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2022 Supreme(Online)(KER) 64622

HIGH COURT OF KERALA
P.V.KUNHIKRISHNAN, J
KAMALNATH G.SHENOY – Appellant
Versus
KERALA STATE HOUSING BOARD – Respondent
WP(C) 31351/2010



Advocates:
DINESH R.SHENOY, R.PRASANTH KUMAR, R.SUDHIR SHENOI, SHRI.K.DENNY DEVASSY, SC, K.S.H.B., MANOJ RAMASWAMY, SMT.VIDYA KURIAKOSE, GOVERNMENT PLEADER

A lease agreement must be executed for rent to be collectible; without it, claims for rent are invalid.

Headnote:(A) Housing Board Act, 1971 - Section 86(2) and 86(3) - Writ petition challenging orders for payment of rent and interest - Petitioner vacated premises but was charged for unauthorized occupation - Court found no lease agreement executed for godown, thus no rent due - Petitioner directed to pay Rs.17,807/- after adjusting refundable amounts. (Paras 2, 8, 9)

(B) Natural Justice - Principles of natural justice must be adhered to in administrative proceedings, including the right to a personal hearing. (Paras 6, 8)

Facts of the case:
The petitioner leased a shop room but vacated due to business failure. Disputes arose over unpaid rent and a godown lease that was never executed. The petitioner claimed no rent was due for the godown as possession was never handed over.

Findings of Court:
The court found that the Housing Board had no authority to collect rent for the godown as no lease was executed, and directed the refund of the security deposit and advance rent.

Issues: The main issues were whether the petitioner was liable for rent for the godown and the validity of the Housing Board's claims.

Ratio Decidendi: The court ruled that without an executed lease agreement, the Housing Board could not demand rent for the godown, emphasizing adherence to natural justice principles.

Result: Writ petition allowed; petitioner to pay Rs.17,807/- and receive a refund of Rs.1,40,000/-.

JUDGMENT

The above writ petition is filed with following prayers:

“a) A writ of certiorari or any other appropriate writ, order or direction quashing Exhibit P10 order dated 21/11/2009 issued by the 3 rd respondent and Exhibit P9 order issued by the 2 nd respondent.

b) A writ of certiorari quashing Exhibit P13 requisition issued by the 2 nd respondent.

c) Grant such other reliefs as are deemed fit and proper in the facts and circumstances of the case.”

2. The petitioner had taken a shop room in the Housing Board building on lease from the 1 st respondent during June 1997 for a monthly rent of Rs.17,340/- (Rupees Seventeen thousand three hundred and forty only). It is the case of the petitioner that, on account of business failure, the petitioner vacated the room in May, 2002. But the 1 st respondent received back the keys from the petitioner only in November, 2002. While this lease transaction was in force, the petitioner had submitted an application for taking on lease a godown in the Guest House shopping complex of the 1 st respondent on 18.09.1998. The 1 st respondent issued a letter dated 29.04.1999 expressing willingness to lease the premises to the petitioner for a total rent of Rs.7,488/- per month.

Ext.P1 is the letter issued by the Regional Engineer of the respondents. As per Exhibit P1, the petitioner was directed to remit an amount of Rs.44,928/- as security along with one month's rent in advance immediately and it was informed that the lease agreement would be forwarded to the petitioner only after remittance of the said amount. It is the case of the petitioner that the petitioner remitted the said amount of Rs.44,928/- + 7,488/-(one month rent), i.e Rs.52,416/- as directed in Exhibit P1 by pay order dated 10.05.1999, of Lord Krishna Bank, Ernakulam. It is the further case of the petitioner that, though the security deposit and advance rent was paid, the 1 st respondent did not hand over the possession of the premises, stating that this could be done only after execution of the lease deed. Subsequently, the 1 st respondent forwarded a draft of the lease deed to be executed on stamp paper. It is stated by the petitioner in the writ petition that, to his surprise, it was found containing some terms which are most adverse to the lessee and therefore the petitioner did not execute the lease deed. He requested the 1 st respondent to change the terms. Nothing was done for a long period except to keep on asking for rent for the premises which was never handed over to the petitioner, submitted by the petitioner. The petitioner refused to pay the rent because the possession of the building was not given to the petitioner and no agreement was executed. Thereafter, the competent ofÏcer of the 1 st respondent issued a proceeding dated 14.11.2000 purporting to cancel the sanction order accorded for lease of the shop room and godown in favour of the petitioner. Ext.P2 is the letter dated 14.11.2000. The petitioner thereafter requested that his advance rent and the security deposit may be returned to him. But that request was turned down by the respondents.

Subsequently, after several communications, the 2 nd respondent issued a notice purported to be under Section 86 (3) of the Housing Board Act, 1971 (for short 'the Act') which was received by the petitioner on 06.03.2003, directing the petitioner to pay a sum of Rs.2,46,675/- together with interest at 18% per annum from 01.01.2002. Ext.P3 is the notice in which it is stated that the petitioner was in unauthorised occupation of the Board's premises and thereby the Board had sustained damages to the tune ofRs.2,46,675/- and the petitioner was directed to show cause as to why an order confirming Exhibit P3 should not be issued. The petitioner issued a reply to Ext.P3 through his counsel as evident by Ext.P4. This was received by the 2 nd respondent on 20.03.2003 itself.

Ext.P5 is the postal acknowledgment card. The petitioner pointed out that the amount due in respect of the shop room i

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