Srinagar, Nov 17: The High Court of Jammu & Kashmir and Ladakh on Thursday ordered status quo in respect of leased premises of Hotel Corporation of India (HCI) Ltd till a final decision is taken by the competent authority in the matter.
The court directed the Government of India (GoI) through Cabinet Secretary to constitute a committee within a period of four weeks and adjudicate the dispute regarding termination of lease agreement between the corporation and the J&K government.
Justice Sanjeev Kumar directed the GoI through its to constitute a committee comprising Secretary to the Government Ministry of Civil Aviation, Secretary to the Government, Department of Home Affairs, and Secretary, Department of Legal Affairs to adjudicate the dispute in question that has arisen between the HCI and J&K government.
Pronouncing the judgment, the court directed the committee to hear all the stakeholders and finalise its decision within a period of two months. “Till a final decision on the matter is taken by the Competent Authority, there shall be status quo in respect of leased premises,” the bench directed.
The bench directed the authorities to make efforts to resolve the dispute amicably by following as far as practicable the mechanism provided under Office Memorandum issued by Ministry of Law and Justice, GoI on March 31, 2020.
“Needless to say that in case any of the parties is aggrieved by the decision of the Committee aforesaid, it shall be open to it to file an appeal under para 6 of the memo before the Cabinet Secretary whose decision, on the subject, shall be final and binding on both the parties,” the court said.
Justice Kumar directed that in case the committee at its level fail to resolve the dispute between the parties for any reason whatsoever, the matter would be referred to the Cabinet Secretary whose decision shall be final and binding on all the concerned.
The court also directed that the committee shall be free to put on notice any department, officer or official of the Government of India or Government of Union Territory of J&K to elicit any information or record.
“Let the Government of India/Cabinet Secretary constitute a Committee within a period of four weeks from the date of judgment under an intimation to the disputing parties,” the court said.
The court passed the rulings in a plea filed by Hotel Corporation of India Ltd, a company controlled by the Ministry of Civil Aviation, GoI, challenging termination of lease agreement notice issued by Secretary to the Government, Department of Tourism, J&K government on December, 27, 2020 and eviction notice issued by the Estates Officer on April, 25, 2022.
The petitioner HCI had also assailed the order passed by the Appellate Authority on June, 30, 2022 under the J&K Public Premises (Eviction of unauthorized Occupants) Act, 1988 dismissing the appeal of the Corporation against the eviction notice.
As per the corporation, a piece of land measuring 3 acres was leased out to the HCI by the J&K government on March 10, 1982 for a period of 99 years.
Perusing the material on record, the court noted that the dispute raised in the petition is a dispute between an Autonomous Body (the corporation) fully owned, controlled and administered by the Ministry of Civil Aviation, GoI and the UT of J&K which is administered by the President of India through Lieutenant Governor who is answerable to the President through the Ministry of Home Affairs, GoI.
Thus, the bench observed, such disputes between the two limbs of Government of India should not be brought to the court, to be fought for years at the expense of the public exchequer.
The court underscored that the dispute with regard to the termination of lease by the J&K government which operates and functions under the aegis of Ministry of Home Affairs, GoI and the Hotel Corporation of India which is financed, controlled and administered by the Ministry of Civil Aviation, GoI as also the dispute in respect of consequent eviction ordered by the Estates Officer J&K against the corporation are the disputes which can be resolved through the Administrative Mechanism for Resolution of Disputes (AMRD) by relegating the parties to the mechanism set out in the office memo.
Debating various issues of law and facts in the matter, the court said, “However, instead of going into all these issues and having regard to the fact that the dispute is between two limbs of Government of India, it would be desirable to relegate the parties to the Administrative Dispute Resolution Mechanism provided under the Office Memo.
Taking note of the Office Memo, the bench observed that notwithstanding the recall of mechanism in place pursuant to the directions of the Supreme Court, the GoI has devised an institutional mechanism for resolution of disputes other than those related to taxation, between Central Government Ministries, Departments inter se and between Central Government Ministries or Departments & other Ministries or Departments or Organization(s), Subordinate, Attached Offices, Autonomous and Statutory Bodies, etc. under their administrative supervision and control.
The Office Memo issued on March 31, 2020 provides two-tier structure for resolution of the disputes. The first level (tier) consists of a committee comprising Secretaries of the Administrative Ministries and Departments to which the disputing parties belong and Secretary, Department of Legal Affairs.
For commercial disputes, the first-level committee shall consist of Joint Secretaries and Financial Advisors of the two concerned Administrative Ministries or Departments.
It is further provided that in case the dispute remains unresolved after consideration by the committee, it shall be referred at the second level (tier), to the Cabinet Secretary, whose decision shall be final and binding on all concerned.
The memo further provides that any party aggrieved by the decision of the committee at the first level (tier) may prefer an appeal before the Cabinet Secretary at the second level (tier) within 15 days from the date of receipt of decision of the committee at the first level, whose decision shall be final and binding on all concerned departments.
The office memo has been directed to be brought to the notice of all the Authorities, Boards, Subordinate, Attached Offices, Autonomous and Statutory Bodies, etc. under their administrative supervision and control for strict compliance.
