Gopalalrishnan and Anr v. North Delhi Municipal Corporation

1. Present writ petition has been filed by the petitioners under Article 226 of the Constitution of India seeking a direction to quash the circular dated 8.4.2010 issued by the MCD whereby the guest houses have been classified in the category of three star hotels ior the purpose of imposing property tax. The petitioners also seek a direction in the nature of mandamus to treat the guest houses in the non-residential category along with one and two star hotels.

2. Learned counsel for the petitioners submits that the petitioners are aggrieved by the circular dated 8.4.2010 issued by the MCD revising the rates of property taxes for the financial year 2010-2011, whereby the guest houses have been included in the "special nonresidential" category whereas initially by an earlier Circular of the MCD the guest houses were being considered in line of the "nonresidential category". Counsel further submits that pursuant to the above Circular the bank account of petitioner no.2 has been wrongly attached by the respondent although the petitioner has paid up-todate property tax.

3. Issue notice to show cause to the respondent as to why petition be 2013:DHC:7173 not admitted. Notice in tl^e application as well. Ms.Amita Gupta, Advocate, accepts notice on behalf of the respondent and submits that since the petitioners have failed to press their objections and none appeared before the respondent, which has led to passing of ex parte assessment order against the petitioners. Counsel further submits that as per the assessment order the petitioners have been assessed to tax in the sum of Rs.2,18,152/-, each, and to that extent the bank accounts of petitioner no.2 has been attached.

4. After some hearing in the matter, learned counsel for the petitioners submits that the petitioners shall deposit a sum of Rs.1.50 lakhs, each, with the respondent, however, counsel prays that the assessment order qua petitioners be set aside. Counsel for the respondent has no objection to the same.

5. Accordingly, subject to petitioners' depositing Rs.1.50 lakhs, each, with the respondent within two weeks from today, the assessment order qua both the petitioners is set aside and the order of attachment qua petitioner no.2 is withdrawn. As agreed the petitioners shall appear before the Assessor and Collector on 22.3.2013 at 2.30 p.m. for directions. The Assessor and Collector will thereafter fix a date for hearing of the petitioners and pass a fresh order in accordance with law. Liberty, as prayed, is granted to the petitioners to place such documents, on which they wish to rely ijpon, before the Assessor and Collector. All grounds raised in this writ petition are kept open.

6. Accordingly, writ petition and application stand disposed of. G.S.SISTANI, j iVlARCH 01, 2013 msr