Madras High Court
A.Vijayaraghavan vs The Member Secretary on 4 October, 2018
Author: C.Saravanan
Bench: C.Saravanan
1
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 04.10.2018
CORAM:
THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.No.13722 of 2008
and
W.M.P.No.1 of 2008
A.Vijayaraghavan ... Petitioner
Vs.
The Member Secretary,
Chennai Metropolitan Development Authority,
No.1, Gandhi Irwin Road,
Egmore, Chennai-8. ... Respondent
Prayer: Writ petition filed under Article 226 of the Constitution of India,
praying for issuance of a Writ of Certiorarified Mandamus, calling for the
records of the respondent herein culminating in letter No.BC1/26604/2007,
dated 27.03.2008 and quash the same and direct the respondent to accept
the balance sum of Rs.17,85,000/- payable by the petitioner in lieu of open
space reserve without insisting to pay any interest on the same.
For Petitioner : Mr.M.Santhanaraman
For Respondent : Mr.P.Tamilmani
ORDER
The relief sought for in this writ petition is to call for the records of the respondent herein culminating in letter No.BC1/26604/2007, dated 27.03.2008 and quash the same and direct the respondent to accept the http://www.judis.nic.inbalance sum of Rs.17,85,000/- payable by the petitioner in lieu of open 2 space reserve without insisting to pay any interest on the same.
2. The petitioner had applied for plan wherein the petitioner was required to reserve 141 sq.mts of land as Open Space Reservation. However, according to the CMDA, the petitioner was unable to perform the same and therefore the petitioner was requested to pay a sum of Rs.37,85,000/- as Development Charge. In lieu of the Open Space Reservation, the amount was demanded on the petitioner and therefore the petitioner has filed a writ petition in W.P.No.6006 of 1998 before this Court, which came to be allowed on 12.08.1998 subject to the petitioner paying a sum of Rs. 20,00,000/-. The petitioner has also paid a sum of Rs.Rs. 20,00,000/- as per the order and the plan was sanctioned.
3. Thereafter, the respondent has preferred a writ appeal in W.A.No.1242 of 1998 before the Hon'ble Division Bench of this Court, which came to be allowed on 29.07.2007.
4. Based on the order of the Hon'ble Division Bench of this Court in W.A.No.1242 of 1998, the respondent/Member Secretary, Chennai Metropolitan Development Authority sent the proceedings to the petitioner on 27.03.2008. Para 5 of the said proceeding is extracted hereunder:-
“(ghh;it 5) jpwe;j ntspf;fl;lzk; tsh;r;rpf; http://www.judis.nic.in 3 fl;Lg; g h L tpjp 1 9 (b) (i) (vi) (7) (b) (ii) (vi) 17 (a) -9 ,jd;gb kPjj; njhif &.1 7> 8 5 > 0 0 0 /- (&gh a ; gjpNdO ,yl;rj; J vz;gj;ije;jh a p u k; kl;Lk;) fl;l Ntz;Ln;kd;W Mizapl;L s ; s J . ,jid Mz;bw; F 12 rjtPjk; tl;bAld; 17 . 1 1 . 1 9 9 8 - ypUe; J gzk; nrYj; J k ; g b Nfl;Lf; nfh s; s g ; g L f p w P h ; f s ; ”
5. In the said proceedings, the respondent/Member Secretary, Chennai Metropolitan Development Authority called upon the petitioner to pay the balance amount of Rs.17,85,000/- ( Rupees Seventeen Lakhs Eighty Five Thousand only) together with interest at 12% per annum from 17.11.1998. The petitioner has paid the aforesaid amount but has refused to pay interest. In the circumstances , the present writ petition was filed for the above relief.
6. Heard Mr.M.Santhanaraman, learned counsel for the petitioner and Mr.P.Tamilmani, learned counsel for the respondent.
7.The learned counsel for the petitioner refers to circular dated 07.05.2010 bearing reference Office Order No.13/2010. Para 1, 2 and 3 in the said circular, which is extracted hereunder:-
“ORDER:
1. In partial modification in the office order 3rd read above, the http://www.judis.nic.in following procedure shall be followed in collection of interest on 4 belated payments of Development Charges, OSR Charges, RegulationCharges, Demolition Charges and Parking Space Charges.
i) No interest shall be collected on payments received within 30 days from the date of despatch of the advice for such payments.
ii) The above advice shall be sent to the applicants by Registered Post with Acknowledgment Due for payments and the acknowledgment shall be linked with the file properly in time. If the applicant receives the advice in person. It can be done so with the permission of the Division Head. In such cases interest calculation will be done from the date of the advice.
iii) For payments received after 30 days, interest shall be collected at the rate of 12% per annum from the date of despatch of the advice upto the date of payments.
iv) Accounts Division shall work out the interest and collect the same along with the charges due.
v) No interest shall be collected on Security Deposit.
2. The Deputy Planners of the respective Channels shall make a specific mention in the advice about the interest payable on belated payments.
3. This order takes immediate effect.”
8. In para 1 (iii) of the said circular, it has been mentioned that for payments received after one month/30 days, interest shall be collected at the rate of 12% per annum from the date of despatch of the advice. The petitioner has already paid a sum of Rs.20,00,000/- in time and later the balance amount of Rs.17,85,000/-. He submits that the above circular cannot be retrospectively applied to the petitioner. http://www.judis.nic.in 5
9. It is the submission that the Office Order No.13/2010 dated 07.05.2010 cannot be made applicable for levy interest on development charges levied on 17.04.1998 cannot be countenanced as interest is payable under Section 63 and Sub-section (2) of the Tamil Nadu town and Country Planning Act.
10. The Office Order No.13/2010 dated 07.05.2010 of the respondent merely modifies the Office Order No.32/1992 dated 01.10.1992 and Office Order No.02/2007 dated 09.01.2007.
11. It has been specified that the delayed payment after one month interest at the rate of 12% p.a. (1% p.m.) for every completed month from the date of issue of the advice is payable by the builders.
12. The levy of interest is under the provision of the Act at the rates notified from time to time by the Office Order Nos.32/1992 dated 01.10.1992, 02/2007 dated 09.01.2007 and 13/2010 dated 07.05.2010 respectivly.
13. In the present case, the development charges came to be levied on 17.04.2008. The petitioner has paid the amount of Rs.37,85,000/- http://www.judis.nic.in 6 C.SARAVANAN.J., dss/nmm though partially beyond time. I am of the view that the petitioner is liable to pay interest on belated payments.
14. In view of this position, the petitioner is directed to pay interest on delayed payment with interest at the rate of 2% per annum as per the orders of the respondent/Member Secretary, Chennai Metropolitan Development Authority.
15. With the above direction, this Writ Petition is disposed of. Consequently, connected Miscellaneous Petition is closed. No costs.
04.10.2018 Speaking / Non-speaking order Index: Yes / No Internet: Yes / No kkd/nmm To The Member Secretary, Chennai Metropolitan Development Authority, No.1, Gandhi Irwin Road, Egmore, Chennai-8.
W.P.No.13722 of 2008 http://www.judis.nic.in