Constitutional Validity of Section 34A(5) of Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959, Affirmed
In a significant judgment, the Madras High Court, comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan, upheld the constitutional validity of Section 34A(5) of the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959. The court dismissed the appeal filed by Amrutanjan Ltd challenging the provision that mandates a pre-deposit of lease rent for entertaining appeals or revisions concerning rental disputes involving religious institutions.
The appellant, Amrutanjan Ltd, had contested the requirement to pre-deposit the lease rent as arbitrary and financially burdensome, especially when the demand notice involved retrospective enhanced rent. The company had been in possession of a substantial property for over a century on a nominal rent, which had been significantly increased in the new demand notice. Despite this, the court found that the provision ensures the financial stability of religious institutions that rely on rental incomes for maintenance and fulfilling religious duties.
The court noted that the original lease was granted in 1901 to another party, who later assigned the rights to Amrutanjan Ltd. After the lease period expired in 2000, the appellant was asked to pay the prevailing market rate, which they failed to comply with, resulting in eviction proceedings.
Referring to a precedent case, Arulmigu Anghala Parameswari v. The State of Tamil Nadu, the court reaffirmed that issues related to lease rent fixation are contractual and not suitable for determination under writ jurisdiction. The decision emphasizes the importance of the pre-deposit condition as a mechanism to ensure that religious institutions can sustain themselves.
The court concluded that the appellant, not being the original lessee and having been evicted, cannot challenge the provision simply due to its financial implications. The appeal was dismissed with no order as to costs, reinforcing the obligation of lessees to comply with statutory requirements to support the financial health of religious institutions.
Bottom Line:
Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959 - Constitutional validity of Section 34A(5) upheld - Pre-deposit condition for appeal or revision is not arbitrary or onerous, as it ensures financial stability of religious institutions relying on rental incomes.
Statutory provision(s): Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959, Section 34A(5).
Amrutanjan Ltd v. Commissioner HR and CE Department, (Madras)(DB) : Law Finder Doc id # 2867433
