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2025 Supreme(Online)(Mad) 71270

IN THE HIGH COURT OF JUDICATURE AT MADRAS
HONOURABLE MR. JUSTICE B.PUGALENDHI
Balasubramanian N – Appellant
Versus
The Joint Commissioner – Respondent
WP(MD)No.35099 of 2025|WP(MD)No.35100 of 2025|WP(MD)No.35101 of 2025|WP(MD)No.35102 of 2025|WP(MD)No.35103 of 2025|WP(MD)No.35104 of 2025



Advocates:
For the Appellants/Petitioners: B.Vijayakarthikeyan
For the Respondents: K.Balasubramanian

Fixation of fair rent under Section 34-A of the Tamil Nadu HR&CE Act requires prior notice to the lessee with all particulars (market value, PWD report, Registrar's report) to ensure natural justice.

Headnote:(A) Tamil Nadu Hindu Religious and Endowments Act, 1959 - Section 34-A - Religious Institutions (Lease of Immovable Property) Rules, 1963 - Rule 17 - Fixation of fair rent - Principles of natural justice - Requirement of prior notice with full particulars before revision of rent. (Paras 8-11)

(B) Natural justice - Notice to lessee must include all factors and details taken into account for fixing or revising fair rent, such as market value, PWD report, and Registrar's report - Mere calculation sheet without supporting data is insufficient - Lessee must be afforded meaningful opportunity to object. (Paras 10-12)

Facts of the case:
The petitioners, lessees of a temple since 2001, challenged the fixation of fair rent for their shops, alleging that the rent was increased by 300% without providing an opportunity of hearing. The respondents contended that notice was issued and objections considered, and that the fixation followed Section 34-A and Rule 17. However, the notice issued on 09.08.2025 enclosed only a calculation sheet, and the committee had already made calculations before the decision. The court examined the proceedings and the Division Bench precedent.

Findings of Court:
The court held that the committee can fix fair rent only after issuing a notice informing the lessee of all factors/details taken into account for revision. The earlier notice was insufficient as it did not provide the market value data, PWD report, or Registrar's report. The impugned order was in violation of natural justice and set aside.

Issues: The main issue was whether the fixation of fair rent by the temple authorities violated principles of natural justice by not providing the lessee with adequate notice and opportunity.

Ratio Decidendi: The court ruled that before fixing fair rent under Section 34-A and Rule 17, the committee must issue a notice containing all the particulars (market value, PWD cost, Registrar's report) on which the proposed revision is based, enabling the lessee to offer a meaningful explanation. Failure to do so renders the fixation arbitrary and unsustainable. Result : Writ petitions allowed. Impugned order set aside. Matter remitted to respondents for fresh consideration with directions to issue fresh notice with full details, receive objections, and then fix fair rent as per law. No costs. Connected miscellaneous petitions closed. (Para 13)

Legal Category Hierarchy

  • administrative law
    • principles of natural justice
      • right to be heard (Para 10, 11, 12)
      • notice of material facts (Para 10, 11)
  • property law
    • lease of immovable property
      • fair rent fixation (Para 7, 8, 9)
      • periodic revision of rent (Para 9)
  • religious endowments
    • tamil nadu hindu religious and charitable endowments act, 1959
      • section 34-a (Para 8)
      • rule 17 of religious institutions (lease of immovable property) rules, 1963 (Para 9)
  • practice and procedure
    • writ proceedings
      • maintainability of writ petition (Para 5)
    • statutory remedies
      • appeal under section 34-a(3) (Para 8, 11)
      • revision to high court under section 34-a(5) (Para 8)

Table of Contents

1. Lessees of a temple challenged fixation of fair rent under Section 34-A of the Tamil Nadu HR&CE Act, alleging violation of principles of natural justice. (Para 7 )

2. Petitioners argued violation of natural justice as no opportunity was provided; respondents contended fair rent was fixed following statutory procedure and notice was given. (Para 3 , 4 , 5 )

3. Writ petitions allowed; impugned order set aside; matter remitted for fresh consideration with directions to provide opportunity and follow procedure. (Para 12 )

4. What is the requirement of natural justice before fixing fair rent under Section 34-A of the Tamil Nadu HR&CE Act?

The lessee must be put on notice of all factors and details taken into account for revising the fair rent, including market value and PWD reports, to enable effective objections. (Para 10 , 11 , 12 )

