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Judgment
R. Banumathi, J.—This appeal arises out of the order dismissing W.P.(MD) No. 3683 of 2009 (22.11.2011) whereby the Writ Court
declined to quash levy, demand and collection of vacant land tax as condition precedent for grant of sub division and also approval of building
plan. Writ Petitioner owns a plot measuring 239.09 Square Meter in Town Survey No. 25/4 (Part) and 26/2A (Part) in Ward No. ""J"" Block, No.
5, Nagercoil Municipal Limits. On 16.07.2007, Appellant submitted an application to Nagercoil Municipality seeking approval of sub division of
the plot. Nagercoil Local Planning Authority has given planning permission to the Appellant in Roc.No. 664/2007/N.L.P.A. dated 27.09.2007 and
the same was forwarded to the Respondent Municipality.
Grievance of the Appellant is that for approval of sub division of the plot, Respondent Municipality insisted the Appellant to pay vacant land tax
for twelve years i.e. for 25 half years. Case of Appellant is that his father Sivathanulingam obtained information under Right to Information Act that
no resolution was passed by the Municipal Council to levy the vacant land tax u/s 81 of Tamil Nadu District Municipalities Act. Contention of
Appellant is that without passing any resolution, Respondent Municipality has no power to levy vacant land tax and such levy is unconstitutional
and ultra vires the provisions of Tamil Nadu District Municipalities Act and also Article 265 of Constitution of India, Appellant filed the Writ
Petition for issuance of declaration declaring that levy, demand and collection of vacant land tax as condition precedent for grant of sub division
and also approval of the building plan is illegal, unconstitutional and ultra vires the provisions of Tamil Nadu District Municipalities Act and
consequently, direct the Respondent to approve sub division of the plot on the application submitted by the Appellant on 16.07.2007 on the basis
of the planning permission accorded in Roc.No. 664/2007/N.L.P.A. dated 27.09.2007.
When the Writ Petition was pending, G.O.(Ms) No. 151 Municipal Administration & Water Supply (Election) Department dated 20.8.2009
came to be passed. In G.O.(MS) No. 151 dated 20.08.2009, the Government ordered amendment to Section 81 of Tamil Nadu District
Municipalities Act to levy minimum and maximum rates of property tax on vacant lands on square foot basis. After G.O.(Ms) No. 151 dated
20.8.2009 was passed, Appellant filed additional affidavit contending that as per the Amended Act, property tax on vacant land could be levied
only from 20.08.2009 and that the Act did not stipulate levy of tax retrospectively .In the additional affidavit, it was further averred that Appellant
is ready and willing to pay the vacant land tax as per the Amended Act and consequent resolution of the Municipal Council and therefore, sought
for further direction to the Respondent Municipality that on payment of vacant land tax paid by the Appellant, as per the newly Amended Act 15
of 2009, the Respondent Municipality to give approval for the sub division and also approval for the plan to the Appellant.
Insofar as the Writ Petition filed by the Appellant, referring to the earlier order of the learned single Judge in W.P.(MD) No. 1966 of 2005 and
batch and also the Judgment in W.A.(MD) No. 661 of 2011, the learned single Judge dismissed the Writ Petition filed by the Appellant. Being
aggrieved by the dismissal of the Writ Petition, Appellant has preferred this appeal.
Mr. T.S.R. Venkatramana, learned counsel for Appellant contended that there was an illegal oral demand for vacant land tax by the Respondent
Municipality without following the procedure u/s 78of Tamil Nadu District Municipalities Act. It was further submitted that levy of tax on vacant
land for twelve years i.e. 25 half years as a condition precedent for sub division of plot/building plan approval is illegal and without authority.
Learned counsel for Appellant contended that without passing resolution, the Respondent Municipality has no power to demand vacant land tax as
condition precedent for sub division of plot/approval of building plan. Taking us through the provisions of Tamil Nadu District Municipalities Act,
the learned counsel for Appellant submitted that Section 78 of the Act prescribes specific procedures to be followed before levying the property
tax and without following the said procedure, demand of vacant land tax for twenty five half years is illegal and unconstitutional.
Heard Ms. S. Srimathy, learned counsel for Respondent Municipality. Learned counsel for Respondent submitted that Section 81 of the Act
grants power to impose property tax to building and land and the Respondent Municipality is imposing property tax from 1989 onwards and the
Appellant cannot challenge the same. Learned counsel for Respondent has drawn our attention to the Judgment of the Division Bench in W.A.
(MD) No. 661 of 2011 upholding the levy, demand and collection of vacant land tax as condition precedent for grant of building plan.
