BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT Dated : 20.02.2025 CORAM THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN AND THE HONOURABLE MR.JUSTICE M.JOTHIRAMAN W.A(MD) No.484 of 2020 and C.M.P.(MD)No.3522 of 2020 Madurai Multi Functional Complex Private Limited, Having its registered office at

30 J.L.Nehru Road, 15 A Block “C” 2^nd Floor, Kolkota-700016, West Bengal, and Local address at Madurai Railway Station Premises, West Veli Street (Opp. To SBI), Madurai-625 001.

represented by its authorized signatory.

... Appellant / Petitioner Vs

1.The Madurai Corporation, Represented by its Commissioner, Madurai.

2.Rail Land Development Authority, Represented by its General Manager /

Railway Infrastructure, Near Safdarjung Railway Station, Moti Bagh, New Delhi-110021.

3.Ircon Infrastructure & Services Limited, Represented by the Chief Executive Officer, Plot C-4, Saket District Center, New Delhi-17. ... Respondents / Respondents

4.Union of India, Ministry of Railways, Represented by its Secretary, Federation of Railway Officer's Association Office, 256-A, Rail Bhavan, Raisina Road, New Delhi-110001.

(R4 impleaded vide order dated 01.12.2021 made in C.M.P.(MD)No.7406 of 2021 in W.A.(MD)No.484 of 2020 by PSNJ & PVJ)

5.Joyalukkas India Limited, Represented by its Branch Manager, Branch Office, Madurai Multi-Functional Complex, Southern Block, West Veli Street, Near Railway Station, Madurai-625 001.

(R5 impleaded vide order dated 08.03.2023 made in C.M.P.(MD)No.11025 of 2022 in W.A.(MD)No.484 of 2020 by RSKJ & KKRKJ) ... Respondents PRAYER: Writ Appeal filed under Clause 15 of Letters Patent, praying this Court to allow this writ appeal and set aside the order in WP(MD)No.18477 of 2018, dated 06.05.2020 and allow the same as prayed for.

For Appellant : Mr.R.Srinivas, Senior Counsel for Mr.N.Dilip Kumar For Respondents : Mr.S.Vinayak, Standing Counsel for R1 : Mr.Ragatheesh Kumar for M/s.Isaac Chambers for R2 & R3 : Mr.K.R.Laxman for R4 : Mr.T.Lajapathi Roy, Senior Counsel for Mr.S.Rajasekar for R5

ORDER

(Order of the Court was made by G.R.SWAMINATHAN, J.)

The only question that calls for consideration is whether the petition mentioned building is assessable to property tax under Sections 120 and 121 of the Madurai City Municipal Corporation Act, 1971. When the Madurai Corporation assessed the petition mentioned building to property tax and issued demand notice dated 03.03.2018 calling upon the petitioner to pay half-yearly tax to the tune of Rs.10,07,623/-, the appellant herein filed WP.(MD)No.18477 of 2018 challenging the same. The writ petition was dismissed by the learned single Judge vide order dated 06.05.2020. Aggrieved by the same, this intra-court appeal has been filed.

2.The learned Senior Counsel appearing for the appellant reiterated all the contentions set out in the memorandum of grounds of writ appeal. He contended that the Madurai Corporation has no right to demand property tax from Railways in view of Article 285(1) of the Constitution of India and submitted that the demand notice issued by the first respondent is illegal and liable to be quashed. He relied on a catena of case laws in support of his contentions.

3.Per contra, the learned Standing Counsel for the Madurai Corporation contended that the impugned judgement of the learned Single Judge is well-reasoned and does not call for interference. The learned Senior Counsel for the private respondent and the standing counsel for the Railways endorsed the stand of the appellant.

4.We carefully considered the rival contentions and went through the materials on record.

5.Admittedly, the land in question belongs to Railways. In order to develop the vacant lands owned by Railways, The Railways Act, 1989 was amended vide Act No.47 of 2005 and the Railway Land Development Authority (hereinafter referred to as “RLDA”) was constituted under Section 4A of the Act. Section 4D(2)(ii) of the Act lays down development of the railway lands for commercial use as one of the functions of the Authority. The Mini