Saadiq Pasha vs. The State Of Karnataka

Held

The Court held that the rebate in property tax granted to property owners for the Covid-19 period was not germane to the tenants' request for rent waiver. It opined that the petitioners, as tenants facing financial difficulties due to the pandemic, should file separate applications with the Director of Municipal Administration for consideration of waiver (partial or otherwise) of rent for the Covid-19 Lockdown/Restriction period. Regarding the pre and post-Covid-19 lockdown/restriction periods, the Court found the dispute over rental arrears to be factual and not resolvable in the writ proceedings. It directed the petitioners to file representations within four weeks, failing which they would be deemed in default. The second respondent was directed to consider these representations and pass just orders. Any further remedy for the petitioners, if cause exists, would lie in properly instituted proceedings. The Court also ordered the release of the amounts deposited by the petitioners to the second respondent.

Facts

The petitioners, tenants in a commercial complex owned by the Tumakuru City Corporation, sought directions to waive or provide partial relief on monthly rent for the period of Covid-19 Lockdown/Restrictions. They also requested the Corporation to collect arrears based on correct calculations and continue their tenancy. The Corporation, citing a communication from the Director of Municipal Administration, contended that waiving rent for the lockdown period was not permissible due to a 5% property tax rebate granted to owners. A dispute arose regarding the actual rental arrears for periods excluding the lockdown, with the petitioners claiming all dues were paid and the Corporation asserting significant outstanding amounts. The Court noted that the dispute over rental arrears for the non-lockdown period was factual and could not be resolved in the current proceedings.

Key Issues

1. Whether the petitioners are entitled to a waiver or partial relief of monthly rent for the period covered by the Covid-19 Lockdown/Restrictions, considering their financial constraints due to the pandemic? 2. Whether the Tumakuru City Corporation can justify the claimed rental arrears for the period excluding the Covid-19 Lockdown/Restrictions, and if so, what is the correct calculation of rent payable? Petitioner's arguments: The petitioners argued that they should be granted relief on rent for the Covid-19 period due to financial hardship. They also contended that all rental dues, including amounts deposited with the court, were paid if the Covid-19 lockdown/restriction period was excluded. They sought a correct calculation of rent and continuation of their tenancy. Revenue/State's arguments: The respondents (Tumakuru City Corporation) argued, relying on a communication from the Director of Municipal Administration, that waiving rent for the Covid-19 period was not permissible as a 5% rebate was allowed on property tax. They asserted that substantial arrears of rent were due from the petitioners even after excluding the lockdown period, specifying amounts of Rs. 9,32,352/-, Rs. 4,20,695/-, and Rs. 8,84,810/- for the respective petitioners.