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2011 (7) TMI 1299 - SC - Indian LawsWhether Government stadium meant for developing sports and athletics allowed to be misused by private hands - Petition for canceling the sub-lease/licence - the District Cricket Association ( DCA ) was registered as a society under the Societies Registration Act, 1860 to fulfill the requirements of the citizens of NIT area of Faridabad, by providing facilities like lawn tennis, badminton, table tennis, billiards, swimming pool, gymnasium and a card-room, T.V. lounge and a Bar and Restaurant. the DCA Club granted a licence in regard to the lawn area in front of the Kapil Pavilion to Modern Tent House .The appellant herein filed a public interest litigation before the High Court, alleging that instead of using the leased premises which is part of the stadium complex, for sports and sports related activities, it was being used for illegal activities; that the club had become an adda (den) of gamblers; that though clause 10 of the lease deed in favour of the club barred subletting or transfer of the premises in violation thereof, the premises had been sub-let to the Modern Tent House. It was also alleged that the funds were misused by the corrupt members of the Executive Committee who were least interested in fulfilling the objects of the club. HELD THAT - the common malaise found in various parts of the country in regard to sports stadia and sports facilities. Firstly, inadequate and inappropriate use. Secondly, poor maintenance. Thirdly, lack of access to students, public, athletes and sports persons. A huge tract of valuable land belonging to the local authority was earmarked exclusively for sports activities by constructing a stadium. The sports facilities in the Stadium are meant to be used by residents and sports persons of the city/town and surrounding areas. The prime area of the stadium cannot be taken over by persons in power and the rich and mighty for an elitist recreational club by paying a token annual rent of Re.1. The affidavit shows that in the leased area sports activities are not encouraged and the entire leased area is used for commercial activities. The affidavit in reply filed by DCA Club vaguely states that it is being used for the activities of cricket, lawn tennis, badminton, billiards, swimming pool, gymnasium, football, athletics. This is obviously false as the football ground and athletics ground are outside the area leased to the DCA Club. As the High Court has not considered these aspects and the matter requires monitoring and appropriate directions, we consider it necessary to remand the matter to the High Court. We therefore allow this appeal, set aside the order of the High Court, remand the PIL to the High Court.
Issues Involved:
1. Legality of the lease of the stadium premises to DCA Club. 2. Alleged misuse of the leased premises for non-sports activities. 3. Sub-leasing and unauthorized constructions by DCA Club. 4. Accessibility of the stadium facilities to the public. 5. Financial implications and benefits to the stadium owner. 6. Measures to ensure the stadium's use for sports activities. 7. Potential cancellation of the lease due to breaches. 8. Prevention of misuse of sports facilities. Detailed Analysis: 1. Legality of the Lease of the Stadium Premises to DCA Club: The District Sports Council, Faridabad, granted a lease of the Kapil Pavilion and an open area to the DCA Club for 99 years at a nominal annual rent of Re. 1. This lease was intended to establish, run, and maintain a club to generate income for maintaining the cricket stadium. The lease deed imposed specific obligations on the lessee, including prohibitions on subletting, alterations, and using the premises for non-sports activities. The High Court's dismissal of the PIL challenging this lease was deemed inappropriate by the Supreme Court, which highlighted the need for judicial scrutiny of such largesse granted without competitive bidding. 2. Alleged Misuse of the Leased Premises for Non-Sports Activities: Contrary to the lease terms, the DCA Club sub-leased parts of the premises to entities like Modern Tent House and M-n-M Pool and Spa Services for commercial activities, including hosting parties and running a swimming pool. The Supreme Court noted that the stadium, intended for sports, was being used for non-sports commercial activities, which undermined the purpose of promoting sports and providing facilities to the public. 3. Sub-leasing and Unauthorized Constructions by DCA Club: The DCA Club granted licenses that effectively amounted to sub-leases, allowed unauthorized constructions, and used the premises for purposes other than sports. These actions violated the lease conditions, yet the state government and district administration failed to take corrective measures. The Supreme Court emphasized the need for accountability and enforcement of lease terms to prevent such breaches. 4. Accessibility of the Stadium Facilities to the Public: The Supreme Court questioned whether the stadium facilities, including the cricket stadium, football ground, and other sports areas, were accessible to the public or restricted to club members. The affidavit provided by the DCA Club vaguely stated the use of these facilities without clear details on public access and maintenance responsibilities. The Court stressed the importance of making sports facilities available to the public and ensuring their proper use. 5. Financial Implications and Benefits to the Stadium Owner: The lease of a prime area of the stadium for a nominal rent raised concerns about the financial benefits to the stadium owner, the Faridabad Municipal Corporation. The Supreme Court highlighted the need for open competitive bidding to ensure fair financial returns and questioned the rationale behind granting such a long-term lease at a token rent. 6. Measures to Ensure the Stadium's Use for Sports Activities: The Supreme Court underscored the importance of using the stadium exclusively for sports and related activities. It criticized the practice of converting sports facilities into recreational clubs and using them for non-sports commercial activities. The Court called for measures to ensure that the stadium serves its intended purpose of promoting sports and providing facilities to athletes and the public. 7. Potential Cancellation of the Lease Due to Breaches: Given the breaches of lease conditions by the DCA Club, the Supreme Court considered whether the lease should be canceled, revoked, or terminated. The Court emphasized the need for the High Court to examine these breaches and take appropriate action to protect public interest and ensure the proper use of the stadium. 8. Prevention of Misuse of Sports Facilities: The Supreme Court highlighted the broader issue of misuse and diversion of sports facilities for non-sports activities. It called for policy guidelines to prevent such misuse and ensure that sports facilities are used for their intended purpose. The Court stressed the need for government and municipal authorities to allocate funds for maintaining sports facilities and making them accessible to the public. Conclusion: The Supreme Court allowed the appeal, set aside the High Court's order, and remanded the PIL to the High Court for further consideration. The High Court was directed to address the specific issues outlined by the Supreme Court and ensure that the stadium and sports facilities are used appropriately for promoting sports and providing public access.
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