Kerala High Court Slams Rent Denial For Covid Hospital Use | Says State Can’t Cite ‘Unauthorised Construction’ After Taking Over Private Building
Safiya Malik
The High Court of Kerala Single Bench of Justice N. Nagaresh has set aside the order passed by the District Collector, which had declined compensation for the use of a private medical institution’s infrastructure and equipment during the COVID-19 pandemic. The court directed the authorities to reconsider the petitioner’s claim and take a fresh decision within three months. The court held that invoking the Disaster Management Act does not absolve the authorities of their obligation to pay rent or compensation for the use of private property.
The petitioner, an educational agency managing a Medical and Dental College in Varkala, approached the High Court challenging an order of the District Collector dated 10.01.2023. The petitioner sought quashing of the said order (Ext.P23) and issuance of directions to determine and disburse compensation for taking over its hospital, hostel, equipment, and instruments under the provisions of the Disaster Management Act, 2005.
The petitioner stated that as per order dated 16.03.2020 (Ext.P1), it was directed to hand over its Medical College along with all human and material resources to the District Medical Officer (DMO), Thiruvananthapuram. The Secretary of the Cherunniyoor Grama Panchayat further directed the petitioner to provide keys to rooms on the 6th floor and cleaning staff (Ext.P2). Subsequent directions included repairs to the lift (Ext.P3) and full handover of the facility to the DMO (Ext.P4). The petitioner complied with all directions issued under Sections 26, 30, and 34 of the Disaster Management Act, 2005.
No rent or compensation was paid to the petitioner for the extensive use of its infrastructure and resources. Consequently, the petitioner submitted a representation dated 10.08.2021 (Ext.P18) with detailed rent and compensation calculations based on a PWD technical circular dated 25.05.2021. According to the petitioner, an amount of approximately ₹46 crores was due.
Eventually, the District Collector issued an order on 05.11.2021 (Ext.P20) directing closure of the COVID First- and Second-Line Treatment Centres. The facilities were fumigated and handed back to the petitioner on 12.11.2021 (Ext.P21).
However, the District Collector rejected the petitioner’s claims via Ext.P23, stating that the building was unauthorised, and hence, no compensation or rent was payable. The petitioner challenged this conclusion.
The respondents, represented by the State of Kerala and various government departments, resisted the petition. They stated that a Rent Committee meeting was convened pursuant to an interim order of the Court dated 19.06.2023. A joint inspection followed, during which the Panchayat authorities reported that the Women's Hostel building was in violation of Coastal Regulation Zone (CRZ) norms. The Rent Committee fixed the rent for the portion used at ₹1,06,19,881.44 (Annexure R2(c)). The respondents claimed that all equipment was returned in working condition and denied any entitlement to additional relief.
Justice N. Nagaresh recorded that: "It is not disputed that the land, building and facilities of the petitioner were taken over by the respondents invoking the provisions of the Disaster Management Act."
The court held that the crux of the dispute was the eligibility of the petitioner to receive compensation. Referring to Ext.P23, the court observed: "The District Collector has declined compensation to the petitioner."
The court examined the reasoning in Ext.P23, which denied rent for floor area and rooms on the grounds that the building used was unauthorised construction. On rent for medical equipment, the order stated that there was no provision for such rent and that the petitioner had not taken the equipment back despite being asked.
Rejecting these grounds, the court observed: "The rent for the building has been declined alleging that the building is unauthorised. The buildings were constructed after obtaining Ext.P24 NOC from the Grama Panchayat."
Further, the court noted: "The 2nd respondent has issued Ext.P26 construction completion certificate. The Grama Panchayat is collecting building tax."
The court remarked that even if the building required statutory clearances, the State was not entitled to deny rent after utilising the facility under statutory emergency provisions: "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."
On the issue of rent for medical equipment, the court stated: "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."
Similarly, the court rejected the denial of compensation for missing or damaged equipment: "If any of the equipments are missing or damaged, the petitioner is entitled to due compensation for the loss sustained."
The court categorically quashed the District Collector’s order and remitted the matter for fresh consideration: "Ext.P23 order of the District Collector is therefore highly arbitrary and unsustainable. Ext.P23 is set aside."
It then issued the following direction: "The issue is remitted back to respondents 2 and 3 for reconsideration of the claim of the petitioner and for payment of due rent/compensation."
A time frame was fixed for compliance: "A decision afresh in this regard shall be taken within a period of three months."
Advocates Representing the Parties:
For the Petitioners: Sri. P.M. Saneer, Shri. Tony George Kannanthanam, Smt. Nithya R.
For the Respondents: Sri. Rajeev Jyothish George, Government Pleader
Case Title: SR Educational & Charitable Trust v. State of Kerala & Ors.
Neutral Citation: 2025: KER:57041
Case Number: W.P.(C) No. 6653 of 2023
Bench: Justice N. Nagaresh
