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2002 Supreme(Cal) 376

High Court Of Calcutta
Bhaskar Bhattacharya
NEPAL CHANDRA KAR - Appellant
Versus
CALCUTTA MUNICIPAL CORPORATION - Respondent
W. P.  978  Of  2002
Decided On : 06/13/2002

Advocates Appeared:
B.N.JOSHI

Section 573 of the Calcutta Municipal Corporation Act, 1980, which provides a three-year limitation period for recovery of certain dues, does not apply to arrears of stallage, for which specific provisions for action against defaulters are provided under section 432 of the Act.

Headnote:

CALCUTTA MUNICIPAL CORPORATION ACT, 1980 - SECTION 432, 573 - ARREARS OF STALLAGE - RECOVERY - LIMITATION.

Fact of the Case:

Petitioners, allottees of a stall at Hogg Market, were served with a notice to pay arrears of stallage from 1990. They challenged the demand, arguing that arrears beyond three years are not recoverable under section 573 of the Calcutta Municipal Corporation Act, 1980.

Finding of the Court:

The court held that section 573 applies only to cases where no mode of recovery is provided in the Act, and that in cases of arrears of stallage, the Corporation can take action under section 432, which allows for closure of the shop or determination of tenure.

Issues: Whether the Corporation can take action for non-payment of arrears of stallage for a period beyond three years, and whether section 573 of the Calcutta Municipal Corporation Act, 1980 bars recovery of arrears beyond three years.

Ratio Decidendi: Section 432 of the Calcutta Municipal Corporation Act, 1980 specifically provides for action against defaulters in payment of stallage, including closure of the shop or determination of tenure. This provision overrides the general limitation period of three years provided in section 573, which applies only to cases where no other mode of recovery is provided.

Final Decision: The writ petition was dismissed, and the interim order granted earlier was vacated.

Bhaskar Bhattacharya, J.

( 1 ) THE Court: Petitioners, the allottees of a stall at Hogg Market, were served with a notice asking them to pay the arrears of stallage payable from the year 1990 as detailed in annexure 'p-10' to the present writ application. It was further threatened by the Deputy Manager, Hogg Market in the said demand notice that in default of payment of the amount mentioned therein, appropriate step against the petitioners including disconnection of electric supply in the stall will be taken.

( 2 ) BEING dissatisfied, the petitioners have come up with the present writ application.

( 3 ) MR. Basu, the learned counsel appearing on behalf of the petitioners could not dispute the fact that the petitioners have not paid the amount; he however laboriously contended that in view of the provisions contained in section 573 of the Calcutta Municipal Corporation Act, 1980 (Act) the respondents can at the most realize arrears of stallage for the last three years. Mr. Basu contends that arrears beyond the period of three years are not recoverable and as such no action can be taken for non-payment of the amount, the recovery of which is now barred by limitation.

( 4 ) MR. Ghosh, the learned counsel appearing on behalf of the Corporation however disputes the aforesaid contention of Mr. Basu and asserts that section 573 of the Act cannot have any application to a case of recovery of arrears of stallage in view of specific provision contained in section 432 of the Act.

( 5 ) THEREFORE, the only question that falls for determination in this application is whether the Corporation can take step for eviction of the petitioners for non-payment of the arrears of stallage for a period beyond three years.

( 6 ) FOR the purpose of appreciating the question involved herein it will be profitable to refer to the provisions contained in sections 432 and 573 of the Act which are quoted below :-SECTION 432. Power to expel person contravening regulations.- (1) The Municipal Commissioner may, after giving the parties concerned an opportunity of being heard and in accordance with such regulations as may be made by the Corporation,- (a) expel from any Municipal Market, Municipal slaughter-house or Municipal stockyard, for such period as he may think fit, any person who or whose servant has been found contravening any regulations made under this Act and in force in such market, slaughter-house or stockyard, (b) prevent such person, by himself or by his servant, from further carrying on any trade or business in such market, slaughter-house or stockyard or occupying any stall, shop, standing, shed, pen or other place thereon. (c) close the stall or shop of the person found to be in default in payment of the stallages or rents or any other dues to the Corporation till payment is made or recovered under the provisions of this Act, and (d) determine any lease or tenure which such person may have in any such stall, shop, standing, shed, pen or place. (2) If the tenant or the agent of the tenant of the owner or the lessee of any private market or slaughter-house has been convicted for contravening any regulation made under this Act, the Municipal Commissioner may require such tenant or agent to remove himself from such market or slaughter-house within such time as may be mentioned in the requisition, and if such tenant or agent fails to comply with such requisition, he may, in addition to any penalty which may be imposed on him under this Act, be summarily removed from such premises by the owner or the lessee thereof or by the servant of such owner or lessee. (3) If it appears to the Municipal Commissioner that in any such case the owner of the lessee is acting in collusion with a tenant or an agent, convicted as aforesaid, who fails to comply with any requisition under sub-section (2), the Municipal Commissioner may, if he thinks fit, cancel the licence of such owner or lessee in respect of such premises. Section 573. Recovery of certain dues of C








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