CENTRAL WAREHOUSING CORPORATION A GOVERNMENT OF INDIA UNDERTAKING RRE Vs. CHITLAPAKKAM TOWN PANCHAYAT RRE

JUDGEMENT

(1.) THIS second appeal has been filed against the judgment and decree, dated 26.10.2004, made in A.S.No.52 of 2003, on the file of the Additional Subordinate Court, Chengalpattu, confirming the judgment and decree, dated 11.3.2003, made in O.S.No.77 of 2000, on the file of the District Munsif Court, Tambaram.

(2.) THE plaintiff in the suit, in O.S.No.77 of 2000, is the appellant in the present second appeal. THE defendant in the said suit is the respondent herein.

(3.) IT has also been stated that there cannot be an increase of more than 33.33 % of the existing tax, in respect of the buildings owned by the Government of India undertaking. However, since the Tamil Nadu Buildings (Lease and Rent) Control Act, 1960, is not applicable, the defendant Town Panchayat cannot fix the tax by taking into consideration the fair rent formula. As the defendant Town Panchayat had initiated distraint proceedings the plaintiff Corporation had paid 50% of the enhanced tax amount payable by the plaintiff Corporation, under protest. In fact the plaintiff Corporation had paid more than the admitted tax liability. In such circumstances, the plaintiff Corporation had filed the suit praying for a decree against the defendant to declare that the assessment levied by the defendant Town Panchayat, in respect of the schedule mentioned properties, is illegal, ultravires and void, and for a consequential interim injunction restraining the defendant and others from, in any way, collecting the enhanced tax from the plaintiff Corporation, and for costs.