Punjab and Haryana High Court directs Chandigarh Golf Club to deposit property tax amount

The Punjab and Haryana High Court has asked Chandigarh Golf Club to deposit the demanded property tax amount, while making it clear that the payment will be subject to the final decision of the case. The bench of Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisth also made it clear that the respondents would refund the deposited amount along with interest at a rate of 6 per cent per annum, if the court ultimately decided in the club’s favour.

“In the present writ petition, petitioner is challenging the demand of property tax. We direct that the amount may be deposited, which shall be subject to the decision of the case. It is made clear that if the court ultimately reaches to the conclusion that the petitioner – club is not required to pay the tax as claimed by the respondents, the respondents shall return the said amount with the requisite interest at 6 per cent per annum,” the bench asserted.

Acting on the club’s petition in the property tax row, another bench in August 2019 had ordered the maintenance of status quo. The golf club had initially moved the high court against the attachment of its property on the ground that an appeal was pending under the provisions of the Municipal Corporation Act. It was contended that the attachment of the property would render the appeal infructuous.

The plea was disposed of with a direction to the appellate authority to decide the appeal. The authority, in turn, allowed the appeal but held that the club was liable to pay the tax. Aggrieved by the order, the club filed another petition.