Introduction:

In a recent ruling, the Madras High Court has emphasized the significance of due process by holding that Section 116A of the Tamil Nadu Urban Local Bodies Act, 1998, requires a minimum of 15 days for property tax assessees to respond to notices before any action can be taken. The case involves M/s. Indralok Hotel Pvt. Ltd. challenging a demand notice related to property tax, arguing that it did not adhere to the statutory provisions. The petitioner sought relief as the restaurant premises were sealed, preventing its operation during the dispute.

Arguments:

The petitioner contested a demand notice affixed to their premises, contending that it did not comply with the Tamil Nadu Urban Local Bodies Act, 1998. Specifically, the petitioner highlighted that the notice, issued on February 22, 2024, did not come from the Commissioner as required by Section 116A. The petitioner, operating a restaurant, faced sealing of the premises, hindering its operation. The department justified its actions, stating that the demand notices were issued in accordance with the tribunal’s order, providing the petitioner with a 15-day window to respond.

Court’s Judgment:

Justice Senthilkumar Ramamoorthy acknowledged the petitioner’s concern about due process and the sealing of their restaurant. The court underscored that the demand notices must align with statutory requirements and that Section 116A mandates a 15-day period for the property tax assessee to present their case. The court directed the respondent department to de-seal the restaurant, as the license for its operation was still valid until March 31, 2024, per the renewal on March 30, 2023.