CHENNAI: The Madras High Court has adjourned the appeal petition filed by Madras Race Club challenging the single judge order and enhancement of lease price by the State, to October 11.
The appeal petition was listed before the first division bench of the Madras High Court (MHC) comprising Chief Justice S V Gangapurwala and P D Audikesavalu.
The Senior counsel Satish Parasaran for the Madras Race Club contended that the lease agreement was made in 1945 during the British government for 99 years.
Further, the 160-acre land in which the race club is situated is not even in the government land, the club paid the lease amount for the entire 99 years so it cannot be enhanced now.
However, the Advocate General (AG) R Shunmugasundaram for the State contended that for the public interest, it should be enhanced and emphasised that the lease agreement was a pre-constitutional document. From 2012 there is rental arrears which amounts to nearly Rs.13,000 crore.
The Chief Justice intervened and asked the AG under which provision the State can enhance the lease rate.
The AG sought further time for the proceedings, and accepting this the bench posted the matter to October 11.
In April 2023, the single judge had ordered that the club pay Rs.730.86 crore towards rental arrears from 1970 to 2004 within a month or it would be evicted.
He further directed the government to raise a demand within a month for another Rs. 12,381 crores, the rental arrears from 2004 to till date and ordered to pay it within two months.