High Court Kerala High Court

Corporation Of Calicut vs P.P.Ayishabi on 5 January, 2011

Kerala High Court
Corporation Of Calicut vs P.P.Ayishabi on 5 January, 2011
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

SA.No. 16 of 1999(B)



1. CORPORATION OF CALICUT
                      ...  Petitioner

                        Vs

1. P.P.AYISHABI
                       ...       Respondent

                For Petitioner  :SRI.K.D.BABU SC FOR CALICUT CORPN.

                For Respondent  :SRI.V.V.SURENDRAN

The Hon'ble MR. Justice P.BHAVADASAN

 Dated :05/01/2011

 O R D E R

P.BHAVADASAN, J.

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SA No.16 of 1999-B

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Dated this the 5th day of January 2011

Judgment

This appeal arises out of an assessment

proceedings initiated by the defendant Corporation in

respect of a hotel building said to belong to the plaintiff.

According to the plaintiff, the building was let out to a

single tenant and therefore, it should be assessed only in

that manner. Initially, the Corporation did so. But, later,

they found that the rooms of the building were given to

different persons on separate rental arrangement and the

claim of the plaintiff that the building was outstanding on a

single tenancy, was incorrect. Therefore, assessment was

made in respect of each room.

2. Aggrieved by the assessments so made, the

plaintiff seems to have filed an appeal before the

Commissioner. That was rejected. The plaintiff would say

that thereafter, the plaintiff filed an appeal before the

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standing committee, which had not been disposed of as on

the date of filing of the suit. The main grievance of the

plaintiff was that it was without following the legal

formalities and procedures that the assessment was done

and that is in violation of the principles of natural justice

and relevant statutory provisions.

2. The defendant responded by pointing out that

the plaintiff was unable to show that the building was

outstanding on a single tenancy. In pursuance of the

inspection made by the officials of the Corporation and the

report made available, the rooms in the building were

outstanding on independent lease with different persons.

They pointed out that no appeal has been filed before the

standing committee and only a complaint has been

preferred, which cannot be considered.

3. When demand notice was served on the

plaintiff, she approached the trial court. The trial court was

unimpressed by the case put forward by the plaintiff and

dismissed the suit. The plaintiff went up in appeal as AS

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No.71/96 before the Sub Court, Kozhikode. The lower

appellate court, on a consideration of the materials, found

that there has been gross violation of the procedural

formalities in making the assessment of tax due from the

plaintiff and on that sole ground, set aside the judgment

and decree of the trial court. However, the lower appellate

court was careful enough to ensure that the Corporation

was at liberty to make the assessments in accordance with

law. The said judgment and decree are assailed in this

second appeal.

4. The following questions of law are seen raised

in this second appeal :

“(A) Having regard to the fact that the suit is one for a

declaration that the proceedings taken by the defendant-

Corporation under the Kerala Municipal Corporations

Act for assessing the property owned by the plaintiff to

property tax is void, illegal and inoperative as against

the plaintiff and since the provisions of the said Act had

been complied with by the defendant-Corporation for

making the assessment, is not the suit barred and not

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maintainable in view of the provisions contained in

Section 429 of the Kerala Municipal Corporations Act,

1961 ?

(B) Having regard to the fact that the Kerala Municipal

Corporations Act, 1961 provides for the procedure to be

followed by the assessing authority in the matter of

assessing the property to property tax and has also

provided for a remedy available to the aggrieved

assessee to file appeal against the concerned

authorities prescribed by the Taxation Rules and since

the plaintiff has not availed of such alternative remedy,

is not the suit liable to be dismissed on this ground

alone ?

‘(C) Having regard to the fact that the Kerala Municipal

Corporations Act has provided for an elaborate

procedure to be followed by the assessing authority in

the matter of assessing of property to property tax under

the Act, has not the lower appellate court committed an

error in assuming that the principles of natural justice

have been violated in making the assessment in

question ?

(D) Having regard to the fact that the plaintiff has not

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produced any oral and documentary evidence in

support of her case that property tax has not been

assessed properly and opposed to facts and thereby the

assessee-plaintiff has failed to discharge the onus of

proof cast on her, should not the lower appellate court

have dismissed the suit on this ground ?”

5. The learned counsel for the appellant pointed

out that in view of Section 429 of the Kerala Municipal

Corporations Act, 1961, the suit was not maintainable.

Further, statutory remedies being available to the plaintiff,

the plaintiff should have taken recourse to those remedies

and by-passing the statutory remedies, she cannot

approach the civil court for redressal of her grievance. It is

also pointed out that the plaintiff had not produced any

document to show that the building was outstanding on

single tenancy. It is also significant to notice that no oral

evidence whatsoever was adduced by the plaintiff in

respect of the allegations in the plaint. Therefore, it is

contended that the judgment and decree of the lower

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appellate court are unsustainable in law.

6. The learned counsel for the respondent, on

the other hand, pointed out relying on the decision in

Corporation of Thiruvananthapuram v. Bhaskaran

Nair” (1985 KLT 213) that it is true that normally the

aggrieved party cannot approach the civil court directly for

redressal of his grievance, but, there may be exceptional

circumstances, when recourse to civil court for redressal of

grievance can be had. One such instance is when there is

gross violation of natural justice and total violation of

procedural formalities while making the assessment. This is

a typical case of the said nature and therefore, the lower

appellate court was justified in granting a decree, it is

contended.

7. The point of law raised is only of academic

interest. The lower appellate court has not precluded the

Corporation from making fresh assessment. In the light of

the plea they have taken in the written statement, all that

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the lower appellate court has stated is that they shall follow

the proper procedure and comply with the formalities under

the statute. The lower appellate court has not interdicted

the Corporation from taking such courses are as available

to them to make the assessment. In the light of the said

fact, it is unnecessary to go into the question as to whether

it was proper on the part of the plaintiff to have approached

the civil court instead of availing the statutory remedies.

Since no rights of the Corporation, as such, are affected

and liberty is given to them to proceed in accordance with

law, it is felt that at this distance of time, interference is not

called for.

The result is that since no prejudice is, as such,

caused to the Corporation, this appeal is only to be

dismissed. It is accordingly dismissed. There will be no

order as to costs.

P.Bhavadasan, Judge

sta

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