Kochi | In a significant ruling, the Kerala High Court has held that the State government is legally obligated to pay rent and compensation to a charitable trust whose hospital and facilities were taken over during the COVID-19 pandemic. The court made it clear that the use of the Disaster Management Act does not override the constitutional right to property, even if the building was allegedly unauthorised.
The verdict came in response to a petition filed by an educational agency running a Medical and Dental College, which claimed that despite its full cooperation during the pandemic, it had not received ₹46 crore in rent and compensation after its hospital, hostel, medical equipment, and other infrastructure were occupied by authorities.
The takeover was carried out under Sections 26, 30, and 34 of the Disaster Management Act, 2005, with the petitioner ordered to provide all human and material resources. The District Medical Officer (DMO) had directed the handover of facilities, including staffing for sanitation and repairs.
Despite complying, the trust’s compensation claim was rejected on the grounds that the buildings, including a Women’s Hostel, allegedly violated Coastal Regulation Zone (CRZ) rules and were unauthorised. The Rent Committee only approved ₹1.06 crore for a portion of the occupied premises, denying the rest of the claim.
Justice N. Nagaresh, presiding over the case, strongly objected to the denial of payment, noting that the buildings had received No Objection Certificates (NOCs) from the local panchayat. He said, “Even if certain statutory clearances were pending, the respondents who used the building under the Disaster Management Act cannot deny compensation on that basis. Doing so would violate the petitioner’s constitutional right under Article 300A.”
The court also criticised the District Collector’s reasoning for denying rent for medical equipment, calling it “highly arbitrary and unacceptable.” It emphasized that if authorities used medical equipment during the pandemic, they are legally bound to compensate for it.
The High Court set aside the District Collector’s order and remitted the matter back to the District Collector and the District Disaster Management Authority, directing them to reconsider the compensation claim and ensure the rightful dues are paid to the petitioner.
