High Court of KeralaSingle JudgePetition allowed; impugned notices quashed; mat...
Karassery Service Co-Operative Bank Ltd. v State of Kerala & Others
Case / Petition Number:WP(C) NO. 11497 OF 2023
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- Dinesh Kumar Singh
- Judgment Date
- 2024-03-21
- Court Decision / Holding
- Writ petition allowed. The impugned notices (including Exts. 22 to 25) are set aside. The matter is remitted to respondents 2 and 3 to supply the inspection report within three days from today, with the petitioner to file objections within seven days thereafter. The petitioner shall appear for hearing on 02.04.2024, and a fresh order under Section 242 shall be passed in accordance with the law. If aggrieved, the petitioner may pursue remedies under the statute.
- Final Disposition
- Petition allowed; impugned notices quashed; matter remitted for production of inspection report and fresh Section 242 order after hearing; remedy under statute available if aggrieved.
Parties to the Case
Appellants / Petitioners
- THE KARASSERY SERVICE CO-OPERATIVE BANK LTD.
Respondents
- State of Kerala represented by the Secretary, Department of Local Self Government Department, Government Secretariat, Thiruvananthapuram - 695001
- Mukkam Municipality, Mukkam P.O., Kozhikode, represented by its Secretary. 673602.
- The Secretary, Mukkam Municipality, Mukkam P.O., Kozhikode. 673602.
- Deputy Tahsildar, Kozhikode Taluk, Kozhikode Taluk Office, Civil Station, Eranhippalam, Kozhikode - 673020 (Impleaded vide order dated 25-07-2023 in IA 1/2023 in WPC 11497/2023)
Legal Representation & Advocates
Counsels for Petitioners
- • Leo Lukose
Counsels for Respondents
- • Suresh Kumar Kodoth
- • Sukarnan
- • Smt. Preetha (GP)
Case Synopsis & Summary
Karassery Service Co-Operative Bank Ltd., the petitioner, filed WP(C) 11497/2023 challenging building tax assessments and penalties imposed by Mukkam Municipality under the Kerala Municipality Act for unauthorized construction detected during an inspection in December 2022. The building, initially permitted in 2005, was found to deviate from the sanctioned plan, triggering penalty proceedings under Section 242. The petition sought quashing several notices (Exts. P8, P9, P10, P14, P15) and a declaration that the tax rates fixed by Ext. P17 were impermissible in light of later GO orders (Exts. P18–P21). Central to the petition was the grievance that the inspection report forming the basis of the penalties had never been supplied to the petitioner for rebuttal; according to the petitioner, the Municipality did not deny this contention. The High Court agreed that denial or non-provision of the inspection report violated the principles of natural justice, and allowed the writ petition. Consequently, the impugned notices were set aside and the matter remitted to the 2nd and 3rd respondents to furnish the inspection report within three days, with the petitioner’s objections due within seven days. A hearing was fixed for 02.04.2024, after which a fresh order under Section 242 was to be issued in accordance with the law. The petitioner was cautioned of available remedies under the statute if aggrieved.
Provisions of Law Cited
Kerala Municipality Act, Section 242Kerala Revenue Recovery Act, 1968, Section 34
Legal Doctrines & Maxims
- Principles of natural justice
Submissions & Arguments
Contentions of Appellants / Petitioners
The petitioner contends that there has been a violation of the principles of natural justice because the inspection report, which forms the basis for the penalty under Section 242 of the Kerala Municipality Act, was never supplied to the petitioner for rebuttal. The petitioner submits that without providing this essential document, the petitioner could not effectively contest the allegations. Consequently, the writ petition seeks quashing of Exts. P8, P9, P10, P14, P15 and related proceedings, and a remand with an opportunity to respond after inspection report production. The petitioner further seeks a declaration that the rates fixed by Ext. P17 have no validity in light of Exts. P18–P21 and asks for redress in terms of refixing tax as per Exts. P18–P21. Finally, the petitioner seeks reliefs including mandamus to consider the Ext. P7 application and to issue necessary certificates, omitting translation burdens, among others.
