The entitlement to lease renewal for present lessees is subject to participation in the bid and matching the highest bid, as per Rule 18 of the Wakf Properties Lease Rules, 2014.

V. Chitambaresh, J.

1. The tendency to cling on to the tenanted premises even after the expiry of the period of the lease of the immovable wakf property is indisputably on the increase.

2. The petitioners in W.P.(C) No.21218/2015 are the present lessees (holding over) of a commercial building and the period of the lease in the lease in their favour by the Jama-ath has admittedly expired in the year 2015. The commercial building which is an immovable wakf property comprises of three floors and the same houses a furniture shop, a restaurant and a ladies hostel in the independent floors thereof. They challenge the notification dated 05.10.2016 issued by the Kerala State Wakf Board inviting tenders to occupy the tenanted premises for the ensuing period on certain terms and conditions. It is their case that a fresh bid cannot be conducted since they are entitled to preference in the renewal of the lease particularly when they have invested heavily in the business. They have an alternative contention in that the value of the improvements effected by them have to be paid in the event of their eviction and that an abrupt dispossession would throw their business out of gear. The petitioner in W.P.(C) No.33166/2016 challenges the condition in the notification requiring an Earnest Money Deposit of Rs.5 lakhs as a pre-requisite for participating in the bid. He points out that the deposit made on or before 24.10.2016 as per the notification would lie locked for a month unnecessarily since the bids are scheduled to be opened only on 23.11.2016. Thus steps initiated to lease the immovable wakf property by the issue of notification and the conditions thereof are impugned in these Writ Petitions on separate grounds dealt with hereunder.

3. We heard Mr. K. Ramakumar, Senior Advocate and Mr. A.B. Jaleel, Advocate on behalf of the petitioners, Mr. K. Shibili Naha, Standing Counsel on behalf of the Kerala State Wakf Board and Mr. Shinu J. Pillai, Advocate on behalf of the Jama-ath to whom the property is dedicated.

4. The renewal of lease of immovable wakf property belonging to a Jama-ath is governed by Rule 18 of the Wakf Properties Lease Rules, 2014 (‘the Rules’ for short) which is extracted hereunder:

18. Renewal of lease - (1) No lease agreement shall contain a clause providing for automatic renewal.

(2) The Board shall while renewing the lease, give preference to the present lessee if such lessee participates in the bid and matches the highest bid. (emphasis supplied)

Thus the entitlement to have the lease renewed in favour of the present lessees as per Rule 18 of the Rules has to be worked out in the following manner in order to decide the preference and ensure transparency.

(i) The present lessees must participate in the bid of the right to occupy the tenanted premises.

(ii) The present lessees in that event shall be given an opportunity to match the highest bid.

(iii) The lease will be renewed in favour of the present lessees if they match the highest bid.

The participation in the bid by the present lessees is a condition precedent for them to avail of the preference by matching the highest bid for which the bids received have necessarily to be opened. The participation depends on the eligibility conditions which include the Earnest Money Deposit of Rs.5 lakhs within the time stipulated and the Rules do not speak of any exemption from deposit to the present lessees: The present lessees cannot thwart the tender itself on the premise that they would lose their preference in the renewal of the lease in the light of the statutory prescriptions quoted above.

5. The Rules came into force only on 05.06.2014 and were not in vogue at the time the lease for a period of three years in favour of the petitioners in W.P.(C) No. 21218/2015 commenced in the year 2012. The Jama-ath is now empowered to grant a lease for a period upto 30 years under Rule 19(1)(iii) of the Rules since the purpose is to run a shop, restaurant and also a hostel for ladies. The ap