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2017 Supreme(Mad) 4205
IN THE HIGH COURT OF JUDICATURE AT MADRAS
T.S. Sivagnanam, J.
The Tamil Radhasoami Satsang Association – Appellant
Vs.
The Commissioner, Corporation of Chennai and Ors. – Respondents
W.P. No. 17415 of 2010
Decided On : 21-07-2017
For the Appellant : K.S.V. Prasad
For the Respondent: K. Soundararajan
Headnote:
Property Tax - Though matter had a chequered history disputes which arise for consideration lies in a narrow compass - Property originally belonged and another was assessed to property tax by corporation and half yearly tax was fixed - Subsequently property tax was increased which has been remitted by petitioner under protest and they challenged same by filing an appeal - When dispute was pending consideration a notice was issued by respondent-corporation proposing to revise half yearly tax - It is relevant to mention that even at that point of time when property tax has been revised same was being contested by petitioner - Appeal filed by petitioner was referred to lok adalat and a settlement was arrived at which was recorded by members of lok adalat including official of respondent Corporation – Held, Therefore in my considered view interpretation to be given to Award is that it will cover period up to April and property tax has been agreed to be fixed and any other interpretation given by respondent-corporation has to be out rightly rejected - It appears that Tax Collector has correctly understood impact of award and collected taxes - Present attempt of respondent-corporation for reopening assessment cannot be permitted - Learned Standing Counsel appearing for respondent Corporation submitted that even assuming that Award can be given effect for subsequent period petitioner is required to pay a higher amount of property tax - As noticed assessment stood transferred in name of petitioner - Admittedly if there was any arrears of tax respondent Corporation would not affect any name transfer - Subsequently petitioner applied for reduction of property tax stating that they are a charitable organization affiliated - This was accepted by Corporation of Chennai and property tax was reduced - Obviously if there was any arrears respondent Corporation would not have entertained such a request - Therefore this Court has to determine as what would be Property Tax payable by petitioners Association for period - Writ Petition is allowed.
T.S. Sivagnanam, J.
1. Heard Mr. K.S.V. Prasad, learned counsel for the petitioner and Mr. K. Soundararajan, learned Standing Counsel for the respondent-Corporation. The petitioner is an Association registered as a charitable organization and affiliated to Radhasoami Satsang Sabha, Agra, Uttar Pradesh. The present Writ Petition has been filed praying for issuance of Writ of Certiorari to quash the final order passed by the 2nd respondent dated 31.05.2010 and the Japti Notice issued by the 3rd respondent-Metro Water dated 09.07.2010 in respect of the premises bearing Door No. 26, Old No. 486, Pantheon Road, Egmore, Chennai and assess the Property Tax and Water Tax, taking into consideration the Award passed by the Lok Adalat dated 12.04.2007 in M.T.A. No. 43 of 2006.
2. Though the matter had a chequered history, the disputes which arise for consideration lies in a narrow compass. The property originally belonged to D. Prema and another, was assessed to Property Tax by the Corporation and the half yearly tax was fixed at Rs. 1,437.85ps. Subsequently, from the 11/96-97, the Property Tax was increased to Rs. 11,959.95ps which has been remitted by the petitioner under protest and they challenged the same by filing an appeal in M.T.A. No. 43 of 2006. When the dispute was pending consideration, a notice was issued by the respondent-Corporation dated 31.12.1999 proposing to revise the half yearly tax to Rs. 33,941/-. It is relevant to mention that even at that point of time, when the Property Tax has been revised at Rs. 11,959.95ps the same was being contested by the petitioner.
3. The appeal filed by the petitioner in M.T.A. No. 43 of 2006 was referred to the Lok Adalat and a settlement was arrived at, which was recorded by the Members of the Lok Adalat including the official of the respondent Corporation. The Award passed by the Lok Adalat is quoted herein below:
"This case was taken up today for settlement before Lok Adalat for Property Tax pertaining to Mrs. D. Prema & P.S. Rathnabai No. 486, Pantheon Road, Egmore, Chennai-8, Dy-105, to the period of 1st half of 1993-94 to up-to-date. The Corporation of Chennai was represented by A.R.O.(Head Quarters). The parties view were heard. The Property Tax for the period I/1993-94 was fixed at Rs. 22,667/- by T.A.T. has been settled at Rs. 17,500/- per half year for the concerned period. The premises in question under occupation of tenants/Non Residential. Rental value and other circumstances have been taken into consideration in accordance with that the Half Year Tax is fixed. All the arrears up-to-date should be paid as agreed to by the party within one month from this date.
The award is passed accordingly."
4. On receiving a copy of the Award, the petitioner addressed the 2nd respondent requesting them to calculate and inform as to what would be the Property Tax they had to pay. Subsequently, it appears that a communication was sent and the petitioner cleared the arrears for the period 1/1993-94 to I/1998-99 being a sum of Rs. 80,385.40 and for the subsequent period from 11/1998-99 to 11/2006-07 being a sum of Rs. 2,72,102/- collected at the rate of Rs. 16,006/-, after deducting pre-enhanced tax paid by the petitioner. Thus, a receipt was issued to the petitioner for a sum of Rs. 3,52,487.40ps.
5. Subsequently, the subject property was settled in favour of the petitioner Trust and they applied for change of assessment in their name and accordingly, an order was passed on 13.05.2008 duly entered in the Property Tax demand card. The half yearly tax was also amended as Rs. 17,500/-. Accordingly, the petitioner has remitted the Property Tax up to 11/2009-10 and also the Water and Sewerage Tax proportionately based on the Property Tax assessment.
6. While so, the petitioner received a notice from the 2nd respondent dated 01.04.2010 stating that the property tax has been revised to Rs. 45,006/- per half year w.e.f. 11/1998-99 and the petitioner has to pay the arrears of Rs. 5,68,083/-. The pet
