MANAGEMENT OF KCP LIMITED Vs. COMMISSIONER TIRUVOTTIYUR MUNICIPALITY

JUDGEMENT

(1.) The petitioner, a private limited company, is engaged in the manufacture of equipment for cement, sugar, steel plants, pressure vessels by using various machineries. The petitioner company is running the factory within the respondent Municipality since 1957 by obtaining licence from the respondent on payment of necessary licence fee fixed by the respondent from time to time. Licence fee is being levied on the basis of horse power of various machineries used in the factory. Petitioner is aggrieved by the sudden increase of licence fee as per the notification dated 11.9.1998 issued by the respondent Municipality and has sought for quashing the same.

(2.) The main contention raised by the petitioner is to the effect that without rendering any service whatsoever, the respondent has arbitrarily raised the licence fee which is grossly excessive and cannot be sustained in law.

(3.) At the time of entertaining the writ petition, an interim order has been passed by this Court staying the operation of the enhanced licence fee subject to payment of 25% of the amount as per the enhanced fee. Subsequently, a petition for vacating the stay was filed by the respondent and on consideration, the interim order had been made final.