The Madras High Court noted that the Section 116 A of the Tamil Nadu Urban Local Bodies Act, 1998 mandates that 15 days’ time should be provided to the property tax assessee to respond to the notice before taking action. Also ordered the authorities to reopen the sealed restaurant.
The dispute revolved around demand notices dated 17.02.2024 and 12.02.2024, affixed at the premises of the second petitioner, pertaining to the Pride Hotel’s half-yearly property tax. Initially fixed at Rs. 11,63,702/- by the Taxation Appeals Tribunal, the property tax amount was subsequently increased to Rs. 38,91,504/- by the Greater Chennai Corporation, as per an order dated 08.11.2023.
The Senior counsel for the petitioners argued that the demand notices were not in accordance with the Tamil Nadu Urban Local Bodies Act, 1998, citing a short notice period and procedural irregularities. It was pointed out that the notice period for one of the notices was only three days, whereas the Act mandates a minimum period of 15 days for the petitioner to respond.
Responding to the petition, Mr. P. Prithvi Chopda, standing counsel for the respondents, defended the issuance of demand notices, stating they were based on the court’s order. He further asserted that the petitioners had 15 days to respond to one of the notices, which had not yet expired at the time of the court proceedings.
Regarding the sealing of the restaurant operated by the petitioners, it was argued that the license was not renewed. However, this contention was challenged by the petitioners, who provided evidence of the license’s renewal until March 31, 2024.
Taking into account the legal requirements and the valid licence status, the bench of Justice Senthilkumar Ramamoorthy of the Madras High court issued directives to address the immediate concerns of the petitioners.
The High court ordered the immediate reopening of the sealed restaurant and granted the petitioners the right to challenge the November 2023 order regarding property tax dues.
Conclusively, the court disposed of the writ petition with directions for the respondents to de-seal the restaurant, allowing the petitioners to challenge the order dated 08.11.2023, and granting the respondents the authority to take action in accordance with the law if licence conditions are infringed.
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