Contentions of Respondents
The respondents oppose the reliefs sought and maintain that the penalty proceedings under Section 242 were initiated on the basis of the inspection report and the related notices (e.g., Exts. P8–P15) were issued in accordance with the statutory framework. They contend that the building deviation from the sanctioned plan justifies the penalties and tax actions under the Kerala Municipality Act, and that the petitioner’s contention about non-supply of the inspection report, though not expressly denied, does not negate the statutory basis for the actions. The respondents rely on the statutory regime to justify the impugned notices and actions, while acknowledging the procedural aspects raised by the petitioner. They request dismissal of the petition or, at least, denial of the petitioners’ requested quashment and remand.
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Extracted Judgment Text
Exact text extracted from official judgment records.
# **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`**
# **`PRESENT`**
```
THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH
THURSDAY, THE 21[ST] DAY OF MARCH 2024 / 1ST CHAITHRA, 1946
```
## **`WP(C) NO. 11497 OF 2023`**
## **`PETITIONER:`**
```
THE KARASSERY SERVICE CO-OPERATIVE BANK LTD.,,
NO. D 2628, HEAD OFFICE, MUKKAM, MARANCHATTY ROAD,
MUKKAM P.O., KOZHIKODE, REPRESENTED BY ITS GENERAL
MANAGER - 673602.
```
```
BY ADV LEO LUKOSE
```
## **`RESPONDENTS:`**
- `1 STATE OF KERALA, REPRESENTED BY THE SECRETARY, DEPARTMENT OF LOCAL SELF GOVERNMENT DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANTHAPURAM - 695001.`
- `2 MUKKAM MUNICIPALITY, MUKKAM P.O., KOZHIKODE, REPRESENTED BY ITS SECRETARY. 673602.`
```
3THE SECRETARY,
MUKKAM MUNICIPALITY, MUKKAM P.O., KOZHIKODE. 673602.
4ADDL. R4. THE DEPUTY TAHILSIDAR
KOZHIKODE TALUK, KOZHIKODE TALUK OFFICE, CIVIL STATION,
ERANHIPPALAM, KOZHIKODE - 673020 (IS IMPLEADED VIDE
ORDER DATED 25-07-2023 IN IA 1/2023 IN WPC 11497/2023)
BY ADVS.
SURESH KUMAR KODOTH
SUKARNAN
```
## **`SMT. PREETHA -GP`**
## **`THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:`**
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WPC No 11497 of 2023
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## **JUDGMENT**
## **Dated this the 21[st] day of March, 2024**
Heard Sri. Leo Lukose, learned counsel for the petitioner and Sri.Suresh Kumar Kodoth, learned counsel appearing for respondents 2 and 3.
## 2. The writ petition has been filed seeking the following reliefs:
I. Issue a writ of certiorari or other appropriate writ order or direction quashing Ext.P8, Ext. P9, Ext. P10 and Ext. P14 and all further proceedings pursuant thereto.
ii. Issue a writ of certiorari or other appropriate writ order or direction quashing Ext.P15 and all further proceedings pursuant thereto.
iii. Issue a writ of mandamus or other appropriate writ, order or direction directing the 2nd Respondent and 3rd Respondent to accept property tax from the Petitioner at the pre-revised rates for building numbers 14/228D, 14/228E, 14/228E1, 14/228E2 and 14/228E3 situated within the local limits of the 2nd Respondent.
iv. Issue a writ in the nature of a declaration declaring that rates of tax fixed as per Ext. P17 order has no validity in the light of Ext. P18, Ext. P19, Ext. P20, and Ext. P21.
v. Issue a writ of mandamus or other appropriate writ, order or direction directing the 2nd Respondent
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and 3rd Respondent not to collect property tax on the basis of rates of tax fixed as per Ext. P17 order.
