Holding

The preferential allotment to the stall‑holders was a reasonable classification serving a public purpose and did not violate Article 14; interest may be awarded on arrears.

Summary

The Supreme Court examined the allotment of shops in a new marketing complex by the New Delhi Municipal Committee (NDMC) to long‑standing roadside stall‑holders on a concessional licence fee and with relaxed trade‑zoning restrictions, while other traders obtained shops at higher fees and with strict zoning. The appellants, who had paid higher fees and complied with zoning, challenged the preferential treatment as violative of Article 14’s equality clause. The Court held that the stall‑holders formed a separate, rational class for a public purpose (road widening) and that the differential treatment was neither arbitrary nor discriminatory. Consequently, the appellants could not claim a violation of Article 14. The Court also affirmed that interest could be levied on licence‑fee arrears despite interim orders, invoking the maxim *actus curiae neminem gravabit*. Directions were issued for payment of arrears with interest and compliance with zoning, and the appeals and writ petition were dismissed.

Issues considered

The validity of the preferential allotment of shops to roadside stall‑holders at concessional licence rates and relaxed trade‑zoning under Article 14 of the Constitution.
Whether the appellants can claim discrimination for not receiving the same concessions.
Whether the Court may order payment of interest on licence‑fee arrears despite interim orders.
The applicability of the maxim *actus curiae neminem gravabit* in this context.

Legislation cited

Constitution of Indias. Article 12, s. Article 136, s. Article 14, s. Article 226, s. Article 32

Subjects

Town planningShop allotmentLicence feeTrade zoningEquality before lawArticle 14Public purposeInterest on arrearsActus curiae neminem gravabitConstitutional law

Judgment

/
A GURSHARAN SINGH AND ORS.
v.
NEW DELHI MUNICIPAL COMMITTEE AND ORS.

FEBRUARY 2, 1996

B (N.P. SINGH AND FAIZAN UDDIN, JJ.]

Town Planning:

Allotment of shops-Roadside stall-holders naming stalls for more
than three decades-Such stalls required for public purpose of widening
c road-Municipal Conunittee on deliberation with Adn1inistration and Central
Gove1nn1ent decided to induce the111 to nzove out lo a new n1arketing contplex
where shops reserved for them at concessional licence fee and without trade
zoning restrictions-But for other traders tenders invited for allotment of shops
in same marketing complex without relaxation of licence fee and trade zoning
D restric.tions--Such other traders submitted tenders indicating their choice of
trade and offered licence fee at a much higher rate than the reserved rate-
Such other traders were allotted shops on conditions of,,,paynzent of licei1ce
fee at offered rate and 1unning of trades which were specified to be canied on
in the zones concented-Notices issued to these traders for violating zoning
E system of marketing compleJrffe/d : Allotment of reserved shops made to
roadside stall-holders in new marketing complex by treating them as separate
class on a reasonable and rational basis without any partiality or bias-Fur-
ther, these other traders having questioned validity of allotment of reserved
shops on relaxed rates/having restrictions could not at the same time claim
same benefit on ground that denial thereof was in violation of Art. 14-Con-
F stitution of India, 1950 : Articles 14, 32 and 226.

Equality before law-Held : It was a positive concept and could not
be enforced in a negative 1nanner-Ull1ere State conunitted illegality or ir-
regularity in favour of an individual or group of individuals, others could not
G claim same illegality or i"egu/arity on ground of denial thereof to thent-Only
a claim which was just and legal could constitute ground for discrimination
on basis that it was extended to some and denied to others.