The issue relating to levy of tax on vacant land is no longer res integra. Levy, demand and collection of vacant land tax as condition precedent
for grant of approval of the building plan in respect of the properties in Trichy City Municipality came to be challenged in W.P.(MD) No. 3929 of
2005 and batch. Upholding the levy, demand and collection of vacant land tax as condition precedent for grant of plan approval, by the order
dated 16.11.2010, the learned single Judge dismissed those Writ Petitions. Challenging the collection of vacant land tax as condition precedent for
grant of plan approval in respect of the properties situated in Tirunelveli City Municipal Corporation, W.P.(MD) Nos. 1966 of 2005 and 1992 of
2007 and batch, came to be filed. In a separate order dated 16.11.2010, all the Writ Petitions were dismissed. As against the order in W.P.(MD)
No. 1992 of 2007 (in respect of the properties in Tirunelveli City Municipal Corporation), Writ Appeal in W.A.(MD) No. 661 of 2011 was filed.
Referring to Section 121 of Tirunelveli City Municipal Corporation Act, the Division Bench held that u/s 121 of the Act, the Corporation not only
collects tax in respect of the buildings but also in respect of vacant lands and by the Judgment dated 20.07.2011, the Division Bench dismissed the
Writ Appeal.
There is no force in the contention of the learned counsel for Appellant that the Municipality has no power under Tamil Nadu District
Municipalities Act to levy, demand and collect vacant land tax. The Municipality is empowered to levy the property tax. Section 81 of the Act
empowers the Municipality to levy tax on all buildings and lands within the Municipal limits. Such property tax on vacant land is levied by Nagercoil
Municipality from 1989 onwards. Learned counsel for Respondent Municipality had also produced the resolution dated 13.07.1998 wherein the
Respondent Municipality resolved to levy 10 Paise per square feet for the vacant land as tax. The said resolution dated 13.7.1998 was produced
for our perusal. When the Act empowers the Municipality to levy tax on all buildings and vacant lands and when the Respondent Municipality had
also passed resolution to levy vacant land tax. Appellant is not right in contending that Respondent Municipality has no power to levy, demand and
collect vacant land tax.
G.O.(Ms) No. 151 dated 20.08.2009 was passed amending Tamil Nadu District Municipalities Act and also the Rules thereon stipulating
minimum and maximum property tax rates for the vacant land on square feet basis. Section 80(3) was substituted by Tamil Nadu Municipal Laws
(Amendment) Act, 2009. As per Section 2 of the Amendment Act, Town Panchayats, Municipalities and Municipal Corporations shall be graded
as under:-
A Grade.. Municipal Corporations and Special Grade Municipalities.
B Grade.. Selection Grade and First Grade Municipalities.
C Grade.. Second Grade, Third Grade Municipalities and Town Panchayats.
Section 3 of Amendment Act stipulates minimum and maximum rate of property tax leviable on vacant land. Section 3 of Amendment Act
reads as under:-
Minimum and maximum rate of property tax leviable on vacant land. - The council of the Town Panchayat or of Third Grade Municipality, or of
Municipality or of Municipal Corporation shall fix the rate of property tax leviable on vacant land which are not used exclusively for agricultural
purposes and are not occupied by, or adjacent and appurtenant to buildings, subject to the minimum and maximum rates per square foot, as
specified in the Table below:-
Contention of Appellant is that vacant land tax could be collected only from the date of passing G.O.(Ms) No. 151 dated 20.08.2009 and
there can be no retrospective levy and in the additional affidavit, Appellant expressed his readiness and willingness to pay the vacant land tax from
20.8.2009 and therefore, seeks for appropriate direction to the Respondent Municipality for approval of sub division as well as approval of the
building plan to the Appellant on payment of vacant land tax from 20.8.2009.
The above contention cannot be countenanced. G.O.(Ms) No. 151 dated 20.8.2009 and Amended Act 15 of 2009 stipulates minimum and
maximum property tax on vacant land to be levied on square feet basis. Appellant is not right in contending that vacant land tax could be levied
only after 20.8.2009 after passing of the said Government Order and the Amendment Act. As pointed out earlier. Municipality is empowered to
levy tax u/s 81 of Tamil Nadu District Municipalities Act. Respondent Municipality had passed resolution to levy, demand and collect vacant land
tax way back in 1989. While so, Appellant cannot have a valid grievance in respect of levy of vacant land tax as condition precedent for sub
division and for building plan. The learned single Judge has rightly dismissed the Writ Petition and we do not find any reason warranting
interference with the order of the learned single Judge. In the result, the Writ Appeal is dismissed. No costs.