Kerala High Court: Tenant Must Pay Rent Until Vacating Premises Despite Section 3D Notification
The Kerala High Court has held that a tenant must keep paying rent even after a notification under Section 3D of the National Highways Act is issued, as long as the tenant continues to occupy the premises.
The case arose from a dispute between tenants and the Travancore Devaswom Board over rent for shop rooms located in property acquired for a national highway project.
The tenants argued that once a notification under Section 3D(1) was issued, the land vested in the Central Government. They said the landlord then lost the right to claim rent.
The Devaswom Board took a different stand. It argued that the tenants stayed in possession of the premises even after the notification. Therefore, they still had to pay rent under the lease terms.
The main issue before the Court was whether tenants must pay rent for the period between the Section 3D notification, which causes vesting of the land, and the actual surrender of possession under Section 3E of the Act.
A Division Bench of Justice Raja Vijayaraghavan V. and Justice G. Girish held that vesting under Section 3D does not automatically end the tenant’s obligation to pay rent.
The Court said that ownership may vest in the Central Government once the Section 3D notification is issued. However, actual physical possession is taken only after further statutory steps. These steps include notice under Section 3E and payment of compensation.
The Bench said there is an interregnum period between vesting and actual surrender of possession. During this period, a tenant may still remain in occupation of the premises.
The Court held that when a tenant continues in possession during this period, the duty to pay rent or licence fee also continues. The Bench said a tenant “cannot wriggle out of the liability” merely because ownership has passed to the Central Government.
The Court also stressed that tenants cannot avoid rent while continuing to occupy the premises. Such a situation, it said, would lead to unjust enrichment at the cost of the landlord.
The Kerala High Court dismissed the writ petition. It held that tenants must pay rent or arrears for as long as they remain in possession of the premises, even after a Section 3D notification, until they surrender possession or are evicted.
The Court added that parties may pursue any other remedy available in appropriate proceedings. However, it found no ground to grant relief in the present case.