Article 136-lnterim order-Actus curiae neminem gravabit-
Municipal Committee granted licence to traders to open shops in new ma11<et-
H ing compleY>-Supreme Court issued imerim direction for payment of licence
1154
'
GURSHARAN SINGH v. N.D.M.C. 1155

Jee by these traders at concessional rates as allowed to be paid by roadside A
sta/1-holdm~Appeals by these traders dismissed-<:onscquently, these
traders became liable to pay balance amount of arrears in laklzs of
111pees-cMunicipal Committee claimed interest over aJTears-Held : Claim
justified as an act of Cowt should prejudice no man-Although there was no
reference to payment of interest in the intelim order that did not debar
B
Supreme Coiut from pas-sing such an orde1~Taking all facts and circumstan·
ces into consideration including lapse of more than 12 years since appeals
were filed before Supreme Cowt and equities alising in favour of one pmty
or tlze othe1; directions accordingly issued by Supreme Cowt.
(

Maxims : c
'.Actus culiae nen1inen1 gravabit'1-Meaning of
1

Certain roadside stall-holders were running stalls for more than
I three decades. The area was required for a public purpose of widening the D
WI road. Accordingly, the respondent-Municipal Committee upon delibera·
tion with the Administration and Central Government decided to induce
these roadside stall-holders to move out of the area by reserving shops for
them in a new marketing complex at a concessional licence fee without
trade zoning restrictions. But for allotment of shops for the appellants in
the same marketing complex tenders \\'ere invited without making any E
relaxation in respect of licence fee and trade zoning restrictions. The
appellants submitted tenders indicating the trade which they wanted to
run in the shop and offered licence fee at a much higher rate than the
reserved rate. Shops were allotted to the appellant' on conditions of
payment of licence fee at the offered rate and running of trades which were F
specified to be carried on in the zones concerned. But subsequent to
allotment, the appellants disregarded and deviated from the conditions
and commenced trades of their own choice not specified in the zones
concerned. Notices were issued to the appellants for violating the zoning
system of the marketing complex.
G
The appellants filed a writ petition challenging. the validity of the
aforesaid notices before the High Court. The Division Bench of' the High
Court dismissed the writ petition on the ground that the roadside stall-
holders formed a class separate from the class of appdlants. Being ag-
grieved the appellants preferr~d the present appeal. H

1
1156 SUPREME COURT REPORTS [1996] 1 S.C.R.

A Dismissing the appeal, this Court

HELD : 1.1. Allotment of shops to the roadside stall-holders was
made treating them as a separate class, on a reasonable and rational basis.
The land occupied by their stalls were required by the respondent-
Municipal Committee for a public purpose i.e., for the widening of the
B
road. It was otherwise not easy for the respondent to throw them out and
after proper deliberation a decision was taken to induce them to move out
to the new marketing, complex. This object was achieved by lowering the
licence fee and making relaxation in the trade zoning restrictions to some
extent which cannot be held in any manner as irrational, partial or biased
C so as to be held to be unreasonable. [1163-E-GJ

1.2. Apart from that even if it is assumed that concession was shown
to such stall-holders by the respondent the appellants cannot make
grievance in respect of discrimination under Article 14 of the Constitution.
D . Having agreed to the terms of allotment they cannot legitimately claim that \
they should also be treated in the same manner. None of the roadside
stall-holders were impleaded as parties to the writ petitions. The appel-
lants questioned the validity of the allotment of the shops on concessional
rate, without trade zoning restrictions in favour of the roadside stall-
holders, but they were primarily interested that same concessions in
E respect of licence fee and relaxation in trade zoning restrictions be also
extended to them. Any such claim on their behalf cannot be entertained on
the basis of concept of equality before law as enshrined in Article 14 of the
Constitution. [1163-H; 1164-F-G]

