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Patna High Court

Sulochana MandalversusThe State of Bihar and Ors

Decided
Disposal
DISPOSED

Holding

The writ petition is disposed, the confiscation order stands, and the petitioner may seek compensation only if that order is set aside, while the respondents may take possession for road widening.

Summary

The petitioner, Sulochana Mandal, leased land from the Bhagalpur Municipal Corporation (BMC) to operate Rimjhim Hotel. When the lease was not renewed, the BMC ordered her to vacate the premises for road‑widening under a public‑interest scheme, and an interim stay was granted. Subsequently, the Excise Department raided the hotel, seized foreign liquor and the hotel was confiscated under Section 61 of the Bihar Prohibition and Excise Act, 2016. No appeal against the confiscation order was known to have been filed. The court held that the confiscation remains in force, dismissed the writ petition, but allowed the petitioner to claim damages if the confiscation order is later set aside, and permitted the respondents to take possession for the road‑widening project.

Issues considered

  • The BMC’s authority to evict a lessee without renewal of lease in the interest of road widening.
  • The effect of a confiscation order under the Bihar Prohibition and Excise Act on the lessee’s right to retain possession.
  • Whether the writ petition can be entertained when the confiscation order has not been appealed.

Legislation cited

Subjects

  • lease
  • municipal corporation
  • road widening
  • public interest
  • confiscation
  • excise law
  • writ of possession
  • compensation
  • due process

Judgment

                       IN THE HIGH COURT OF JUDICATURE AT PATNA
                                 Civil Writ Jurisdiction Case No.4154 of 2019
                  ======================================================
                  Sulochana Mandal W/o Late Raghunandan Mandal Res. of Pathargama, P.S.
                  Pathargama, Distt.- Godda (Jharkhand), presently residing at Tilkamanjhi,
                  P.S.- Tilkamanjhi, Distt.- Bhagalpur ( Bihar).
                                                                             ... ... Petitioner/s
                                                      Versus
            1.     The State of Bihar and Ors Through Chief Secretary, Govt. of Bihar, Patna.
            2.    The Minicipal Commissioner Bhagalpur Municipal Corporation, Bhagalpur.
            3.    The District Magistrate Bhagalpur.
            4.    The Sub Divisional Officer Sadar, Bhagalpur.
                                                            ... ... Respondent/s
                  ======================================================
                  Appearance :
                  For the Petitioner/s   :       Mr. Rajesh Ranjan, Adv.
                                         :       Mr. Saurabh Raj, Adv.
                                         :       Mr. Ravi Prakash Dwivedi, Adv.
                  For the Respondent/s   :       Mr. Kinkar Kumar (Sc9)
                                         :       Ms. Sushmita Sharma, Ac to Sc9
                  For the BMC            :       Mr. Lalit Kishore, Sr. Adv.
                                         :       Mr. Manish Kumar, Adv.
                  ======================================================
                  CORAM: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA
                                        ORAL ORDER

16   24-04-2026                   1. The present writ application has been filed for a

                    direction to the respondent not to dispossess the petitioner from

                    her hotel in the name and style of Rimjhim Hotel, Bhagalpur,

                    and to quash the Letter No. 659 dated 23.02.2019 by which the

                    petitioner has been asked to vacate the hotel premises by

                    02.03.2019 else she would be forcefully evicted.

                                  2. The brief facts of the case is Bhagalpur Municipal

                    Corporation (hereinafter referred to as the “BMC”) entered into

                    a lease agreement with the petitioner for a piece of land which

                    was extended in the year 2000 for three years and thereafter it

                    has not been renewed. On 02.08.2018, the SDO requested the
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          BMC for removal of encroachment on the road Crossing

          through Tilkamanjhi Chauraha as it was causing traffic jam.

          Permanent Standing Committee of the BMC took a decision for

          widening of the road after removal of shops of the BMC on

          13.08.2018. Mayor wrote to the Commissoiner for removal of

          shops on 26.10.2018 for widening of roads under Smart City

          Programme in view of decision of Permanent Standing

          Committee. The notice, accordingly, was issued to the

          shopkeepers on 24.11.2018 and the petitioner submitted her

          reply. In the meeting held between the shopkeepers and the

          BMC on 26.11.2018, it was decided that the lease of the

          petitioner would not be renewed. Accordingly, on 23.02.2019,

          notice was issued for vacating the shop. On 04.03.2019, the

          Commissioner of the BMC informed the petitioner to place his

          case before him and in response thereto the petitioner appeared.

          On 06.03.2019, Commissioner passed an order to vacate the

          premises in public interest for widening of road and the order

          was communicated to the petitioner on 07.03.2019.

                      3. Mr. Rajesh Ranjan, learned counsel for the

          petitioner, argued that the petitioner was a lessee of BMC and

          her entry in the leased premises was not illegal. The lease was of

          the land upon which the petitioner has constructed the hotel
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          involving huge amount. The decision not to renew the lease

          does not entitle the BMC to vacate the leased premises without

          following the due process of law.

                      4. Referring to page 69 of the writ application i.e.,

          R/9, learned counsel for the petitioner submits that Municipal

          Commissioner vide his letter dated 07.03.2019 has informed the

          petitioner that a sum of Rs. 685 per month would be paid to the

          petitioner from the date of construction of the hotel till the

          petitioner vacates the leased premises. An interim order was

          granted by this court on 07.03.2019 staying the Letter No. 659

          dated 23.02.2019 issued by Municipal Corporation. Since then,

          the property in question is in possession of the petitioner.

                      5. Mr. Lalit Kishore, learned Senior Counsel for the

          BMC, argued that hotel is in the middle of tri-junction of the

          main town causing continuous traffic jam. In view of the fact

          that road widening was necessary in public interest, a meeting

          was held by the BMC along with the leaseholders, including the

          petitioner, for vacating the hotel premises for the purpose of

          road widening and the BMC also agreed to pay a sum of Rs. 685

          per month from the date of construction of the hotel till the date

          it is vacated. However, in the meanwhile, a further development

          has taken place and Excise Department on 13.10.2020, raided
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          the hotel premises of the petitioner and recovered foreign liquor

          from the hotel. FIR was lodged and the hotel was sealed.

                      6. C.W.J.C. No. 6997 of 2021 was filed by the

          petitioner and the same was disposed with a direction to the

          authorities to take action at the earliest in accordance with law.

          A Misc. Excise Case No. 284/2020-21 was initiated for

          confiscation of the hotel premises and finally it was disposed on

          28.08.2021 by which hotel in question was confiscated. After

          the date of confiscation, the entire property vests in the State as

          per Section 61 of the Bihar Prohibition and Excise Act, 2016.

                      7. No appeal in the knowledge of the respondent has

          been filed by the petitioner against the order of confiscation

          dated 18.08.2021 passed by the District Magistrate.

                      8. In reply, learned counsel for the petitioner submits

          that since petitioner is a lady, she is not aware as to whether the

          appeal has been filed against the order of confiscation passed by

          the District Magistrate or not.

                      9. Having heard learned counsel for the parties and

          taking into consideration the fact that, admittedly, the hotel

          premises has been confiscated under the statute and the order of

          confiscation has not been altered or set aside by any appellate

          authority, accordingly, this writ application is disposed with the
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                     liberty to the petitioner to claim damages/compensation in case

                     the confiscation order passed by the District Magistrate is set

                     aside by the appropriate authority. The respondent shall be at

                     liberty to take possession of the premises for the purpose of road

                     widening.

                                 10. With the aforesaid observation and liberty, the

                     present writ application is disposed.



                                             (Anil Kumar Sinha, J)
HarshPandey/-

U      T


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