"Unfair for the Market Committee to Insist upon Fresh Lease Deed": High Court Rules in Favor of Siya Ram Apple Merchants

In a significant decision by the High Court for the States of Punjab and Haryana, the insistence of the State Agricultural Marketing Board for a fresh lease or rent deed for the renewal of commission agent licenses has been questioned. The court, while hearing the case of M/s Siya Ram Apple Merchants, stated, "It goes without saying that even in case some time period of tenancy is prescribed in any rent deed but the tenant continues to occupy the premises even beyond the expiry of the stipulated period, he would assume the character of a statutory tenant."

M/s Siya Ram Apple Merchants had approached the court, contesting letters from the respondents which demanded a fresh rent deed for the renewal of their license to carry on the business of a 'commission agent'. "In a relationship of tenant and landlord, the rent deed is not required to be executed every year or at short intervals," observed Justice GURVINDER SINGH GILL, highlighting the essence of statutory tenancy.

In a conciliatory outcome, the court disposed of the petition and granted the petitioner the liberty to apply afresh for the license. The respondents were directed not to insist on a fresh lease deed, particularly since the petitioner is still in possession of the premises. The court also mentioned, "Needless to mention, the petitioner shall furnish affidavit deposing categorically with respect to the factum of his possession and the status and character of his possession over the premises in question."

Date of Decision: 03.10.2023

M/s Siya Ram Apple Merchants vs State Agricultural Marketing Board and another