HOTEL DONA CASTLE Vs. KOLLAM CORPORATION

JUDGEMENT

(1.) That the petitioner company filed WP(C)No.7282/2020 for renewal of D & O license on payment of the demand in Ext.P1 in 8 equal monthly installments. This Court vide Ext.P3 judgment directed the petitioner to pay Rs.3,48,688/- within a week or at any rate before 31.03.2020 and directed to pay the balance amount in 5 installments on or before 10 th of April 2020 and 10th of the succeeding months. Though the petitioner expressed the willingness to pay the amount, respondents told that since the entire office is not working from 24.03.2020 due to the lockdown declared by the Govt. of India, they will intimate to the petitioner with regard to the payment in compliance to the directions in Ext.P3 judgment. Admittedly the hotel of the petitioner was also locked and even now it is locked except the sale of liquor in wholesale from 28.05.2020. Ext.P4 is issued on 07.05.2020 after the opening of the office from 04.05.2020, partial release of the lockdown, directing to pay Rs.3,48,688/- within 3 days and the balance amount of Rs.5,49,561/- in monthly installment starting from 10 th of June 2020. As per Ext.P4 letter, the petitioner paid Rs.3,48,688/- on 12.05.2020 within time. Ext.P5 is the receipt. Thereafter the 1st installment is paid on 09.06.2020, before 10.06.2020 evidenced from Ext.P6 receipt. When the petitioner approached to pay the amount, second installment before 10.07.2020, the petitioner is directed to pay penal interest of Rs.18,770/-. The petitioner under protest paid the amount on 09.07.2020 itself evidenced from Ext.P7. Since the collection of penal interest is illegal and also against the directions of this Court in Ext.P3 judgment, the petitioner submitted Ext.P8 to the 2 nd respondent to adjust the penal interest collected towards the third installment due on 10.08.2020. But the revenue officer of the 1st respondent issued a letter, Ext.P9, though dated 29.07.2019 (it must be 29.07.2020) stating that they are not bound by the judgment of this Court and only bound by the orders issuing by the Government under the Municipality Act. It is pertinent to note that the interest was even waived by the Government till 15.07.2020. But interest was collected on 09.07.2020 evidenced from Ext.P6 for the reasons best known to the respondents. The demand of the building tax from 2016-17 to 2019-20 as per the revised assessment on the basis of the plinth area was only on 27.02.2020. Government itself waived the interest till 15.07.2020. As per the G.O dated 06.03.2019, the Govt. also explained that the assessment can be made on the basis of the plinth area from 01.04.2013. Thereafter, it is re-fixed as from 01.04.2016. Then the penalty and the interest are waived for the arrears from 01.04.2016 to 31.03.2019 after giving installment facility to be paid within 10 months from 01.04.2019. That is to say, interest is waived till 31.01.2010. Admittedly in this case, the demand is only on 27.02.2020. It ought to have been before 10 months to 31.01.2020. That is to say before 31.03.2019. The delay in making the payment is not the fault of the petitioner. After considering all these, this Court rendered Ext.P3 judgment. Hence the demand of interest is illegal and also against the directions of this Court in Ext.P3. The stand of the respondents imposing the interest without getting a clarification/modification of Ext.P3 judgment of this Court is illegal, arbitrary.

(2.) It is in the light of these averments and contentions that the petitioner has filed the instant W.P.(C.) with the following prayers :

(3.) Heard Sri.M.G.Karthikeyan, learned counsel appearing for the petitioner and Sri.M.K.Chandramohandas, learned Standing Counsel for Kollam Municipal Corporation appearing for respondents.