COCHIN PORT LEASEHOLDERS ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) These writ petitions are filed by lease holders Union and individual leaseholders of Cochin Port Trust against the enhancement of levy on subletting to 50% of the rent collected by the lessees from the sub lessees. Hence all these writ petitions were heard together and are disposed of by this common judgment. Parties and documents referred to in this judgment are as described in W.P.(C) No.16851 of 2014.

(2.) By Ext.P1 letter dated 18.6.2014, the Senior Assistant Estate Manager informed the lease holders that the sublease levy to be remitted is 50% of the rent collected by the lessees from the sub lessees, in accordance with the new Land Policy Guidelines, 2014 issued by the Ministry. It was stated that the rate was being raised based on the sub lease agreement submitted and that future renewal/permission for sublease etc. would be subject to the payment of enhanced sublease levy along with arrears from 1.2014. Ext.P1 letter was issued on the basis of Ext.P2 note dated 30.05.2014 of the Chairman, in the light of Ext.P3 policy guidelines issued in the year 2014. In Ext.P2 it was directed that expired leases, along with sub leases, should be processed and put up urgently in strict compliance of the provisions of the Land Policy Guidelines, 2014. It is stated that there are 473 sub lessees for the Port.

(3.) As per clause 17B of the Land policy Guidelines (hereinafter referred to as the 'guidelines') sub letting shall be in accordance with the land use plan. Before allowing sub letting the Port shall recover 50% of the rent charged by the lessee from the sub lessee for the entire period of sub lease irrespective of the fact whether the land was originally allotted on upfront basis or annual rental basis. It was clarified that the original lessee would continue to remain responsible for payment of lease rent and for adherence to the terms and conditions of lease. In the case of leases which shall be entered into after the issuance of the guidelines in case the lessee is not able to utilise the entire land leased to him, the portion of the lease premises not required by him should be surrendered and no sub letting shall be permitted. It was directed that in the case of new leases after the coming into force of the guidelines the portion of the lease which is not required by him should be surrendered and no subletting including renewal also shall be permitted. The sub lease is permitted only for the same purpose for which the main lease was given. In cases where he is unable to renew, the Port can take over the building from the lessee and can directly enter into sub lease following auction cum tender. Ext.P1 letter was issued on 18.6.2014 by the Senior Assistant Estate Manager on the basis of Ext.P2 note of the Chairman issued on 30.05.2014. Ext.P3 is the policy guidelines which provides for recovery of 50% of the rent charged by the lessee from the sub lessee.