2022 Supreme(Mad) 994

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Anita Sumanth, J.
K.Balasubramaniam - Petitioner
Versus
The Commissioner, Greater Chennai Corporation and ors. – Respondents
WP.Nos.18534, 19392, 19914, 20371, 20551, 20634, 20747, 20758, 20957, 21029, 21151, 21169, 21172, 21173, 21175, 21449, 21757, 21776, 21805, 21810, 21973, 21979, 21977, 22146, 22189, 22221, 22225, 22227, 22234, 22240, 22294, 22595, 22710, 22735, 23291, 23374, 23444, 23612, 23914, 23919, 23922, 23925, 24127, 24159, 24161, 24163, 24296, 24297, 24301, 24362, 24367, 24368, 24454, 24460, 24462, 24869, 23365, 25244, 25331, 25482, 25564, 25567, 25565, 25603, 25718, 25722,25818 25888, 25889, 25890, 25894, 26056 & 25897 of 2022, WP.Nos.26134, 26173, 26179, 26183, 26187, 26190, 26174, 26180, 26184, 26188, 26176, 26182, 26186, 26189, 26193, 26198, 26228, 26230, 26235, 26237, 26244, 26232, 26236, 26238, 26242, 26279, 26357, 26484, 26559, 26577, 26621, 26622, 26686, 26736, 26742, 26786, 26790, 26798, 26800, 26791, 26794, 26799, 26796, 27014, 27183, 27184, 27213, 27252, 27256, 27258, 27336, 27337, 27341, 27431, 27939, 27985, 27989, 27992, 28037, 28101, 28377, 28380, 28474, 28654, 28660, 28663, 28662, 28666, 28670, 28842, 28959, 29059, 29085, 29196, 29204, 29247, 29442, 29470, 29478, 29485, 29483, 29488, 29490, 29495, 29497, 29501, 29489, 29493, 29499, 29502, 29503, 29507, 29494, 29500, 29504, 29506, 29508, 29509, 29896, 29942, 29946, 29947, 29951, 29954, 29996, 30078, 30083, 30091, 30097, 30105, 30106, 30115, 30118, 30288, 30290, 30295, 30300, 30303, 30383, 30405, 30423, 30446, 30448, 30455, 30574, 30612, 30616, 30854, 30863, 31154, 31177, 31188, 31190, 31219, 31221, 31224, 31225, 31251, 31288, 31411, 31414, 31430, 31435, 31560, 31713, 31732, 31744, 31774, 31882, 31886, 31977, 31982, 32087, 32208 & 32211 of 2022 and WMP.Nos.17875, 17876, 18691, 18693, 19216, 19217, 19561, 19560, 19679, 19957, 19759, 19761, 19835, 19840, 19966, 19967, 20041, 20152, 20170, 20173, 20174, 20175, 20447, 20449, 20773, 20800, 20802, 20803, 20830, 20831, 20823, 20825, 20997, 21001, 20999, 21146, 21202, 21205, 21251, 21249, 21250, 21252, 21253, 21255, 21256, 21258, 21259, 21261, 21262, 21260, 21263, 21324, 21326, 21641, 21642, 21733, 21734, 21760, 21763, 22243, 22245, 22391, 22325, 22576, 22918, 22921, 22926, 22927, 22931, 22932, 22933, 22934, 23097, 23098, 23133, 23135, 23137, 23284, 23285, 23286, 23288, 23289, 23290, 23360, 23361, 23363, 23364, 23365, 23366, 23408, 23409, 23412, 23413, 23415, 23417, 23809, 19472, 19469, 19470, 22316, 24194, 24196, 24308, 24482, 24483, 24547, 24549, 24555, 24557, 24550, 24553, 24605, 24606, 24773, 24778 of 2022 24883, 24884 24885, 24965, 24967, 24966, 24968, 24969, 24970, 24974, 24975, 24979, 25133 & 24981 of 2022, WMP.Nos.25213, 25270, 25273, 25279, 25282, 25285, 25271, 25274, 25280, 25283, 25272, 25277, 25281, 25284, 25287, 25289, 25312, 25313, 25315, 25318, 25326, 25314, 25317, 25319, 25322, 25356, 25428, 25550, 25618, 25619, 25634, 25635, 25668, 25669, 25670, 25671, 25672, 25673, 25743, 25747, 25789, 25797, 25798, 25838, 25842, 25850, 25853, 25846, 25849, 25852, 25851, 26232, 26234, 26385, 26389, 26412, 26414, 26415, 26448, 26449, 26451, 26452, 26454, 26455, 26522, 26524, 26526, 26527, 26533, 26534, 26626, 26629, 27230, 27280, 27281, 27282, 27326, 27327, 27383, 27687, 27683, 27783, 27784, 27785, 27936, 27937, 27941, 27943, 27945, 27946, 27944, 27947, 27950, 27952, 27954, 27955, 28134, 28135, 28246, 28376, 28343, 28344, 28368, 28369, 28494, 28495, 28496, 28498, 28499, 28500, 28544, 28815, 28816, 28778, 28780, 28825, 28826, 28838, 28839, 28833, 28837, 28841, 28843, 28846, 28848, 28852, 28856, 28860, 28862, 28865, 28868, 28845, 28847, 28851, 28853, 28858, 28861, 28866, 28867, 28870, 28872, 28878, 28879, 28854, 28855, 28863, 28864, 28871, 28873, 28875, 28877, 28880, 28881, 28882, 28883, 29289, 29291, 29342, 29343, 29345, 29346, 29338, 29339, 29351, 29352, 29357, 29358, 29410, 29496, 29497, 29502, 29503, 29516, 29517, 29520, 29521, 29531, 29532, 29534, 29536, 29548, 29550, 29554, 29555, 29725, 29726, 29731, 29732, 29734, 29735, 29740, 29741, 29744, 29745, 29818, 29819, 29835, 29836, 29855, 29856, 29877, 29878, 29879, 29880, 29883, 29884, 29888, 29890, 29891, 29997, 29998, 30052, 30053, 30054, 30055, 30262, 30263, 30270, 30273, 30587, 30588, 30604, 30615, 30617, 30620, 30621, 30653, 30654, 30655, 30656, 30651, 30652, 30658, 30659, 30691, 30692, 30724, 30726, 30841, 30847, 30843, 30846, 30878, 30879, 30884, 30885, 31016, 31017, 31156, 31157, 31180, 31181, 31189, 31190, 31212, 31213, 31324, 31326, 31331, 31332, 31415, 31416, 31420, 31422, 31514, 31515, 31622 & 31623 of 2022
Decided On : 23-12-2022

