HC Slams Kerala Govt for withholding Rs 46 Crore Compensation for Covid Facility Use
Kochi: In a recent ruling, the Kerala High Court held that the State government is legally obligated to pay rent and appropriate compensation to a charitable trust whose hospital and medical facilities were taken over during the COVID-19 pandemic. The court noted that the compensation cannot be denied solely on the grounds that the building was allegedly unauthorised.
The bench asserted that invoking the Disaster Management Act does not override the constitutional rights of citizens, particularly the right to property. The court’s direction came while hearing a petition filed by a building owner who had not received payment of Rs. 46 Crores despite the property being occupied by the authorities for months.
A bench comprising Justice N. Nagaresh was considering a case where the petitioner, which is an educational agency running a Medical College and Dental College, has filed this writ petition seeking to quash a government order and to direct the respondents to determine the compensation payable to the petitioner for taking over their Hospital, Hostel, the equipments and instruments, under the provisions of the Disaster Management Act, 2005 and to disburse the compensation amounts forthwith.
The petitioner was directed to hand over the petitioner's Medical College with all existing human and material resources to the DMO, Thiruvananthapuram. An order was issued under Sections 26, 30 and 34 of the Disaster Management Act, 2005. The Secretary to Cherunniyoor Grama Panchayat required the petitioner to hand over keys of the rooms on the 6th floor and to provide three cleaning staff maintaining Covid protocol, and the petitioner was also required to repair the lift. The DMO required the petitioner to hand over the entire facility of the College. The petitioner co-operated.
The petitioner pointed out that no rent or compensation was paid to the petitioner. The petitioner, therefore, computed the compensation/rent based on and submitted a representation dated 10.08.2021. About Rs. 46 Crores is due to the petitioner. Thereafter, the District Collector directed to close down the Covid First Line and Second Line Treatment Centres. Authorities conducted fumigation in the Hospital, and the Hospital was handed over to the petitioner. However, an order was issued rejecting the claims of the petitioner and holding that the petitioner is not entitled to any compensation as the building constructed for the Medical College is unauthorised.
A joint inspection was conducted. The Panchayat authorities reported that the Women's Hostel building of the Dental College was constructed in violation of CRZ Regulations. The Rent Committee fixed the rent for the portion of the building which was taken over for Covid response activities at Rs. 1,06,19,881.44, and hence, the petitioner is not entitled to any relief. As regards rent for the floor area and rent for rooms, the District Collector has concluded that as the portion of the building used by the respondents was unauthorised construction, rent for the floor area and rooms cannot be sanctioned.
After considering the arguments, the bench observed that though Section 66 of the Disaster Management Act provides the manner in which compensation has to be computed and the rent for the building has been declined, alleging that the building is unauthorised, the buildings were constructed after obtaining NOC from the Grama Panchayat.
“Assuming that the building requires certain statutory clearances, even then, the respondents who have taken over the building and used the same, invoking the provisions of the Disaster Management Act, 2005, cannot decline rent/compensation, holding that the building construction was unauthorised. If there are any statutory violations in the construction of the building, the authorities will be free to take such action as is permissible. But, the respondents are legally bound to pay rent/compensation to the petitioner if the building is used by them, failure of which would offend the constitutional right of the petitioner under Article 300A of the Constitution of India,” the bench stated.
As far as rent for medical equipments used during COVID is concerned, the bench added, “The reasoning given by the District Collector is highly arbitrary and unacceptable. If the respondents have taken over the medical equipments, then the respondents are bound to pay rent/compensation for medical equipments." The plea was disposed of by the bench. The court set aside the district collector's order, and the issue was remitted back to the District Collector and the District Disaster Management Authority for reconsideration of the petitioner's claim and for payment of due rent/compensation.
To view the official order, click on the link below:
