Case Law Details
Indralok Hotel Pvt. Ltd. Vs Greater Chennai Corporation (Madras High Court)
Introduction: In a significant ruling that underscores the importance of procedural fairness, the Madras High Court has clarified the legal requirements under the Tamil Nadu Urban Local Bodies Act, 1998, regarding the notice period given to property tax assessees. The case in point, involving Indralok Hotel Pvt. Ltd., has brought to light the statutory mandate of providing a 15-day notice period to property tax assessees before any action is taken against them.
Detailed Analysis: The crux of the dispute centered around the demand notices issued to Indralok Hotel Pvt. Ltd. for property tax dues. The hotel, known as the Pride Hotel, was subjected to a revised half-yearly property tax of Rs.38,91,504/- by an order dated 08.11.2023, which significantly increased from its previous assessment. Subsequent to this order, the Greater Chennai Corporation issued demand notices to the hotel, which were contested for not adhering to the statutory requirements of the Tamil Nadu Urban Local Bodies Act, 1998.
The primary contention of Indralok Hotel Pvt. Ltd. was the inadequacy of the notice period provided in the demand notices, which was crucial for them to respond and show cause. The Tamil Nadu Urban Local Bodies Act, 1998, under Section 116A, explicitly stipulates a minimum notice period of 15 days for assessees to respond, which was not complied with in the demand notices issued on 17.02.2024 and 22.02.2024.
Moreover, the sealing of the hotel’s restaurant on the grounds of license non-renewal was challenged by presenting evidence of license renewal dated 30.03.2023, which extended the license validity up to 31.03.2024.
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