Delhi High Court - Orders
Gurvinder Saluja vs New Delhi Municipal Council on 22 March, 2024
Author: Vibhu Bakhru
Bench: Vibhu Bakhru
$~12
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 4427/2024 CM APPL. 18071/2024 & CM APPL.
18072/2024
GURVINDER SALUJA ..... Petitioner
Through: Mr. M.A. Niyazi, Adv. with Ms.
Anamika Ghai Niyazi, Ms. Kirti
Bhardwaj, Ms. Nehmat Sethi and Mr.
Arquan Ali, Advs.
versus
NEW DELHI MUNICIPAL COUNCIL ..... Respondent
Through: Mr. Sanjay Sharma, Standing Counsel
with Mr. Annirudh Sharma, Adv. for
R-1/NDMC.
CORAM:
HON'BLE MR. JUSTICE VIBHU BAKHRU
HON'BLE MS. JUSTICE TARA VITASTA GANJU
ORDER
% 22.03.2024 CM APPL. 18072/2024[Exemption]
1. Exemption allowed, subject to just exceptions. The application is disposed of accordingly.
W.P.(C) 4427/2024 CM APPL. 18071/2024[Stay]
2. The petitioner has filed the present petition, inter alia, impugning the order dated 20.12.2023, passed under Section 72 of the New Delhi Municipal Council Act, 1994 (hereafter "the NDMC Act"), revising the rateable value (RV) of the petitioner's shop (Shop No. 61, Khan Market, New Delhi) retrospectively with effect from 25.07.2012. The learned counsel for the petitioner submits that the said order has resulted in a demand of a sum of ₹2,66,27,580/-. The petitioner also impugns the demand notice dated 01.02.2024 issued raising a demand for aforesaid sum of ₹2,66,27,580/-.
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3. It is seen that property tax bill dated 12.11.2021, issued by the New Delhi Municipal Council (NDMC) in respect of the said property, had quantified the arrears of demand till the end of Financial Year 2021-22 at ₹20,57,168/-. Subsequently, a notice of demand dated 05.01.2023 was issued raising a demand of ₹19,79,170/-. It is apparent that the increase in the demand to ₹2,66,27,580/- within a short span one year, is pursuant to the order dated 20.12.2023, which is impugned in the present petition.
4. The opening line of the said order refers to a notice dated 26.09.2023 issued under Section 72 of the NDMC Act. A copy of said notice is annexed with the petition and indicates that it merely proposes to increase the existing rateable value from ₹1,62,400/- to ₹1,42,91,100/- with effect from 01.04.2023. Notwithstanding that the proposal was to increase the rateable value from 01.04.2023, the order passed pursuant to the said notice purports to increase the rateable value with retrospective effect from 25.07.2012.
5. Learned counsel for the petitioner also points out that in terms of the proviso to Section 72 of the NDMC Act, no person can be called upon to pay an increased tax for the period prior to the commencement of the year in which the notice under sub-section (2) of Section 72 of NDMC Act is issued. He submits that, therefore, the demand is ex-facie illegal. He also submits that the demand has been raised contrary to the principles of natural justice as the notice dated 26.09.2023 did not propose raising any such demand.
6. Issue notice.
7. Learned counsel for the respondent accepts notice.
8. Let a counter-affidavit be filed within a period of two weeks from date.
This is a digitally signed order.
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9. Rejoinder, if any, be filed before the next date of hearing.
10. List on 16.05.2024.
11. In the meantime, subject to the petitioner depositing a sum of ₹19,79,170/- (being a demand raised in terms of the notice dated 05.01.2023) within a period of two weeks from date, further coercive steps pursuant to the said demand notice are stayed.
VIBHU BAKHRU, J TARA VITASTA GANJU, J MARCH 22, 2024/SA Click here to check corrigendum, if any This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/03/2024 at 22:02:26