Lbs Centre For Science & Technology vs. State Of Kerala
Original PDF →IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH THUR AY, THE 9TH DAY OF SEPTEMBER 2021 / 18TH BHADRA, 1943 WP(C) NO. 23199 OF 2018 PETITIONER: LBS CENTRE FOR SCIENCE & TECHNOLOGY, REPRESENTED BY ITS DIRECTOR, NANDAVANAM, PALAYAM, THIRUVANANTHAPURAM - 695 033 BY ADV SMT.SHAMEENA SALAHUDHEEN, SC, LBS CENTRE RESPONDENTS: 1 THE STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, LOCAL SELF GOVERNMENT DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695 001. 2 THE MUNICIPAL CORPORATION OF KOLLAM, REPRESENTED BY ITS SECRETARY, CORPORATION OFFICE, KOLLAM 691 001. 3 THE SECRETARY, MUNICIPAL CORPORATION OF KOLLAM, CORPORATION OFFICE, KOLLAM - 691 001. SRI.SYAMANTHAK B.S, GOVERNMENT PLEADER SRI.M.K.CHANDRA MOHANDAS, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.23199/2018 : 2 : J U D G M E N T ~ ~ ~ ~ ~ ~ ~ ~ ~ Dated this the 9th day of September, 2021 The petitioner-LBS Centre for Science and Technology started a new Sub Centre at Anchalammoodu, Kollam, in the month of January, 2008. The Centre was started in a building owned by Thrikkadavoor Grama Panchayat which was later merged in Kollam Corporation. According to the petitioner, the room was given by the Panchayat to the LBS Centre free of cost at the instance of the then Education Minister.
In January, 2018, Ext.P2 notice of the Kollam Municipal Corporation was served on the petitioner requiring to pay arrears of rent. In May, 2018, the petitioner's Sub Centre was forcefully closed by the Revenue Recovery Officers of the Municipal Corporation. Now, the Municipal
WP(C) No.23199/2018 : 3 : Corporation has issued Ext.P8 notice to the petitioner demanding to pay an amount of ₹9,47,435/-.
The learned counsel for the petitioner would urge that there was no agreement executed by the petitioner either with the Thrikkadavoor Grama Panchayat or with the Kollam Corporation. Therefore, the Kollam Corporation cannot make any demand. The further contention of the petitioner is that assuming that a demand can be made in view of Section 539 of the Kerala Municipalities Act, the Corporation will be justified to claim arrears of rent only for a period of three years.
It is the further case of the petitioner that provisions under Section 215(8) and (10) of the Kerala Municipalities Act, 1994 can be invoked by the Municipality only where an agreement for payment of rent or licence fee has been executed under Rule 7(2) of the Kerala Municipality (Acquisition and Disposal of Property) Rules, 2000. There having no such agreement, the Corporation was not justified in invoking Section 215 of the Kerala Municipalities Act. The
WP(C) No.23199/2018 : 4 : impugned order is therefore liable to be set aside, contended the learned counsel for the petitioner.
The learned Standing Counsel appearing for the 2nd respondent-Kollam Corporation, on the other hand, submitted that the petitioner-Institute has been granted accommodation in the building belonging to the Local Self Government Institution and therefore the petitioner is bound to pay arrears of rent at the applicable rate. The fact that there is no written agreement cannot be taken as an excuse by the petitioner to avoid payment of due rent to the Kollam Corporation.
The rent has been demanded by the Kollam Corporation only at the applicable rate, contended the Standing Counsel for the Kollam Corporation. The petitioner is bound to pay the accrued rent as well as GST and service tax. The learned Standing Counsel for the Kollam Corporation further submitted that an amount of ₹5,29,604/- is due towards arrears of rent for the period from January, 2008 to May, 2018. The service tax amount till June, 2017 alone will come to ₹73,802/-. GST for the period from July, 2017 to April, 2018
WP(C) No.23199/2018 : 5 : would be ₹7,688/-. The petitioner is also liable to pay penal interest (till May, 2018) amounting to ₹3,36,341/-. In total, the petitioner is liable to pay ₹9,47,435/-. Taking into consideration the subsequent accruals till August, 2021, the total amount due from the petitioner would come to ₹13,27,648/-. If the petitioner pays admitted arrears of rent for the period from January, 2018 along with service tax and GST, the Corporation can consider waiving of penal interest as per the existing law.
