KOCHI: The Kerala High Court on Tuesday ordered status quo regarding the possession of Kovalam Palace and held that the Kovalam Palace (Taking over by resumption) Act, 2005, is valid.
A Division Bench comprising Chief Justice J Chelameswar and Justice Antony Dominic passed the order while considering an appeal filed by the state government challenging a Single Bench's order striking down the Kovalam Palace Act.
The Single Bench had declared the Act unconstitutional, void and inoperative.
The state government contended that the Single Bench was wrong in its observation that, when the Centre and the state have conflicting claims on the title to a piece of land, the state cannot bring in a piece of legislation to overcome the dispute.
The Single Bench had observed that "the Act is wholly incomprehensible and unsustainable, amounting to legislative contradiction of the constitutional prerogatives."
The Single Bench struck down the Act while considering a petition filed by Hotel Leela Venture and Kovalam Hotel Ltd challenging the Act. Leela group contended that "Kovalam Palace is not a heritage site and even if it was a heritage site, the government had no powers to take over it."
The Kovalam Palace, adjoining the Kovalam Hotel at the famous beach resort in Thiruvananthapuram, has been a place of dispute. The ITDC had handed over the hotel and the palace to the Gulfar Group.
The Gulfar Group later sold the property to Leela Venture Ltd.
The state government took over the Kovalam Palace in 2005 after protests from the Opposition LDF, claiming it as a heritage site.