IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Sanjaya Kumar Mishra, J.
Rajeev Lochan Shah - Petitioner
Versus
State of Uttarakhand & Others - Respondents
Writ Petition (MS) No. 1424 of 2021
Decided On : 13-02-2023
Disaster Management Act 2005 - Requisition of Property - Sections 65, 66
Fact of the Case:
The petitioner's hotel was requisitioned by the District Administration under the Disaster Management Act 2005 and Epidemic Disease Act 1897. The petitioner sought payment for the requisitioned rooms, but the authorities denied the payment on the grounds that the hotel was not used for quarantine or isolation.
Finding of the Court:
The court found that the petitioner was entitled to compensation for the requisitioned premises as per Section 66 of the Disaster Management Act 2005, despite the non-usage of the hotel for quarantine or isolation purposes.
Issues: The key issue was whether the petitioner was entitled to compensation for the requisitioned premises, considering the non-usage of the hotel for quarantine or isolation.
Ratio Decidendi: The court held that the District Administration had the authority to requisition the property under Section 65 of the Act, and the petitioner was entitled to compensation as per Section 66, regardless of the actual usage of the premises.
Final Decision: The writ application was allowed, and the court directed the respondent to pay the petitioner the claimed amount along with interest.
JUDGMENT :
Sanjaya Kumar Mishra, J.
Upon hearing the learned counsel for the parties, the Court has passed the following judgment:-
By filing this writ application, the petitioner has prayed for the following reliefs:-
“I. To issue a writ order or direction in the nature of certiorati to quash the impugned order/communication dated 05.07.2021, passed by the respondent no. 3, whereby payment is denied to the petitioner which is required to be paid as a result of acquisition of 30 rooms of the petitioner's hotel, along with staff.
II. To issue a writ order or direction in the nature of mandamus directing the respondents to pay a sum of rupees Rs. 12,25,500/- as dues towards the payment of acquisition of 30 rooms, for 43 days, of the petitioner’s hotel along with hotel staff, further to direct the respondents to pay an interest @18% per annum on the above said amount from the date of its being due (i.e. 08.06.2021) till its final payment.”
2. The facts of the case are not disputed at this stage and it can be chronologically described as follows :-
(i). On 26.04.2021, the petitioner’s hotel, namely, Ashok Hotel, situated in Tallital, Nainital, was requisitioned by the order of respondent no.2, i.e., District Magistrate, Nainital, under the Disaster Management Act 2005 and Epidemic Disease Act 1897. On 01.06.2021, the petitioner submitted a representation before respondent no.3 and Chief Medical Officer Nainital, requesting them to release his hotel because due to decrease in the Covid-19 cases even the Government facility (TRC Mallital) was almost vacant and in such circumstances continuing with the requisition of the petitioner's hotel will lead to unnecessary burdon on the state exchequer. He further demanded a sum of Rs 10,26,000/- for the dues towards 39 days of acquisition of 30 rooms of the petitioner's hotel. On 03.06.2021, in consideration of the request for releasing the hotel of the petitioner, respondent no. 3 passed an order on 03.06.2021, the same was received to the petitioner on 08.06.2021.
(ii) On 11.06.2021, the petitioner moved a representation, before respondent no.3 along with respondent no.2 and Chief Medical Officer, Nainital for releasing Rs.12,25,500/- raising a bill for requisition, of the petitioner's hotel, for 43 days at the rate of Rs. 950/- for per room per day from 26.04.2021 to 07.06.2021.
(iii) On 02.07.2021 he moved another representation, before respondent no. 3 along with respondent no. 2 and Chief Medical Officer, District Nainital. However, no amounts were paid to the petitioner. On 05.07.2021, the petitioner sought information under the Right to Information Act, 2005 from respondent no. 2 on the action taken on his representation. Respondent no. 3, on 05.06.2021, communicated the petitioner that the demand of Rs. 12,25,500/- has been rejected as no Covid-19 infected person were kept in the requisitioned rooms of the petitioner's hotel and the payment for aforesaid period of acquisition could not be made. On 28.10.2020, the respondents were again approached, but they did not pay any amount to the petitioner.
(iv) On 23.07.2021, the writ petition has been filed.
3. A counter affidavit has been filed by respondent nos. 2 and 3. In paragraph no. 5, the respondents state that in view of the Covid-19 Pandemic situation and in order to check and control its spread, vide office order dated 26-04-2020 issued by respondent no. 2 i.e. District Magistrate, Nainital, as per the provisions of Government Order No. 319/USDMA-792 (2020) TC dated 29-3-2020, Ashoka Hotel Tallital, Nainital, with its staff was occupied by the District administration of Nainital District. As per point no. 2 of the said G.O. dated 29-3-2020 for providing quarantine & isolation accommodation facility for Covid positive patients at the fixed rate of Rs. 950/- per room per day was provisioned. It is further pleaded that, as per point no. 3 of the said G.O., for providing meals to the covid positive patients a maximum amount up to a limit of R
AI
The court established that the requisition of property under the Disaster Management Act 2005 entitles the affected party to compensation as per Section 66, irrespective of the actual usage of the pr....
Compensation for requisitioned premises under the Disaster Management Act cannot be limited by Executive Orders, and must reflect actual rent for the entire duration of requisition.
The court highlighted the importance of allowing the petitioners to pursue the compensation dispute and ensuring their request for an arbitrator is not rejected based on limitation.
The court allowed banquet owners to seek compensation under Section 66 of the Disaster Management Act for the requisition of their premises and directed expedited processing of compensation applicati....
The court affirmed that under Section 66 of the Disaster Management Act, officers must determine compensation for requisitioned properties, irrespective of an application by property owners.
The requisitioning of accommodation for government employees is deemed a public purpose and the courts are limited in scrutinizing such administrative actions.
The petitioner must be afforded a hearing before rent fixation for requisitioned property and can seek compensation under the Disaster Management Act.
Emergency authorities are mandated to compensate for property used during crises, regardless of compliance with construction regulations, affirming property rights under constitutional law.
The court mandated adherence to procedural fairness by the Bill Verification Committee when assessing claims for payment regarding the accommodation provided to political protectees.
Requisition must be temporary; indefinite requisition for over 25 years violates property rights and is a misuse of power, necessitating prompt acquisition actions.
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