SOUTHERN RAILWAY, CHENNAI vs DELIGH MANUFACTURING COMPANY

The Supreme Court upheld the High Court's decision that the leased property of Delight Manufacturing Company falls under Clause 3.1(b) of the Guidelines for commercial licensing of Railway lands, thus affirming the Single Judge's ruling that the respondent is liable to pay a license fee rather than rent. The Court directed that the rent be fixed at Rs.8,000/- per month from 1st March, 2012, based on a mediator's suggestion, while clarifying that this should not set a precedent for other cases. The appeal was disposed of with parties bearing their own costs.