THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY WRIT PETITION No.5606 of 2009 ORDER: The petitioners were accorded permission to construct mulgies in the land belonging to Narsannapet Gram Panchayat, on condition that they will be continued as lessees, on nominal rent, for a period of five years. The lease commenced in April, 2004. The petitioners were issued notices, dated 16.03.2009, informing that the lease in their favour is going to expire on 31.03.2009, and that they shall have to handover the vacant possession. Steps have also been initiated for auctioning the leasehold rights of the shops. The petitioners place reliance upon a resolution passed by the Gram Panchayat, on 23.05.2001, whereunder their request for extension of the lease, up to 10 years, is said to have been accepted, and that the proposals have been forwarded to the District Panchayat Officer and the District Collector. It is also their case that they have incurred additional expenditure for strengthening the foundation, for construction of first floor and that the respondents are not justified in terminating the lease, even while the proposals are pending with the District Collector. Respondents 4 and 5 have filed separate counter-affidavits, together with supporting documents. It is stated that the so-called resolution, dated 23.05.2001, is that of a Person-In-charge, and it has absolutely no basis, once the lease was granted in favour of the petitioners, on the basis of subsequent resolution dated 01.01.2003. The allegations are made to the effect that, majority of the petitioners have sub-let the premises. Heard Sri A.Ramakrishna, learned counsel for the petitioners, learned Government Pleader for Panchayat Raj, Sri M.Prabhakar learned Standing counsel for the 4th respondent and Sri G.Vidyasagar, learned counsel for the 5th respondent. The petitioners were inducted as lessees into the shops in March, 2004. Proposals for construction of shops with the funds of private individuals were mooted in the year 2001. The District Collector approved the proposals, with a clear stipulation, that the lease shall be for a period of five years. The petitioners cannot fall back upon the alleged resolution of the year 2001, that too, the one passed by a Person-In-charge. The respondents flatly deny the existence of any proposal before the District Collector. The petitioners have acted on the basis of a resolution, dated 01.01.2003, and have agreed to be lessees for a specific period of five years. It hardly needs any mention that the period of lease happens to be an important term, and it cannot be unilaterally altered. The interests of the Gram Panchayat cannot be sacrificed. This becomes pertinent, in view of the allegations made by the respondents, that as many as 11 petitioners are deriving a rent of Rs.4,000/-, per mulgi, from their sub-lessees. Learned counsel for the petitioners placed reliance upon Clause 7 of Form-III of the Rules relating to Acquisition and Transfer of Property by Gram Panchayats, named under the A.P. Gram Panchayats Act, 1964. It is stated that though the said Act was repealed, the Rules are still in force. According to Clause 7 of Form-III, a lessee shall be entitled to be continued in the premises for a period of three months, after expiry of the lease. This Court is of the view that the petitioners are entitled for that benefit. Hence, the Writ Petition is disposed of, directing that, a) the lease in favour of the petitioners shall stand expired with effect from 31.03.2009 and they shall be entitled for a further period of three months i.e. up to 30.06.2009, on payment of the present rents; and b) it shall be open to the Gram Panchayat to invite tenders for grant of leasehold rights for the same premises. In case the petitioners emerge as highest bidders for the respective shops, they shall be entitled to continue on the revised terms. On the other hand, if the third parties emerge as highest bidders, the petitioners shall be under obligation to handover the vacant possession of the mulgies by 01.07.2009. There shall be no order as to costs. ____________________ L.NARASIMHA REDDY, J. Dated:28.04.2009. GJ