F 1.3. Under Article 14 of the Constitution guarantee of equality before
law is a positive concept and it cannot be enforced by a citizen or court in
a negative manner, of an illegality or irregularity has been committed in
favour of any individual or a group of individuals, the others cannot invoke
the jurisdiction of the High Court or of this Court, that the same ir-
regularity or illegality be committed by the State or an authority which can
G be held to be a State within the meaning of Article 12 of the Constitution,
so far as such petitioners are concerned, on reasoning that they have been
denied the benefits which have been extended to others as though in an
irregular or illegal manner. Such petitioners can question the validity of
orders which are said to have been passed in favour of persons who were
H not entitled to the same, but they cannot claim orders not sanctioned by
GURSHARAN SINGH v. N.D.M.C. 1157

law in their favour on principle of equality before law. N~ither Article 14 A
4 of the Constitution conceives within the equality clause this concept nor
Article 226 empowers the High Court to enforce such claim of equality
before law. If such claims are enforced, it shall amount to directing to
continue and perpetuate an illegal procedure or an illegal order for
extending similar benefits to others. Before a claim based on equality
B
clause is upheld, it must be established by the petitioner that his claim
being just and legal, has been denied to him, while it has been extended to
others and in this pmcess there has been a discrimination. [1164-A-E]

2.1. This Court issued interim direction for payment of licence fee
by the appellants at concessional rates as allowed to be paid by another C
group of traders. After the decision of this Court that the appellants were
not entitled to the concessional rate, they became liable to pay the balance
amount of arrears which runs into lakhs of rupees. While the appellants
sought for a direction for instalments the respondent claimed interest on
such arrears. [1165-E-F]
D
11
2.2. In view of the legal maxim "actus curiae neminem gravabit
which means that an act of court shall prejudice no man, the respondent
is justified in making a claim for interest over the arrears which have
remained unpaid for more than 12 years because of the interim orders
passed by this Court. Although in the interim orders it has not been stated E
that in event of dismissal of the appeals and the writ petition, the appel-
lants and the writ petitioner shall be liable to pay interest over the arrears
of the licence fee, but that shall not debar this Court from passing any
order in respect of payment of reasonable interest over the said amount.
[1165-G-H; 1166-A]
F
Raj Kumar Dey & Ors. v. Tarapada Dey & Ors., [1987] 4 SCC 398,
relied on.

2.3. Taking all facts and circumstances into consideration including
the lapse of more than 12 years since the appeals were filed before this
Court and the equities arising in favour of one party or the other the G
following directions are issued :

1. The allottees will pay licence fee at the agreed rate subject to
revisions as per the terms of the licence deed.

2. If the agreed rate not been paid either due to interim order passed H
I
1158 SUPREME COURT REPORTS [1996] 1 S.C.R.

A by any Court or otherwise and payment has been made on the basis of
reserved rate. then for the period when the interim order was operative, ..;.. ·
so far the allottees who have deviated from trade zone shall be liable to
. pay simple interest over the arrears for that period at the rate of 12 per
cent per annum and at the rate of 15 per cent simple interest for the
remaining period.
B
3. Allottees who have not deviated from the trade zone and have paid
at the agreed rate throughout except the period when interim orders of the
Court were operative, shall pay the balance amount of the arrears of the
agreed rate with simple interest at the rate of 6 per cent. •
c 4. Arrears amounting upto Rs. 2.25 lacs shall be paid in four equal
instalments on or before 31.12.1996. But if the arrear is in excess of Rs.2.25
lacs and upto Rs. 5 lacs, then it shall be paid in six equal quarterly
instalments on or before 30.6.1997. In case, where the arrears is above Rs.5 \·

lacs, it shall be paid in eight equal quarterly instalments on '" before
D 31.12.1997. The arrears shall be calculated in terms of the above order for
the period upto 31.12.1995 by the Respondent-ND MC against each allottee
•
and notice will be served on such allottees \\ithin six weeks from the date
of this judgment.

5. From the month of January 1996 the licence fee as revised in terms
E of the licence deed shall be paid.
6. The allottees who have deviated from the trade zoning restrictions,
shall revert back to the trade zone, allotted to them on or before 31.12.1996.

7. No damage shall be paid as claimed on behalf of the .Respondent·
F NDMC on account of cancellation of licence.

8. All Notices of cancellation shall be deemed to have been withdrawn
after the directions aforesaid are complied with by the allottees or the
allottee concerned. But in the event of failure to comply with any of the
G aforesaid directions it shall be open to the NDMC to proceed with the
cancellation of the licence of allottee concerned.

