Madras High Court
Rane Engine Valve Limited vs Ms.Nandhinee on 3 September, 2021
Author: T.S. Sivagnanam
Bench: T.S. Sivagnanam
Cont.P.No.1124 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 03.09.2021
CORAM :
THE HONOURABLE MR. JUSTICE T.S. SIVAGNANAM
Cont.P.No.1124 of 2021
and
Sub Application (OS) No.344 of 2021
Rane Engine Valve Limited
represented by its Chairman Mr. L. Ganesh
having registered office at
“Maithri” No. 132, Cathedral Road,
Chennai – 600 086. ... Petitioner
Vs.
Ms.Nandhinee,
The Tahsildhar,
Mylapore – Triplicane Taluk,
Chennai – 600 028. ... Respondent
Petition filed under Sections 2(B) and 12 of the Contempt of Courts
Act, 1971 and Rule 4 of the Contempt of Court Rules 1975 to punish the
respondent for contempt of this Court by willful disobedience of the orders of
this Court dated 18.02.2015 in W.P.No. 24411 of 2013.
For Petitioner : Mr.V.Ramakrishnan
Senior Counsel
for Mr.G.Sivashankaran
For Respondent : Mr.M.Venkateswaran
Government Counsel
https://www.mhc.tn.gov.in/judis/
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Cont.P.No.1124 of 2021
ORDER
(Through Video Conferencing) Heard Mr.Ramakrishnan Veeraraghavan, learned Senior Counsel appearing for Mr.G.Sivashankaran, learned counsel for the petitioner and Mr.M.Venkateswaran, learned Government Counsel, accepting notice for the respondent/contemnor.
2.Mrs.P.Kannammal, Senior Revenue Inspector, Mylapore- Triplicane Taluk, Chennai – 600 028, is present in the Court.
3.The Contempt Petition has been filed alleging willful disobedience of the order and direction in W.P.No.24411 of 2013, dated 18.02.2015.
4.In the said writ petition, the petitioner challenged the proceedings of the Tahsildar, Mylapore-Triplicane Taluk, who was impleaded as the 2nd respondent in the writ petition, the sole respondent/contemnor in this Contempt Petition, dated 04.07.2013, demanding enhanced Lease Rent and Municipal Tax with retrospective effect in respect of the property in question. The Court, after taking into consideration all the facts and after hearing the counsel for the parties, noted that the demand for payment of Lease Rent is https://www.mhc.tn.gov.in/judis/ 2/6 Cont.P.No.1124 of 2021 with retrospective effect and took note of the arguments on behalf of the petitioner that the retrospective revision of Lease Rent is without jurisdiction and the revision of Lease Rent cannot be done without the consent of the lessee. In this regard, reliance was placed on the relevant provisions of the Board Standing Orders. Further, the petitioner contended that the demand should have been proceeded with a Show Cause Notice and the Show Cause Notice should clearly indicate as to how the authorities propose to demand enhancement of the Lease Rent with retrospective effect, when the petitioner did not give their consent for the same. This argument made on behalf of the petitioner was accepted by the Court and it has been held that there is no such attempt (to issue Show Cause Notice) made by the respondent before issuing the Demand Notice. Further, it was held that the demand of enhanced Lease Rent with retrospective effect, solely based on the Audit objection without notice to the petitioner, was illegal and unsustainable. Therefore, the demand was set aside. However, liberty was granted to the respondent to initiate fresh action after issuing notice to the petitioner.
5.It appears that the respondent has not properly understood the purport of the direction issued and appears to have been guided solely by the https://www.mhc.tn.gov.in/judis/ 3/6 Cont.P.No.1124 of 2021 liberty granted in Para No.11 of the order, without referring to the observations and findings in Para Nos.9 and 10 of the order, whereby, the demand dated 04.07.2013 was held to be unsustainable and quashed. Therefore, if the respondent had intention to proceed by availing the liberty granted in the writ petition, the proper course open to them was to issue Show Cause Notice, wherein, the respondent should specifically mention as to under which provision of law, the power is being exercised for retrospective revision of Lease Rent and Municipal Tax and an opportunity should be given to the petitioner to show cause as to how such a demand may not be sustainable in law. It is thereafter, to satisfy the principles of natural justice, an opportunity of personal hearing can be granted, though may not have been provided specifically in any rule or regulation. It is so because, the quantum demanded initially was more than Rs.3.55 Crores and when the jurisdiction of the authority is being questioned by the petitioner to effect retrospective revision of Lease Rent and Municipal Tax, certain factual and legal issues will also have to be clarified. Therefore, opportunity of personal hearing would be necessary in the case on hand.
6.For the above reasons, this Court holds that Final Notice issued by https://www.mhc.tn.gov.in/judis/ 4/6 Cont.P.No.1124 of 2021 the respondent, dated 21.09.2020, and the Demand Notice, dated 13.07.2021, are not sustainable, since the respondent has not properly understood the scope of the liberty granted to the respondent in the order passed in the writ petition, dated 18.02.2015.
7.For the above reasons, Final Notice in Rc.No.A2/3592/2016 dated 29.09.2020 and the Demand Notice dated 13.07.2021 are set aside with a direction to the respondent to issue Show Cause Notice to the petitioner, specifically indicating as to under which provision of law, the respondent is empowered to retrospectively revise the Lease Rent and Municipal Tax, and afford reasonable opportunity to the petitioner to submit their objections, after which, the authorized representative of the petitioner be afforded an opportunity of personal hearing by the respondent and after considering the objections and the contentions that may be advanced during the personal hearing, a speaking order be passed on merits and in accordance with law.
T.S. SIVAGNANAM, J.
mkn https://www.mhc.tn.gov.in/judis/ 5/6 Cont.P.No.1124 of 2021
8.With the above directions, this Contempt Petition is disposed of. Consequently, connected Application is closed.
03.09.2021 mkn/jeni To The Tahsildhar, Mylapore – Triplicane Taluk, Chennai – 600 028.
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