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Judgment
Petitioner owns a building. He has, however, not remitted the tax payable under the Kerala Building Tax Act, 1975 (the Act) in respect of the
said building. Since the petitioner has not remitted the tax payable under the Act, proceedings have been initiated under the Revenue Recovery Act
for realisation of the tax and interest accrued thereon at the rate of 12% from the tenant of the petitioner namely, the second respondent. Ext.P1 is
the demand notice issued in this regard by the first respondent to the second respondent, the tenant of the petitioner. As per Ext.P1(a), the first
respondent has also called upon the second respondent to pay to the first respondent the rent payable in respect of the building. The petitioner is
challenging the proceedings mainly on the ground that interest is demanded in terms of Ext.P1 at the rate of 12% per annum for the tax due.
According to the petitioner, interest cannot be demanded at a rate exceeding 6% per annum for the tax payable under the Act. The petitioner
submits that he is prepared to pay the amounts due under the Act with interest at the rate of 6%, if he is given a reasonable time for payment. He,
therefore, seeks appropriate directions in this regard, in this writ petition.
Heard the learned counsel for the petitioner as also the learned Government Pleader.
Section 19(1) of the Act provides that when building tax is not paid on the due date, the arrears of tax shall bear interest at the rate of 6% per
annum from the date of default. In the light of the said provision, interest cannot be claimed from the petitioner for the tax payable by him at a rate
exceeding 6% per annum.
In the circumstances, having regard to the facts of the case and the financial hardship pleaded by the petitioner, the writ petition is disposed of
permitting the petitioner to pay the tax payable by him under the Act in respect of the building referred to in the writ petition with interest at the rate
of 6% per annum, in six equal monthly instalments, commencing from 15.02.2018. Needless to say that if the petitioner remits the tax and interest
as directed above, further proceedings pursuant to Exts.P1 and P1(a) shall be deferred. Needless also to say that if the petitioner commits default
in payment of any one of the instalments as directed above, proceedings pursuant to Exts.P1 and P1(a) can be revived and continued.