9. This order shall not cover the dispute in respect to the resolution 1
of the Respondent-ND MC dated 12.9.1991 revising licence fee from 10 per
cent to 30 per cent on the expiry of the licence and payment of interest over
H the arrears from 15 per cent to 24 per cent. .
GURSHARAN SINGH v. N.D.M.C. [N.P. SINGH. J.] 1159

10. No person shall be allowed to sell any article through the show A
window, which shall be used only for display purpose and NDMC shall not
implement the resolution No. 33 dated 15.1.1985 allowing the persons
displa)ing their articles in the show windows to sell the articles.
(1167-B-H; 1168-A-D]
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7499 of B
1983 Etc. Etc.

From the Judgment and Order dated 18.3.83 of the Delhi High Court
in LP.A. No. 122 and 159 of 1981.

G.L. Sanghi, P.C. Jain, R.R. Misra, Tapas Roy, Dhruv Mehta, Fazlin C
Anam, S.K. Mehta, R.S. Sodhi, M.C. Dhingra, Rajeev Sharma, Ajit Sinha,
P. Narasimha, Ms. J.S. Wad, S.K. Jain, Ms. Pratibha Jain, Sandeep Mittal
for E.C. Agrawal, D.M. Nargolkar, (NP), Ranjit Kumar, Ms. Binu Tamta
and Yatish Mohan for the appearing parties.

The Judgment of the Court was delivered by D

N.P. SINGH, J. These appeals along with a writ petition have been
filed on behalf of the different licensees of the shops in the shopping
complex known as Palika Bazar which was built by the respondent, New
Delhi Municipal Committee (hereinafter referred to as the 'N.D.M.C.') in E
the year 1976. The whole complex is centrally air-conditioned. It appears
that by a resolution dated 29.11.1977, N.D.M.C decided to allot 98 shops
to shopkeepers of Panchkuian Road because the space occupied by them
at the said Panchkuian Road was required for widening of the said road.
Again on 27.5.1978 lhe Delhi Administration directed the N.D.M.C. to allot
shops to 98 stall-holders of Panchkuian Road on the conditions agreed. A F
plan of the said marketing complex was prepared a~d published showing
98 shops which had been reserved for the shopkeepers of Panchkuian Road
on preferential basis. Tenders were invited for allotment of other 177 shops
divided into four zones and further classified in seven groups for proper
identification. In the advertisement it was stated that reserved shops were G
not being put to tender and preference for allotment of a particular shop
in a group will be given to the highest tenderers. It was also stated that
only those tenders shall be considered which were above the reserved rate.
One of the terms of allotment being term No. 9 was as follows :

"only those trades such as mentioned in the trade zoning plan shall H
I
,r

1160 SUPREME COURT REPORTS [1996] 1 S.C.R.

A be permitted to be run in the shop. A copy of the details of the
trade zoning is appended to this document as appendix 'A'."

