employees Consitutes Illegal Occupation Lacking Enforceable Rights

VILLA C COLONY KARMACHARI ASSOCIATIONS PRESIDENT RAJNIKANT KAMALJIT SOLANKI vs EXECUTIVE ENGINEER PROJECT

Gujarat High CourtJUDGMENT: July 06, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Appellant, acting as President of a registered association, challenged a City Civil Court judgment that dismissed a suit for declaration, permanent injunction, and specific performance regarding ten blocks of residential quarters in Ahmedabad.

Source reference: p. 1-3

These quarters were originally constructed for Class-IV government employees from backward classes.

Source reference: para. 3.2

The Appellant contended that under a 1988 Government Resolution (GR), such quarters should be sold to the occupants at a concessional rate.

Source reference: para. 3.4

The State argued that the Appellant lacked locus standi as he was not a government employee but an encroacher in a unit allotted to his retired mother.

Source reference: para. 3.7

Furthermore, the State asserted the land was required for a public redevelopment project for the Civil Hospital.

Source reference: para. 3.8
02

Issues

1. Whether the plaintiff association or its president has the locus standi or any enforceable legal right to remain in possession of government quarters after the retirement of the original allottees.

Source reference: para. 11-12

2. Whether the government is legally or equitably bound to sell residential quarters to employees at a concessional rate based on previous policies.

Source reference: para. 14-15

3. Whether the suit was maintainable given the non-service of mandatory statutory notice under Section 80 of the CPC and the lack of necessary parties.

Source reference: para. 20
03

Law Applied

Section 96 of the Code of Civil Procedure (CPC) for the appeal and Section 80 of the CPC regarding mandatory notice to government authorities.

Source reference: p. 1, para. 20

Division Bench precedent in N.K. Parmar v. State of Gujarat established that employees have no vested right to purchase quarters allotted during service tenure.

Source reference: para. 14

In Maria Margarida Sequeira Fernandes v. Erasmo Jack De Sequeira, it was held that gratuitous or permissive stay does not create a title.

Source reference: para. 20.1

S.D. Bandi v. KSRTC and Lok Prahari v. State of U.P. regarding the duty to vacate public premises post-entitlement.

Source reference: para. 23-24
04

Reasoning

The Court observed that the Appellant was neither a government servant nor an authorized allottee, but rather the son of a retired employee who failed to vacate the premises.

Source reference: para. 18.5

The Court reasoned that government accommodation is a service facility, not a permanent right; once the service ends, the occupation becomes unauthorized.

Source reference: para. 17, 19

The Court rejected the claim for specific performance based on rule of equity, noting that the State cannot be compelled to frame schemes to sell its housing stock to employees in perpetuity.

Source reference: para. 14-15

It found that the Appellant's possession was that of a "rank trespasser."

Source reference: para. 19

The court highlighted that public interest—specifically the redevelopment of healthcare infrastructure—outweighed the private interest of unauthorized occupants.

Source reference: para. 6.9, 22

The suit was also found procedurally defective for failing to join the actual beneficiaries and for lack of statutory notice.

Source reference: para. 20
05

Holding

The High Court dismissed the appeal and upheld the trial court's dismissal of the suit.

It held that unauthorized occupation of government quarters is a "public menace" that deprives eligible servants of resources.

Source reference: para. 25

The Court vacated all interim relief and imposed exemplary costs of Rs. 10,000 on the Appellant for pursuing a frivolous and "wholly voracious" litigation that obstructed public works since 2014.

Source reference: para. 21, 26-27
Gujarat High Court

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VILLA C COLONY KARMACHARI ASSOCIATIONS PRESIDENT RAJNIKANT KAMALJIT SOLANKIvsEXECUTIVE ENGINEER PROJECT

Gujarat High Court · July 06, 2026

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