Kerala HC rejects ‘unauthorised building’ claim, says state govt can’t refuse rent for private Covid facility used

The Kerala High Court recently ruled that the State government is legally obliged to pay rent and compensation to a private educational agency after it used their facilities during the Covid-19 pandemic. According to a report by Live Law, Justice N. Nagaresh observed that the government had taken over the petitioner’s building and medical equipment under the Disaster Management Act, 2005, and must now pay for its use.

The petitioner, which runs a medical and dental college in Thiruvananthapuram, was asked to hand over its campus and resources to the District Medical Officer during the pandemic. Although the premises and equipment were returned after more than a year, no payment was made.

What was the government’s argument?

Authorities denied the claim, arguing that the building was “unauthorised”. However, the court noted that the college had received a No Objection Certificate, a construction completion certificate, and that the Grama Panchayat had been collecting building tax. The High Court dismissed the state’s justification.

What did the court say about the law?

Citing Section 66 of the Disaster Management Act, the court stated that compensation must be computed and paid if property is taken over under the Act. Rejecting the district collector’s reasoning, the court held:

“If the respondents have taken over the medical equipments, then the respondents are bound to pay rent/compensation for medical equipments.”

It added that denying rent or compensation would violate the petitioner’s constitutional rights under Article 300A.

The court set aside the district collector’s decision and asked both the Collector and the District Disaster Management Authority to reconsider the petitioner’s Rs 46 crore claim. The plea was disposed of.