The aforesaid zones were demarcated Ot\ the plan of the shopping complex
which had been prepared by the N.D.M.C. The persons submitting tenders
were required to state the trade which they proposed to run in the shops.
B In the application forms it had been clearly mentioned that "only such
tradss .as mentioned in. the trade zoning plan shall be permitted." The
applicant was also required to give an undertaking that he had carefully
read the memorandum of information and the terms and conditions of the
allotment and that he had agreed to abide by the same. The shops were to
C be given on licence for a period of five years and thereafter the licence was
renewable subject to increase in the licence fee by '10 per cent and on such
terms and conditions as may be laid down by the N:D.M.C. Different
reserved prices were fixed for different shops. The appellants in different
appeals including the .writ petitioner filed their tenders and indicated the
D trade which they wanted to run in the shops to be allotted to them. There
is no dispute that the applicants while submitting the tenders. off~red the
licence fee at a much higher rate than what was mentioned as the reserved
. rate of licence fee in respect of different shops. Thereafter letters of
allotment were issued indicating the trade which such licensee could carry
in the shops which had been allotted to them. In other words, the ap-
E plicants whose tenders were accepted on the rates offered by them were
not only required to pay the licence fee offered by them &nd accepted by
the N.D.M.C., but they undertook to occupy the shops in different trading
zones and to carry on the trades which were specified to be carried on in
the zones concerned.
F
So far the Panchkuian Road stall-holders were concerned, allotment
of shops were made to them in the zones reserved for them, but they were
not subjected to zoning restrictions, the only restriction which was imposed
on them was that they had to carry on only the permissible trade specified
in Appendix 'A' to the terms and conditions of the allotment. They were
G to pay the licence fee also at a different rate which was admittedly at a
lower rate than the licence fee which had been offered and accepted from
the applicants who were allotted shops out of 177 shops referred to ilbqve.
It is case of the N.D.M.C. that special consideration in respect of licence
fee 'as well as the zoning. restriction in respect of Panchkuian stall-holders
H was made to induce and persuade them to move from Panchkuian Road
GURSHARAN SINGH v. N.D.M.C. [N.P. SINGH, J.] 1161

to the Palika Bazar Shopping Complex so that the stalls occupied by them A
could be removed and the widening of the road was facilitated. Similar
concession was offered to some Tibetan stall-holders at Janpath requesting
them to move from Janpath to Palika Bazar where shops had been reserved
for them in an area known as Mini Market. The total number of the stalls
in the Mini Market was 58. It is an admitted position that the allottees of B
the stalls in the Mini Market were not subjected to any zoning system, but
like Panchkuian Road allottees they were permitted to .carry on only those
trades which were permissible and had been enumerated in the aforesaid
Appendix 'A'.

Later some of the allottees out of 177 shops which had been sub- c
jected to zoning system, so far the nature of the trade was concerned and
who had specifically agreed in writing to carry on the trades which had
been specified for the trade zones of the marketing complex, in which
shops had been allotted to them, . disregarded and .deviated from the
undertaking given by them and opened shops in those zones in respect of D
trades which had not been specified for these zones. In other words, they
opened shops to carry on trades of their own choice which was not
permissible under the terms of the allotment made in their favour by
N.D.M.C. Because of this, notices were issued to such shopkeepers who
had violated the zoning system of the marketing complex.
E
The validity of such notices issued by the N.D.M.C. were questioned
by them before the Delhi High Court. A learned Judge of the High Court
came to the conclusion that the action of the N.D.M.C. was discriminatory
and arbitrary while insisting the writ petitioners to conform and abide the
agreement in respect of trade zoning restrictions and to relax the same F
restrictions so far the stall-holders of Panchkuian Road were concerned
who had been allotted shops in the same marketing complex. It was also
pointed out by the learned Judge that when several allottes out of 177 shops
had changed the trade and had not followed the trade zoning restrictions,
there was no justification to insist others to follow the same trade zoning G
restrictions. On the aforesaid finding, the notices i'5ued by the N.D.M.C. .
to different shopkeepers were quashed and the writ petitions were allowed .
.. On appeal being filed by N.D.M.C., the Division Bench set aside the
judgment of the learned single judge and reversed the finding that the H
1162 SUPREME COURT REPORTS [1996] l S.C.R.

A action of the N.D.M.C. while insisting for the trade zoning restriction, was
discriminatory ·and violative of Article 14 of the Constitution. According to
the Division Bench, the stall-holders of Panchkuian Road formed a class
separate from the class of allottecs who had been allotted shops out of 177
shops. On the finding aforesaid, writ petitions filed on behalf of the
B appellants were dismissed. However, three months time was granted to
them to revert back to their trade zoning restrictions and to start the trade
for which the shops had been allotted to them in different zones within the
marketing complex.

