M K YEDUNATH Vs. VADAKARA MUNICIPALITY
HIGH COURT OF KERALA
M K Yedunath
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(1.) The contention raised by the appellants / tenants is whether they shall be mulcted with a liability to pay the property tax to the Municipality.
(2.) It is contended by the appellants, relying on R.37 of the Taxation and Finance Rules framed under the old Municipalities Act, that tenant can be asked to pay tax only for one year, in case of failure of the landlord to pay the tax.
(3.) As per S.237 of the new Municipalities Act, any property tax due on any building shall be a charge thereon. Necessarily, it will be a charge on any of the income flowing from that property. Rent is an income generated out of the use of the building. So the tenant shall have to pay, based on the statutory charge created under S.237 of the Municipalities Act, Municipal tax demanded by the Municipality concerned. That is a matter for adjustment for the tenants with the landlords in tune with the lease agreement.
Hence the appeal fails, dismissed.;
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