5. Is the order fixing fair rent an administrative order or does it involve adjudication of civil rights?

The order fixing fair rent involves adjudication of civil rights, as the lessee is required to pay the rent fixed, and thus natural justice must be followed. (Para 11 )

6. Can the fair rent be fixed unilaterally by the committee without giving the lessee an opportunity to be heard?

No, the committee cannot fix fair rent unilaterally; it must issue notice with all relevant details and consider the lessee's objections before finalizing. (Para 10 , 11 , 12 )

7. What is the procedure for periodic revision of fair rent under Rule 17 of the Religious Institutions (Lease of Immovable Property) Rules, 1963?

Fair rent must be revised at least once every three years by a committee, based on market value of land and cost of building as per PWD Code. (Para 9 )

8. What is the effect of the proviso requiring deposit of lease rent before filing an appeal under Section 34-A?

The proviso requiring deposit does not eliminate the need for natural justice; the committee must still provide a fair hearing before fixing rent. (Para 11 )

ORDER

The petitioners are lessees of Arulmigu Muppidathi Amman Temple, Kadayanallur and they are running shops in the lands belonging to the temple. The petitioners have approached this court questioning the manner in which, the rent has been fixed for their shops vide the order impugned in these writ petitions.

2.The case of the petitioners is that they are lessees of the temple from the year 2001 and by the order impugned in these writ petitions, the respondents have fixed rent in an onerous manner by increasing 300%, instead of 15%. However, the grievance of the petitioner is that the impugned order has been passed without even providing an opportunity to the petitioners. In this regard the learned counsel has also relied on the order of the Division Bench of this court in WA.No.786 of 2022 , dated 01.08.2022.

3.Mr.Balasubramanian, learned Special Government Pleader takes notice for the respondents and submits that fair rent has been fixed by the respondents as provided under Section 34 of the Tamil Nadu Hindu Religious and Endowments Act and also by following the procedures as contemplated under Rule 17 of the Religious Institutions (Lease of Immovable Property) Rules, 1963. According to the learned Special Government Pleader, notice was issued to the petitioners and they have also submitted their objections. While so they cannot take a plea that they have not been provided opportunity and there is violation of principles of natural justice. He has also produced a copy of the notice and the explanation offered by the petitioners.

4.The learned Special Government Pleader has produced the proceedings of the committee consisting of the Executive Officer of the temple, the Assistant Executive Engineer, Assistant Divisional Engineer and the Joint Commissioner of HR & CE Department, the District Registrar of Registration Department. He further submits that there are seven shops and fair rent has been fixed to all the seven shops. One of the lessees has accepted the fair rent and has also paid the same, however, the petitioners are objecting to it.

5.He has referred to Rule 17 of the Religious Institutions (Lease of Immovable Property) Rules, 1963 and submits that fair rent shall be revised periodically once in a three years in accordance with the market value of the land and cost of the buildings as worked out as per the code of the Public Works Department. Therefore, according to him, there is no error in the impugned order. He has also referred to Sub Sections 3 and 5 of Section 34 of the Hindu Religious and Charitable Endowments Act and submits that if the petitioners are aggrieved by the impugned order, they are having appeal remedy before the Commissioner of HR and CE Department and however, the remedy is also provided by way of revision before the Court. Therefore, according to him these writ petitions are not maintainable.

6.This court has considered the rival submissions made and perused the materials placed on record.

7. The petitioners are lessees of Arulmigu Muppidathi Amman temple and they claim that they are continuing as lessees from the year 2001. By the order impugned in this writ petition, fair rent has been fixed by the respondent No.2. The ground on which the petitioners have challenged the fixation of fair rent is that before fixing fair rent, they have not been provided an opportunity.

8.The lease of public properties shall be made only by way of public auction. However, in this case the respondents are prepared to enhance the rent by fixing fair rent. Fixation of fair rent is guided by the provisions under Section 34 -A of the HR and CE Act as under:

“34-A. Fixation of lease rent.—The lease rent payable for the lease of immovable property belonging to, or given or endowed for the purpose of, any religious institution, shall be fixed by a Committee consisting of the Joint Commissioner, the Executive Officer or the Trustee or the Chairman of the Board of Trustees, as the case may be, of the religious institution and

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