Facts of the Case

A.Prabakaran filed a writ petition before the Madurai Bench of the Madras High Court seeking to cancel an auction held on 04.10.2023 for the fishing rights of the 'Mugavoor Kanmai' water body in Rajapalayam Taluk, Virudhunagar District, and the allotment of those rights to the fourth respondent, M.Karuppasamy.

The petitioner impleaded the Executive Engineer (PWD), Water Resources Department, the Commissioner of the Panchayat Union, and the Assistant Director of Fisheries as official respondents, along with Karuppasamy as a private respondent.

The matter was resolved by negotiated consent terms at the hearing on 12.10.2023: the petitioner's bid amount for the first year's lease was fixed at Rs.1,85,000, on which he was required to pay GST at 18% along with a 7% contribution to the Fishermen Welfare Association; a sum of Rs.65,000 already paid to Karuppasamy directly was acknowledged as received; and the petitioner was to enjoy the lease for a three-year period commencing 16.10.2023, at an enhanced rate for the second and third years.

Issues Involved

  1. Whether the fishing-rights auction and allotment could be resolved in the petitioner's favour, and on what commercial terms.

Petitioner's Arguments

  • The petitioner sought cancellation of the auction and allotment of fishing rights to the fourth respondent, and instead sought the fishing rights to be granted in his own favour.

Respondent's Arguments

  • The official respondents and the fourth respondent (Karuppasamy) agreed, before the Court, to a negotiated resolution recognising the petitioner's right to the fishing lease for three years, subject to payment of the specified bid amount, applicable GST, and Fishermen Welfare Association contribution, and to Karuppasamy retaining the Rs.65,000 already paid to him.

Court Order / Findings

  • The Court recorded the consent terms reached between the parties: the petitioner to pay Rs.1,85,000 as first-year lease bid amount plus 18% GST and 7% Fishermen Welfare Association contribution by the following morning; a sum of Rs.65,000 already paid to Karuppasamy to remain with him; the petitioner to enjoy the water-body lease for three years from 16.10.2023, at enhanced rates for the second and third years, with room for pro-rata adjustment if the lease period were shortened to align with the fasli year.
  • The writ petition was allowed on these consent terms, with no order as to costs.

Important Clarification

This order does not decide any GST legal question — the 18% GST figure is simply the statutory tax rate applicable to the lease consideration, mentioned as part of a negotiated settlement over a fishing-rights auction. It is a fisheries/water-resources licensing dispute resolved by mutual agreement of the parties, not an adjudicated GST ruling.

Sections Involved

  • Constitution of India, 1950 – Article 226 (writ of mandamus)
  • State fisheries/water-resources leasing rules governing auction of fishing rights in public water bodies

Decision – In Favour of

The writ petition was allowed in favour of the petitioner, A.Prabakaran, on negotiated consent terms granting him the three-year fishing lease of the water body, subject to payment of the agreed bid amount, applicable GST, and welfare-association contribution.

Case Details

  • Court: Madurai Bench of the Madras High Court
  • Case No.: W.P(MD)No.24649 of 2023 with W.M.P.(MD)No.20847 of 2023
  • Coram: Justice G.R.Swaminathan
  • Date: 12.10.2023

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.