vi. Issue a writ of mandamus or other appropriate writ, order or direction directing the 2nd Respondent and 3rd Respondent to refix the property tax in the light of Ext. P18, Ext. P19, Ext. P20, and Ext. P21.
vii. Issue a writ of mandamus or other appropriate writ, order or direction directing the 2nd Respondent and 3rd Respondent to consider Ext. P7 application within a period of 2 weeks.
viii. Issue a writ of mandamus or other appropriate writ, order or direction directing the 3rd Respondent to issue certificate of sweeping area on the basis of plinth area shown in Ext. P1 building permit within a period of 2 weeks.
ix. Issue such other appropriate writ order or direction that may be deemed to be just and equitable in the facts and circumstances of the case.
x. Issue such other appropriate order or direction dispensing with the filing of English translation of the vernacular documents produced along with the writ petition.
3. The petitioner had constructed the building in question in Mukkam Grama Panchayat, for which the building permit was issued on 13.10.2005. It appears that the petitioner had deviated from the sanctioned building plan and has put up unauthorized construction. An
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inspection was made on the petitioner’s building by the Municipality and a report dated 20.12.2022 was prepared in respect of the unauthorized construction put up by the petitioner in deviation of the sanctioned building plan.
4. The penalty proceedings under Section 242 of the Kerala Municipality Act were undertaken against the petitioner and the tax and penalty under Section 242 have been determined for which the impugned notices have been issued.
5. Learned counsel for the petitioner submits that there has been violation of the principles of natural justice inasmuch as the petitioner was never supplied with the inspection report, giving an opportunity to rebutt the allegation in the inspection report. This contention of the petitioner that the petitioner was not supplied with the inspection report has not been denied on behalf of the Municipality. The basis for undertaking the penalty proceedings under Section 242 is the inspection report and therefore, this basic document ought to have been made available to the petitioner for rebuttal. In the absence of supply of the said basic
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document for rebuttal to the petitioner, this Court is of the view that there has been a violation of the principles of natural justice.
In view thereof, the present writ petition is allowed. The impugned notices are set aside (including Exts. 22 to 25). The matter is remitted back to respondents 2 and 3 to supply the inspection report within a period of three days from today, to which the petitioner shall file his objection/reply within a period of seven days thereafter. The petitioner shall appear before the concerned authority on 02.04.2024, on which date the petitioner shall be heard and fresh order in accordance with the law, under the provisions of Section 242 shall be passed. If the petitioner gets aggrieved by the said order, he will take course to the appropriate remedy as are provided under the statute itself.
Sd/-
## **DINESH KUMAR SINGH**
## **JUDGE**
AP