In the counter-affidavit which had been ftled on behalf of the '
C N.D.M.C. (vide Civil Appeal No. 7503/83) it had been stated that since
1950 onwards stalls had been put up on roads mentioned in the said
counter"affidavit including Panchkuian Road and Janpath. In Panchkuian
Road 98 stalls had been put. It has been further slated that a decision was
taken that shops be reserved for such stall-holders of Panchkuian Road in
D lieu of their surrendering the stalls, because the lands beneath these stalls
were required for use of public convenience. They were occupying such
stalls for more than three decades and as such a decision was taken after
proper examination by the Delhi Administration along with the Govern-
ment of India to allot 98 shops to such 98 stall-holders for their rehabilita-
tion. They were offered the shops in the aforesaid marketing complex,
E which had been reserved for them and shown in the Plan also. The
relaxation of the trade zoning restrictions was meant to induce them to
move from the Panchkuian Road. For the same object even the licence fee
in their case was reduced. Because of the same reason no tenders were
invited for the 98 shops and tenders were invited only in.respect of 177
F shops, which were allotted to the appellants and others on basis of tenders
submitted by them. It was pointed out that appellants and other allottees
of 177 shops knew very well from the Plan published and the notice inviting
tenders that 98 shops had 'been reserved for stall-holders of Panchkuian
Road. In spite of that the appellants and others offered their tenders at
G different rates higher than reserved rates which were accepted by the
N.D.M.C. and allotments of shops were made in their favour. In this
background, it was not open to them to violate and contravene the trade )·
zoning restrictions to which each one of them had specifically agreed.

The learned counsel appearing in different appeals took the same
H stand before this Court that there was no justification on the part of the
\

GURSHARAN SINGH v. N.D.M.C. [N.P. SINGH. J.] 1163

N.D.M.C. to make allotments of the different shops in the same mark~ting A
,. complex not only on different rates of licensing fee, but even with different
' trade zoning restrictions which per se was arbitrary as equals had been
treated as unequals, as such violative of Article 14 of the Constitution.
According to the appellants, the Panchkuian Road stall-holders were in no
-· way different from the appellants so far their claim for allotment of the
shops in the said marketing complex was concerned. They should also have
B
been subjected to the same trade zoning restrictions as are specified in the
Annexure 'A' to the terms and conditions of allotment and should not have
been allowed to carry on trades of their choice in the shops allotted to
them. Similarly, there could not be any conceivable justification for charg-
ing from them the licence fee at a lower rate than what has been charged c
from the appellants and others similarly situated.

It appears the Panchkuian Road stall-holders were running the stalls
on the lands more than three decades which were later required for
widening of the road and a question arose before the N.D.M.C. as to how D
, to offer them some attractive proposal to rehabilitate them so that they can
move from Panchkuian Road. This object was ~chieved after proper
negotiation, discussion and decision having been taken in consultation with
the Delhi Administration and Central Government to offer shops to them
' in the new marketing complex at a concessional licence fee and without
trade zoning restrictions subject to the condition that they shall carry any E
of the trades specified in Annexure 'A' to the terms and conditions of offer.
According to us, the allotment of 98 shops to the stall-holders of
Panchkuian Road was made treating them as a separate class, on a
reasonable and rational basis. The land occupied by their stalls were
required by the N.D.M.C. for a public purpose i.e. for the widening of the F
road. It was otherwise not easy for the N.D.M.C. to throw them out of
Panchkuian Road and after proper deliberation a decision appears to have
been taken to induce them to move out of Panchkuian Road to Palika
Bazar. This object was achieved by lowering the licence fee and making
relaxation in the trade zoning restrictions to some extent which cannot be
held in any manner as irrational, partial or biased so as to be held to be G
unreasonable.

Apart from that even if it is assumed that concession was shown to
such stall-holders by the N.D.M.C. the appellants cannot make grievance
in respect of discrimination under Article 14 of the Constitution. Having H
f
_/
1164 SUPREME COURT REPORTS [1996] l S.C.R.

