TRIVANDRUM GOLF CLUB Vs. STATE OF KERALA

JUDGEMENT

(1.) The appeal is filed by the plaintiff in a suit for declaration that an order passed by the Government cancelling the licence agreement between the plaintiff and the Government is illegal, violative of the terms of the agreement and principles of natural justice, and hence null and void and unenforceable.

(2.) Plaintiff is a club namely "Trivandrum Golf Club" represented by its Secretary. The defendants in the suit are the Government and some public officials, with two of them sued in their individual capacity. In the suit, over and above seeking a decree of declaration as indicated above, the plaintiff has also asked for a decree of perpetual prohibitory injunction restraining the defendants from evicting the plaintiff from the plaint schedule property and interfering with or obstructing the plaintiff and its members from enjoying such property during the period specified under the licence agreement. An application for interim injunction identical to the perpetual prohibitory injunction sought for, till disposal of the suit, applied by the plaintiff, after hearing both sides, was dismissed by the court below, which, on the materials placed for the purpose of that interlocutory application, came to the conclusion that the plaintiff has not made out a case for the grant of such discretionary relief. Challenge in the appeal is against the order of the court below dismissing the application for interim injunction.

(3.) Plaintiff, namely, "Trivandrum Golf Club" is hereinafter referred to as the "Club". Subject matter of the litigation is a property having an extent of 25.38 acres of land in Peerorkada village situate at Kawdiar in the heart of Trivandrum city, which is described as the plaint property in the suit. Property originally belonged to the erstwhile Maharaja of Travancore, and pursuant to the accession of the princely state of Travancore with the Union, it became Government land. Admittedly, even long before the accession of the property as Government land, a golf course had been established in such property and was enjoyed by the members of the royal family. After accession of the land to the Government, in 1950, the management of the golf course was entrusted to the Trivandrum Golf Club, which then was an unregistered association, without any written arrangement. Later, after one or two orders passed by the Government with respect to the use of the golf course by the Club, an agreement was entered into between the Government and the Club. Ext.A3 is the copy of that agreement dated 24.6.1967. The Government is styled as the 'licensor' and the Trivandurm Golf Club, the 'licensee' in the agreement. The terms of the licence specified that the golf course and attached buildings shall continue to be maintained by the Public Works Department of the Government but the right of user will be with the licensee. Period of the licence was fixed as 99 years. Among other conditions directing the licensee to pay a sum of Rs. 40/- as fee for the user of the golf course and attached buildings, it was also stipulated that the licensor shall have the right to cancel the licence and resume the property at the expiry of 30 years giving the licensee two years notice. In the event of the licensee using the building and premises for any purpose other than for which it was given, it was provided that the licensor shall have the right to cancel the licence and resume the property at any time without notice. The terms of the licence stipulated that the property should not be used for any purpose other than for golf or other sports activities and other incidental social functions connected with sports. While the golf course and the buildings continued to be used by the Club under the licence agreement, complaints about the misuse of the property were levelled from several quarters, and the licensor, the Government initiated proceedings for cancelling the licence of the Club. Such complaints and proceedings taken by the Government have given rise to several rounds of litigations commencing as early from 1999 onwards, as evidenced from the judgments passed by this Court in previous cases, which have been produced and exhibited in the present interlocutory application giving rise to the order impugned in the appeal. A previous order passed by the Government terminating the licence was challenged by the Club and some of its members before this Court and that order was quashed under Ext.A13 common judgment rendered in the petitions holding that the order had been passed flouting the principles of natural justice as the ground on which cancellation was made was not stated in the show cause notice issued to the licensee. However, in Ext.A13 judgment, this Court also held that the Government has unfettered right under Ext.A3 deed to revoke the licence as embodied under Clause xi of that deed. The Government again, after giving notice afresh furnishing particulars of the violation of the terms of the agreement by the Club, cancelled the licence agreement directing the District Collector, Trivandrum to resume the property from the Club. Ext.A25 is the copy of that order. That order is challenged in the suit seeking a declaration that it is void and unenforceable. Pending suit, the plaintiff Club had applied for the interim injunction, which having been turned down under the impugned order, the appeal is preferred.