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## **`APPENDIX OF WP(C) 11497/2023`**
|**`PETITIONER EXHIBITS`**||
|---|---|
|`Exhibit P1`|`A TRUE COPY OF THE BUILDING PERMIT DATED`|
||`13.10.2005 NUMBERED BL 185/05-06.`|
|`Exhibit P2`|`A TRUE COPY OF THE OWNERSHIP CERTIFICATE`|
||`DATED 22.03.2007 NUMBERED A.4-100/06 ISSUED`|
||`BY THE SPECIAL GRADE SECRETARY, MUKKAM GRAMA`|
||`PANCHAYAT FOR THE BUILDING NUMBER 1/1135A`|
||`(GROUND FLOOR).`|
|`Exhibit P3`|`A TRUE COPY OF THE COMPLETION CERTIFICATE`|
||`SUBMITTED BY THE PETITIONER AND THE ARCHITECT`|
||`DATED 11.02.2008.`|
|`Exhibit P4`|`A TRUE COPY OF THE OWNERSHIP CERTIFICATE`|
||`DATED 29.02.2008 NUMBERED A.4(100) (2008)`|
||`ISSUED BY THE SPECIAL GRADE SECRETARY, MUKKAM`|
||`GRAMA PANCHAYAT FOR THE BUILDING NUMBER`|
||`1/1135B ( FIRST FLOOR).`|
|`Exhibit P4(a)`|`A TRUE COPY OF THE OWNERSHIP CERTIFICATE`|
||`DATED 29.02.2008 NUMBERED A.4(100) (2008)`|
||`ISSUED BY THE SPECIAL GRADE SECRETARY, MUKKAM`|
||`GRAMA PANCHAYAT FOR THE BUILDING NUMBER`|
||`1/1135C (SECOND FLOOR).`|
|`Exhibit P4(b)`|`A TRUE COPY OF THE OWNERSHIP CERTIFICATE`|
||`DATED 29.02.2008 NUMBERED A.4(100) (2008)`|
||`ISSUED BY THE SPECIAL GRADE SECRETARY, MUKKAM`|
||`GRAMA PANCHAYAT FOR THE BUILDING NUMBER`|
||`1/1135D.`|
|`Exhibit P4(c)`|`A TRUE COPY OF THE OWNERSHIP CERTIFICATE`|
||`DATED 13.10.2008 NUMBERED A.4 100/08-09`|
||`ISSUED BY THE SPECIAL GRADE SECRETARY, MUKKAM`|
||`GRAMA PANCHAYAT FOR THE BUILDING NUMBER`|
||`1/1135A1.`|
|`Exhibit P5`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`31.03.2010 ISSUED BY THE SECRETARY, MUKKAM`|
||`GRAMA PANCHAYAT`|
|`Exhibit P5(a)`|`. A TRUE COPY OF THE BUILDING TAX RECEIPT`|
||`DATED 06.04.2010 ISSUED BY THE SECRETARY,`|
||`MUKKAM GRAMA PANCHAYAT.`|
|`Exhibit P5(b)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`29.03.2011 ISSUED BY THE SECRETARY, MUKKAM`|
||`GRAMA PANCHAYAT.`|
|`Exhibit P5(c)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`06.03.2012 ISSUED BY THE SECRETARY, MUKKAM`|
||`GRAMA PANCHAYAT.`|
|`Exhibit P5(d)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`24.08.2012 ISSUED BY THE SECRETARY, MUKKAM`|
||`GRAMA PANCHAYAT.`|
|`Exhibit P5(e)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
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WPC No 11497 of 2023
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||`12.03.2014 ISSUED BY THE SECRETARY, MUKKAM`|
|---|---|
||`GRAMA PANCHAYAT.`|
|`Exhibit P5(f)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`06.05.2015 ISSUED BY THE SECRETARY, MUKKAM`|
||`GRAMA PANCHAYAT.`|
|`Exhibit P5(g)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`30.03.2016 ISSUED BY THE 3RD RESPONDENT.`|
|`Exhibit P5(h)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`24.03.2017 ISSUED BY THE 3RD RESPONDENT.`|
|`Exhibit P5(i)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`29.06.2018 ISSUED BY THE 3RD RESPONDENT.`|
|`Exhibit P5(j)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`24.12.2021 NUMBERED 32767 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P5(k)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`24.12.2021 NUMBERED 32768 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P5(l)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`24.12.2021 NUMBERED 32769 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P5(m)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`24.12.2021 NUMBERED 32770 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P5(n)`|`A TRUE COPY OF THE BUILDING TAX RECEIPT DATED`|
