1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 08.04.2011 CORAM: THE HONOURABLE MR.JUSTICE B.RAJENDRAN W.P.(MD).No.1210 of 2011 And M.P.(MD).Nos. 2 & 3 of 2011 1. M.Mohamed Abdullah 2. SKS. Palaniappan 3. Ponnamaravathi Trader's Association Rep.by its Secretary, M.Mohamed Abdullah 4. PAL. Thenappan : Petitioners Vs. 1. The State of Tamil Nadu rep. by its Secretary to Government Municipal Administration and Water Supply (Election Department) Fort St. George, Chennai – 600 009 2. Ponnamaravathi Selection Grade Panchayat rep. by its President Pudukkottai District : Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari calling for the records relating to the impugned G.O.No. 317 dated 30.12.2010 passed by the first respondent and quash the same. For petitioner : Mr.G.R.Swaminathan For 1st Respondent : Mr.K.Balasubramanian Additional Government Pleader For 2nd Respondent : Mr.M.Rajarajan Government Advocate O R D E R The Writ Petition has been filed by the petitioner seeking to quash the impugned G.O.No. 317 dated 30.12.2010 passed by the first respondent. https://hcservices.ecourts.gov.in/hcservices/ 2 2. The learned counsel appearing for the petitioner would contend that they are traders and they are owning commercial buildings within the Panchayat Limits of the second respondent. The Government of Tamil Nadu has issued G.O.Ms.No. 150, dated 12.11.2007 enabling the Municipalities and Town Panchayat to revise the property tax. Subsequently, G.O.Ms.No. 110, dated 23.06.2008 was passed imposing ceiling limit for such enhancement. The second respondent adopted the said limits. He would further contend that the tax has become burdensome and therefore, they have filed writ proceedings before this Court in W.A.No. 620 of 2009. By an order dated 02.12.2009, a writ was filed by the Association but this Court directed only the individual members to approach the Municipalities concerned if they are aggrieved. Pursuant to the same, they have approached the Municipalities and thereafter, resolution No. 152, dated 08.01.2010 was passed revising the tax limits and enhanced to 50% instead of 150% as regards to Industrial establishments, the enhancement was 40% instead of 100%. 3. The Director of Municipalities took objections to the said resolution and recommended its cancellation to the Government. There upon the first respondent issued a show cause notice, on 22.10.2010 to the second respondent and after explanation, G.O.Ms.No. 317, dated 30.12.2010 was passed cancelling the resolution No. 152, dated 08.01.2010. Aggrieved against the same, the petitioners who are individual tax payers have come forward with this Writ Petition that the cancellation of the resolution is illegal. 4. The learned Government Advocate has filed a counter. In the counter, he would only contend that already, the association has filed W.P.(MD).No. 8989 of 2009 before this Court challenging the resolution No. 110, dated 28.07.2008 and resolution No. 130, dated 18.09.2009 and another resolution passed on 29.01.2009 and for enhancement of tax. The said Writ Petition was dismissed by this Court on 12.09.2009. Thereafter, a Writ Appeal was preferred by the petitioner in W.A.No. 620 of 2009 and that was also withdrawn with liberty to approach the Municipality. After that, the council has passed the resolution No. 152, dated 08.01.2010, seeking to reduce the enhancement of tax. The association nor the traders nor anyone at that point of time did make any objections. Thereafter, the tax was confirmed and it was levied only after disposal of the Writ Appeal. They have made a new representation and by the time, the entire process for calculation of the tax itself was done and most of them have also paid the tax. Therefore, at the instance of some, there cannot be a reduction in the tax by way of a resolution. Hence, it was rightly recommended by the authority concerned to the Government, who is the competent authority, to cancel the resolution and explanation was sought for from the Panchayat and ultimately it was cancelled. The petitioner is only one of the tax payer do not have a legal right, at this point of time, to question the cancellation of the resolution by a power vested with the Government under Rule 36 of the Tamil Nadu District Municipalities Act. Further, they would also contend that the Panchayat has to necessarily depend upon the income under the tax to meet out their https://hcservices.ecourts.gov.in/hcservices/ 3 debts. Therefore, the order passed by the authority is within the limits. 5. Heard both sides. 6. The only grievance of the petitioners is that the petitioners who are the individual tax payers, in their individual capacity in this Writ Petition have challenged the cancellation of the resolution of the Municipality in reducing the enhancement from 100% to 40% and from 150% to 50%. The Executive Officer, who is competent authority, stated that when a resolution was passed by the Panchayat, if it is inconsistent with the Government orders or it will affect the rights of the Panchayat, he can recommend to the Government authorities to cancel the same. In this connection, the Executive Officer having felt that the reduction in the tax especially when there was no objections earlier and when steps have already been taken to implement the enhanced tax structure and some of them having already paid, is not in consonance with law to reduce the tax by the Panchayat. It is relevant to extract Section No. 36 (1)(i) & 2 of the Tamil Nadu District Municipalities Act: “(i) suspend or cancel any resolution passed, order issued, or licence or permission granted; (2) If, in the opinion of the District Collector, immediate action is necessary on any of the grounds referred to in clause (c) of Sub-section (1), he may suspend the resolution, order, licence, permission or act, as the case may be, and report to the State Government who may thereupon either rescind the Collector's order or after giving the authority or person concerned a reasonable opportunity of explanation, direct that it continue in force with or without modification permanently or for such period as they think fit”. 7. Here in this impugned order, the resolution was cancelled after the necessary notice issued after seeking explanation and finally they came to the conclusion that as the Panchayat is liable to pay Rs.254.61 lakhs as loan. When such huge amount is pending, it is not worthwhile to reduce the enhanced tax, for which, none in the Panchayat originally objected to. Further, all steps have already been taken for implementation and recovery. Therefore, the Government thought it fit to cancel the resolution. Once the cancellation of resolution has been passed, the petitioner, who is one of the tax payer in that Panchayat cannot challenged this. The Panchayat has not challenged this. 8. In any view of the matter, the tax is a matter to be decided by the Government merely because four persons felt that the tax is a exhorbitant or excessive one that by itself will not give them the https://hcservices.ecourts.gov.in/hcservices/ 4 right to challenge the cancellation. Unfortunately, the petitioners are not able to pinpoint any irregularity or illegality in the impugned order passed by the Government, dated 30.12.2010. The Government has got necessary power under Section 36 of the Tamil Nadu District Municipalities Act, to cancel the resolution. Therefore, the Writ Petition fails. 9. Accordingly the Writ Petition is dismissed. Consequently, connected Miscellaneous Petitions are also dismissed. No costs. Sd/- Deputy Registrar (LA) /True Copy/ Assistant Registrar To 1. The Secretary to Government Municipal Administration and Water Supply (Election Department) State of Tamil Nadu Fort St. George, Chennai – 600 009. 2. The President Ponnamaravathi Selection Grade Panchayat Pudukkottai District. +1 CC to Special Government Pleader (SR.No.13261) +1 CC to Mr.D.Gandhiraj, Advocate (SR.No.13254) +2 CCs to Mr.G.R.Swaminathan, Advocate (SR.Nos.13334 & 13316) W.P.(MD).No.1210 of 2011 and M.P.(MD).Nos. 2 & 3 of 2011 08.04.2011 vsg NSV/9.5.11/4P/7C https://hcservices.ecourts.gov.in/hcservices/