Andhra Pradesh High Court - Amravati
Universal Educational Society, vs The State Of Andhra Pradesh, on 21 September, 2022
HIGH COURT OF ANDHRA PRADESH
MAIN CASE: W.P. No. 30310 of 2022
PROCEEDING SHEET
SL. DATE ORDER OFFICE
NO. NOTE
03. 21.09.2022 RNT, J
Heard Mrs. M. Kiranmayee, learned
counsel, representing Ms.Vinodin Ruth Madapalli,
learned counsel for the petitioner, and Sri S.
Lakshminarayana Reddy, learned standing
counsel for respondent No.2.
2. The 4th respondent-Smt.G.Sakunthala,
owner of the building bearing Door No.26-15-24,
Ward No.26/35, Velampeta Town, Kotha Road,
Visakhapatnam, was issued distress notice in the
year 2015 as the property tax was not paid.
Challenging the same, she filed O.S.No.344 of
2015 against the Greater Visakhapatnam
Municipal Corporation (in short 'the Corporation')
which was dismissed by judgment and decree
dated 10.08.2022 by the 1st Additional Senior Civil
Judge, Visakhapatnam. Thereafter, the
Corporation issued demand notice dated
23.08.2022 to the owner demanding the balance
amount of Rs.57,39,518/- for the period from
February 2014 up to January 2022 and
attachment notice under Section 269 of the
Municipal Corporation Act was also served to the
owner.
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NO. NOTE
3. The Corporation also issued the
occupier notice to the petitioner - Universal
Education Society demanding the same amount
for the same period. As submitted by the
petitioner's counsel and mentioned in para-7 of
the affidavit filed in support of the writ petition,
the copy of the attachment notice was also
served to the petitioner/occupier mentioning that
the movable properties, if the payment is not
made, will be attached and put to public auction
for recovery of the due amount.
4. Challenging the aforesaid occupier
notice along with attachment notice, the present
writ petition has been filed.
5. Mrs. M. Kiranmayee submits that under
Section 276 (1) of the Hyderabad Municipal
Corporation Act 1955 (for short 'HMC Act 1955')
the liability of the occupier for payment of
property tax arises if the owner does not pay, but
the liability is confined to not more than one year
arrears of the property tax under Sub-Section (3)
and for the payment thereof, the occupier has to
be given notice of 15 days from the petitioner,
but here, the entire arrears has been demanded
from the petitioner and the period given is also
only two days, as the attachment notice mentions
for making the attachment on expiry of two days.
6. Learned counsel submits that the
petitioner is ready to make payment of the
arrears of property tax but for a period of only
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NO. NOTE
one year, within a period of 15 days, for which
the 2nd respondent may duly intimate the said
amount out of the demanded amount.
7. Sri S. Lakshminarayana Reddy, learned
standing counsel for the Corporation, submits
that the Greater Visakhapatnam Municipal
Corporation, which is statutory body, has not
been made party and only the Commissioner has
been impleaded.
8. He further submits that the petitioner
was served with only the occupier notice and not
the attachment notice which was served to the
owner-4th respondent only and consequently the
petitioner cannot challenge the attachment
notice, as the distress notice as also the
attachment notice given to the owner have not
been challenged by the owner.
9. He further submits that under Section
238 of HMC Act 1955, the property tax on
buildings and lands shall, subject to the prior
payment of the land revenue, if any, due to the
Government thereon, be a first charge upon the
said buildings or land and upon the movable
property, if any, found within or upon such
building or lands and belonging to the person
liable to such tax. He submits that for recovery
of the property tax, the building, the land and the
movable property upon such property, may be of
the occupier, are also liable to be attached and
sold being the first charge.
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NO. NOTE
10. The matter requires consideration.
11. Let the counter affidavit be filed within
a period of four weeks.
12. Prima facie, this Court is of the view
that under Section 276 (3) of HMC Act 1955 no
arrears of a property-tax shall be recovered from
any occupier, which had remained due for more
than one year. This Court is of the further view,
prima facie, that under Section 269 (1) of HMC
Act 1955 the person liable for payment of tax, the
occupier also being liable subject to the statutory
provisions, is entitled for a notice period of 15
days and if on expiry of period of 15 days from
the date of service of notice the occupier commits
default and becomes the defaulter under Section
269 (1), any goods or chattels found on the said
premises may be proceed with for sale for
recovery of dues.
13. Case for grant of interim order is made
out.
14. As an interim measure, it is provided
that if the petitioner pays the property tax arrears
for a period of one year, out of the amount
demanded, as also the property tax for the
current period included in the amount demand,
latest by 10th of October 2022, within a period of
15 days from today, the operation of the occupier
notice and the attachment notice, only with
respect to the petitioner's movable found on the
premises, shall remain stayed till the next date of
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NO. NOTE
listing.
15. The 2nd respondent shall in three days
communicate the petitioner in writing as to what
amount the petitioner has to pay pursuant to this
order towards arrears of one year property tax,
and the current property tax, out of the
demanded amount.
16. In case of default in making
compliance of this order within the time
stipulated by the petitioner, the petitioner shall
not be entitled for the protection of this interim
order and the 2nd respondent shall be at liberty to
proceed against the petitioner as well, as per law.
17. It is further provided that it is open for
the Corporation to proceed to recover the amount
under the notice given to the owner as also to
proceed pursuant to the attachment notice,
against the owner, if there is no other legal
impediment.
18. Learned counsel for the petitioner to
file appropriate application for impleadment of
the Corporation as one of the respondents.
19. List on 27.10.2022.
_________
RNT, J
Dsr
Note:
Furnish copy by tomorrow
B/o
Dsr
