With Her New Business Premises Under Construction, Karnataka HC Gives Two-Wheeler Dealer 3 Months To Vacate NHAI-Acquired Shops On Undertaking

The petitioner, a tenant operating a two-wheeler dealership from premises owned by respondent No. 2, challenged the proposed eviction after the property was acquired for the benefit of the National Highways Authority of India (NHAI).

She sought consideration of her representation dated 26 August 2024 and protection against eviction without due process.

Respondent No. 1 stated that the acquisition was complete, that the petitioner had already been granted more than two years to vacate, and that her continued occupation was delaying the project.

The petitioner sought three months to relocate, tendered a demand draft for Rs. 12,77,881 towards rent arrears, and agreed to deposit Rs. 10,00,000 described as a refundable security deposit.

Whether the petitioner was entitled to a direction requiring respondent No. 1 to consider her representation seeking permission to continue operating from the acquired premises.

Whether the petitioner should be granted time to vacate and deliver possession, and on what conditions.

Articles 226 and 227 of the Constitution were invoked in the petition.

The Court did not cite any statute or precedent as the basis for its decision. It proceeded on the stated principle that the petitioner, as a tenant, was liable to be evicted in accordance with law, while granting a limited period to vacate so that her ongoing business would not be abruptly disrupted.

The Court noted that the petitioner’s tenancy was undisputed and that the acquisition was complete: compensation had been determined, part had been paid to respondent No. 2, and the balance was to be released after possession was handed over.

Taking account of the petitioner’s relocation arrangements and request for three months, the Court allowed that period but made it conditional on an undertaking to vacate without seeking further extension.

It also required payment of the specified rent and deposits, balancing the petitioner’s transition needs against NHAI’s need to obtain possession.

The petitioner was also directed to deposit Rs. 10,00,000 within two months and pay rent for October, November and December 2026; the demand draft for Rs. 12,77,881 and the further deposit were ordered to be released to respondent No. 1.

If the petitioner failed to vacate within the specified period, respondent No. 1 could take measures to obtain possession; the balance compensation payable to respondent No. 2 was to be released after possession was taken over.