Race club case: HC reserves order on suit challenging termination of lease

Chennai: Madras high court on Tuesday reserved its order on a suit moved by Madras Race Club (MRC) challenging the action of state govt in terminating the lease of 160 acres of land allotted to it in Guindy.
Concluding the final arguments on the interim application moved by the club seeking leave to move the suit without the mandatory two months' notice, Justice R M T Teeka Raman reserved his order.Representing the govt, senior advocate Dushyant Dave submitted that he was surprised that the club has moved a fresh civil suit when the issue is already pending before a division bench of this court. "This is a classic case of forum shopping," he said.
Once the order of termination of the lease is issued, the resumption of possession of the property is automatic, he added. Moreover, so far, the order of termination of the lease has not been challenged by the club. So, we are within our rights to do what should be done, the senior advocate said.
He added that the club has approached the court suppressing vital facts that the lease was not only terminated but the possession of the property was already taken by the state. Fifteen days' time was given to the club only to vacate the building and remove the horses, he said.
Producing copies of communications issued by the collector and the revenue department, he said the documents would categorically show that the possession of the property was taken on Sept 9. As to the submission made by the advocate-general before the division bench that the possession of the property is yet to be taken, Dushyant Dave said, "What AG made was not an undertaking, but misreading of the GO. It happens." He relied on a Supreme Court judgement and contended that the govt is not bound by undertakings made by govt advocates before the court.
Representing the club, senior advocate A L Somayaji contended that even if the lease was terminated, the state cannot take immediate possession of the property without issuing appropriate notice and providing reasonable time to vacate. Senior advocate Gopal Shankaranarayanan submitted that the govt is earning a revenue of 10 crore from members of the club and if it is closed it would affect the owners and trainers of the horses.