The Andhra Pradesh High Court has directed the Visakhapatnam Metropolitan Development Authority (VMRDA) to restore possession of the building at the Gurajada Kalakshetram Open Air theatre premises to ‘Fusion Foods’ within seven days, and also imposed exemplary costs of ₹25,000 for evicting the ‘license holder’ without following due procedures.
The single-judge bench comprising Justice D.V.S.S. Somayajulu issued the orders on Wednesday.
It may be recalled that in the early hours of November 15, 2020, VMRDA had evicted Fusion Foods from the premises, based on a ‘vacation notice’, which was supposedly served on November 14.
As per the notice, the licence of Fusion Foods was extended for nine years in 2015 by the erstwhile Visakhapatnam Urban Development Authority (VUDA), without conducting an auction, causing major financial loss to the authority. As per G.O. MS 56, the renewal of lease beyond three years shall only be with prior sanction of the government. As irregularities were observed in the extension of lease, the premises has to be vacated and handed over, the notice said.
Questioning the manner and method in which they were dispossessed, Fusion Foods filed a writ petition in the High Court. Admitting the writ petition, the court observed that the G.O., relied on in the vacation notice, pertains to lease and was not applicable to Fusion Foods as VMRDA had entered into a license agreement and not a lease agreement with it.
The Board in a meeting held on August 18, 2015, ratified the action of VMRDA (then VUDA) in extending the licence. The plea of irregularity was raised in 2021 i.e., six years after extension.
Direct action was initiated to vacate the premises without cancelling the license. Fusion Foods were entitled to a reasonable time to vacate. A summary eviction order was given on November 14, 2020 and by 6 a.m. the next day, the process of vacating them was started.
The court observed that use of police force, without any prior resistance or obstruction, was uncalled for, particularly by a State instrumentality. Eviction should be carried out during the normal working hours and should not be resorted to early in the morning or late at night, unless there was a grave pressing emergency.
