M.Arumugam v. The Commissioner
Writ Appeals (Clause 15, Letters Patent) – Salem City Municipal Corporation
Case brief
What is this about?
Madras High Court Division Bench (Chief Justice Sushrut Arvind Dharmadhikari and G. Arul Murugan, J.; judgment delivered by the Chief Justice) dismisses W.A.Nos.1852 and 1751 of 2026 filed by Salem flower vendors and agriculturists challenging the common order dated 05.02.2026 in W.P.Nos.26383 and 26380 of 2025, which upheld the Salem City Municipal Corporation's Tender Notification dated 30.06.2025 converting the V.O.C. Daily Market into a commercial complex with shops let on monthly rental basis through public auction. Holds that Sections 78 and 108 of the Tamil Nadu Urban Local Bodies Act, 1998 serve different purposes — a municipality may lease individual stalls by transparent public auction when the licensing/toll system fails to generate sustainable revenue — and that judicial review of tender terms and economic policy choices is minimal absent arbitrariness or mala fides, relying on Tata Cellular v. Union of India, (1994) 6 SCC 651, Michigan Rubber (India) Ltd. v. State of Karnataka, (2012) 8 SCC 216, and Directorate of Education v. Educomp Datamatics Ltd, (2004) 4 SCC 19. Appeals dismissed; Single Judge's order upheld; no order as to costs; interim applications closed.