Syed Ahmmed vs. The State Of Karnataka

Held

The Court held that the 5% property tax rebate granted to property owners is not germane to the tenants' request for rent waiver during the Covid-19 Lockdown/Restrictions period. The Court opined that tenants facing financial constraints due to the pandemic should be allowed to seek waiver or partial relief. For the Covid-19 period, the petitioners were granted liberty to file separate representations with the Director of Municipal Administration. Regarding the pre and post-Covid-19 periods, the Court found the dispute over rental arrears to be factual and not resolvable in writ proceedings. The petitioners were given liberty to file representations within four weeks, and the second respondent (Tumakuru City Corporation) was directed to consider these representations concerning the claimed arrears. The Court also directed the release of amounts deposited by the petitioners in the proceedings to the second respondent. Further remedies for the petitioners, if any, would lie in properly instituted proceedings.

Facts

The petitioners are tenants in a commercial complex owned by the Tumakuru City Corporation. They filed writ petitions seeking directions to waive or provide partial relief from monthly rent for the period of the Covid-19 Lockdown/Restrictions. The Corporation, relying on a communication from the Director of Municipal Administration, contended that waiving rent was not permissible due to a 5% property tax rebate granted to owners. The dispute also involves significant arrears of rent for periods excluding the lockdown. The petitioners claim all dues are paid if the lockdown period is excluded, while the Corporation asserts substantial amounts are still owed. The Court had previously granted interim orders against dispossession, allowing deposit of arrears.

Key Issues

1. Whether the petitioners are entitled to a waiver or partial relief from monthly rent for the period covered by the Covid-19 Lockdown/Restrictions, considering their financial constraints due to the pandemic? 2. Whether the rental arrears claimed by the Tumakuru City Corporation for the period excluding the Covid-19 Lockdown/Restrictions are correctly calculated, and if the petitioners' payments, including those deposited with the Court, satisfy these dues? Petitioner's arguments: The petitioners argued for waiver or partial relief of rent during 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/Restrictions period was excluded. Revenue/State's arguments: The respondents (Tumakuru City Corporation) argued, citing a communication from the Director of Municipal Administration, that waiving rent was impermissible. They also asserted that substantial arrears of Rs. 9,32,352/-, Rs. 4,20,695/-, and Rs. 8,84,810/- were due from the petitioners for the period excluding the lockdown, despite the petitioners' claims of payment.