||`24.12.2021 NUMBERED 32772 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P6`|`A TRUE COPY OF THE ASSESSMENT NOTICE DATED`|
||`15.02.2014 ISSUED BY THE DEPUTY LABOR`|
||`OFFICER, KOZHIKODE ALONG WITH THE PAYMENT`|
||`CHALLAN.`|
|`Exhibit P7`|`A TRUE COPY OF THE APPLICATION DATED`|
||`22.11.2022 SUBMITTED BEFORE THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P8`|`A TRUE COPY OF THE NOTICE DATED 21.12.2022`|
||`NUMBERED R-14936/22 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P9`|`A TRUE COPY OF THE NOTICE DATED 03.01.2023`|
||`NUMBERED R-14936/22 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P10`|`A TRUE COPY OF THE NOTICE DATED 13.01.2023`|
||`NUMBERED R-14936/22 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P11`|`A TRUE COPY OF THE APPLICATION DATED`|
||`18.01.2023 NUMBERED 09/2023/BLDG SUBMITTED`|
||`BEFORE THE P.I.O. OF 2ND RESPONDENT.`|
|`Exhibit P11(a)`|`A TRUE COPY OF THE REPLY DATED 17.02.2023`|
||`NUMBERED E2-961/2021.`|
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|`Exhibit P12`|`A TRUE COPY OF THE APPLICATION DATED`|
|---|---|
||`25.01.2023 SUBMITTED BEFORE THE P.I.O. OF 2ND`|
||`RESPONDENT.`|
|`Exhibit P12(a)`|`A TRUE COPY OF THE APPEAL DATED 24.02.2023`|
||`SUBMITTED BEFORE THE S.P.I.O. OF 2ND`|
||`RESPONDENT.`|
|`Exhibit P13`|`A TRUE COPY OF THE REPLY DATED 23.02.2023`|
||`NUMBERED R1-1816/2023.`|
|`Exhibit P14`|`A TRUE COPY OF THE NOTICE DATED 08.02.2023`|
||`NUMBERED R-14936/22 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P15`|`A TRUE COPY OF THE ARREAR DEMAND NOTICE DATED`|
||`08.02.2023 NUMBERED NIL ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P16`|`A TRUE COPY OF THE REPRESENTATION DATED`|
||`28.02.2023 NUMBERED 019/2023/BLDG SUBMITTED`|
||`BEFORE THE 3RD RESPONDENT.`|
|`Exhibit P17`|`A TRUE COPY OF THE GOVERNMENT ORDER DATED`|
||`14.01.2011`<br>`NUMBERED`<br>`AS`<br>`G.O.(A)`<br>`NO.`|
||`17/2011/LSGD.`|
|`Exhibit P18`|`A TRUE COPY OF THE GOVERNMENT ORDER DATED`|
||`15.03.2013`<br>`NUMBERED`<br>`AS`<br>`G.O.(A)`<br>`NO.`|
||`100/2013/LSGD.`|
|`Exhibit P19`|`A TRUE COPY OF THE GOVERNMENT ORDER DATED`|
||`24.02.2015`<br>`NUMBERED`<br>`AS`<br>`G.O.(A)`<br>`NO.`|
||`36/2015/LSGD.`|
|`Exhibit P20`|`A TRUE COPY OF THE GOVERNMENT ORDER DATED`|
||`27.04.2015 NUMBERED AS G.O.(MS) NO.`|
||`144/15/LSGD.`|
|`Exhibit P21`|`A TRUE COPY OF THE GOVERNMENT ORDER DATED`|
||`16.12.2015 NUMBERED AS G.O.(MS) NO.`|
||`358/15/LSGD.`|
|`Exhibit P22`|`A TRUE COPY OF THE DEMAND NOTICE DATED`|
||`08.06.2023 NUMBERED RRC NO. 2023/4131/11.`|
|`Exhibit P23`|`A TRUE COPY OF THE DEMAND NOTICE DATED`|
||`14.06.2023 NUMBERED RRC NO. 2023/4131/11`|
||`ISSUED UNDER SECTION 34 OF THE KERALA REVENUE`|
||`RECOVERY ACT, 1968.`|
|`Exhibit P24`|`A TRUE COPY OF THE LETTER DATED 21.06.2023`|
||`NUMBERED R-1-14936/22 ISSUED BY THE 3RD`|
||`RESPONDENT.`|
|`Exhibit P25`|`A TRUE COPY OF THE ARREAR DEMAND NOTICE DATED`|
||`18.12.2023 ISSUED BY THE 3RD RESPONDENT ALONG`|
||`WITH THE ENGLISH TRANSLATION.`|