A agreed to the terms of allotment they cannot legitimately claim that they
should also be treated in the same manner. There appears to be some
confusion in respect of the scope of Article 14 of the Constitution which
guarantees equality before law to all citizens. This guarantee of equality
before law is a positive concept and it cannot be enforced by a citizen or
B court in a negative manner. To put it in other words, if an illegality or
irregularity has been committed in favour of any individual or a group of
individuals, the others cannot invoke the jurisdiction of the High Court or
of this Court, that the same irregularity or illegality be committed by the
State or an authority which can be held to be a State within the meaning
of Article 12 of the Constitution, so far such petitioners are concerned, on
C the reasoning that they have been denied the benefits which have been
extended to others although in an irregular or illegal manner. Such
petitioners can question the validity of orders which are said to have been
passed in favour of persons who were not entitled to the same, but they
cannot claim orders which are not sanctioned by law in their favour on
D principle of equality before law. Neither Article 14 of the Constitution
conceives within the equality clause this concept nor Article 226 empowers
the High Court to enforce such claim of equality before law. If such claims
are enforced, it shall amount to directing to continue and perpetuate an
illegal procedure or an illegal order for extending similar benefits to others.
E Before a claim based on equality clause is upheld, it must be established
by the petitioner that his claim being just and legal, has been denied to
him, while it has been extended to others and in this process there has been
a discrimination. None of the 98 stall- holders were impleaded as parties
to the writ petitions. The appellants questioned the validity of the allotment
of 98 shops on concessional rates, without trade zoning restrictions in
F favour of the stall-holders of Panchkuian Road, but they were primarily
interested that same concessions in respect of licence fee and relaxation in
trade zoning restrictions, be also extended to them. Any such claim on their
behalf cannot be entertained on the basis of concept of equality before law
as enshrined in Article 14 of the Constitution.
G
The Division Bench of the High Court rightly dismissed the writ
petitions filed on behalf of the appellants on the finding that there
was proper justification on the part of the N.D.M.C. to make allotments of
the shops which had been reserved for stall-holders of the Panchkuian
H Road.
\

GURSHARAN SINGH v. N.D.M.C. [N.P. SINGH. J.] 1165

It may be mentioned that the appellants in some of the appeals had A
filed writ petitions before the High Court making a grievance that although
/ they were making payments at the agreed rate in terms of the acceptance
of their tenders and were also observing the trade zoning restrictions, still
. they were suffering because of the other shopkeepers who had violated the
trade zoning restrictions. A direction was sought for on the N.D.M.C. that
B
they should not allow the change of the trade, to those allottees who were
violating the scheme of trade zoning restrictions. Those writ petitions were
allowed by the learned single Judge along with others. But the Division
Bench dismissed even such writ petitions.

It appears that writ petitions were filed as early as in the year 1980 C
which were allowed by the learned single Judge on 29th May 1981. The
appeal filed on behalf of the N.D.M.C. against the said judgment was
allowed on 18th March 1983. This Court while granting leave passed orders
regarding maintenance of status-quo in respect of the trades being carried
on by the appellants. Interim directions were given also in respect of D
, payment of licence fee at the reserved rates instead of agreed rates in many
appeals. Because of these interim orders passed by the High Court as well
as this Court in most of the cases only payment of the licence fee has been
made to the N.D.M.C. at the reserved rates and not at the agreed rates.
After the dismissal of the appeals and the writ petition, the appellants and
the writ petitioner are liable to pay the balance amount of arrears which E
runs into lakhs of Rupees in different appeals. As such at the close of the
hearing of the appeals an alternative submission, was made on behalf of
the appellants that in the event of dismissal of appeals and writ petition,
this Court should direct payment of the arrears by reasonable instalments.
On behalf of the N.D.M.C. claim was made for interest over such arrears F
contending that N.D.M.C. should not suffer because of the interim orders
passed by the High Court as well as by this Court.

