'No Right Of Permanent Usage': Madras High Court Rejects Koyambedu Tomato Traders' Plea For Allocation Of Specific Parking Ground

The Madras High Court has dismissed a plea filed by Thanthai Periyar Tomato Traders Association seeking exclusive allocation of a specific area for loading/ unloading tomatoes from trucks in Koyambedu Market.

Noting that the Market Management Committee (MMC) has been accorded the power under the Tamil Nadu Specified Commodities Markets (Regulation of Location) Act, 1996 to allot spaces for loading/ unloading perishables, the court observed that the Association cannot seek the right of usage merely on the ground that they have availed the land for the said purpose for some time.

Justice S.M Subramaniam was adjudicating the Association's plea for allocating the parking space inside the Market for their exclusive use.

It is pertinent to note that Justice R. Suresh Kumar had made an interim arrangement directing the Koyambedu Market Management Authority to allocate another area of one acre near Gate 14 for loading/ unloading, taking into account the soaring tomato prices last November.

The court noted that there might be some grievances that must be apprised to the competent authority, i.e., Market Management Committee, by the process known to law. The court also added that the tomato traders have been allocated specific shops for the wholesale trade of tomatoes.

"In respect of allotment or grant of open space, the petitioner must establish a right. In the absence of rights, the court cannot issue any directions. Koyambedu, one of the largest markets, is administered by Market Management Committee under The Tamil Nadu Specified Commodities Markets (Regulation of Location) Act, 1996, according to the scheme so constituted. Allotment, use of open space, public parking etc. are regulated by Market Management Committee and it has the authority to initiate appropriate action in case of contraventions", the court noted.

The court underlined that the Market Management Committee's approved scheme governs all trading activities of the traders, including tomato traders. Licenses are granted to the allottees based on certain terms and conditions as informed by Market Management Committee. The court agreed with the contention of MMC that the licensees are expected to use those shops in the manner envisaged by MMC in accordance with The Tamil Nadu Specified Commodities Markets (Regulation of Location) Act, 1996 and its Rules.

" It is not the case of the petitioner that they are dislocated from all other spaces. Their grievance at present pertains to the use of open space in front of N124 Godown. As contended by the respondent authorities, other types of wholesale traders will also ask for exclusive spaces if the space in front of N124 Godown is given exclusively for the petitioner... Unauthorised use or otherwise of the open space won't confer permanent right of usage. Similarly, mere use of open space by any trader in emergency circumstances cannot confer any right of permanent usage. So the petitioner cannot claim any permanent right of usage based on the interim order passed by the court during the Covid-19 Pandemic when the tomato prices soared to such an extent...Such an order passed in emergency circumstances cannot be construed as a permanent arrangement and the petitioner cannot claim right of permanent usage of such open space either", the court observed.

The court also observed that the tomato prices have substantially come down. Once the prices have come down, normalcy will be restored and all traders will be allowed to use their respective allotted spaces, the court added. Equal opportunity of common spaces is the right of all the allotted shops in the market; the rights of other traders cannot be curtailed while giving special rights to tomato traders, the court opined.

The court also made a remark that while granting reliefs, courts are expected to consider whether it would cause an infringement of the rights of others. Courts are generally not expected to interfere especially when it's a policy matter, added the bench.

"The power of judicial review is to scrutinise the process through which a decision is taken by the competent authority; It is not to take the decision itself. In administrative affairs, judicial review shouldn't be exercised normally. In exceptional circumstances, the court interferes when there is a violation of laws or the probability of gross injury or loss to a group of persons", opined the bench.

The submission of the petitioner association was that the small scale traders had access to a godown on a rent basis which was sold last year by the Market Committee. Prior to the pandemic and market shut down, they were using the open space in front of N124 Godown for parking the lorries that transport tomatoes. Therefore, they challenged the order of Chief Administrative Officer, Market Management Committee, which disallowed the use of the specific space, The association sought a direction to MMC for allocating the open ground before the N124 Godown for loading/ unloading tomatoes from trucks as a part of their wholesale trade, based on their previous representation.

Koyambedu Market, one of the largest wholesale markets in South Asia, was inaugurated by Chennai Metropolitan Development Authority (CMDA). The petitioners stated that they have been doing wholesale tomato trade in their allocated shops since the year 2000. The Association also submitted they have no other permanent space for loading/ unloading tomatoes if the vacant space in front of N124 Godown is not allocated.

Today, the Additional Advocate General made a submission that N124 was already allotted to another trader as per the scheme approved by MMC. He specifically contended that mere use of open space infront of the godown for sometime will not automatically transfer the right of usage to the Petitioner Association without express approval from MMC. The Market Management Committee also argued that the traders have been allotted eight parking spaces each for loading/ unloading perishables within the market complex presently. Relying on the data provided in the status report, the Additional Advocate General and the Counsel for CMDA argued that the open space cannot be allocated for the exclusive use of tomato traders. 

Since the markets are fully open now and the status report reveals allocation of truck spaces for traders to load/ unload goods, the court dismissed the plea of the petitioners and disposed off the case. The court also added that the petitioner association can approach Market Management Committee if the allocated space is inadequate for them.

Case Title: Thanthai Periyar Tomato Traders Association v. Member Secretary & Ors.

Citation: 2022 LiveLaw (Mad) 42