2000 Supreme(Mad) 175
High Court of Judicature at Madras
The Honourable Mr. Justice P. Shanmugam
Arulmighu Meenakshi Sundareswarar Koil Kadaikarargal Sangam, Madurai, Regd. No. 1 of 1960, rep. by its Secretary V. Rajendran and another
Versus
The State of Tamil Nadu, rep. by the Secretary to Government, Hindu Religious & Charitable Endowment Department, Fort St. George, Chennai 9 and two others
W.P. Nos.1178 and 1234 to 1265 of 2000 and W.M.P. Nos. 1716. 1717 and 1804 to 1835 of 2000
Decided on : 10-02-2000
Mr. V. Raghavachari, Advocate in W.P. No.1178 of 2000 and Mr. R. Subramaniam, Advocate in W.P. No.1234 to 1265 of 2000 Advocate for Petitioner.
Mr. R. Balasubramaniam, Special Government Pleader for Respondent.
The Government has the power to issue guidelines and directions in furtherance of their power under the Act, and the fixation of fair rent must be based on a rational basis.
Headnote:
Rent Fixation - Hindu Religious & Charitable Endowment Act - Section 34(4)(a), Section 116, Rules 2, 3, 12, 17 - The court upheld the impugned Government Order and the orders fixing the enhanced rent, finding that the Government had the power to issue guidelines and directions in furtherance of their power under the Act. The court also found that the fixation of fair rent was based on a rational basis and that the petitioners had an effective remedy under section 21 of the Act for any specific objections to the rental value.
Fact of the Case:
The tenants of a temple sought to quash a Government Order fixing the rent for the premises in their occupation, claiming it to be discriminatory and unreasonable.
Finding of the Court:
The court found that the Government had the power to issue guidelines and directions in furtherance of their power under the Act, and that the fixation of fair rent was based on a rational basis. The court also noted that the petitioners had an effective remedy under section 21 of the Act for any specific objections to the rental value.
Issues: The main contention was the Government's power to issue guidelines and the alleged discriminatory and unreasonable fixation of rent.
Ratio Decidendi: The court held that the Government had the power to issue guidelines and directions in furtherance of their power under the Act, and that the fixation of fair rent was based on a rational basis. The court also noted that the petitioners had an effective remedy under section 21 of the Act for any specific objections to the rental value.
Final Decision: The writ petitions were dismissed, and the impugned Government Order and the orders fixing the enhanced rent were upheld.
1. In W.P. No. 1178 of 2000, an Association of tenants of Arulmighu Meenakshi Sundareswarar Koil, Madurai has sought to quash the Government Order in G.O. Ms. No.353, Tamil Development and Culture, Hindu Religious Department dated 4.6.1999.
2. In the next batch of writ petitions, i.e. W.P. Nos.1234 to 1265 of 2000, individual tenants have preferred writ petitions against the orders of the Joint Commissioner, H.R. & C.E., fixing the rent for the premises in their occupation.
3. Thebrief facts necessary to dispose of these writ petitions are given below:
About 200 shops are situated in and around the Arulmighu Meenakshi Sundareswarar Koil, Madurai. It is stated that the petitioners are tenants for several years and continuing. It is further not disputed that the Rent Control Act. does not apply to the buildings coming under the H. R. & C.E. Department. The Government has issued guidelines in G.O. Ms. No.56 dated 19.2.1998 fixing the rent relating to lands, shops, buildings and houses belonging to the various temples in Tamil Nadu. After considering the recommendation of the Commissioner, H.R. & C.E., the guidelines, providing different rates of the value of the buildings, were issued. For instance, in case of shops, the rent was fixed at 1% of the building's value. Incase where houses were constructed on vacant land, the rent was fixed at 0.25% of the market value. If further stated that rent will be fixed at 10% every year after such fixation as per the guidelines. For the buildings, the revision must be for every three years. As against this Government Order, objections were raised by the tenants. After considering the objections and the recommendation of the Department, the earlier Government Order was modified and fresh guidelines were issued by the impugned Government Order. The relevant clauses that we are concerned with are Clause Nos.l and 7. As per Clause 1, the rent shall be 0.6% of the building's value or the present market rental value in that area, whichever is higher. Clause 7 states that for the shops located inside the Praharam, the rent shall be 0.30% of the market value. The latter portion of the guideline relates to the writ petitioner Association in W.P. No.1178of2000.
4. The main contention of the learned counsel for the petitioner in the first writ petition is that the Government has no power to issue guidelines and that the fixation of rent is discriminatory and unreasonable.
5. The common point raised and argued by the individual tenants in the batch of writ petitions in W.P. Nos. 1234 to 1365 of 2000 is that there is an arbitrary enhancement of rent without giving opportunity to the petitioners before fixing a fair rent and that the respondents have not followed any norms in fixing a fair rent.
6. Mr. R. Balasubramaniam, Special Government Pleader appeared on behalf of the respondents and submitted that the marked value of the buildings were ascertained after finding out the guideline value of the land and after finding out the value of the building. The market value of the building thus arrived at formed the basis for fixation of the rent. He argued that the petitioners have got a right of appeal against the fixation of rent under Section 21 of the Tamil Nadu Hindu Religious & Charitable Endowment Act, 1959 (hereinafter referred to as the Act). He further submitted that the Government is empowered to issue guidelines when the Act is silent on the particular subject.
7. I have heard the counsel for the petitioners and the respondents and considered the matter carefully.
8. Section 34 of the Act deals with the alienation of immovable property. sub-section (4) (a) as inserted under Act 38 of 1998 is as follows :
" (4)(a). The Government may issue such directions to the Commissioner as, in their opinion, are necessary in respect of any exchange, sale, mortgage or lease of any immovable property belonging to, or given or endowed for the purpose of any religious institution, and the Commissioner