MHC sets aside single judge order directing Cosmopolitan Club to pay Rs 25 crore

CHENNAI: The Madras High Court (MHC) set aside a single judge order directing the Cosmopolitan Club at Chennai, to pay Rs.25 crore for the allegation of non-payment rent dues to the State.

On what basis the single judge directed the Cosmopolitan Club, to pay Rs.25 crore as a condition precedent, even for issuance of a fresh show cause notice to conduct a comprehensive enquiry and decide the actual arrears of rent for the relevant period, which is not known, wrote a division bench comprising Justice R Suresh Kumar and Justice G Arul Murugan while setting aside the single judge order.

According to the government order (G.O) 33 of 2009 it has been made very clear that, the lease rent fixed can be revised only by the government.

"The fixation or revision of the lease rent is the jurisdiction of the government, it cannot be encroached upon by any authority much less the officials of the revenue department like commissioner of land administration and district collector or tahsildar", read the judgment.

The bench held that the single judge order is erroneous and set asides the order. Further, the bench also set aside the notice issued by Mambalam - Guindy taluk in 2004.

The Cosmopolitan Club filed an appeal before the MHC seeking to set aside the order issued by the single judge in 2015.

In 1933, the then government granted an license in favour of the club to establish golf course to the extent of 64.76 acres. Later, in 1956 the license was converted into lease and granted land extent also extended to 77.37 acres by fixing the annual rent of Rs.15 per acre.

In 1966 the rent was revised to Rs.5,800 annually to the entire extent of land for 30 years lease.

When the lease agreement was ended in 1996, the club approached the State to the extension of lease, however it was denied by the government.

Hence, the club went to the court aggrived by the government's decision.

In 2001, the State has considered the club's request to grant the lease jointly to the club and Tamil Nadu Golf Federation to promote the golf course on par with international standard.

The club objected to the constitution of a governing body to administrate the golf course, with 15 members representing all the stakeholders.

When the matter was went to the court, injunction was granted against the government infavour of the club.

At this juncture in 2004, the tahsildar of Mambalam - Guindy sent a notice to the club stating that the club has failed to pay the rent between 1971 - 1996.

Further the tahsildar revised the fixed lease rent and calculated that totally Rs.119.78 crore is the rent due pending.

Aggrevied by this the club approached the MHC. In 2015, the single judge, who heard the matter, directed the club to pay Rs.25 crore to issue fresh notice to decide the rent dues.