Civic body can’t disrupt essential services on tax default
Posted March 13th, 2015, 02:47 PM IST

Hyderabad: The Hyderabad High Court has held that essential services provided by the Municipal Corporation can be disconnected by it, but essential services provided by third parties cannot be disrupted by the corporation.
A division bench comprising Chief Justice Kalyan Jyoti Sengupta and Justice P.V. Sanjay Kumar was disposing of a petition by NSL Renewable Power Pvt Ltd challenging a notice issued by the GHMC asking it to pay Rs 23.42 lakh within 48 hours or face disconnection of essential services like water supply, electricity, drainage as per the GHMC Act.
The petitioner’s counsel contended that his client was not liable to pay the said amount and that the GHMC has issued the notice without giving a notice for hearing.
He said the ultimatum from the corporation to initiate recovery proceedings and disconnection of essential services was totally illegal as electricity and water supply is not provided by the corporation.
The counsel said that the Hyderabad Metro Water Works and Sewerage Board has been providing water and sewerage services and central power distribution has been supplying electricity to the residents of the city. He said the GHMC has no power to interfere with the services provided by third parties.
The GHMC counsel submitted that since the petitioner has made a representation the corporation is ready to give an opportunity for hearing and to treat the present notice as proposed demand.
Considering the argument the bench observed that the GHMC cannot disrupt essential services of the petitioner as the third party’s rights and obligations are involved in the relationship between them and the petitioner. The bench said in the event of default in paying tax the other option of recovery may be followed.
The bench directed the GHMC commissioner to keep the notice in abeyance and depute a competent officer to consider the petitioner’s representation and pass fresh orders within six weeks.
A division bench comprising Chief Justice Kalyan Jyoti Sengupta and Justice P.V. Sanjay Kumar was disposing of a petition by NSL Renewable Power Pvt Ltd challenging a notice issued by the GHMC asking it to pay Rs 23.42 lakh within 48 hours or face disconnection of essential services like water supply, electricity, drainage as per the GHMC Act.
The petitioner’s counsel contended that his client was not liable to pay the said amount and that the GHMC has issued the notice without giving a notice for hearing.
He said the ultimatum from the corporation to initiate recovery proceedings and disconnection of essential services was totally illegal as electricity and water supply is not provided by the corporation.
The counsel said that the Hyderabad Metro Water Works and Sewerage Board has been providing water and sewerage services and central power distribution has been supplying electricity to the residents of the city. He said the GHMC has no power to interfere with the services provided by third parties.
The GHMC counsel submitted that since the petitioner has made a representation the corporation is ready to give an opportunity for hearing and to treat the present notice as proposed demand.
Considering the argument the bench observed that the GHMC cannot disrupt essential services of the petitioner as the third party’s rights and obligations are involved in the relationship between them and the petitioner. The bench said in the event of default in paying tax the other option of recovery may be followed.
The bench directed the GHMC commissioner to keep the notice in abeyance and depute a competent officer to consider the petitioner’s representation and pass fresh orders within six weeks.
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