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K. Balasubramani & Ors. vs. The Tamil Nadu Government & Ors.

Not available · 2024 INSC 140Decided 23 Feb 2024
Not available
Justice J.K. Maheshwari · Justice Sanjay Karol

Background

A group of shopkeepers had been tenants/licencees in shops owned by the trust managing the Arulmighu Dhandayuthpani Swamy Temple in Palani under the Tamil Nadu Hindu Religious and Charitable Endowments Act. After their lease periods ended, they were declared "encroachers" under the Act, and the Madras High Court had upheld orders directing them to vacate. The tenants challenged this before the Supreme Court, and during the hearing the parties (tenants and the temple/landlord) negotiated a settlement.

Decision Breakdown

The Supreme Court recorded a comprehensive settlement reached between the parties rather than deciding the dispute on merits. For 19 tenants who had failed to clear their rental arrears despite opportunities, the ejectment order was affirmed and the landlord was allowed to immediately pursue possession. For the remaining 51 tenants (across 65 shops), the ejectment order was also affirmed, but they were given six more months (until 31 July 2024) to vacate, on conditions including clearing arrears at pre-2018 rates, a 50% rent waiver for the COVID-19 lockdown period, no further construction or property damage, and a right of first refusal if the temple later redevelops the shops. All pending litigation between the parties was closed on these agreed terms.

Lesson Learnt

Long-running property disputes, including those involving religious trust properties, can often be resolved more practically through negotiated settlements before the Supreme Court than through prolonged litigation, balancing the landlord's rights with reasonable transition time and fair terms for tenants.

Official source (sci.gov.in)View Judgment (PDF)

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