Kochi Metro Rail Limited(Kmrl) vs The Aluva Municipality
2025 Latest Caselaw 2478 Ker

Kerala High Court

Kochi Metro Rail Limited(Kmrl) vs The Aluva Municipality on 16 January, 2025

                                    1

W.P.(C) Nos.624 of 2019 and 15503 of 2019
                                                        2025:KER:3180

              IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                        PRESENT

          THE HONOURABLE MR. JUSTICE HARISANKAR V. MENON

 THURSDAY, THE 16TH DAY OF JANUARY 2025 / 26TH POUSHA, 1946

                            WP(C) NO. 624 OF 2019

PETITIONER:

              KOCHI METRO RAIL LIMITED (KMRL)
              8TH FLOOR, REVENUE TOWER,
              PARK AVENUE ROAD, COCHIN-682011,
              REPRESENTED BY ITS MANAGING DIRECTOR.

              BY ADVS.
              K.SUJAI SATHIAN
              PREETHI. P.V.(K/1819/1999)
              MARY LIYA SABU(K/001533/2018)
              AISWARYA S. ASHOKAN(K/678/2021)
              NEERAJ KRISHNA KUMAR(K/1635/2024)
              T.SETHUMADHAVAN (SR.)(S-310)

RESPONDENTS:

1             THE KOCHI MUNICIPAL CORPORATION,
              BOAT JETTY, ERNAKULAM-682011,
              REPRESENTED BY ITS SECRETARY.
2             THE SECRETARY,
              KOCHI MUNICIPAL CORPORATION,
              BOAT JETTY, ERNAKULAM-682011.
3             ADDL.R3
              UNION OF INDIA
              REPRESENTED BY SECRETARY OF GOVERNMENT
              MINISTRY OF RAILWAYS, RAIL BHAVAN,
              RAISINA ROAD, NEW DELHI-110001 (CORRECTED)

              UNION OF INDIA,
              REPRESENTED BY SECRETARY OF GOVERNMENT,
              MINISTRY OF HOUSING AND URBAN AFFAIRS,
              NIRMAL BHAVAN, NEW DELHI - 110011
                                     2

W.P.(C) Nos.624 of 2019 and 15503 of 2019
                                                     2025:KER:3180

              (DESCRIPTION OF ADDL.R3 IS CORRECTED AS PER ORDER
              DATED 16.01.2025 IN I.A.NO.3 OF 2023)
4             ADDL.R4
              STATE OF KERALA
              REPRESENTED BY ITS SECRETARY TO GOVERNMENT,
              TRANSPORT DEPARTMENT, GOVERNMENT SECRETARIAT,
              THIRUVANANTHAPURAM-695001

              (ADDL.R3 AND R4 ARE IMPLEADED AS PER ORDER DATED
              16.01.2025 IN I.A.NO.1 OF 2023)

              BY ADVS.
              SRI.S.SUDHISH KUMAR
              SRI.K.JANARDHANA SHENOY, SC



       THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
16.01.2025, ALONG WITH WP(C).15503/2019, THE COURT ON THE
SAME DAY DELIVERED THE FOLLOWING:
                                     3

W.P.(C) Nos.624 of 2019 and 15503 of 2019
                                                        2025:KER:3180

              IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                        PRESENT

          THE HONOURABLE MR. JUSTICE HARISANKAR V. MENON

 THURSDAY, THE 16TH DAY OF JANUARY 2025 / 26TH POUSHA, 1946

                          WP(C) NO. 15503 OF 2019

PETITIONER:

              KOCHI METRO RAIL LIMITED (KMRL),
              8TH FLOOR, REVENUE TOWER, PARK AVENUE ROAD,
              COCHIN - 682 011, REPRESENTED BY ITS
              MANAGING DIRECTOR.

