Administrative authorities must consider and pass reasoned orders on representations for waiving rent liabilities during a mandated pandemic shutdown before enforcing demand notices for payment.

Order

This writ petition has been filed challenging the impugned demand Notice dated 13.10.2022 vide No.FHMC3/ 5504 / 06/ E for Plot No.52 and the demand notice vide FHMC3/ 164/ 2011/E dated 20.10.2022 for Plot No.54 and 55 in Fishing Harbour units and seeking for a direction to the respondents to waive the rent claim during the Pandemic period Lockdown and also not to demand penal interest on the arrears.

2.Learned counsel for the petitioner would submit that the petitioner is running an ice manufacturing unit on plots allotted within the Chennai Fishing Harbour area, which is situated within the Chennai Port Trust area administered under the Major Port Trust Act 1973. The petitioner has been running the ice manufacturing unit since 1987, the purpose of which is to supply ice blocks to the fishing community at concessional rates, in furtherance of the Government's policy of promoting fishing activities.

3.He would further submit that during the COVID-19 pandemic commencing February 2020, the 2^nd respondent shut down the entire Fishing Harbour activities, bringing all operations to a complete halt. Despite the total ban on activities during the lockdown period, the 2^nd respondent demanded rent for the said period and further imposed penal interest on arrears, without granting any waiver even though the Union Government had announced a six- month relief and further extensions were pending consideration. The petitioner made repeated representations both orally and in writing to the respondents seeking waiver of rent liabilities for the pandemic period, but received no response. Subsequently, the 1^st respondent issued impugned demand notices dated 13.10.2022 and 20.10.2022 claiming sums of Rs.4,39,860/-, Rs.4,89,430/- and Rs.4,02,058/- in respect of plots No. 52, 54 and 55 respectively, including rent for the lockdown period and penal interest thereon. Hence, the present writ petition has been filed.

4.Learned counsel appearing for the respondents 1 and 2 would submit that the lockdown was announced due to Covid-19 pandemic during the year 2020-2021. However, the petitioner is now seeking for waiver of license fee from June 2020 to September 2022. Whereas, the representation has been made by the petitioner seeking waiver rent liabilities for the year 2020-2021.

5.Considering the submissions made by the learned counsel for the petitioner as well as the learned counsel appearing for the respondents 1 and 2, it is evident that there is no dispute regarding the shutdown of factory due to the Covid-19 Pandemic in the year 2020-2021. During such period the petitioner was restrained from carrying on the work and there was a complete shutdown. Therefore the petitioner sought for waiver of rental liabilities and the license fee. It is for the respondents to decide whether to grant the waiver or not. Such being the case though the petitioner made representation before various authority for waiver of rental liabilities and license fee, without passing any order on the petitioner's representation, the 1^st respondent has issued the impugned demand notices dated 13.10.2022 and 20.10.2022. Under such circumstance, this Court is of the view that it would be proper to issue a direction to dispose of the petitioner's representation for waiver of rental liabilities and license fee for the year 2020 – 2021.

6.Accordingly, concerned respondent is directed to dispose of the petitioner’s representation for waiver of rental liabilities and license fee during the Covid-19 Pandemic period, after affording an opportunity to the petitioner, within a period of twelve (12) weeks from the date of receipt of a copy of this order. Till such time, the parties are directed to maintain status quo. It is made clear that the petitioner has to pay the rent for the year except 2020-2021, till the de