Prowl Credit Management Private Limited vs. Cochin Devaswom Board

Held

The Court held that the Cochin Devaswom Board, acting as a trustee for the deity (a perpetual minor), has a duty to ensure that licence fees are not lower than prevailing market rates. It found the Board's decision to increase the fee was not arbitrary or illegal, especially considering a prior High Court judgment directing such reviews. The doctrine of legitimate expectation could not override the Board's fiduciary duty to protect the deity's financial interests.

Facts

The petitioner, a licensee of a shop room from the Cochin Devaswom Board, sought renewal of its licence after the initial three-year term. The Board demanded a significantly higher monthly licence fee than the previous agreement, citing its duty as a trustee to ensure market rates. The petitioner challenged this increase, claiming legitimate expectation based on a renewal clause and investments made.

Key Issues

The key legal issues were whether the Cochin Devaswom Board's decision to significantly increase the licence fee upon renewal was arbitrary or illegal, and if the doctrine of legitimate expectation could be invoked by the licensee to enforce a lower increase based on the original licence deed's renewal clause.