The court upheld the Tamil Nadu Housing Board's decision to enhance the rent based on government orders and the condition of the buildings, considering a previous judgment on a similar issue.

JUDGMENT

(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, calling for the records relating to the Circular No. Va.Va.P.1/17484/2018, dated 29.07.2020 issued by the 1st respondent and quash the same. Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, calling for the records relating to the Circular No. Va.Va.P.1/17484/2018, dated 24.01.2020 issued by the 1st respondent and quash the same.)

COMMON ORDER

1. The circular issued by the Tamil Nadu Housing Board dated 29.07.2020 and 24.01.2020 are under challenge in these writ proceedings.

2. The 1st petitioner is the Association of the residents and the 2nd petitioner is a resident of Housing Board Flat No.J-15, MIG Block, Foreshore Estate, Chennai – 600 028.

3. These writ proceedings are initiated challenging the enhancement of the rent made by the Tamil Nadu Housing Board to its tenants residing in the Tamil Nadu Housing Board apartments situated at Foreshore Estate, Chennai – 600 028.

4. The contentions of the petitioners are that the Government has passed an order in G.O.Ms.No.69 of 2010 and the respondents / Tamil Nadu Housing Board passed a resolution on 30.10.2009, enhanced the rent at the rate of 10% every year. The State Government reduced the said enhancement from 10% to 5% per annum. Accordingly, the enhancement per year from 2019 stood as Rs.4.88/- per Sq.ft. While so, the Tamil Nadu Housing Board passed a resolution followed by the Circular dated 24.01.2020 enhancing the rent on par with the Government employees staying in the Tamil Nadu Housing Board flats at Rs.7.31 per Sq.ft. and another 60% of the value, which is 150% more than the existing rate. The said circular came to be challenged in these writ petitions.

5. The learned counsel for the petitioners made a submission that the enhancement was exorbitant and more than 100% which is arbitrary. The enhancement made through the impugned Circular is running counter to the earlier resolution passed by the Tamil Nadu Housing Board and the Government. It is contended that the 'State' cannot arbitrarily enhance the rent, which is in violation of the judgment of the Hon'ble Supreme Court of India. No opportunity to the tenants residing in the Tamil Nadu Housing Board apartments were provided and therefore, the impugned enhancement is in violation of the principles of natural justice. The enhancement of rent applicable to the Government employee as per the G.O.Ms.No.118, cannot be applied to the general public, who all are in occupation of the Tamil Nadu Housing Board flats. General public from various categories are in occupation of the Tamil Nadu Housing Board buildings and enhancing the rent on par with Government employees would cause prejudice to the interest of the in tenants in occupation of the Tamil Nadu Housing Board building.

6. The respondents objecting the contentions raised by the petitioners have stated that Circulars dated 24.01.2020 and 29.07.2020 was issued by the respondents based on the Government order issued in G.O.Ms.No.118 dated 04.07.2017. Separate notices have been issued to various allottees and the enhancement of rent was made pursuant to the policy decision taken. The Circulars which are impugned in these writ petitions are internal circulars and therefore, writs are not maintainable.

7. The learned Standing Counsel appearing on behalf of the respondents/Tamil Nadu Housing Board urged this Court by stating that the 1 st petitioner is an Association and hence, these writ petitions are not maintainable. It is an individual cause, since it is a contractual obligation between the Tamil Nadu Housing Board and the occupants. The allotments are made to the individuals and rents are fixed as per the area leased out and therefore, the Association filing a writ petition is not maintainable. Enh