              BY ADVS.
              K.SUJAI SATHIAN
              PREETHI. P.V.(K/1819/1999)
              MARY LIYA SABU(K/001533/2018)
              AISWARYA S. ASHOKAN(K/678/2021)
              NEERAJ KRISHNA KUMAR(K/1635/2024)
              T.SETHUMADHAVAN (SR.)(S-310)

RESPONDENTS:

1             THE ALUVA MUNICIPALITY,
              ALUVA - 683 101,
              REPRESENTED BY ITS SECRETARY.
2             THE SECRETARY,
              ALUVA MUNICIPALITY, ALUVA - 683 101.
3             THE REVENUE OFFICER,
              ALUVA MUNICIPALITY, ALUVA - 683 101.
4             ADDL.R4
              UNION OF INDIA
              REPRESENTED BY SECRETARY OF GOVERNMENT
              MINISTRY OF RAILWAYS, RAIL BHAVAN,
              RAISINA ROAD, NEW DELHI-110001 (CORRECTED)

              UNION OF INDIA,
              REPRESENTED BY SECRETARY OF GOVERNMENT,
                                     4

W.P.(C) Nos.624 of 2019 and 15503 of 2019
                                                       2025:KER:3180

              MINISTRY OF HOUSING AND URBAN AFFAIRS,
              NIRMAL BHAVAN, NEW DELHI - 110011

              (DESCRIPTION OF ADDL.R4 IS CORRECTED AS PER ORDER
              DATED 16.01.2025 IN I.A.NO.4 OF 2023)
5             ADDL.R5
              STATE OF KERALA
              REPRESENTED BY ITS SECRETARY TO GOVERNMENT,
              TRANSPORT DEPARTMENT, GOVERNMENT SECRETARIAT,
              THIRUVANANTHAPURAM-695001

              (ADDL.R4 AND R5 ARE IMPLEADED AS PER ORDER DATED
              16.01.2025 IN I.A.NO.2 OF 2023)

              BY ADVS.
              SRI.MATHEW B. KURIAN
              SRI.K.T.THOMAS



       THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
16.01.2025, ALONG WITH WP(C).624/2019, THE COURT ON THE SAME
DAY DELIVERED THE FOLLOWING:
                                     5

W.P.(C) Nos.624 of 2019 and 15503 of 2019
                                                          2025:KER:3180

                    HARISANKAR V. MENON, J.
            ------------------------------
            W.P.(C) Nos.624 of 2019 and 15503 of 2019
            ------------------------------
             Dated this the 16th day of January, 2025

                                   JUDGMENT

The petitioner, the Kochi Metro Rail Limited (KMRL), has filed

the captioned writ petitions, challenging the demand of property

tax with reference to the provisions of the Kerala Municipality Act,

1994, by various local authorities.

2. Heard Sri.T.Sethumadhavan, the learned Senior

Counsel appearing for the petitioner, Sri.K.T.Thomas, the learned

Standing Counsel for the Aluva Municipality, Sri.Janardhana

Shenoy, the learned Standing Counsel for the Kochi Municipal

Corporation and Smt.Deepa K.R., the learned Senior Government

Pleader.

3. Sri.Sethumadhavan, the learned Senior Counsel, would

submit that the petitioner was entitled for exemption with respect

to the taxation under the provisions of the Municipality Act, by

virtue of Ext.P1 judgment rendered by the Delhi High Court

rendered after referring to the provisions of Section 184 of the

Railways Act, 1989. He would also submit that the petitioner's

eligibility for exemption has been subsequently declared by the

W.P.(C) Nos.624 of 2019 and 15503 of 2019 2025:KER:3180

Government by issuing G.O.(Rt)No.2472/2024/LSGD. dated

16.12.2024 by exempting the petitioner from the imposition of tax

as above.

4. Smt.Deepa K.R., the learned Senior Government

Pleader, has also produced a communication dated 15.01.2025

issued by the Government of Kerala, clarifying that the exemption

provided by the Government Order dated 16.12.2024 would be

having operation from 04.11.2013 onwards. Sri.Sethumadhavan,

the learned Senior Counsel, would submit that, in the light of the

Government Order referred to above and the communication

issued by the Government dated 15.01.2025, the petitioner's

liability may be directed to be recast by the local authorities

concerned, within a reasonable period of time.

5. However, Sri.Thomas, the learned counsel for the Aluva

Municipality, would submit that even on the face of Ext.P1, the

question may arise as regards the liability of the lessees of the

KMRL to satisfy the property tax, and he would also invite the

attention of this Court to the operative portion of Ext.P1 judgment

whereby the said liberty has been extended to the local authority

concerned.

