REHABILITATIONS PLANTATIONS LTD. Vs. PUNALUR MUNICIPALITY

JUDGEMENT

(1.) The petitioner herein is the Rehabilitation Plantations Limited, a Company in which the Government of Kerala have 60% share and the rest is held by the Government of India. They have approached this Court challenging the imposition of property tax by the Punalur Municipality over the forest held by them on the strength of a lease granted by the Government of Kerala.

(2.) Brief facts which are required to be stated are that the petitioner Company was incorporated to raise plantations on forest land leased out to the Company by the State for providing employment for the Sri Lankan repatriates. About 200 hectares of land in Survey No. 10/1 of Punalur Village forming part of Ayiranalloor plantation is situated within the limits of Punalur Municipality.

(3.) In the year 1983, the Punalur Municipality demanded payment of property tax from the petitioner. The petitioner contended that they were not liable to pay tax as they are the lessees and the owner of the land being the Government of Kerala. When the respondent Municipality started initiating proceedings for realization of the same, the petitioner filed O.S.No.187/1984 before the Munsiff Court, Punalur seeking an order of injunction and from initiating steps to recover the same. By judgment dated 26.2.1985, the Munsiff Court held in favour of the petitioner and it was held that the land being owned by the Government of Kerala, steps taken for levy of property tax was not in accordance with law. The suit was accordingly decreed restraining the Municipality from levying tax in respect of 200 Hectares of land forming part of Ayiranalloor plantation and also from initiating recovery steps. Though an appeal was preferred, the same was dismissed by the Sub Court, Kottarakkara by judgment dated 24.10.1994 in A.S.No.14 of 1986. Those judgments have become final.