Heard the learned counsel for the petitioner and the learned Standing Counsel appearing for the Kollam Corporation.
The issue relates to payment of arrears of rent. There having no agreement executed between the parties, the issue will acquire the status of civil dispute involving questions of fact which this Court cannot decide. Prima facie, this Court feels that the issue raised by the petitioner regarding applicability of Sections 215 and 539 of the Kerala Municipalities Act has to be considered. In the circumstances,
WP(C) No.23199/2018 : 6 : this Court is of the opinion that since the impugned order has been passed by the Secretary, Kollam Corporation, the Municipal Council of Kollam Corporation can take a re-look into the matter and decide the amount due to the Corporation as per the provisions of the Kerala Municipalities Act at least at the first instance. In such circumstances, the writ petition is disposed of permitting the petitioner to pay an amount of ₹1,74,906/- being the rent amount admitted by the petitioner for the period from January, 2015 to May, 2018 within a period of one month. If the petitioner makes the payment of such an amount and makes a representation to the 2nd respondent, the Municipal Council of the 2nd respondent shall consider such representation and take appropriate decision in the matter taking into consideration the applicability of Sections 215 and 539 of the Kerala Municipalities Act. The petitioner being an instrumentality of the State, the Corporation shall also consider the feasibility of waiving the penal interest and the rent dues during the period in which the petitioner-Centre has
WP(C) No.23199/2018 : 7 : not physically occupied the premises. A decision in this regard shall be taken within a further period of two months from the date of payment by the petitioner, of the admitted amount as above. On payment of the said admitted amount, the 2nd respondent shall permit the petitioner to remove their goods and records remaining in the rented premises. Ext.P8 will stand set aside. N. NAGARESH, JUDGE aks/09.09.2021
WP(C) No.23199/2018 : 8 : APPENDIX OF WP(C) 23199/2018 PETITIONER'S EXHIBITS: EXT.P1 AOF THE RELEVANT PAGES MINUTES OF THE EXECUTIVE COMMITTEE REGARDING THE OPENING OF THE SUB CENTRE AT ANCHALAMMODU ALONG WITH THE RATIFICATION ORDER IS PRODUCED EXT.P2 AOF
THE NOTICE NO.A5/TZ/828/2014 DATED 22.01.2018 IS PRODUCED EXT.P3 AOF THE COMMUNICATION OF THE ASSISTANT DIRECTOR IS PRODUCED EXT.P4 AOF THE REPORT SUBMITTED BY THE ASSISTANT DIRECTOR ALONG WITH THE COPY OF THE REPORT SUBMITTED BY THE OFFICER IN CHARGE OF ANCHALAMMODU SUB CENTRE IS PRODUCED EXT.P5 AOF THE NEWS PAPER REPORT WHICH WAS PUBLISHED IN MALAYALA MANORAMA DAILY DATED 06.05.2018 IS PRODUCED EXT.P6 AOF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE THE HON'BLE MINISTER FOR EDUCATION IS PRODUCED EXT.P7 AOF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE HON'BLE MINISTER FOR LOCAL SELF GOVERNMENT IS PRODUCED EXT.P8 AOF
THE NOTICE NO.A5//TZ/828/2014 DATED 22.06.2018 IS PRODUCED EXHIBIT P9 AOF
THE LETTER NO.A3/463/2018 DATED 22.02.2019. EXHIBIT P10 AOF
THE NOTICE NO.A5/TZ/828/2014 DATED 11.02.2020. SR
Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.