Headnote:

Writ petitions challenging enhancement of property tax in Chennai and Coimbatore. Petitioners contend that impugned G.O. and CR are liable to be quashed on grounds of violation of constitutional provisions, lack of legislative competence, and procedural irregularities. Court holds that impugned G.O. and CR are not vitiated by recommendations of Central Finance Commission, which are merely advisory in nature. State has power to issue executive orders in respect of subjects covered by List 2 of 7th Schedule of Constitution, but cannot interfere in occupied field. Impugned G.O. is not an exercise of authority under Article 162, but merely an advisory. CRs passed by Corporations were based on their own deliberations and discussions, and impugned G.O. was taken to be a guideline. Procedure followed by Corporations in issuing public notice, calling for objections, and disposing of objections was in accordance with law, though objections were disposed of in a farcical manner. Basis of enhancement is not arbitrary or contrary to provisions of Act. Adoption of Basic Street Rate (BSR) by State is proper and compliant with statutory prescription. Slab rate provided within BSR is permissible and not discriminatory. Writ petitions are dismissed, except for challenge to property tax General Revision Notices for period 2022-23 (II), which is allowed. Amendments will be operative on and from first half of 2023-24, i.e., 01.04.2023 onwards.

Fact of the Case:

Writ petitions challenging enhancement of property tax in Chennai and Coimbatore. Petitioners contend that impugned G.O. and CR are liable to be quashed on grounds of violation of constitutional provisions, lack of legislative competence, and procedural irregularities.

Finding of the Court:

Impugned G.O. and CR are not vitiated by recommendations of Central Finance Commission, which are merely advisory in nature. State has power to issue executive orders in respect of subjects covered by List 2 of 7th Schedule of Constitution, but cannot interfere in occupied field. Impugned G.O. is not an exercise of authority under Article 162, but merely an advisory. CRs passed by Corporations were based on their own deliberations and discussions, and impugned G.O. was taken to be a guideline. Procedure followed by Corporations in issuing public notice, calling for objections, and disposing of objections was in accordance with law, though objections were disposed of in a farcical manner. Basis of enhancement is not arbitrary or contrary to provisions of Act. Adoption of Basic Street Rate (BSR) by State is proper and compliant with statutory prescription. Slab rate provided within BSR is permissible and not discriminatory.

Issues: 1. Whether impugned G.O. and CR are vitiated by recommendations of Central Finance Commission? 2. Whether State has power to issue executive orders in respect of subjects covered by List 2 of 7th Schedule of Constitution? 3. Whether impugned G.O. is an exercise of authority under Article 162? 4. Whether CRs passed by Corporations were based on their own deliberations and discussions? 5. Whether procedure followed by Corporations in issuing public notice, calling for objections, and disposing of objections was in accordance with law? 6. Whether basis of enhancement is arbitrary or contrary to provisions of Act? 7. Whether adoption of Basic Street Rate (BSR) by State is proper and compliant with statutory prescription? 8. Whether slab rate provided within BSR is permissible and discriminatory?

Ratio Decidendi: 1. Recommendations of Central Finance Commission are merely advisory in nature and do not bind State Governments. 2. State has power to issue executive orders in respect of subjects covered by List 2 of 7th Schedule of Constitution, but cannot interfere in occupied field. 3. Impugned G.O. is not an exercise of authority under Article 162, but merely an advisory. 4. CRs passed by Corporations were based on their own deliberations and discussions, and impugned G.O. was taken to be a guideline. 5. Procedure followed by Corporations in issuing public notice, calling for objections, and disposing of objections was in accordance with law, though objections were disposed of in a farcical manner. 6. Basis of enhancement is not arbitrary or contrary to provisions of Act. 7. Adoption of Basic Street Rate (BSR) by State is proper and compliant with statutory prescription. 8. Slab rate provided within BSR is permissible and not discriminatory.

Final Decision: Writ petitions are dismissed, except for challenge to property tax General Revision Notices for period 2022-23 (II), which is allowed. Amendments will be operative on and from first half of 2023-24, i.e., 01.04.2023 onwards.