The Supreme Court, recently, framed eleven issues in an original suit filed by the State of Tamil Nadu alleging that the State of Kerala has constructed the project "Mega Car Parking" area in the Mulla Periyar Dam water spread which violates a lease deed.

The Bench of Justice Abhay S Oka and Justice Augustine George Masih framed the following issues, "Whether the Government of India is the true successor to the Lease Deed of 1886 instead of Government of Tamil Nadu by virtue of Article 249(b) of the Constitution, conceding that the Standstill Agreement executed between Princely State of Travancore and Dominion of India as per the provisions of Section 7(1)(b) of the Indian Independence Act, 1947 survived after the commencement of the Constitution of India?...Whether the Lease Deed of 1886 is valid and enforceable in the changed circumstances?"

Senior A.A.G. V. Krishnamurthy, Senior Advocates P. Wilson, G. Umapathy and N.R. Elango appeared for the State of Tamil Nadu whereas Senior Advocate Jaideep Gupta appeared for the State of Kerala.

The Court will also decide whether Section 108 of the State Reorganisation Act will attract and give protection to the Lease Deed of 1886 as the Section only deals with the agreements entered into by the “existing States” defined by Section 2(g) of the State Reorganisation Act of 1956.

The State of Tamil Nadu in its plea had sought, "a decree of permanent injunction restraining the Defendant State from trespassing/encroaching upon the area leased to the Plaintiff State under the Agreement of 1886 and affirmed by the Supplemental Agreements of 1970 and from taking up any further construction of the Mega Car Park in the leased area and to restore the land trespassed/encroached upon to its original state;”

The Court will also decide the maintainability of the suit and whether the validity of the Lease Deed of 1886 is barred by the principles of res judicata.

"Whether the proposed Mega Car Parking area is not in the water spread area of the Mullai Periyar Dam?... Whether the proposed construction of the Mega Car Parking Complex in the water spread area of the Mullai Periyar Dam is in breach and violation of the rights under the Lease Deed of 1886?", the Court framed.

The Court, on October 10, 2023, had opined that the parties may conduct a joint survey and determine the precise location of the Mega Car Park. Subsequently, on a later hearing, the State of Tamil Nadu sought directions from the competent authorities and had submitted that they have no such objection.

Pursuant to this, the Court had directed, "We are ordering the survey with a view to ascertain whether the construction of the Mega Car Park has been made on any part of the property covered by the Periyar Lake Lease Agreement dated 29th October, 1886, which is described as Doc.1 in Volume II. Therefore, it is needless to add that the Survey of India or the officers nominated by it, will have to carry out the exercise of determining the precise area or the property covered by the said lease deed and thereafter, ascertain whether the construction of the Mega Car Park has been made in the leased area...We direct the Survey of India or the officers nominated by it, to carry out the work of demarcation and survey after giving advance notice to the officers nominated by both the States."

Therefore, the Court also framed another issue i.e. whether the Survey Report of March 2024 submitted by the Survey of India is correct and has any relevance to the suit.

As regards the Lease Deed, the Court said, "Whether the various encroachments in the leased area by the actions of the defendant is not an infringement on the rights of the plaintiff under the Lease Deed of 1886?... Whether the defendant is interfering with the right to peaceful and exclusive possession under the LeaseDeed of 1886 and the Supplementary Agreement of 1970?"

Accordingly, the Court directed the parties to produce the documents within eight weeks and listed the matter for a further date.

Cause Title: State of Tamil Nadu v. State of Kerala (Original Suit No. 4 of 2014)

Appearances:

Plaintiff: Senior A.A.G. V. Krishnamurthy, Senior Advocates P. Wilson, G. Umapathy, N.R. Elango, AOR D. Kumanan, Advocates Deepa S., Sheikh F Kalia, Chinmay Anand Panigrahi and Veshal Tyagi.

Respondent: Senior Advocate Jaideep Gupta, AOR G. Prakash, Advocates Beena Prakash, Jishnu M L, Priyanka Prakash and Anoop R.

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Justice Abhay S OkaJustice Augustine George MasihMullaperiyar Dam

Aastha Kaushik