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AMICUS AI
Citation Codes
Neutral Citations
1993 INSC 195
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 420 of the Delhi Municipal Corporation Act, 1957
  • The Delhi Municipal Corporation Act, 1957
  • Article 21 of the Constitution
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Cites
Cited by
Citation Codes
Neutral Citations
1993 INSC 195
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 420 of the Delhi Municipal Corporation Act, 1957
  • The Delhi Municipal Corporation Act, 1957
  • Article 21 of the Constitution
Smart Summary

Factual and Procedural Background

The present order is a follow-up to the Supreme Court’s earlier decision in Saudan Singh v. NDMC (1992) 2 SCC 458, which had laid down four categories of squatters/hawkers eligible for different forms of tehbazari (street-trading) permissions within areas administered by the Municipal Corporation of Delhi (MCD). After that judgment, the MCD issued public notices (June–August 1992) and began scrutinising claims.

During implementation, the MCD: (a) created a sub-classification inside Category 1; (b) declared that only open-to-sky pitches of 6′ × 4′ would henceforth be allotted; and (c) insisted that Category 3 claimants clear all arrears of tehbazari dues. Several squatters/hawkers raised objections, and some had separately filed cases that were still pending. The present order resolves these procedural disputes, modifies certain conditions, and simultaneously disposes of all related litigation pending in the Supreme Court, the Delhi High Court, and subordinate courts.

Legal Issues Presented

  1. Whether the MCD’s creation of two sub-classes within Category 1 squatters/hawkers (those possessing and those lacking the 23 December 1982 survey-receipt) is permissible under the guidelines in Saudan Singh.
  2. Whether the prohibition on granting covered tehbazari/kiosks/stalls under the current scheme can disturb traders who had previously been granted such covered structures.
  3. Whether Category 3 squatters/hawkers must prove payment of all past dues, or can be offered an alternative lump-sum arrangement.
  4. Whether time should be extended for claimants who, having already filed court proceedings before 13 March 1992, failed to submit applications to the MCD verification committee.
  5. Whether pending litigations concerning the rights of squatters/hawkers within the four categories should continue or be terminated in view of the present clarifications.

Arguments of the Parties

Squatters/Hawkers’ Arguments

  • The MCD’s subdivision of Category 1 into two classes is unwarranted because all such persons were recognised by the 1982 survey and should be treated uniformly.
  • A blanket ban on covered tehbazari/kiosks would unfairly disturb traders who had earlier been expressly permitted covered structures such as “Jai Jawan Stores.”
  • Requiring Category 3 claimants to produce receipts for a decade or more of tehbazari dues is onerous, as many are unlikely to have retained old receipts and the MCD itself may find verification difficult.
  • Claimants who had already filed petitions, appeals or suits before 13 March 1992 genuinely believed separate applications to the MCD committee were unnecessary and should receive extra time to apply.

MCD’s Position

  • No objection to granting one month’s additional time, but only to those claimants whose cases were pending in any court on or before 13 March 1992.
  • Affirmed that under the revised scheme no new covered tehbazari, kiosks, stalls or shops would be allotted; only open-to-sky pitches of 6′ × 4′ would be granted.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Saudan Singh v. NDMC (1992) 2 SCC 458 Laid down four specific categories of squatters/hawkers eligible for tehbazari permissions and the modalities for their regulation. The current order clarifies, modifies, and enforces the implementation of those very guidelines, without altering their substantive categorisation.

Court's Reasoning and Analysis

1. Sub-classification within Category 1: The Court found that all squatters/hawkers who had been recorded in the 1982 survey—whether or not they still possessed the 23 December 1982 receipt—belonged to a single class. Creating two sub-classes would be contrary to the original judgment; therefore, the MCD must consider every such claimant together, ordering them strictly by seniority.

2. Covered versus open tehbazari: The Court construed the MCD’s new policy to mean that no fresh covered structures would be allotted. However, traders who had earlier been “expressly” granted covered kiosks or stalls could not be disturbed. Temporary tarpaulin covers or umbrellas are permissible for weather protection but must not become semi-permanent structures.

3. Payment of arrears by Category 3 claimants: Acknowledging the practical difficulty of producing decade-old receipts and of verifying them, the Court accepted the hardship argument. As an alternative, claimants may opt to pay a lump sum of Rs 3,000 in four quarterly instalments of Rs 750 each. Default after notice will result in cancellation and the pitch being allotted to the next person in seniority.

4. Extension of time for pending-litigation claimants: Given the bona fide misunderstanding, the Court—upon MCD’s no-objection—granted a special, one-month window from the date of the order for those whose petitions/appeals/suits were pending on 13 March 1992 to file claims with the MCD committee, accompanied by copies of their pleadings. The MCD may demand certified copies if doubt arises.

