A municipal authority must consider representations regarding excess property tax demands and claims for vacancy remission under the Kerala Municipality Act, 1994, by adhering to principles of natural justice and passing a reasoned order.

J U D G M E N T

Dated this the 25^th day of May, 2026 The writ petition is filed seeking a direction to the respondent Municipality to consider Exts.P9 and P10 representations and pass appropriate orders thereon. The petitioners also seek for a direction to the respondent Municipality not to insist on continued remittance of three times the excess tax for the entire building constructed pursuant to Ext.P4 building permit, and further seek for a direction to grant tax remission in respect of the unoccupied rooms in the building, as provided under Section 239 of the Kerala Municipality Act.

2. It is the case of the petitioners that they constructed a two-storied commercial building pursuant to Ext.P4 building permit issued by the respondent Municipality in the year 2013 for the construction of a three-storied commercial building. The property owned by the petitioners is situated on the eastern side of NH-66 (old NH-17). On the southern side of the property, a movie theatre by name Alankar Talkies is functioning. On the northern side, there exists the residential-cum-shopping complex of one Mrs. Amina Hamza, and on the opposite side of the road, in front of the petitioners’ property, is situated the residential-cum-shopping complex of one Mr. Abdul Rahman.

3. The petitioners were issued Ext.P5 occupancy certificate. However, building numbers were not allotted, and therefore, the petitioners were unable to apply for electricity connection. Subsequently, in the light of the directions issued by this Court and pursuant to Ext.P8 interim order dated 10.12.2015, provisional building numbers were allotted to 22 rooms in the building, and the Municipality also accepted building tax for the year 2015-16. Thereafter, 14 rooms in the building came to be occupied.

4. However, when the petitioners approached the Municipality for remittance of building tax for the year 2016-17, the Municipality collected building tax for the previous three years at three times the actual property tax payable, without assigning any specific reason. In the above circumstances, the petitioners submitted Exts.P9 and P10 representations before the Municipality seeking adjustment of the excess tax remitted and also seeking tax remission in respect of the unoccupied rooms, as provided under Section 239 of the Kerala Municipality Act.

5. When the matter came up for consideration on

09.01.2017, this Court, while admitting the writ petition, passed an interim order directing the respondent Municipality to collect property tax at the current rate and not at the enhanced rate, subject to the result of the writ petition.

6. However, at this later point of time, for giving a quietus to the dispute, it appears to me that it would be appropriate to direct the respondent Municipality to consider and pass appropriate orders on Exts.P9 and P10 representations, after affording an opportunity of hearing to the petitioners. Hence, I do so. Till such orders are passed, the interim order dated 09.01.2017 shall remain in force.

The writ petition is disposed of, accordingly.