In view of the legal maxim nactus curiae neminem gravabit 11 which
means that an act of court shall prejudice no man, N.D.M.C. is justified in G
making a claim for interest over the arrears which have remained unpaid
for more than 12 years because of the interim orders passed by this Court.
This aspect of the matter has been examined by this Court in the case of
Raj Kumar Dey and others v. Turapada Dey and others, (1987] 4. SCC 398.
Although in the interim orders it has not been stated that in event of
dismissal of the appeals and the writ petition, the appellants and the writ H
1166 SUPREME COURT REPORTS [1996) 1 S.C.R.

A petitioner shall be liable to pay interest over the arrears of the licence fee,
but that shall not debar this Court from passing any order in respect of
payment of reasonable interest over the said amount. •'

Taking all facts and circumstances into consideration including the
lapse of more than 12 years since the appeals were filed before this Court
B and the equities arising in favour of one party or the other, we direct :

1. The allottees will pay licence fee at the agreed rate subject to
revisions as per the terms of the licence deed.

C 2. If the agreed rate has not been paid either due to interim order
passed by any Court or otherwise and payment has been made on the basis
of reserved rate, then for the period when the interim order was operative,
so far the allottees who have deviated from trade zone shall be liable to
pay simple interest over the arrears for that period at the rate of 12 per
cent per annum and at the rate of 15 per cent simple interest for the
D remaining period.
•'
3. Allottees who have not deviated from the trade zone and have paid
at the agreed rate throughout except the period when interim orders of the
Court were operative, shall pay the balance amount of the arrears of the ,.
B agreed rate with simple interest at the rate of 6 per cent.

4. Arrears amounting upto Rs. 2.25 lacs shall be paid in four equal
quarterly instalments on or before 31st December, 1996. But if the arrear
is in excess of Rs. 2.25 lacs and upto Rs. 5 lacs, then it shall be paid in six
equal quarterly instalments on or before 30th June, 1997. In case, where
F the arrears is above Rs. 5 lacs, it shall be paid in eight equal quarterly
instalments on or before 31st December, 1997. The arrears shall be calcu-
lated in terms of the above order for period upto 31st December 1995 by
the Respondent - N.D.M.C. against each allottee and notice will be served
on such allottees within six weeks from today.
G 5. From the month of January 1996 the licence fee as revi5'd in terms
of the licence deed shall be paid.

6. The allottees who have deviated from the trade zoning restrictions,
shall revert back to the trade zone, allotted to them on or before 31st
H December, 1996.
\

GURSHARAN SINGH''· N.D.M.C. [N.P. SINGH,J.J 1167

7. No damage shall be paid as claimed on behalf of the Respondent A
"' - N.D.M.C. on account of cancellation of licence.

8. All notices of cancellation shall be deemed to have been withdrawn
after the directions aforesaid are complied with by the allottees or tlie
allottee concerned. But in the event of failure to comply with any of the
aforesaid directions it shall be open to the N.D.M.C. to proceed with the B
cancellation of the licence of allottee concerned.

9. This order shall not cover the dispute in respect of the resolution
of the Respondent - N.D.M.C. dated 12.9.1991 revising licence fee from 10
per cent to 30 per cent on the expiry of the licence and payment of interest
over the arrears from 15 per cent to 24 per cent.
c
10. In respect of the grievance made on behalf of the allottees that
sales are being made from the show windows. Mr. Ranjit Kumar, appearing
for N.D.M.C. pointed out that before the learned single Judge, N.D.M.C.
.,, took a clear stand in their affidavit filed that no persons shall be allowed D
to sell any article through the show window, it shall be used only for display
r- purpose and N.D.M.C. shall not implement the resolution No. 33 dated
15.1.1985 allowing the persons displaying their articles in the show windows
to sell the articles.

Accordingly the appeals and the writ petition are dismissed subject E
to the directions given above. In the facts and circumstances of the case,
there shall be no orders as to cost.

V.S.S. Appeals and petition dismissed.
'