P.Gunasekaran Vs the District Collector — Writ and Judicial Review | Madras HC (2026)

P.Gunasekaran Vs the District Collector — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Petitioner permitted to participate in the auction pursuant to the impugned auction notice dated 06.03.2026 upon satisfying all terms and conditions for participating in the auction; respondents directed to entertain the petitioner's bid if submitted in accordance with the terms and conditions of the auction and to declare the result of the auction in accordance with law; connected miscellaneous petitions closed; no costs.

Issue for consideration

Whether the impugned auction notice dated 06.03.2026 issued by the second respondent, allegedly issued without adherence to the rules of the Panchayat, is arbitrary and illegal and liable to be quashed. +1 more

Court's answer

This Court will not interfere with the impugned auction notice unless the petitioner establishes that it is arbitrary, irrational and shocks the conscience of the Court; as the petitioner failed to satisfy this requirement at the admission stage, the Court declined to interfere.

Ratio / Principle

On a prima facie reading of the Panchayat rules, the discretion to renew the petitioner's lease is vested exclusively in the second respondent Panchayat, and renewal of the lease is not mandatory.

Detailed headnote1 paragraphs

Madras High Court (Abdul Quddhose, J.), disposing of Writ Petition No.9982 of 2026 (order dated 10.03.2026): The petitioner, holder of Shop No.8 in Ondikadai Village, Yercaud Village Panchayat, Salem District, under an earlier lease from the second respondent Panchayat, challenged an auction notice dated 06.03.2026 covering 13 shops and sought a direction for renewal of his lease for two years (01.04.2026 to 31.03.2028). Held, on a prima facie reading of the Panchayat rules relied on by counsel, that the discretion to renew the lease vests solely in the second respondent Panchayat and renewal is not mandatory; and that interference with the auction notice would arise only if the petitioner established that it was arbitrary, irrational and shocked the conscience of the Court, a threshold he failed to meet at the admission stage. The writ petition was accordingly disposed of by permitting the petitioner to participate in the auction upon satisfying all its terms and conditions, with the respondents to entertain his compliant bid and declare the result in accordance with law. No costs; connected miscellaneous petitions closed.

Writ Petition No.9982 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 10.03.2026

Coram

THE HONOURABLE MR. JUSTICE ABDUL QUDDHOSE

Writ Petition No.9982 of 2026 and W.M.P.No.10807 & 10808 of 2026

P.Gunasekaran S/o.Palanisamy

.. Petitioner

Vs.

1.The District Collector, Salem District.

2.The District Panchayat Secretary, Yercaud Panchayat Union, Ondikadai Village, Salem District. .. Respondents

Writ Petition filed under Article 226 of the Constitution of India seeking issuance of a Writ of Certiorarified Mandamus calling for the entire records relating to the impugned auction notice in Na.Ka.No.227/2026/A1 dated 06.03.2026 issued by second respondent and to quash the same, with consequential direction, directing the respondents to renew the lease period for a period of two years from 01.04.2026 to 31.03.2028 for petitioner’s Shop No.8, situated in Ondikadai Village, Yercaud Village Panchayat, Salem District, by considering petitioner’s representation dated 08.03.2026.

For Petitioner : Mr.S.Senthil For Respondents : Mr.N.Naveen Kumar Government Advocate

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Writ Petition No.9982 of 2026

ORDER

This writ petition has been filed challenging the impugned auction notice dated 06.03.2026 issued by the second respondent.

The petitioner has raised the following grounds for challenging the

impugned auction notice:

(a) As per the rules of the Panchayat, the second respondent Panchayat shall renew the lease of the petitioner for a further period of three years.

(b) The rules of the Panchayat has not been adhered to before issuing the impugned auction notice dated 06.03.2026.

Learned counsel for the petitioner relied upon the rules of the

Panchayat in support of his contention that the issuance of the impugned auction notice dated 06.03.2026 is arbitrary and illegal.

As seen from the said rules, this Court, on a prima facie

consideration, finds that the discretion to renew the lease of the petitioner is vested only with the second respondent Panchayat. It is not mandatory for the second respondent to renew the lease. The petitioner is the occupier of 2/4

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Writ Petition No.9982 of 2026

only one shop under the earlier lease executed by the second respondent Panchayat. The impugned auction notice pertains to 13 shops. Until the petitioner is able to establish before this Court that the impugned auction notice is arbitrary, irrational and shocks the conscience of this Court, the question of interfering with the impugned auction notice dated 06.03.2026 will not arise. Since the petitioner has not been able to satisfy this Court at the admission stage the aforesaid requirement, this Court cannot interfere with the impugned auction notice. When this Court pointed out the same to learned counsel for petitioner, learned counsel, on instructions, would now submit that liberty may be granted to the petitioner to participate in the auction.

Learned Government Advocate appearing for the respondents, on instructions, submitted that the petitioner can participate in the auction pursuant to the impugned auction notice dated 06.03.2026 if the petitioner complies with all the terms and conditions for participating in the auction. The said submission, on instructions, made by learned Government Advocate is recorded by this Court.

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Writ Petition No.9982 of 2026 ABDUL QUDDHOSE, J

gm

Accordingly, this writ petition is disposed of by permitting the petitioner to participate in the auction pursuant to the impugned auction notice dated 06.03.2026 by satisfying all the terms and conditions for participating in the auction and the respondents shall also entertain the bid of the petitioner if the same is submitted in accordance with the terms and conditions of the auction and declare the result of the auction in accordance with law. No costs. Consequently, connected miscellaneous petitions are closed.

10.03.2026

Index: Yes/No NCC:Yes/No Speaking Order/Non-speaking order gm

To

1.The District Collector, Salem District.

2.The District Panchayat Secretary, Yercaud Panchayat Union, Ondikadai Village, Salem District.

Writ Petition No.9982 of 2026

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