Deepali Kalia –
Madras High Court on June 23rd criticized Bharat Sanchar Nigam Limited (BSNL) for not constructing a telephone exchange on the land as promised to the owner who had ‘sold’ the property to them for Rs 1 on the condition that the building constructed would be named after his father.
Marimuthu had in 1999 purchased the property in Virudhunagar for Rs 28,520 in order to construct a memorial for his father. However, he had later in 2001 sold his property for free to BSNL who were searching for suitable land to construct a telephone exchange, on the condition that the building so constructed would be named after his father.
BSNL had given Marimuthu a token consideration of Rs 1 as land cannot be received by them as a gift as per the government’s policy.
When no building was constructed for several years as per the agreement, Marimuthu approached the court in 2014.
“The petition is a textbook example of how the instrumentality of a State (State’s instrument i.e., BSNL) attempted to unjustly enrich itself, and had thereby virtually grabbed the property belonging to the petitioner, one AS Marimuthu. BSNL being an instrument of the State is bound to act reasonably and fairly in its dealings with the citizens. Having induced the petitioner to part with his property, BSNL reneged on its promise to put up a building. The net result is that the petitioner suffered a double whammy.” Justice N Anand Venkatesh remarked.
It was held by the judge that the contract between the petitioner and BSNL was “unfair, arbitrary and unreasonable” as it robbed the petitioner of his right to property guaranteed under the constitution.
The court, therefore, directed BSNL to pay Marimuthu the market value of the property, along with nine per cent interest per annum from 2001 or return the property.
