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2001 Supreme(Ker) 525

Judges : P.K.BALASUBRAMANYAN,C.N.RAMACHANDRAN NAIR
Wahid - Appellant
Versus
State of Kerala - Respondent
Case No : O.P. No. 23464 of 2000
Decided On : 11/05/2001
Advocates Appeared :
George Poonthottam For Petitioner Government Pleader (Mohan C. Menon) & P.C. Sasidharan For Respondents

Headnote:

Constitution of India –Article 226 –Issue on Lease –The petitioner, who claims to be a social worker and a Municipal Councillor of the Corporation of Trivandrum, has approached this Court with the Original Petition praying for the issue of a writ of certiorari to quash an order issued by the Government of Kerala allotting an area of 2500 sq.ft. in favour of M/s. Malayalam Communications Ltd. to set up a studio in the first floor of Travancore House Palace in New Delhi on rental basis at the rate of Rs. 75.00 per sq.ft –According to the petitioner, this order was not backed by a Government decision to lease out any portion of the Travancore House Palace in New Delhi to any private individual or a company not owned or controlled by the State and that the grant to respondent No. 2, the Malayalam Communications Ltd., was done without following any procedure and arbitrarily and it was really a distribution of largesse by the Government and that the grant was based on political consideration – The petitioner has a further case that though what was purported to be leased out was only an area of 2500 sq.ft., what respondent No. 2 was doing was to occupy a larger extent in the first floor unauthorisedly but with the connivance of the authority concerned –Held, Court find it somewhat surprising to hear such a submission – If the submission represents the true facts, it is obvious for the State to take steps immediately to recover the rent from the tenants in occupation of the portions of the Travancore House Palace and if they are not paying the agreed rent, to take steps to evict them –The Government has a duty to the public to ensure that the amounts due are collected from the tenants and if the tenants are not paying the rent, to evict them, so that the building could be put to better use –There will, therefore, be a direction to the Government to take steps to recover the entire rent in arrears from those Corporations or entities which are in possession of portions of the Travancore House Palace –In view of court finding that the grant of the present lease cannot be supported in view of the absence of fairness in entering into the transaction with a public limited company and without following a proper procedure in dealing with public property, the order Ext. P1 has to be quashed –Similarly, the lease Ext. R1 should also be declared controlled in view of the quashing of the order Ext. P1 – Court therefore, allow this Original Petition and quash the order Ext. P1 and cancel the lease Ext. R1 –Court also direct the Government to take steps to recover the rents in arrears from all the tenants of Travancore House Palace, immediately –Petition allowed

Judgment :-

P.K. Balasubramanyan, J.

The petitioner, who claims to be a social worker and a Municipal Councillor of the Corporation of Trivandrum, has approached this Court with the Original Petition praying for the issue of a writ of certiorari to quash an order issued by the Government of Kerala dated 5.6.2000 allotting an area of 2500 sq.ft. in favour of M/s. Malayalam Communications Ltd. to set up a studio in the first floor of Travancore House Palace in New Delhi on rental basis at the rate of Rs. 75.00 per sq.ft. According to the petitioner, this order was not backed by a Government decision to lease out any portion of the Travancore House Palace in New Delhi to any private individual or a company not owned or controlled by the State and that the grant to respondent No.2, the Malayalam Communications Ltd., was done without following any procedure and arbitrarily and it was really a distribution of largesse by the Government and that the grant was based on political consideratioIl' It is further contended that the rent fixed was low compared to the rent payable by the other lessees who were Corporations controlled by the Government and by the State Bank of Travancore in the same floor and that the grant was not in public interest. The petitioner has a further case that though what was, purported to be leased out was only an area of 2500 sq.ft., what respondent No. 2was doing was to occupy a larger extent in the first floor unauthorisedly but with the connivance of the authority concerned.

2. In the counter affidavit filed on behalf of the State what is stated is that there was no Government decision not to let out any portion of the Travancore House Palace in New Delhi to any individual or a company not owned or controlled by the State. It is stated that a request was received from respondent No.2, a public limited company, for allotment of space in Travancore House Palace, New Delhi and the Government deputed an officer to New Delhi to examine the feasibility of the request received from the company. Thereafter it was decided to grant the. lease far a period of three years and a lease deed in that behalf marked Ext. R1 had been executed. It is stated that an area of 3370 sq.ft. in the very same floor was being occupied by the State Bank of Travancore. The State Bank of Travancore was paying a monthly rent of Rs. 50.00 per sq.ft. In the year 1999 the rent was enhanced to Rs. 100.00 per sq.ft. what was leased out to the company was the rear portion of the first floor and the rent of Rs, 75.00 per sq.ft. was reasonable. It is not stated in the counter affidavit that there was any Government Order or Cabinet decision authorising the grant.of such a lease. As noticed, what is stated is that there was no Government decision restraining allotment of space in Travancore House Palace in New Delhi to private parties on rental basis. It is contended that there was no abuse of power and the Government had taken care of public interest and no concession was granted to respondent No.2. The specific allegation of the petitioner that respondent No.2 was the front.of a

political party was not specifically dealt with in the counter affidavit, except stating that it was a public limited company.

3. The company, the second respondent, in its counter affidavit did not disclose how the shares were held in the company or by whom. The motive behind the filing of the Original Petition by the petitioner was questioned. It was denied that the company was managed and administered by persons belonging to Communist Party of India (Marxist). This was to meet the allegation of the petitioner that this was a distribution _f largesse by the Marxist led Government to a Marxist Front organisation. The application filed by the Company was duly processed and the lease was granted. The rent fixed was reasonable and commensurate with the rent prevalent in the locality. The company was a public limited company incorporated under the Companies Act. The shares were a











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