In Brief
The appellants, lessees of medicine shop premises within hospital compounds, challenged a notice to vacate issued without a show cause notice or hearing. The State sought to close the shops to implement a free drug supply scheme. The Court held that the closure notice was arbitrary and violated natural justice. While the government's free drug scheme is laudable, peaceful coexistence of private shops was feasible and preferable. Though the lessees could not claim an indefeasible right beyond lease expiry, they could not be arbitrarily removed. The Court set aside the closure order and directed a fresh open-bid process for the shops, allowing current lessees to participate. Until then, the appellants were protected from eviction and had to pay the enhanced rent.
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