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2013 Supreme(Mad) 1021
High Court of Judicature at Madras
D. HARIPARANTHAMAN, J.
Cosmopolitan Club, Rep. by its Honorary Secretary & Another
Versus
The Principal Secretary to Government, Revenue Department & Others
W.P. Nos. 27167 & 27168 of 2012 & Connected Miscellaneous Petitions
Decided On : 19-02-2013
For the Petitioners:A.L. Somayaji, Senior Counsel for V.P. Sengottuvel, Advocate, C.A. Sundaram, Senior Counsel for K. Harishankar, Advocate.
For the Respondents: R1 to R3:A. Navaneethakrishnan, Advocate General Asst. by V. Jayaprakash Narayanan, Special Government Pleader, R4, P.S. Raman, Senior Counsel for K. Harishankar, Advocate, R5, P.H. Aravind Pandian, Additional Advocate General Asst. by V. Jayaprakash Narayanan, Special Government Pleader, R6, R. Muthukumaraswami, Senior Counsel for V.P. Sengottuvel, Advocate.
Fairness and an open mind are essential in show-cause proceedings, and a show cause notice must provide a genuine opportunity for the party to respond to the allegations.
Headnote:
Golf Course Lease - Land Lease - G.O.Ms.No.33, Revenue Department - Summary of Acts and Sections: G.O.Ms.No.33, Revenue Department, dated 23.01.2009 - The judgment discusses the lease of land for a golf course, including the conditions, lease rent, and the constitution of land management committees. The court analyzes the impugned letter dated 26.09.2012, which directed the Club and the Federation to show cause as to why the joint lease granted to them should not be cancelled. The court examines the violation of lease conditions and the requirement of the lease land by the Sports Development Authority of Tamil Nadu for public purpose. The judgment also refers to the ORYX FISHERIES PRIVATE LIMITED VS. UNION OF INDIA AND OTHERS [2010 (13) SCC 427] judgment to emphasize the need for fairness and an open mind in show-cause proceedings.
Fact of the Case:
The Club and the Federation were granted a joint lease for a golf course, but the Government issued a show cause notice to cancel the lease due to alleged violations of lease conditions and the need for the land for public purposes. The Club and the Federation challenged the show cause notice, arguing that it was not a genuine opportunity to respond as the Government had already predetermined the issue.
Finding of the Court:
The court found that the impugned letter was not a genuine show cause notice but a predetermined decision to resume the lands, rendering the show cause notice an idle formality. The court quashed the impugned letter and allowed the writ petitions, providing the Government with the liberty to issue a fresh notice to the parties.
Issues: The main issue was whether the show cause notice issued by the Government was a genuine opportunity for the Club and the Federation to respond to the alleged violations of lease conditions and the proposed cancellation of the lease.
Ratio Decidendi: The court emphasized the need for fairness and an open mind in show-cause proceedings, citing the ORYX FISHERIES PRIVATE LIMITED VS. UNION OF INDIA AND OTHERS [2010 (13) SCC 427] judgment. It held that the impugned letter was not a genuine show cause notice and quashed the same, allowing the Government to issue a fresh notice.
Final Decision: The court quashed the impugned letter and allowed the writ petitions, providing the Government with the liberty to issue a fresh notice to the parties.
1. The petitioner in W.P.No.27167 of 2012 is Cosmopolitan Club (Shortly ‘the Club’). The petitioner in W.P.No.27168 of 2012 is the Tamil Nadu Golf Federation (Shortly ‘the Federation’).
2. The Club was established in 1930’s. It was initially given license in the year 1933 to an extent of 65.09 acres of land for the purpose of Golf course. During 1935, the Club was given license to another extent of 12.61 acres of land for the purpose of Golf course. In 1956, the license was converted as lease for 10 years, that is, upto 1966. In 1966, the same was extended for 30 years, that is upto 1996. After 1996, the lease was not renewed and there was certain litigation.
3. Ultimately, a joint lease was granted to the Club and the Federation vide G.O. Ms. No. 138, Revenue Department, dated 24.03.2001. However, the same was cancelled vide G.O.Ms.No.282, Revenue Department, 28.06.2002.
4. Both the Club and the Federation challenged the said order in G.O.Ms.No.282 before this Court.
5. While so, G.O.Ms.No.282 was withdrawn and a fresh order was issued vide G.O.Ms.No.33, Revenue Department, dated 23.01.2009, granting joint lease to the Club and Federation, for a period of 30 years, from 01.07.1996 to 30.06.2026. The leased out area is 80 acres. The lease rent was fixed at a minimum of Rs.1 Crore per annum, for the period from 01.07.1996 to 23.03.2001 and for the period from 24.03.2001 to 30.06.2026, the lease rent was fixed at a minimum of Rs.1.5 Crores per annum. By the said Government Order in G.O.Ms.No.33, two Bipartite Land Management Committees were constituted.
6. The Club challenged some of the conditions imposed in the Government Order in G.O.Ms.No.33, particularly the increase in the lease rent and the constitution of two Bipartite Committees and the matter was taken up to the Honourable Supreme Court. However, the Club lost the litigation and G.O.Ms.No.33 was upheld. Ultimately, the Club has paid the lease rent.
7. While so, the impugned letter dated 26.09.2012 was issued by the Principal Secretary to Revenue Department of the Tamil Nadu Government directing the Club and the Federation to show cause as to why the joint lease granted in favour of them shall not be cancelled. It is alleged that the petitioners violated the conditions of lease. It is also stated therein that the Government decided to resume the leased out land for alienating the same to the Sports Development Authority of Tamil Nadu. Challenging the same, the present writ petitions are filed.
8. The respondents filed Counter affidavits questioning the maintainability of these writ petitions. It is stated therein that the impugned letters are merely a show cause notice and thus, the writ petitions are not maintainable. Later, a detailed counter affidavit is filed, on merits.
9. Heard the submissions made on either side.
10. The Club approached the Government of Madras State during the year 1933 itself to allot them lands at Mambalam Guindy Taluk to develop the Golf Course. Accordingly, the Club was allotted lands to an extent of 65.09 acres as early as in the year 1933, by the then Government of Madras State, and a license was also issued. Subsequently, the Club was granted license for another extent of 12.61 acres in the year 1935. Later, the license was converted as lease in the year 1956 and the lease period was extended till 30.06.1966, vide G.O.Ms.No.4696, Revenue Department, dated 27.12.1956 and the lease rent was fixed at Rs.15/- per acre, per annum. That is, the lease rent per annum for the entire extent of 77.37 acres of land is Rs.1160.55. When the lease period came to end on 30.06.1966, the same was renewed for a period of 30 years, from 01.07.1966 to 30.06.1996 vide G.O.Ms.No.3189, Revenue Department, dated 09.11.1966 and the lease rent was fixed at Rs.5,800/-per annum for the entire extent of 77.37 acres of land. Even before the lease period came to end on 30.06.1996, the Club requested the Government to renew the lease.
11. When the request of