5. Verification timeline: The Court recorded the MCD’s undertaking to complete all verifications within four months and directed that the procedure outlined (as modified herein) be followed.

6. Termination of pending litigation: Observing that the categories and protections are now fully addressed, the Court found no justification for keeping related court matters alive. It therefore ordered immediate termination of all writ petitions, appeals, SLPs and suits concerning squatters/hawkers pending in the Supreme Court, Delhi High Court and subordinate courts.

7. Interim protection and future enforcement: The MCD must maintain status quo until verification concludes. Only claimants whose applications are rejected may be evicted, and that too after ten days’ notice. The MCD must also prevent fresh encroachments and balance the rights of established shopkeepers under Article 21 of the Constitution.

Holding and Implications

ORDER: The Court modifies the implementation of Saudan Singh v. NDMC by (a) disallowing sub-classification within Category 1, (b) protecting existing covered stalls while banning new ones, (c) permitting a lump-sum payment option of Rs 3,000 for Category 3 arrears, (d) granting a one-month extension for certain litigants to file claims, (e) directing completion of verification within four months, and (f) DISPOSING OF all related litigations forthwith.

Implications: The order streamlines and finalises the regulatory scheme for Delhi’s squatters/hawkers under the four recognised categories, providing clarity on entitlements, payment obligations, and verification procedures. It extinguishes all pending civil litigation on the subject, channels future grievances into interlocutory applications within the same proceedings, and mandates the MCD to curb future encroachments while respecting the rights of existing shopkeepers. No new legal precedent is announced beyond these administrative clarifications.

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    Gainda Ram And Others v. M.C.D, Town Hall And Others

    Order

    1. In Saudan Singh v. NDMC (1992) 2 SCC 458 we laid down certain guidelines in paragraph 11 of the judgment concerning squatters/hawkers carrying on business activity in the area within the administrative control of MCD. The guidelines laid down were four in number, namely:

    “(1) Persons who have been found squatting between 1970 and 1982 and whose names are contained in the survey report prepared after the survey conducted in 1982 will receive first priority for grant of tehbazari permission subject to the scrutiny of their claims.
    (2) Insofar as casual tehbazari on weekly holidays, festivals/melas, etc., is concerned, as well as at the 67 weekly bazars held, persons availing of the said benefit will continue to be granted the casual or weekly tehbazari.
    (3) Squatters who have started squatting/hawking in 1983 onwards and who were not found on the date of survey would also be considered for grant of open tehbazari of 6′ × 4′ subject to the production of proof of continuous squatting and proof of residence and nationality. Such squatters/hawkers would be granted open tehbazari subject to availability of space provided they have cleared the dues of the MCD; and
    (4) Persons who do not fall within the aforesaid three categories would be permitted to apply for hawking licences under Section 420 of the Delhi Municipal Corporation Act, 1957 and their applications would be considered on merit for permission to hawk — not squat — by moving in specified areas with their goods on their heads or on cycles. They will be entitled to hawk with their goods anywhere in the zone in respect of which they have been granted a licence. However, such permission will be subject to any restrictions that may be imposed by the residential associations of different colonies.”

    Pursuant to the said guidelines, the MCD issued public notices in newspapers and through hand bills, posters, etc., between the months of June and August 1992. In regard to the category of hawkers/squatters mentioned in the guidelines, the MCD has undertaken an exercise to complete the scrutiny expeditiously. In regard to hawkers/squatters falling under category (1), the MCD has divided them into two classes, namely, those who possess survey-report-receipt dated December 23, 1982 and those who do not possess that receipt but are in a position to tender evidence or proof of their squatting from 1970 to 1982. It is stated that the latter category will stand and will be treated and considered after the former. We would like to make it clear that they all belong to one category and this sub-classification is not warranted. Even in regard to those who do not possess the survey report receipt dated December 23, 1982 but tender satisfactory proof in regard to their squatting from 1970 to 1982 should be considered along with those who possess the receipt and be arranged in the order of their respective seniorities. We do not think that the sub-classification is necessary.

    2. The MCD has also stated that no covered tehbazari/kiosks/stalls/shops will be given to any person under the present scheme and only open-to-sky tehbazari on area admeasuring 6′ × 4′ would be permitted to eligible squatters and the seniority list will be prepared accordingly on submission of proof. Counsel for the squatters/hawkers contended that earlier covered tehbazari/kiosks/shops/stalls was permitted to some of them like Jai Jawan Stores, etc., and if by this procedure it is intended to disturb them that should not be permitted. We read this procedure only to mean that those who have not been expressly given such facility will not be given covered tehbazari/kiosks/shops/stalls, etc., under the scheme which is being finalised. We would like to clarify that in the name of the procedure set out by the MCD, which they propose to follow to finalise claims, they would not be permitted to change the nature of the tehbazari of those, who have been expressly permitted facility of covered tehbazari/kiosks/shops/stalls in the past but those who are not given that facility will not be entitled to it. We may also clarify that temporary tarpaulin covers/umbrellas would not fall within the expression ‘covered tehbazari’ because these would be necessary to combat the vagaries of nature. They will, however, be liable to be evicted if under this pretext they try to put up a semi-permanent cover over the area on which they are permitted to squat. By way of abundant caution and to avoid harassment it would be desirable for them to put up only a temporary cover to beat the sun or the rain and remove it when they leave the place after business hours.

