The Hindu : Kerala News : Halcyon Castle case: judgment reserved

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Thursday, Mar 17, 2005

Kerala

Kerala

Halcyon Castle case: judgment reserved

By Our Staff Reporter

KOCHI, MARCH 16 . A Division Bench of the Kerala High Court today reserved its judgment on a writ petition by M.Far Hotel Limited, which has bought the India Tourism Development Corporation's (ITDC) Ashoka Beach Resorts in Kovalam, challenging the take over of the Halcyon Castle and its surrounding properties.

The Bench comprising Justice K.S. Radhakrishnan and Justice S. Siri Jagan reserved its judgment after completion of the arguments on behalf of the State Government and the M.Far Hotel. The group contended that the State Government had no power to take over the castle, which had also been sold to the group along with the resort.

The property was sold to the petitioner by the Union Government and the ITDC. The petitioner contended that the company could not be deprived of its property merely on the basis of an executive order. In fact, the Government had sold the castle and its adjoining areas to the ITDC for a consideration of Rs. 9. 50 lakhs in 1970.

The ITDC had been in possession of the building and its property since 1970. The Kovalam Hotel Samrakhasan Samthy patron and former Speaker, M. Vijayakumar, and other office-bearers of the Samithy, including the former Minister N. Neelalohithadasan Nadar were impleaded in the petition.

The State Government took the stand that the title of the Halcyon Castle and its property had never been transferred to the Union Government or the ITDC. The Government argued that it had been empowered to re-possess the Kovalam Palace and adjacent land. The ownership of the property was vested with the Government and ``permissive possession alone is transferred to Central Government.'' Since October 23, 1970, the property had only been in the "permissive possession" of Government of India with the result that the title of property remained with the State. But the possession of the property given by the ITDC to the hotel company was without the permission of the Government. The Government also argued that it wanted to preserve the property as a heritage site.

CBI inquiry sought

The Bench also directed the State Government to give its views on the plea for a CBI inquiry into the allegation that there had been large-scale corruption in the purchase of medicines and spices during the tenure of S. Pulikesi as Managing Director of the Kerala State Civil Supplies Corporation.

The petition was filed by M.K. Rajesh, general secretary, Bharatiya Janata Yuva Morcha, Kottayam district.

Special Commission

A Division Bench comprising Justice S. Sankarasubban and Justice K. Hema allowed the Cochin Devaswom Board to appoint S. Rajasekharan Nair, senior grade lecturer, Thrissur Law College, as Special Commission to the Devaswom.

The court chose Mr. Nair from a panel of names given by the Board.

Special permits

The court admitted a writ petition challenging the State Transport Authority's order directing the Regional Transport Authorities to give special permits for two days to private bus operators to operate for other purposes without insisting on making alternative arrangements on their existing routes.

The All Kerala Contract Carriage Operators Association filed the petition.

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