M/S.Madurai Union Club vs Secretary To The Government Of Tamil Nadu And Others

B.Pugalendhi, J

The petitioner Club, namely, M/s.Madurai Union Club is a registered Society under the provisions of Tamil Nadu Societies Registration Act. It is a non-commercial and non-profit organisation catering the needs of its members. The petitioner Club was established in the year 1883. During the year 1931, the then District Collector, Madurai, permitted the petitioner Club to use a vacant land adjacent to the Club to an extent of 98 cents in Survey No.512 at Tallakulam, Madurai. The rent was initially fixed as Rs.1/- per year and thereafter, in the year 1974, it was revised to Rs.50/- per annum. The lease was initially granted for a period of 30 years and thereafter, it was periodically extended. On the request of the Government for constructing quarters for Thasildar, the petitioner Club handed over 35 cents out of 98 cents in the year 1971. In the remaining 63 cents, they have put up a Tennis Court and maintained it as a Garden.

2.Thereafter, the lease was extended in the year 1980, fixing the lease value as Rs.57,813/- from 01.07.1980 to 30.06.1987 and Rs.63,594/- from 01.07.1987 to 30.06.1990 and Rs.2,31,252/- from 01.07.1990 to 30.06.1993 and Rs.3,04,482/- from 01.07.1993 to 30.06.1996 vide G.O.Ms.No.355 dated 16.04.1996. But, contrary to this Government Order, a demand was made by the 3rd respondent in the year 1999 to an extent of Rs.58,79,375/-. This demand was challenged by the petitioner Club in W.P.No.2246 of 2000. This Court, by order dated 19.04.2000, disposed of the writ petition with a direction to the respondents to provide an opportunity to the petitioner as to the value proposed to be determined from the year 1992 and the petitioner was also given liberty to submit a fresh representation as to the market value of the land given to them to arrive at 7% of the market value as lease amount from the year 1992. The demand made by the respondents from the year 1980 retrospectively was declared as not sustainable, however, liberty was given to the respondents to determine the market value and the lease amount from the year 1992.

The order of the Writ Court dated 19.04.2000 passed in W.P.No.2246 of 2000 was challenged by the petitioner Club by way of a Writ Appeal in W.A.No.1333 of 2000. In the Writ Appeal, the learned Government Advocate, who appeared on behalf of the respondents, has submitted that the Government is inclined to take a decision against the recommendation in favour of the appellant. By recording the submission of the learned Government Advocate, the Writ Appeal was disposed of on 31.03.2008. Thereafter, by the order impugned in this writ petition, a demand was made to an extent of Rs.2,77,76,794/-, out of which, Rs.1,50,58,701/- towards lease amount and Rs.1,26,88,093/- towards interest.

According to the learned counsel appearing for the petitioner, the demand of lease amount cannot be made from the year 1980, when the Writ Court has specifically stated that there cannot be any demand of lease amount retrospectively from the year 1980 and that can be made only from the year 1992. The respondents have not challenged the order of the Writ Court and therefore, they are bound to collect the lease amount only from the year 1992.

5.The learned Additional Advocate General submits that as ordered by the Division Bench of this Court, the Government of Tamil Nadu examined the request of the petitioner Madurai Union Club and ordered to cancel the 13% additional charge and 12% interest for belated payment over and above the 7% market value fixed as lease rent and directed to work out the lease rent in accordance with rules in vogue namely G.O.Ms.No.460 Revenue (P2) Dept. dated 04.06.1998, G.O.Ms.No.355 Revenue dated 16.04.1996 and Government Letter (Ms) No.155 Revenue dated 10.03.2005 and the proposals for fixing the lease rent from 01.07.1980 to 30.06.2006, the date on which the lands measuring an extent of 27530 Sq. ft. in T.S.No.19 of North Madurai Village, Madurai District was resumed by the Government was worked out and proposal was submitted to the Government vide Letter No.22/8141/2006 dated 11.07.2013 by the Commissioner of Land Administration, Chennai and the orders of the Government is awaited and that the Government will pass order only after affording opportunity of hearing of the Madurai Union Club.

