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IN THE HIGH COURT OF CALCUTTA
Shampa Sarkar, J.
Anuradha Chaudhuri - Appellant
Versus
Kolkata Municipal Corporation & Ors. - Respondents
W.P.O. No. 186 of 2020; G.A. No. 1 of 2020; Old G A No. 823 of 2020
Decided On : 19-01-2021
KMC - Property Assessment - Kolkata Municipal Corporation Act, 1980, Sections 184(3), 184(4), 185, 186, 189(5) - The court set aside the assessment orders, supplementary bills, and notice of attachment of rent due to violation of principles of natural justice and non-supply of assessment orders. The matter was remanded to the Hearing Officer for fresh assessment. The petitioner was not obligated to pay the bills raised on the basis of the impugned orders.
Fact of the Case:
The petitioner challenged the assessment process of her leased property by Kolkata Municipal Corporation (KMC), alleging violation of principles of natural justice and non-service of assessment orders. The petitioner's appeal for an interim order was denied, and the matter proceeded to final hearing.
Finding of the Court:
The court found that the assessment orders were passed in violation of the principles of natural justice and non-compliance with statutory provisions. It set aside the assessment orders, supplementary bills, and notice of attachment of rent, remanding the matter to the Hearing Officer for fresh assessment. The petitioner was not obligated to pay the bills raised on the basis of the impugned orders.
Issues: The main issue was the maintainability of the writ petition, with the petitioner alleging violation of principles of natural justice and non-service of assessment orders. The court also considered the petitioner's entitlement to copies of the orders and the obligation to pay the bills raised on the basis of the impugned orders.
Ratio Decidendi: The court held that the writ petition was maintainable despite the existence of an alternative remedy, as the orders were passed in violation of the principles of natural justice. It emphasized that the petitioner was entitled to copies of the orders and was not obligated to pay the bills raised on the basis of the impugned orders.
Final Decision: The court allowed the writ petition, set aside the assessment orders, supplementary bills, and notice of attachment of rent, and remanded the matter to the Hearing Officer for fresh assessment. The petitioner was not obligated to pay the bills raised on the basis of the impugned orders.
JUDGMENT
Shampa Sarkar, J. - The writ petition has been filed by the sole owner of the property being flat No. 11 situated at the Municipal Premises No. 26, Sarat Bose road, Kolkata 700020 (hereinafter referred to as the said premises), which has been leased out to the respondent No. 6, that is, the Bank of India, the proforma respondent. The petitioner has challenged the entire assessment process of the said premises, praying for setting aside, cancellation and/or rescission of the red cards issued by the Kolkata Municipal Corporation (in short KMC), assessing the valuation of the said premises to be Rs. 10,80,000/- with effect from 1st quarter of 2013-2014 and Rs. 12,96,000/- with effect from 2nd quarter of 2016-2017 along with the supplementary bills dated November 15, 2019, bearing Nos. 2843186, 2843189, 2843192, 2843194, 2843187, 2843190, 2843191 and 2843188. The petitioner has also prayed for setting aside and cancellation of the notice dated March 3, 2020, issued by the KMC for attachment of rent.
2. The facts as pleaded in the writ petition in brief are that on or about July 9, 2013, the respondent No. 6 had taken the premises on lease for a period of 10 years. In terms of the said lease deed, the petitioner was to pay the corporation tax subject to 100% reimbursement by the respondent No. 6. It was mutually agreed that the petitioner would handover the tax bills raised by the KMC to the respondent No. 6, and the respondent No.6 would make the payment directly. Such practice would appear from the payment records maintained in the office of the KMC. As on August 2019, the annual valuation of the said premises was Rs. 7,77,600/-. On September 30, 2019 notices were issued under Sections 184(3) and 184(4) of the Kolkata Municipal Corporation Act, 1980 (hereinafter referred to the said Act), directing the petitioner to appear before the Hearing Officer on November 8, 2019, for assessment of the annual valuation of the said premises. For the 1st quarter of 2013-14 and 2nd quarter of 2016-17, the annual valuation was assessed at Rs. 10,80,000/- and Rs. 12,96,000/- respectively. The petitioner was put on notice to file a written objection against the above noted valuation and the date of hearing was fixed on November 8, 2019, before the Hearing Officer. That the learned Advocate for the petitioner appeared before the Hearing Officer with the notice along with a copy of the written objection but the Hearing Officer did not accept the objection and did not hold any hearing on the scheduled date. The Hearing Officer directed the learned Advocate for the petitioner to appear before him on the next date. Subsequently, the petitioner was served with red cards and the annual valuations as indicated in the hearing notices were confirmed. Along with the said red cards, supplementary bills dated November 15, 2019, were sent on the basis of the valuation. The order of the Hearing Officer was not served either with the said red cards or the bills. The petitioner through her learned Advocate demanded justice on December 18, 2019, before the KMC, praying for cancellation of the revised assessments and the bills. Despite receipt of the said demand of justice, the KMC did not respond to the same. The KMC also did not provide the order as requested by the petitioner. Thereafter, the Assessor Collector (South) KMC, issued a notice to the Senior Branch Manager of the Bank of India, directing that the rent payable to the petitioner by the said bank, should be paid to KMC. The said notice was a notice for attachment of rent issued in terms of Section 195 read with Section 225 of the said Act and was to take effect from March 1, 2020. The total outstanding property tax of the premises according to the said notice, was calculated at Rs. 42,98,340/-. The principal amount of claim was Rs. 30,17,588/-.
3. Aggrieved by the aforementioned actions of the KMC, the petitioner filed this writ petition.
4. The petitioner failed to get an interim order as praye
The main legal point established in the judgment is that the violation of principles of natural justice and non-compliance with statutory provisions can lead to the setting aside of assessment orders....
The deeming provision in Section 184 of the KMC Act must be strictly construed, and actual notice of proceedings is necessary to adhere to the principles of natural justice.
The court affirmed that amendments to property tax assessments must adhere to statutory provisions and procedural fairness, and that jurisdictional errors render assessments void.
Assessment orders deemed invalid due to lack of reasons and failure to adhere to mandatory notice periods.
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