    3. Under category (3) in paragraph 11 of the judgment, we have in the concluding lines stated that such squatters/hawkers would be granted open tehbazari subject to availability of space provided they have cleared the dues of the MCD. Counsel submitted that this requirement of clearing the dues is likely to cause avoidable hardship since the period covered would be almost of a decade and at times more. Many of the squatters/hawkers having regard to the segment of society to which they belong may not have retained the receipts and it would also be well nigh impossible for the MCD to verify their records and determine whether or not such squatters/hawkers had in fact paid the tehbazari. We have considerable force in this submission and we, therefore, provide an option to the squatters/hawkers, who face this difficulty to pay a lump sum of Rs 3,000 in four quarterly instalments of Rs 750 each. The first instalment will be paid within one month after the receipt of the order or intimation of allotment from the MCD. The subsequent instalments will be paid every three months thereafter. If any squatter/hawker commits a default in the payment of the instalments, his allotment will be liable to be cancelled one month after a reminder is sent to him and the next person in the order of seniority will be allotted that space.

    4. Lastly, it was submitted by counsel for the squatters/hawkers that some of them who had already filed petitions/appeals in this Court or in the High Court or suits in the trial courts prior to the date of this Court's judgment in Saudan Singh (1992) 2 SCC 458 dated March 13, 1992 and who on that account bona fide thought that it was not necessary to make a formal application to the Committee appointed for the purpose of scrutinising and verifying their claims, may be permitted to do so. Although we are generally reluctant to extend the time but having regard to the bona fide misunderstanding pointed out by counsel on behalf of the squatters/hawkers, we put it to the learned counsel for the MCD if the MCD would have no objection to the extension of time and he fairly stated that he would have no objection provided the facility is limited to those whose petitions/appeals/suits were pending in any of the courts on March 13, 1992. By way of a special consideration we grant time of one month from today to such claimants to file their claims before the MCD Committee with all accompaniments and particulars. The MCD Committee will examine such claims. The claims to be filed need not be in any prescribed form, but may furnish the particulars and be accompanied with the copy of the petition/appeal/suit with their numbers which they claim were pending on or before March 13, 1992, duly attested as a true copy by the Advocate for the party. If there is any doubt, MCD will be at liberty to demand from that party the production of a certified copy. We would expect the MCD to complete the process of verification as early as possible. The procedure indicated by MCD, except for the modifications which we have made hereinabove, may be followed. Mr Maheshwari states that the endeavour of the MCD would be to complete the verification within four months from today. We think that this is a reasonable period. Let it be so done.

    5. The directions given hereinabove being of general application would apply to claims of all squatters/hawkers who fall within the categories enumerated in paragraph 11 of Saudan Singh (1992) 2 SCC 458 judgment dated March 13, 1992. Those who do not fall in any one of the said four categories have no right as they fall outside the scheme and are not entitled to any protection. Since all those who claim to be covered under the scheme and whose claims are awaiting scrutiny are protected by this order, we see no reason why their petitions/appeals/suits, etc., should be kept pending. We, therefore, propose to dispose them of by this order. Intimation of this order will be sent to the Registrar of the High Court of Delhi who will immediately apprise the judges of the subordinate judiciary for compliance. The Registrar will ensure compliance. With these observations, all the writ petitions/appeals/SLPs/suits, etc., pending in this Court/the High Court of Delhi and Courts subordinate to it shall stand terminated by this order forthwith. In other words no civil litigation commenced by or on behalf of the squatters/hawkers pending in the courts of Delhi shall survive. No further litigation by or on behalf of any squatter/hawker will be entertained but if the MCD violates any part of this order the concerned party governed by this order will be entitled to file an IA for directions. The interim stay orders granted in those cases shall also stand vacated. The MCD will, however, maintain the status quo till the verification is completed and only in regard to those hawkers/squatters/whose claims are negatived, will it be open to the MCD to take action for their eviction ten days after the claim is rejected. The MCD will also ensure that future encroachments do not take place defeating the rights of existing squatters/hawkers governed under the scheme. It will also protect the interest of the shopkeepers as they too have a similar right under Article 21 of the Constitution. No order as to costs in all cases.

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    Comments

    Gainda Ram And Others v. M.C.D, Town Hall And Others
    (May 12, 1993)