Facts of the Case

M/s Irshad Ahmad and Company had been allotted a shop by the Krishi Utpadan Mandi Samiti, Mau in 2010, on payment of six months' advance rent, and had been given possession, but the lease agreement was never formally executed. In 2022, the Mandi Parishad issued a notice dated 10.11.2022 calling upon the petitioner to deposit balance rent along with interest and GST, failing which action would follow. The petitioner challenged this notice in a writ petition.

Issues Involved

  1. Whether the notice demanding balance rent, interest and GST was liable to be interfered with in writ jurisdiction.
  2. Whether the petitioner's undertaking to pay the outstanding amount resolved the dispute without adjudication.

Petitioner's Arguments

  • The petitioner had already paid the required advance rent and taken possession in 2010, but the lease deed was never executed in his favour.
  • Before the Court, counsel offered to deposit the entire balance amount together with interest and GST forthwith.

Respondent's Arguments

  • The Mandi Parishad contended the petitioner had not paid rent from 2010 to 2022, and that the notice was issued only for that reason.

Court Order / Findings

  • Finding no occasion to interfere with the notice at that stage (since it merely called for payment of outstanding dues), the Court permitted the petitioner to approach the Mandi Parishad with a certified copy of the order, be informed of the exact outstanding amount, and deposit it (inclusive of interest and GST) within a set timeline.
  • Upon such deposit, the authority was directed to examine execution of the lease deed in accordance with law.

Important Clarification

GST here is simply a component of the amount payable on the lease rent — this order does not decide any question of GST law, such as whether GST was correctly applicable to Mandi shop rent. It is essentially a payment-and-settlement order resolving a long-pending lease-execution dispute.

Sections Involved

  • Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 — shop allotment and lease provisions
  • Central Goods and Services Tax Act, 2017 — GST on rent, referenced only as a payable component, not adjudicated

Decision – In Favour of

Neither party decisively — disposed of by a payment-and-consideration mechanism; the underlying lease-execution question remains to be decided by the Mandi authority.

Case Details

  • Court: High Court of Judicature at Allahabad
  • Case: WRIT-C No.2949 of 2023
  • Coram: Hon'ble Ashwani Kumar Mishra, J. and Hon'ble Vinod Diwakar, J.
  • Date: 17.04.2023

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