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2022 Supreme(Online)(KER) 50495
HIGH COURT OF KERALA
ANIL K. NARENDRAN, P. G. Ajithkumar, JJ
BINOJ P.M. – Appellant
Versus
COCHIN DEVASWOM BOARD – Respondent
WP(C)/31039/2019
S.SUJIN, SRI. K.P.SUDHEER, SC, COCHIN DEVASWOM BOARD, SRI N.N.SUGUNAPALAN (SR ) FOR PETITIONER
Trustees must ensure rental rates reflect market values for properties under their management to fulfill their fiduciary duties.
Headnote:
Lease - Tenancy Rights - Kerala Stamp Act, 1959; Constitution of India, Article 226 - The court affirmed the legality of a circular related to periodic rent revision and emphasized the duty of trustees to ensure lease agreements reflect market rates.
Fact of the Case:
Petitioners sought to quash a circular from the Cochin Devaswom Board regarding lease amendments and challenge periodic rental increases, while asserting their tenancy rights in shopping complexes owned by the Board.
Finding of the Court:
The court upheld the circular issued by the Cochin Devaswom Board, ruling that it was valid and necessary for ensuring realistic rents based on market conditions. It dismissed claims of wrongful imposition from the petitioners.
Issues: The primary issue was whether the circular mandating periodic rent increases was lawful and if the petitioners could challenge these increases under Article 226.
Ratio Decidendi: The court emphasized that trustees have a fiduciary responsibility to ensure property income aligns with market rates, ruling that the Cochin Devaswom Board's approach was justified under its duty to manage property effectively.
Final Decision: The writ petitions were dismissed, allowing the circular to stand as lawful.
JUDGMENT
Anil K. Narendran, J.
Since common issue is involved, these writ petitions are heard together and are being disposed of by this common judgment.
2. W.P.(C)No.31039 of 2019:- The petitioners, who are in occupation of shop rooms in Shiva Sakthi Building and Kailasom Shopping Complex owned by the 1st respondent Cochin Devaswom Board, which are situated in Thrissur District, have filed this writ petition under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P1 circular dated 31.08.2019 issued by the 1st respondent Cochin Devaswom Board, which deals with the amendments made to the existing by-laws for granting/ renewing lease/licence in respect of shop rooms owned by the Devaswom Board, with effect from 01.08.2019. The petitioners have also sought for a writ of mandamus commanding respondents not to revise the rent of the shop rooms periodically, i.e., every year.
2.1. On 18.11.2019, when this writ petition came up for admission, the learned Standing Counsel for Cochin Devaswom Board sought time to get instructions.
2.2. The respondents have filed a counter affidavit dated 05.12.2019, opposing the relief sought for in this writ petition. In the counter affidavit, it is pointed out that, Ext.P1 circular dated 31.08.2019 was issued by the Board, in terms of Ext.R1(A) audit notes of the Deputy Director, Kerala State Audit, on rent collection of Cochin Devaswom Board for the year 2017-18. In the said audit notes, it is pointed out that the three major shopping complexes of the Cochin Devaswom Board in Thrissur District, namely, Vadakkumnathan Shopping Complex, Shiva Sakthi Building and East Pallithanam Shopping Complex are situated in the heart of Thrissur city. The State Audit repeatedly reported that the rent fixed in respect of the above buildings are not realistic and is not based on the land value and commercial importance of the area. Alteration and subletting of rooms in the Devaswom Shopping Complexes are not uncommon. The Vigilance Wing of the Board has also reported the same by submitting a detailed enquiry report. It was after considering all these materials, Ext.P1 circular was issued by the Board, which has already been implemented and agreements executed in respect of shopping complexes at Chottanikkara, Kodungallur, Thriprayar, Srinagapuram, etc. All the tenants are fully aware that they are paying a lesser amount as rent, compared to other buildings in the city. The 2nd, 27th and 68th petitioners have already paid rent in the enhanced rate. Paragraphs 3 to 7 of the counter affidavit dated 05.12.2019 read thus;
“3. At the outset, it is respectfully submitted that the writ petition is not maintainable either in law or on facts. The writ petitioners claims to be the tenants under the Cochin Devaswom Board and they are challenging Ext.P1 circular dated 31.08.2019 issued by the Board. It is submitted that the said circular was issued by the Board in terms of the report of the Deputy Director, Kerala State Audit, CDB audit, Thrissur. In this regard, true copy of the relevant pages of the audit notes on the rent collection of Cochin Devaswom Board for the year 2017-18 is produced here with and marked as Ext.R1 (A). A perusal of the said report would show that the three major shopping complexes of CDB in Thrissur town namely Wadakkumnathan Shopping Complex, Shiva Shakti building and East Pallithamam Shopping Complex are situated in the heart of Thrissur city. The audit repeatedly reported that the rent fixed in these buildings are not realistic and is not based on the land value and commercial importance of these areas. It was also reported that alteration and subletting of devaswom rooms are not uncommon and is not being acted upon in time. The Vigilance Wing of CDB has also reported the same and submitted a detailed enquiry report. It is considering all these matters, Ext.P1 circular was issued by the Board. Ext.P1 circular was implemented in CDB and agreements were executed in the sho
