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Civil Property & InheritanceSupreme Court of India

Bharmal Medical Store Civil Hospital Badnagar v. State of M.P.

Civil Appeal · 2018 INSC 747Decided 27 Aug 2018
Civil Appeal Nos. 8590-8591 of 2018
Justice Ranjan Gogoi · Justice Navin Sinha · Justice K.M. Joseph

Background

The appellants were lessees running medicine shops inside government hospital premises in Madhya Pradesh under leases granted through open bidding years earlier. In 2013 the State asked them to vacate, citing a new government scheme to supply free essential medicines to patients directly. The shop premises were lawfully constructed (not unauthorised encroachments), but the original lease terms had long expired and had not been formally renewed.

Decision Breakdown

The Supreme Court held that the State's objective of ensuring free medicine supply had to be balanced against the appellants' right to carry on their business, and found no reason the two could not coexist, especially since the State itself had acknowledged private medicine shops operating just outside the hospital gates. The Court also found the eviction notice procedurally unfair because the appellants were not given an opportunity to be heard before being asked to vacate. However, since the leases had expired and the appellants had no indefeasible right to continue indefinitely, the Court set aside the High Court's orders, allowed the appeals, and directed that the State may hold a fresh open bid for the shops (in which the appellants may also participate), with the appellants continuing undisturbed at an enhanced rent until the fresh bidding is completed.

Lesson Learnt

Even where a lease has long expired, a tenant/licensee cannot be summarily evicted without being given a fair opportunity to be heard, and competing public and private interests (here, free government medicine supply versus a lessee's livelihood) should be balanced through a fair process such as open bidding, rather than outright removal.

Bharmal Medical Store Civil Hospital Badnagar v. State of M.P. – Legal Case Shots | LegalAware