If you are stuck in such a situation, here is what to do.

In a bustling market area of Kirtipur, a group of small shopkeepers, many of whom have operated their businesses for over four decades, are facing an unprecedented crisis. These entrepreneurs have been leasing their shop plots from a Public Sector Undertaking, the National Transport Corporation. For years, they have been diligent tenants, paying their rent annually with a standard seven percent increase, maintaining a clean record with no violations or outstanding dues. Their businesses have been their honest means of survival, supporting their families and contributing to the local economy.

Suddenly, their world was turned upside down by a circular issued by the Corporation. The notice gave them less than ten days to participate in a public auction to bid for the very shops they have occupied for generations. This abrupt demand left no reasonable time to seek legal recourse or even get a hearing in a court of law. Despite their frantic efforts to engage with officials and seek legal advice, they were met with bureaucratic silence and mounting pressure.

These are not wealthy industrialists but ordinary, middle-aged citizens. The immense stress has led to severe anxiety and sleepless nights among them, as they fear losing their only source of livelihood. They feel a profound sense of injustice, especially when they see unregulated street vendors operating without any rent or legal obligations, often causing public nuisance without consequence. The shopkeepers feel that their adherence to rules and their honesty have paradoxically put them at a disadvantage. This situation is not merely about commercial properties; it is a fight for their dignity, stability, and the right to be heard by the very system they have always respected.

Advice in such cases

• Gather All Documentation: Immediately collect all lease agreements, rent receipts, correspondence with the government entity, and any other relevant paperwork. This documentation is the foundation of your legal case.
• Form a Collective Body: Uniting as an association or a formal group strengthens your position. It allows for pooling resources to hire legal representation and presents a unified front to the authorities and the court.
• File a Representation: As a group, submit a formal written representation to the higher authorities of the concerned government entity, detailing your long-standing tenancy, consistent payment history, and the arbitrary nature of the recent circular. Request the withdrawal of the auction notice.
• Consult with a Lawyer: The very basic and important step to start is to talk to a Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in the range of Rs. 10,000 to 50,000 depending on the case. He is helping you in this situation to come out. He is an expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Seek a Court Injunction: Your lawyer can help you file a petition in the appropriate court (usually the High Court) to get a stay order or injunction against the bidding process, pending the final hearing of the matter.

Applicable Sections of Law

Such cases involve a mix of property, contract, and constitutional law. While criminal codes like the Bharatiya Nyaya Sanhita (BNS) are not directly relevant here, the following legal principles and statutes are crucial:

• The Transfer of Property Act, 1882: Sections 105 and 106 define a lease. Section 111 outlines the conditions under which a lease can be determined. A lease cannot be terminated arbitrarily, especially when rent has been consistently accepted.
• The Indian Contract Act, 1872: The lease agreement is a contract. The government entity’s acceptance of rent over decades establishes a contractual relationship that cannot be unilaterally and unfairly altered.
• Constitutional Law: The action of the government entity can be challenged under the Constitution of India. Article 14 protects against arbitrary state action. Article 19(1)(g) guarantees the right to carry on a trade or business, which is threatened here. Article 21’s Right to Life has been interpreted by the Supreme Court to include the Right to Livelihood. Article 300A states that no person shall be deprived of his property save by authority of law.
• Principles of Natural Justice: The rule of ‘audi alteram partem’ (hear the other side) is a cornerstone of Indian law. The short notice period without a proper hearing is a clear violation of this principle.
• Doctrine of Legitimate Expectation: Having been tenants for decades with regular renewals or acceptance of rent, the shopkeepers had a legitimate expectation that their tenancy would continue under reasonable terms, not be abruptly subjected to an auction.

If you are the complainant

As the aggrieved party (the complainant), your primary goal is to challenge the arbitrary action of the government entity. Your steps should be strategic and swift.

• File a Writ Petition: Your lawyer will likely advise filing a writ petition before the High Court under Article 226 of the Constitution. This petition will challenge the legality and constitutionality of the circular demanding the auction.
• Prayer for Interim Relief: The most critical part of the initial filing is the prayer for an interim stay. You must ask the court to immediately halt the auction process until the case is decided, to prevent irreparable harm to your livelihood.
• Build a Strong Case: Your petition should clearly articulate the history of your tenancy, the violation of natural justice, the arbitrary nature of the government’s action, and the infringement of your fundamental rights.
• Consult with a Lawyer: The very basic and important step to start is to talk to a Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in the range of Rs. 10,000 to 50,000 depending on the case. He is helping you in this situation to come out. He is an expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

As a victim of such an arbitrary administrative decision, feeling helpless is natural, but you have powerful legal remedies available.

• Do Not Vacate the Premises: Unless there is a valid, final court order for eviction, do not vacate your shop. Continue your business operations as usual.
• Preserve Evidence: Keep a copy of the circular, take photos of your shop, and ensure all your documents are in a safe place. Document any attempts by officials to pressure or threaten you.
• Act Collectively: Your strength lies in unity. Approaching the issue as a group not only reduces individual costs but also demonstrates the widespread impact of the decision, which can be persuasive in court.
• Consult with a Lawyer: The very basic and important step to start is to talk to a Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in the range of Rs. 10,000 to 50,000 depending on the case. He is helping you in this situation to come out. He is an expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

In a civil dispute of this nature, the police have a very limited role. This is a matter between a landlord (the government entity) and tenants (the shopkeepers), to be decided by a court of law. The police cannot legally evict you or force you to participate in the auction. Their duty is restricted to maintaining law and order. They can only intervene to enforce an eviction if they are presented with a valid and executable order from a competent court or judicial authority. Any attempt by officials to use the police for intimidation without a court order is illegal and can be challenged.

FAQs people normally have

What evidence is required?

To build a strong case, you will need comprehensive evidence. The most crucial documents include:

• All original and subsequent lease/rent agreements.
• A complete record of rent payment receipts, bank statements, or any proof showing consistent payment over the years.
• The official circular or notice that initiated the auction process.
• Any past communications with the government entity regarding your tenancy.
• Photographs and videos of the shops and the surrounding area.
• Proof of the existence of your business, such as registration certificates, tax filings, etc.
• Documents showing the formation of your shopkeepers’ association, if any.

How long will the investigation take?

It is important to understand that this is not a criminal “investigation” but a civil litigation process. The timeline can vary significantly. The first objective is to secure an interim stay order from the High Court, which can often be obtained within a few days to a couple of weeks of filing the case. This initial relief is vital as it preserves the status quo. The final resolution of the writ petition, however, can take much longer, potentially several months or even years, as it goes through various stages of hearings and arguments. The duration depends on the court’s workload and the complexity of the legal arguments from both sides.

Advocate Sudhir Rao, Supreme Court of India