P P LONAPPAN Vs. ANNAMANADA GRAMA PANCHAYATH

JUDGEMENT

(1.) This writ petition is filed by the petitioners seeking to declare that the decision of the 1st respondent Panchayat to enhance the rent by 20% for the financial year 2018-19, from the rent existing for the year 2017-18 is illegal, arbitrary and unreasonable, and to quash Exts.P11 and P2 notices directing the petitioners to remit the rent, failing which, steps will be taken to auction the building occupied by the petitioners. Brief material facts for the disposal of the writ petition are as follows:

(2.) Petitioners are the lessees under the 1st respondent Panchayat with regard to the rooms occupied by them in a double storied building belonging to the 1 st respondent Panchayat. They are conducting small trades like photo framing, cycle work, vegetable vending shop, stationery shops etc. etc. in order to eke out their livelihood. Petitioners are aggrieved by the enhancement of rent by 20% for the year 2018-19 without any justification. According to the petitioners, the area of the shop rooms are only 110 sq.ft. to 200 sq.ft. The rooms were let out to the petitioners on public auction. Ext.P1 bye-law provides for enhancement of rent on renewal only by a maximum of 5% every year. The rooms were let out proposing to start Panchayat Bus Stand in the adjacent property. But the Bus Stand is now constructed in a far away place. In the last two years, Government Offices like Sub Treasury, KSEB office etc. situated in the building in question were also shifted to Mala. In all respects, the business is substantially reduced in the area. Therefore, according to the petitioners, the action of respondents enhancing the rent by 20% have put the petitioners into various prejudices and inconveniences.

(3.) The respondents have filed a detailed counter affidavit, refuting the allegations and claims and demands raised by the petitioners. Among other contentions, it is stated that, the rent fixed is far below the PWD tariff rates. However, it is admitted that, as per Ext.P1 bye-law, enhancement only at the rate of 5% is permissible for renewing the lease every year. But, it is submitted, the provisions of the byelaw make it clear that, it is the discretion of the Panchayat Committee to decide about the renewal or to conduct fresh auction, which thus means, the tenants have no right to get renewal of lease as a matter of right. Therefore, it is submitted that, if the petitioners are not prepared to pay the rent, the Panchayat is at liberty to auction the shop rooms in question, since as per the present market rate, the rent applicable to similar rooms in the same locality is Rs.10,000/- to Rs.20,000/-. It was with the intention of helping the existing tenants, the Panchayat committee had decided to enhance the rent by 20% for the period 2018-19. Therefore, the sum and substance of the contention advanced by the respondents is that, the rent presently paid by the petitioners is far below the rates fixed by the Government.