The court emphasized that the Cochin Devaswom Board has a fiduciary duty to manage its properties to generate proper income, necessitating public auctions for event permissions.

ORDER

Anil K. Narendran, J.

The Cochin Devaswom Board has filed this application seeking permission to rent out the stalls/pavilions erected pursuant to the permission granted by this Court in Annexure A1 order dated 29.07.2022 in DBP No.31 of 2022, for conducting exhibition/trade fair during Christmas/New year, as sought for in Annexure A2 order dated 07.11.2022 of the Board.

2. DBP No.31 of 2022 was one registered based on CDB Report No.18 of 2022 in Petition No.3 of 2022 of the learned Ombudsman for Travancore and Cochin Devaswom Boards. The Board filed Petition No.3 of 2022 before the learned Ombudsman, seeking permission to conduct exhibitions and trade fairs in Thrissur Pooram Exhibition Ground in Thekkinkad Maidan, during the period other than Thrissur Pooram exhibition. That DBP was disposed of by Annexure A1 order dated 29.07.2022 [Cochin Devaswom Board v. Deputy Director, Kerala State audit Department- 2022 SCC OnLine Ker

4050]. Paragraphs 23 to 30 of that order read thus;

“23. InT.Krishnakumar v. Cochin Devaswom Board and others [2022 SCC OnLine Ker. 3700], a Division Bench of this Court, in which both of us were parties, held that in view of the law laid down by this Court inAbu K.S. v. Travancore Devaswom Board and others [2022 SCC OnLine Ker 1642], relying on the decision of the Apex Court inM.V. Ramasubbiar v. Manicka Narasimachara [ (1979) 2 SCC 65 ], while leasing out the buildings owned by the Devaswoms, the Cochin Devaswom Board and its officials have to ensure that proper income is generated from the said buildings. In such transactions, the Board and its officials have to show reasonable diligence in the manner of an ordinary prudent man of business to conduct his own affairs. The action of the Board as a trustee cannot be equated to that of mere landlord. The best interest of the Devaswoms under the control of the Board would be subserved only if income is generated.

24. In T.Krishnakumar [2022 SCC OnLine Ker. 3700], the Division Bench noticed that the major source of revenue of the 1st respondent Board is the income received by way of offering by the devotees, the amount received from Vazhipadu and the revenue generated through the auction of temple premises for various activities in connection with rituals and festivals in the temples and also the rental income generated from the buildings owned by the respective Devaswoms. Therefore, while dealing with the buildings owned by the Devaswoms, the 1st respondent Board and its officials have to ensure that proper income is generated from the said building. In such transactions, the Board and its officials have to show reasonable diligence in the manner of an ordinary prudent man of business to conduct his own affairs, by ensuring that the lease rental or licence fee of the buildings owned by the Devaswoms is not lower than the prevailing market rent. The action of the Board in demanding lease rental or licence fee for the buildings owned by the Devaswoms taking into consideration the prevailing market rent cannot be termed as an action of the Board demanding exhorbitant or rack-rent, since, while leasing out the buildings owned by the Devaswoms, the Board and its officials have to ensure that proper income is generated from the said buildings. Any default committed by the tenant or licensee of the buildings owned by the Devaswoms in payment of the monthly rent or licence fee, electricity charges, water charges, statutory dues, etc. has to be dealt with appropriately, so also the use of the building for another purpose or making material alteration or addition to the building. In view of the provisions under Section 73A of the Act, the 1st respondent Board is duty bound to monitor whether its administrative staff and employees in the Maramath wing are functioning properly, by taking prompt action against any such default or violation of the terms and conditions of the lease deed or the licence deed.

25. The fact that the Cochin Devaswom Board is facing acute fina