Madras High Court Upholds ₹9.7 Crore Rental Demand Against Amrutanjan Limited
In a significant ruling, the Madras High Court on Tuesday refused to grant relief to Amrutanjan Limited, dismissing its appeal against a substantial rental demand of ₹9.7 crore from the Hindu Religious and Charitable Endowments (HR & CE) department. The case revolves around the company's occupation of 33,000 square feet of land belonging to the historic Mylapore Kapaleeswarar temple in Chennai.
Court's Decision and Rationale
The first bench, comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan, upheld a previous single judge order that had favored the HR & CE department. The bench emphasized that religious institutions heavily depend on rental incomes to maintain properties and fulfill their duties. "If the plea of the appellant that the condition mandating pre-deposit is onerous is accepted, then the religious institutions would not be able to maintain the properties and fulfil the religious duties," the court stated, echoing the single judge's observation.
Background of the Land Dispute
According to the HR & CE department, the land in question was originally leased on a 99-year term to P R Sundera Iyer in 1901. The rights were later assigned to Amrutanjan Limited, which had been paying a nominal rent of just ₹1,400. After issuing a notice for enhanced rent, the tenancy was terminated effective October 31, 2001, and the company was directed to vacate the premises.
Amrutanjan Limited challenged this termination order in 2005, leading to a prolonged legal battle. On September 25, 2025, a single judge of the Madras High Court ruled in favor of the HR & CE department, prompting the company to file the recent appeal, which has now been dismissed.
Implications for Religious Institutions
This ruling underscores the judiciary's stance on protecting the financial interests of religious and charitable endowments. By rejecting Amrutanjan's appeal, the court has reinforced the importance of rental incomes for the upkeep of temple properties and the continuation of religious activities. The decision sets a precedent for similar disputes involving leased lands owned by religious bodies across Tamil Nadu and potentially other regions.
The case highlights the ongoing challenges in balancing commercial interests with the preservation of cultural and religious heritage, particularly in urban areas like Chennai where prime temple lands are often subject to long-term leases at outdated rates.
