The Madras High Court has dismissed a writ petition filed by Anna Nagar Club to quash the letter of Tamil Nadu Housing Board (TNHB) demanding rental arrears from it. The matter was between Anna Nagar Club v. The Executive Engineer and Administrative Officer, TNHB (Anna Nagar Division) [WP.No.40742/201] and was presided over by Hon’ble Mr. Justice S.M. Subramaniam.
FACTS OF THE CASE:
In terms of rental arrears, the club owes a sum equal to Rs. 52,25,960 as of June 2016. For the Club, which comprises seven fields of property in a great position in Anna Nagar, the rent was set at Rs. 20,000 per month.
The Anna Nagar Club describes itself as a social and cultural organisation established under the Societies Registration Act, has previously requested the TN Housing Board Chairman’s approval to open a permit room or bar on the petitioner-Club premises.
The petitioner claimed that they’ve already paid a rental sum of 20 Lakhs in arrears and the respondent are still asking for rents thereby this writ petition to call for records relating to the matter pertaining and quash the same.
JUDGMENT:
According to Justice S.M. Subramaniam, the Tamil Nadu government owns the Housing Board, hence any loss to the Board would result in a loss of state income. The court ruled that the petitioner club must pay the outstanding rent arrears and that the Housing Board must conduct a study to determine how to adjust rent so that it is in line with the area’s true market rental value.
Additionally, the delinquent petitioner club has been given four weeks to pay up the outstanding rental arrears. If the arrears are not resolved, the Board will have the right to take legal action against the club to recover dues, penalties, and to expel it.
The petition was disposed off.
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JUDGMENT REVIEWED BY ADITI PRIYADARSHI
