Scheduled Caste and Tribe Tenants Granted Rent Relief, Municipality Ordered to Reconsider Rent Calculation

Background

The petitioners, who belong to Scheduled Caste and Scheduled Tribe , are occupants of shop rooms in a Shopping Complex owned by the 2nd respondent municipality. They have approached the court seeking a direction to the municipality to fix the rent for their rooms in accordance with the circulars issued by the Local Self-Government Department of the 1st respondent government.

Arguments

The petitioners argued that the municipality's Ext.P18 order, which set the rent, was passed without giving them a hearing and without considering the government's Exts.P1 and P2 circulars. The municipality, on the other hand, submitted that the petitioners have been occupying the rooms without paying any rent or license fee, and that they have substantial outstanding rent as per the Ext.P12 series of notices.

Court's Analysis and Reasoning

The court found that the petitioners do not dispute their liability to pay rent, but their contention is only with respect to the calculation of rent as per the government's circulars. The court noted that the petitioners cannot be allowed to keep the rent defaulted on account of this. However, the court also acknowledged the petitioners' inability to clear the outstanding rent in a lump sum.

Decision

The court disposed of the writ petition by setting aside the municipality's Ext.P18 order, on the condition that the petitioners shall clear the arrears of rent at half the rate calculated in the respective Ext.P12 series and similar notices, within three months. The municipality is then directed to reconsider the matter afresh, taking note of the government's Exts.P1 and P2 circulars, and hear the petitioners within a further period of two months. If the petitioners do not clear the half of the outstanding rent as directed, the Ext.P18 order shall stand confirmed. The petitioners shall continue to pay the rent at half the rate in the respective Ext.P12 series and similar notices until a decision is taken by the municipality.