6. I have considered the afore submissions.

W.P.(C) Nos.624 of 2019 and 15503 of 2019 2025:KER:3180

7. In this connection, the provisions of the Kerala

Municipality Act have to be noticed. Section 233 of the Act is the

charging Section providing for imposition of tax. The person who

is to satisfy the tax has not been made clear by the afore Section.

However, the afore Section provides for imposition of tax on the

"building concerned". Here, a reference is also to be made to the

provisions of Section 237 of the statute, providing for the charge

on the property. If the submission of the learned Standing Counsel

is to be accepted, then a position may arise wherein if a lessee

having liability is not paying the tax, then the owner of the

property becomes liable for tax by virtue of the first charge on the

property of the petitioner. Therefore, Section 237 of the Act gives

a cue as regards the person who is liable to make the payment of

tax, as the owner of the building concerned. A reference to the

provisions of Rule 18 of the Taxation Rules also makes it clear,

wherein it is stated that if the owner of the building does not pay

the tax, it is for the lessee to make payment of the amount payable

to the owner, to the local authority concerned. Therefore, by virtue

of the afore provision also, I am of the opinion that the stand taken

by the learned Standing Counsel is only to be recorded and

rejected.

W.P.(C) Nos.624 of 2019 and 15503 of 2019 2025:KER:3180

Therefore, these writ petitions would stand disposed of,

finding that the petitioner would be entitled for complete

exemption from property tax for the period from 04.11.2013

onwards by virtue of the Government Order and the

communication referred to earlier. The local authorities concerned

to have a revisit of the assessment orders issued against the

petitioner in the light of the afore within a period of six weeks from

today.

Needless to say that if any amounts have been paid by the

petitioner during the afore periods, the petitioner would be entitled

to refund, which has to be effected within a further period of six

weeks.

Sd/-

HARISANKAR V. MENON JUDGE

anm

W.P.(C) Nos.624 of 2019 and 15503 of 2019 2025:KER:3180

APPENDIX OF WP(C) 624/2019

PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE JUDGMENT DATED 07/05/2008 WPC NO.3152/2006 OF THE HON'BLE HIGH COURT OF DELHI.

EXHIBIT P2 TRUE COPY OF THE NOTICE NO.83108 DATED 23/03/2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

EXHIBIT P2(a) TRUE COPY OF THE NOTICE NO.83109 DATED 23/03/2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

EXHIBIT P2(b) TRUE COPY OF THE NOTICE NO.83110 DATED 23/03/2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

EXHIBIT P2(c) TRUE COPY OF THE NOTICE NO.83111 DATED 23/03/2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

EXHIBIT P2(d) TRUE COPY OF THE NOTICE NO.83112 DATED 23/03/2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

EXHIBIT P2(e) TRUE COPY OF THE NOTICE NO.83113 DATED 23/03/2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

EXHIBIT P2(f) TRUE COPY OF THE NOTICE NO.83114 DATED 23/03/2017 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

EXHIBIT P3 TRUE COPY OF THE RECEIPT VIDE NO.1288 DATED 30/03/2017 OF THE 2ND RESPONDENT. EXHIBIT P4 TRUE COPY OF THE REQUEST DATED 31/10/2018 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.

EXHIBIT P5 TRUE COPY OF THE NOTICE NO.24501 DATED 13/11/2018 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

EXHIBIT P6 TRUE COPY OF THE REPLY DATED 03/12/2018 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.

