KERALA FINE ARTS SOCIETY Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, who is a Society registered under the Travancore-Cochin Literary, Scientific and Charitable Socities Registration Act, 1955, seeks a declaration that the fixation of reserve price for Unit 20 in Exhibit P7 bid document is arbitrary, unjust and illegal. A further prayer is sought to reckon the period of commencement of lease for 30 years from 2018 without mulcting the petitioner with liability to pay any amount towards arrears of rent from 2013 to 2018. Consequential prayers are also sought for.

(2.) It is stated that the petitioner was allotted land in 1964 on which a building was constructed and is used as a cultural auditorium. In the year 1974, the petitioner was permitted to reclaim an area measuring 140 feet to 100 feet in front of the auditorium on the western side of the road for utilising the same as parking ground for vehicles coming to the Fine Arts Hall. The reclaimed land of an extent of 31.05 cents was occupied on a licence basis initially. Later, Exhibit P3 lease deed was entered into between the Port Trust and the petitioner Society, retrospectively for 20 years from 1st October, 1993 to 30th September, 2013 on yearly lease rent of Rs.24,364/- subject to periodic revisions. After expiry of the lease period, Exhibit P4 request was made by the petitioner for fresh allotment/renewal of lease, but no action was taken thereon and the petitioner was permitted to occupy the premises on the same rent as fixed in Exhibit P3. In 2014, Exhibit P5 Policy Guidelines for Land Management by Major Ports, 2014 was issued by the Union Government and a decision was taken to lease out the properties of the 2nd respondent through e-auction. Exhibit P6 communication and Exhibit P7 bid document were issued accordingly.

(3.) The petitioner submits that the fixation of the reserve rent by Exhibit P7 at Rs.3,21,524/- is completely untenable in view of the fact that the land had been reclaimed by the petitioner and the half yearly rent had been paid by the petitioner hitherto only at Rs.19,000/-. It is stated that in the case of the property now occupied by the petitioner alone, the term of lease is limited to 20 years while all other properties are being leased out for 30 years. It is stated that in a pre-bid discussion held on 6.8.2018, Exhibit P10 note requiring clarifications had been submitted by the petitioner Society and Exhibit P11 reply was issued by the 2nd respondent. The lease period was agreed to be amended as 30 years and it is further clarified that the lease rent at the then prevailing rate notified will be collected with retrospective effect, if the existing lessee emerges as the successful bidder as per the policy guidelines and the subsequent clarifications issued by the Ministry of Shipping.