This Court considered the rival submissions made.

The Government land to an extent of 98 cents was leased to the petitioner Club in the year 1931, for a period of 30 years has been periodically extended. Initially, a nominal rent of Rs.1/- was fixed as a rent for the extent of 98 cents and subsequently, from the year 1974, it has been marginally increased to Rs.50/-. From the year 1980, the Government has fixed a rent as Rs.57,813/- from 1980 to 1987, Rs.63,594/- from 1987 to 1990 and Rs.2,31,252/- from 1990 to 1993 and Rs.3,04,482/-from 1993 to 1996 vide G.O.Ms.No.355 dated 16.04.1996. Out of 98 cents, at the request of the District Administration, the petitioner is said to have handed over 35 cents in the year 1971 and the remaining 63 cents were returned on 30.06.2006. When the initial demand was made vide G.O.Ms.No.355 dated 16.04.1996, the petitioner has filed this writ petition that the respondents are not justified in demanding the amount retrospectively with effect from the year 1980. This Court, in W.P.No.2246 of 2000, has considered the same that there cannot be any demand retrospectively from the year 1980 and held that the demand from the year 1980 cannot be sustainable, however, granted liberty to the respondents to revise the rent from the year 1992. As against the order, the respondents have not preferred any writ appeal. The Writ Appeal in W.A.No.1333 of 2000 preferred by the petitioner was also disposed of by the Division Bench of this Court, on the undertaking given by the learned Government Advocate on behalf of the respondents that they would reconsider the request of the petitioner Club. However, without any reference to the earlier order passed by the Writ Court, the demand is made once again from the year 1980 and therefore, the petitioner has filed this writ petition.

The Government vacant lands are leased out to private bodies for various purpose, such as, Commercial lease, Non-Commercial lease, Concessional lease, Nominal lease, Revenue sharing lease, Production basis lease. The Government is not adopting any uniform policy for fixing the lease amount on these properties. It depends upon the influence of persons, who are holding government properties. The lease amount has been fixed invariably without any uniformity. The Government is expected to maintain certain uniformity in collecting the lease rent amount. Some of the lands have been leased out for educational purpose to Aided Educational Institutions. The lease rent for these Aided Educational Institutions are also treated at par with the social clubs mainly established for playing cards and consumption of liquor. It is not known as to how the Government is treating these Recreation clubs at par with the Educational Institutions. Therefore, the learned Additional Advocate General is directed to get instructions as to the policy of the Government in fixing the quantum of rent for the lease of Government lands on Commercial lease, Non- Commercial lease, Concessional lease, Nominal lease, Revenue sharing lease, Production basis lease. Though there is a classification of lease of Government lands by the Land Administration, there is no definition available as to how these classifications are made.

The Board Standing Orders 24A deals with the temporary occupation of the Government Lands/buildings for specified period for non agricultural purpose. As per this Standing Orders, grants of such occupation may be made in favour of individuals, private bodies, companies of associations and local bodies. As per the Board Standing Orders, the maximum period of such allotment shall not exceed three years at a time. However, the Government may grant any land on lease for a period of 20 years. The powers of grant of lease is vested with the Government if the value of the property is more than Rs.2,00,000/-. The Commissioner of Land Administration is entitled to grant lease up to Rs.2,00,000/- and the Collector can grant lease up to Rs.50,000/-. Neither in the Board Standing Orders 24A nor in any other Statute, the Government has prescribed the quantum of the lease amount for the Government lands which are leased out for Commercial and Non-Commercial purpose. It is only by Government Orders, the lease amounts are prescribed and also depending upon the respective recreational clubs. Even among the recreational clubs, the rents are not prescribed uniformly.

Therefore, this Court directs the first respondent to furnish the details with regard to the quantum of lease amount prescribed for the Commercial lease, Non-Commercial lease, Concessional lease, Nominal lease, Revenue sharing lease, Production basis lease, along with the definition as to how these categories are defined by the Government in allotting the Government lands.

Post the writ petition under the caption “For Orders” on 18.12.2023 at 2.15 p.m.