W.P.(C) Nos.624 of 2019 and 15503 of 2019 2025:KER:3180

Exhibit P7 COPY OF THE LEGAL OPINION DATED 30TH MAY 2022 GIVEN BY THE SOLICITOR GENERAL OF INDIA TO THE EFFECT THAT DMRC IS A 'RAILWAY COMPANY' ENGAGED IN CONSTRUCTION, OPERATION AND MAINTENANCE OF 'RAILWAY' Exhibit P8 COPY OF THE RELEVANT EXTRACT OF THE OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE, 2020 VIDE NO. 37 OF 2020 DATED 28.9.2020 Exhibit P9 COPY OF THE RELEVANT EXTRACT OF THE CODE ON SOCIAL SECURITY, 2020 VIDE NO. 36 OF 2020 DATED 28.9.2020 Exhibit P10 COPY OF THE RELEVANT EXTRACT OF THE CODE ON SOCIAL SECURITY, 2020 VIDE NO. 35 OF 2020 DATED 28.9.2020 Exhibit P11 COPY OF THE APPROVAL ORDER OF THE GOVERNMENT OF INDIA FOR PHASE II DATED 21.11.2022 Exhibit P12 COPY OF THE APPROVAL ORDER OF THE GOVERNMENT OF INDIA FOR PHASE I A DATED 6.2.2023

W.P.(C) Nos.624 of 2019 and 15503 of 2019 2025:KER:3180

APPENDIX OF WP(C) 15503/2019

PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE JUDGMENT DATED 7/05/2008 WP(C) NO.3152/2006 OF THE HON'BLE HIGH COURT OF DELHI.

EXHIBIT P2 TRUE COPY OF THE RELEVANT EXTRACT OF THE APPROVAL DATED 12/07/2012 OF GOVERNMENT OF INDIA.

EXHIBIT P3 COPY OF THE DEMAND NOTICE NO.R2-13074/18 DATED 21/12/2018 ISSUED BY THE 3RD RESPONDENT, ALONG WITH ENGLISH TRANSLATION.

EXHIBIT P4 TRUE COPY OF THE ORDER DATED 9/1/2019 IN W.P.(C) NO.624/2019 OF THIS HON'BLE COURT.

EXHIBIT P5 TRUE COPY OF THE REQUEST DATED 18/01/2019 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.

EXHIBIT P6 TRUE COPY OF THE LETTER VIDE NO.R 2- 642/19 DATED 04/02/2019 ALONG WITH THE NOTICE NO.R2/642/19 DATED 31/1/2019 ISSUED BY THE 2ND RESPONDENT, ALONG WITH ENGLISH TRANSLATION.

EXHIBIT P7 TRUE COPY OF THE PETITION DATED 25/02/2019 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT.

EXHIBIT P8 TRUE COPY OF THE DEMAND NOTICE VIDE NO.R2+R3/13074/18 DATED 29/3/2019 ISSUED BY THE 3RD RESPONDENT, ALONG WITH ENGLISH TRANSLATION.

EXHIBIT P9 TRUE COPY OF THE APPLICATION DATED 16/01/2019 SUBMITTED BY THE PETITIONER BEFORE THE STATE PUBLIC INFORMATION OFFICER, ALUVA MUNICIPALITY.

EXHIBIT P10 TRUE COPY OF THE REPLY VIDE NO.PIO/R2/539/19, DATED 12/2/2019 ISSUED BY THE PUBLIC INFORMATION OFFICER, ALUVA MUNICIPALITY, ALONG WITH ENGLISH TRANSLATION.

W.P.(C) Nos.624 of 2019 and 15503 of 2019 2025:KER:3180

Exhibit P11 COPY OF THE LEGAL OPINION DATED 30TH MAY 2022 GIVEN BY THE SOLICITOR GENERAL OF INDIA TO THE EFFECT THAT DMRC IS A 'RAILWAY COMPANY' ENGAGED IN CONSTRUCTION, OPERATION AND MAINTENANCE OF 'RAILWAY' Exhibit P12 THE RELEVANT EXTRACT OF THE OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE, 2020 VIDE NO. 37 OF 2020 DATED 28.9.2020 Exhibit P13 THE RELEVANT EXTRACT OF THE CODE ON SOCIAL SECURITY, 2020 VIDE NO. 36 OF 2020 DATED 28.9.2020 Exhibit P14 THE RELEVANT EXTRACT OF THE INDUSTRIAL RELATIONS CODE, 2020 VIDE NO. 35 OF 2020 DATED 28.9.2020 Exhibit P15 COPY OF THE APPROVAL ORDER OF THE GOVERNMENT OF INDIA FOR PHASE II DATED 21.11.2022 Exhibit P16 COPY OF THE APPROVAL ORDER OF THE GOVERNMENT OF INDIA FOR PHASE I DATED 6.2.2023