The division bench of Kerala High Court comprising of Justices Amit Rawal and P.V. Balakrishnan has dismissed two writ appeals challenging the leasing process of the Bini Tourist Home, a property of the Thrissur Municipal Corporation, and imposed exemplary costs of ₹5 lakh each on the appellants for indulging in frivolous litigation.
The dispute arose from the Corporation’s decision to lease the property through a public auction held in September 2022, in which the highest bidder offered ₹7.25 lakh per month (later revised to ₹7.5 lakh) along with an undertaking to invest about ₹3 crore in renovation without seeking reimbursement. Although the Council ratified the decision, a group of councillors, along with a practicing advocate, repeatedly challenged the process through writ petitions and complaints before the Ombudsman, alleging irregularities and lack of majority support in the resolution.
The Court, however, observed that the appellants had already failed in their earlier challenges to the tender process and noted that the Government’s order dated 02.02.2024, rejecting their statutory appeal under Section 57 of the Kerala Municipality Act, was well-reasoned and legally sustainable. It further held that the successful bidder had duly complied with all requirements, including payment of the licence fee and furnishing of the bank guarantee.
Condemning the repeated litigation as an abuse of process motivated by personal vendetta against the civic administration, the Bench held that such actions jeopardized the Corporation’s right to revenue and public interest. Both appeals were accordingly dismissed with a total cost of ₹10 lakh, payable to the High Court Mediation and Conciliation Centre and the Bar Association within one month.
Appearances:
Petitioner: Advs Shri Anand Kalwanakrishnan ; Shri G. Sreekumar (Chelur); Sri C. Dheeraj Rajan
Respondent: Shri Santhosh P. Poduval; Sri Navaneeth D. Pai; Sri R. Lakshmi Narayan (Sr.)
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