Case Note & Summary
The petitioner, M/s. Natvar Properties Pvt. Ltd., filed a writ petition challenging the warrant of attachment dated 14th March 2011 and notice of auction dated 5th May 2011 issued by the Municipal Corporation of Greater Bombay (MCGM) for recovery of property tax. The petitioner was the licensor of the suit property, and respondent No.3 was the licensee. The petitioner contended that the property tax during the leave and license period was to be paid by the licensee, but the Corporation opposed this position. An applicant/intervenor claimed to have purchased all rights in the suit property from the petitioner. In consent terms dated 14th October 2021 in Commercial Suit No. 415 of 2019, the applicant undertook to pay all outstanding amounts to the MCGM. The applicant paid Rs.52,08,636/- under protest via a cheque that bounced due to a technical flaw, and subsequently forwarded a demand draft for the same amount. The court considered the submissions and directed the Corporation to accept the demand draft and withdraw the attachment and auction notices, thereby allowing the petition.
Headnote
A) Property Tax - Liability - Leave and License Agreement - The dispute pertains to the liability to pay property tax during the leave and license period, with the petitioner claiming it was the licensee's responsibility, but the Corporation opposing this position. (Paras 1-2) B) Attachment and Auction - Challenge - The petitioner challenged the warrant of attachment dated 14th March 2011 and notice of auction dated 5th May 2011 issued by the Municipal Corporation for recovery of property tax. (Para 1) C) Consent Terms - Payment Undertaking - In consent terms dated 14th October 2021 in Commercial Suit No. 415 of 2019, the applicant undertook to settle and pay all outstanding amounts due to the MCGM in respect of the suit property. (Para 2) D) Payment - Under Protest - The applicant paid Rs.52,08,636/- under protest via a cheque that bounced, and subsequently forwarded a demand draft for the same amount. (Para 3)
Issue of Consideration
Whether the warrant of attachment and notice of auction issued by the Municipal Corporation for recovery of property tax should be set aside in light of the payment made by the applicant/intervenor.
Final Decision
The court allowed the petition and directed the Municipal Corporation to accept the demand draft of Rs.52,08,636/- from the applicant and withdraw the warrant of attachment and notice of auction.
Law Points
- Property tax liability
- leave and license agreement
- warrant of attachment
- notice of auction
- consent terms
- payment under protest
- bounced cheque
- demand draft
