THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY WRIT PETITION Nos.27146, 27147 and 27148 of 2009 COMMON ORDER: The petitioners are lessees in respect of shops owned by Sadashivapet Municipality, for the last few decades. The leases are being extended from time to time. The Municipal Council passed a resolution on 16.12.2008 to put the leasehold rights in respect of the shops to auction. The petitioners were issued notices, dated 02.12.2009, requiring them to vacate the shops within three days from the date of receipt of the same. The petitioners feel aggrieved by the same. The petitioners contend that on account of the longstanding leases in their favour, valuable rights are accrued to them and that they cannot be evicted from the shops. It is also pleaded that they are prepared to pay the enhanced rent through negotiations and that the leasehold rights in respect of their shops cannot be put to auction. Heard the learned counsel for the petitioners and the learned Standing Counsel for the Municipality. The petitioners do not dispute the ownership of the Municipality over the shops. The manner in which the petitioners were inducted as lessees at the initial stage is not known. The mere fact that the leases were being renewed or extended from time to time cannot confer any right upon the petitioners to remain as lessees forever. The Andhra Pradesh Municipalities Act and the Rules made thereunder mandate that grant of lease in respect of any immovable property owned by the Municipality shall be only through public auction. Restriction is also placed on the duration of lease. The fact that the respondent did not hold the auction of leasehold rights for the past several years in respect of the shops leased out to the petitioners cannot be a ground to continue them as lessees without the process of auction. The petitioners can participate in the auctions that may be conducted. However, they need not be required to vacate the premises pending such exercise. The reason is that if they emerge as the highest bidders or express their willingness to pay the highest bid that is fetched for the shops concerned, fresh leases can be executed in their favour for the very premises. Hence, the writ petitions are disposed of directing that: (a) the proposed auction of leasehold rights in respect of the shops, which are in possession of the petitioners, may go on; (b) the petitioners shall be entitled to participate in the auction and fresh leases shall be granted in their favour, if they emerge as the highest bidders or express their willingness to pay the amount that is fetched in the highest bid for the respective shops; (c) in case the petitioners do not emerge as the highest bidders or do not express their willingness to pay the highest bid amount, they shall be liable to be evicted within 15 days from the date of finalization of the auction. There shall be no order as to costs. _____________________ L.NARASIMHA REDDY,J Dt:29.12.2009 kdl