In a major relief to Tata Communications Payment Solutions Ltd, the petitioners, the Bombay High Court ordered to release the ATM machines seized during property tax recovery.
The Counsel for the Kolhapur Municipal Corporation makes a statement that the entire dues of the property tax have been cleared by the ownersRespondents No. 2 and 3. In this view of the matter, the counsel stated that the ATM machines of the petitioner which have remained in the sealed premises can be released in favour of the petitioner on a mutually agreed date.
The concerned officer of the Municipal Corporation without examining the representation of the petitioner as also the terms and conditions of the leave and license agreement, continued to detain the said equipment of the petitioner.
The Two-Judge Bench comprising Justices Abhay Ahuja and GS Kulkarni observed that “We would be failing in our duty, if we do not observe that in so far as detaining the ATM machines of the Petitioner by the Respondent Corporation was concerned, in our opinion, the action on the part of Municipal Corporation was totally high handed.”
The Bench also made note of the inaction from the side of the Municipal Corporation and stated that the concerned officers of the Municipal Corporation before taking such action in respect of movable property of a third partydid not examine the leave and license agreement. The Municipal Corporation did not have any authority to keep detained the equipment of the Petitioner who was merely a licensee of the premises and also under the leave and license agreement, the liability to pay Municipal taxes and all other Government outgoings was that of the owner.
“We do not approve of such action on the part of the Kolhapur Municipal Corporation. We would request the Commissioner to look in to such issues so that such instances do not take place in future.Let appropriate action in regard to the release of ATM machines take place within one week from today” the Court concluded.
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