K.K. BUILDERS Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioners in both the writ petitions challenge the respective assessment made under the Building Tax Act, 1975 (hereinafter referred to as "the Act"). Since the facts are more or less similar, the difference if any, shall be noticed wherever applicable and reference to each of the writ petition is unnecessary. Both the petitioners constructed a Bus stand under a Build Operate and Transfer Scheme (BOT) for the local authority. The petitioners were given lands, belonging to the local authority, on which the construction was carried on, without a pie being spent by the local authority. However, the money expended on such construction was to be recouped by each of the petitioners, by operating the facilities, as also collecting the fees and other revenues from the users of the facilities, provided in the complex.

(2.) The petitioners as "Concessionaire" were conferred with the concession to construct and maintain the complex; for the 'Concession Period'; as provided in the respective agreements. This conceded and included the right to occupy the complex; rent or lease the commercial and parking space and charge, collect and retain the revenues collected from the licensees, bus operators and other users of the various facilities; within the complex. Such permission to operate; termed 'concession period'; under the BOT Scheme with respect to the petitioner in WP (C) 26207/2012 is for 29 years and 3 months, while the petitioner in WP (C) 8717/2013 has such right for 49 years.

(3.) The petitioner in one writ petition has entered into a contract, with the Kannur Municipality and the latter indicates an agreement with the Chengala Grama Panchayat. The Municipality though stands by the agreement, supports the Government insofar as the building tax levy is concerned. The Panchayat, however, has not chosen to appear despite notice. The land in both the cases belongs to the local authority, the former by way of proceedings initiated under the Land Acquisition Act, and the later by an assignment by the Public Works Department.