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Supreme Court of India 2019-08-19 allowed

SOUTH DELHI MUNICIPAL CORPORATION vs M/S. TODAY HOMES AND INFRASTRUCTURE PVT. LTD. ETC

Bench: 2 — L. Nageswara Rao, Hemant Gupta

In Brief

A property developer challenged a municipal property tax assessment in civil court, arguing the suit was maintainable despite statutory appeals provisions. The High Court initially rejected the suit but a Division Bench remanded it for fresh consideration. The Supreme Court held that where a statute creates a tax liability and provides an appeal with finality to a tribunal, civil courts have no jurisdiction over erroneous assessments. However, civil jurisdiction remains if there is alleged violation of statutory provisions or breach of procedural principles. Since the plaint contained only an erroneous order claim, not a jurisdictional defect, the suit was not maintainable. The Court set aside the Division Bench judgment and allowed the appeals.

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Civil Procedure Municipal Law Tax Law Jurisdiction of Civil Courts Statutory Appeals Property Tax Quasi-Judicial Tribunals

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