Allahabad High Court
SHAHANSHAH HUSAINversusSTATE OF U.P. AND 4 OTHERS
- Decided
Holding
The Court held that the security money must be refunded to the petitioner with interest.
Summary
Shahanshah Husain filed a writ petition (Writ‑C No. 8506 of 2026) seeking a mandamus directing the Executive Officer of Nagar Palika Parishad, Khalilabad (respondent No. 4) to pay him a security deposit of Rs. 75,000 with interest. The petitioner claimed he was entitled to the security for a shop allotment, while the respondents argued that if the petitioner was not willing to take the shop, the security should be returned. The Court heard the matter and, after hearing counsel, noted that the respondents were prepared to refund the security if the petitioner declined the shop. No specific statutory provisions or precedents were cited. The Court disposed of the petition, directing respondent No. 4 to refund the entire security amount along with interest calculated on the savings account of a nationalized bank from the date of deposit to the date of actual refund, to be paid within six weeks of the certified copy of the order. The order was signed by Judges Garima Prashad and Neeraj Tiwari.
Issues considered
- Whether a writ of mandamus can be issued to compel the municipal authority to pay the security deposit to the petitioner
- Whether the security deposit is refundable with interest if the petitioner does not accept the allotted shop
Subjects
- writ petition
- mandamus
- security deposit
- refund
- interest
- municipal authority
- shop allotment
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 8506 of 2026
Shahanshah Husain
.....Petitioner(s)
Versus
State Of U.P. And 4 Others
.....Respondent(s)
Counsel for Petitioner(s) : Mirza Ali Zulfaqar
Counsel for Respondent(s) : C.S.C., Markanday Rai
Court No. - 4
HON'BLE NEERAJ TIWARI, J.
HON'BLE GARIMA PRASHAD, J.
1. Heard learned counsel for the petitioners, learned Standing Counsel for the State-
respondents and Sri Markanday Rai, learned counsel for the respondent nos. 4 & 5.
2. Present petition has been filed with following relief;
"i. issue a writ, order or direction in the nature of mandamus commanding and
directing the respondent no. 4 to pay the security of Rs. 75000/- to the petitioner with
interest in accordance with law."
3. Case was heard on 09.03.2026 and Court has passed the following order;
"Mr. Rajni Kant Mishra, learned counsel holding brief of Mr. Markanday Rai,
learned counsel for the respondent Nos.4 and 5 seeks time to obtain instructions.
Accordingly, put up this matter on 19.3.2026 as fresh before the appropriate Bench."
4. Pursuant to order dated 09.03.2026, Sri Markanday Rai, learned counsel for the
respondent nos. 4 & 5 submitted that in case petitioner is not willing for allotment of
shop, security money shall be refunded to him.
5. Under such facts of the case, writ petition is disposed of with direction to
respondent no. 4- Executive Officer, Nagar Palika Parishad, Khalilabad, Sant Kabir
Nagar to refund the entire security money along with interest applicable on the saving
account of Nationalized Bank from the date of deposit to the date of actual refund
within six weeks from the date of production of certified copy of this order.
March 19, 2026
Arvind
(Garima Prashad,J.) (Neeraj Tiwari,J.)
Digitally signed by :-
ARVIND KUMAR GUPTA
High Court of Judicature at Allahabad
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