Dr.Girish K Nashi Vs State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

Dr.Girish K Nashi Vs State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Petition allowed. The three demand notices issued by respondent No.2 (dated 25.02.2021, 26.02.2024 and 23.01.2025) are quashed; respondent No.2 is directed to raise a fresh demand for 20,513.52 square feet in occupation of the petitioners and their tenants within one month; the petitioners shall pay the demanded amount within two weeks thereafter without prejudice to their rights to challenge the demands; and upon payment, respondent No.2 shall release the properties to the petitioners and their respective tenants within two weeks thereafter.

Issue for consideration

Whether the property-tax demand notices issued by respondent No.2, which treated the entire property measuring 33,250 square feet as occupied by the petitioners, were sustainable where portions of the property are in the occupation of the owners. +2 more

Court's answer

Since the demand treated the whole property (measuring 33,250 sq. ft.) as occupied by the petitioners whereas the inspection showed only 13,673.52 sq. ft. in their possession (basement unmeasured), the impugned demand made by respondent No.2 against the petitioners in respect of the entire area warrants interference, and the demand notices are quashed.

Ratio / Principle

The petitioners are bound to pay property tax in view of the recitals contained in the lease agreement, more particularly clause 13, which mandates that the property tax shall be paid by the petitioners in respect of the portions that are in their occupation.

Key takeaways

Respondent No.2 is directed to raise a fresh demand for 20,513.52 square feet, being the area in the occupation of the petitioners and their tenants, within one month.ratio¶71
The petitioners shall pay the freshly demanded amount within a period of two weeks thereafter, without prejudice to their rights to challenge the demands so raised; and upon such payment, respondent No.2 shall release the properties (earlier seized for non-payment of property tax) to the petitioners and their respective tenants within two weeks thereafter.ratio¶74

Detailed headnote1 paragraphs

Property tax / municipal taxation - demand notices quashed - Bruhat Bengaluru Mahanagara Palike raised property-tax demand treating the entire property admeasuring 33,250 sq. ft. as in the occupation of the lessee-petitioners; pursuant to a court-directed spot inspection (order dated 25.03.2025) conducted on 06.06.2025, the petitioners and their tenants were found in occupation of 13,673.52 sq. ft., the basement remaining unmeasured as it was kept under lock; taking the basement as theirs, the total assessable area for the petitioners was taken as 20,513.52 sq. ft., while the owners were in occupation of 5,072.79 sq. ft. Clause 13 of the registered 29-year lease deed obliges the petitioners to pay property tax in respect of portions in their occupation; hence a demand on the entire area warranted interference. HELD: (i) petition allowed; (ii) demand notices dated 25.02.2021, 26.02.2024 and 23.01.2025 quashed; (iii) respondent No.2 (BBMP) to raise a fresh demand for 20,513.52 sq. ft. within one month; (iv) petitioners to pay within two weeks thereafter without prejudice to their rights to challenge the demands; (v) upon payment, the premises seized for non-payment of property tax to be released to the petitioners and their tenants within two weeks thereafter. (Writ Petition under Articles 226 and 227 of the Constitution of India.)