WALCHANDNAGAR INDUSTRIES LTD Vs. MUNICIPAL CORPORATION CITY OF PUNE & ORS

Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 10568 of 2014, Judgment Date: Nov 27, 2014

                                                              NON-REPORTABLE


                        IN THE SUPREME COURT OF INDIA


                       CIVIL  APPELLATE  JURISDICTION


                        CIVIL APPEAL NO. 10568 /2014

              [Arising out of S.L.P. (Civil) No. 7566 of 2014]



Walchandnagar Industries Limited                            ...  Appellant (s)


                                     Versus


Municipal Corporation City of Pune and

Others                                                      ... Respondent (s)




                               J U D G M E N T



KURIAN, J.:




    Leave granted.



Appellant filed Writ Petition No. 3791 of 2013  before  the  High  Court  of

Judicature at Bombay. Prayer (i) reads as follows:

"(i)  That this Hon'ble Court be pleased to  issue  an  appropriate  Writ  /

Order / Direction  in  the  nature  of  Writ  of  Certiorari  or  any  other

appropriate  Writ,  Order  or  Direction  quashing  and  setting  aside  the

impugned Administrative Order bearing No. MA/UAV/127 dated 07th  July,  2007

and the Entry No. 361  of  Section  22  of  the  Ready  Recknor  purportedly

prepared  by  the  Respondent  No.  1  pursuant   to   the   said   impugned

Administrative Order baring No. MA/UAV/127 dated 07th  July,  2007,  to  the

extent of determining the rate of 20 Paise / sq.ft. for deriving the  Annual

Rateable Value of lands situated / included under the Hill  Top  Hill  Slope

zone within the limits of the Respondent No. 1,  since  the  same  is  ultra

vires the Article 14 and 13(2) of the Constitution of India and  the  Bombay

Provincial Municipal Corporation Act,  1949,  and  the  Rules  framed  there

under."


High Court though took note of  the  challenge,  declined  to  go  into  the

constitutional validity of the order dated 07.07.2007 and  disposed  of  the

writ petition holding  that  all  issues  regarding  the  liability  of  the

appellant to pay property tax including the rate at which the  property  tax

is to be paid would be considered by the appellate authority in  the  appeal

pending before it.

 Learned Senior Counsel appearing for the appellant, Shri  K.  K.  Venugopal

points out that unless the High Court decides  the  constitutional  validity

of the order dated 07.07.2007 impugned in the writ petition,  the  appellate

authority will not be in a position to take an  effective  decision  in  the

appeal.

Having heard Counsel on both sides,  we  are  inclined  to  agree  with  the

submission made by learned Senior Counsel appearing for the  appellant.  The

constitutional validity of impugned order has to be considered by  the  High

Court. Depending on the decision of the High Court on that issue  only,  the

appellate authority can take a decision  as  to  whether  the  appellant  is

liable to be taxed in terms of the order dated 07.07.2007.

The impugned order is hence set aside and the  matter  is  remitted  to  the

High Court. Since the statutory appeal against  the  imposition  of  tax  is

pending before the  appellate  authority,  we  request  the  High  Court  to

dispose of the  writ  petition  as  expeditiously  as  possible,  preferably

within six months from the date of receipt of copy of this judgment.

 The appeal is allowed as above. There shall be no order as to costs.




                                              ........................... J.

                                                     (ANIL R. DAVE)



                                             ............................J.

                                                    (KURIAN JOSEPH)

New Delhi;

November 27, 2014.