Shanta Sadan Co-Op. Hsg. Soc. Ltd. vs Municipal Corpn. Of Gr. Bombay And Ors.

CNR No : HCBM020106992004

2026:BHC-OS:22614-DB
Digitally signed
by MANALI
PRASANNA
TILAK
Date:
2026.10.16
19:00:27 +0530
MANALI
PRASANNA
TILAK
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. 2889 OF 2004
Shanta Sadan Co-op Housing Society .. Petitioner
Limited
Versus
Municipal Corporation of Gr. Bombay .. Respondents
and ors
…
Ms. Rita Bhatia with Priyanka Pardeshi for the petitioner.
Mr.Shailendra P. Sardar i/b Komal Punjabi for MCGM.
Mr.Shrikant Seegarla with Swapnil Shikhare and Advaiti
Gawade i/b RMG Law Associates for the intervenor.
Mr.Milind More with Smt.Usha Rahi, Addl. G.P for the State.
Mr.Das Jadhav, Dy. Superintendent K/W Assessment
Department present.
Mr. Sudam Bote, Ward Inspector from K/W present.
CORAM : BHARATI DANGRE &
ASHISH S. CHAVAN, JJ
th
DATED : 15 OCTOBER, 2026

JUDGMENT:- (Per Bharati Dangre, J)
1 The petition having being admitted on 3/4/2006, has
appeared before us for hearing.
The petitioner Co-operative Housing Society was
aggrieved by the noticed issued to it by the Corporation
demanding amount of property tax and since the Corporation
proceeded to auction the property for non-payment of the tax, a
stay was sought on the purported action.
Tilak
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When the petition appeared before the Division Bench on
6/3/2006, the Court recorded the statement of the counsel for
the petitioners that they are ready and willing to pay all the
outstanding amounts. Since the Court was also informed that
there was an auction conducted and the auction purchaser has
deposited some amount, the Society’s willingness to reimburse
the said amount was also recorded.
In the mean while, it was directed that the Corporation
shall not issue sale certificate in favour of the auction purchaser.
2. The petition then appeared before the Division Bench on
3/4/2006 with the presence of the intervenor i.e. the auction
purchaser. The Bench was informed that the auction which was
conducted was confirmed and the necessary amount was also
deposited by the auction purchaser, who prayed that since the
property is already auctioned, the Court may not grant any
indulgence in favour of the petitioner Society. It is in these
circumstances, while issuing Rule in the petition, the Court
passed the following order :-
“4 By the order passed by us, we had recorded that the petitioner
society was willing to deposit an amount which was paid by the
auction purchaser. Accordingly, the petitioner society had deposited
an amount of Rs.2,10,000/0 with the Bombay Municipal
Corporation. Mrs.Bhatia states that the property taxes which have
been paid by the auction purchaser in the meanwhile which ae
rounded upto Rs.64,000/- will also be paid by the petitioner society
th
to the Bombay Municipal Corporation on or before 15 April 2006.
After this amount is deposited, it will be open for the respondents to
withdraw the amount of Rs.2,10,000/- as well as Rs.64,000/- which
they may withdraw by the end of April, 2006. In the event they do
not withdraw this amount, the Bombay Municipal Corporation invest
the amount of Rs.2,74,000/- in a nationalised bank for a period of 37
months and deposit will be renewed at 13 months at a time until
petition is head and decided.
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5. Property taxes have been paid for the first part of the year
2006. As far as the second part of 2006 and bills thereafter are
concerned, they will be forwarded to the petitioner Society and the
Society will make those payments. The payment receipts will be
without prejudice to the rights of the intervenors- respondents.”
3. Today, when the petition is listed, the learned counsel for
the Society has placed before us a Property Ledger from Brihan
Municipal Corporation (Assessment and Collection
Department) reflecting that the Society has been regular in
making payment of property taxes upto date and according to
the learned counsel for the petitioner, upto March 2025.
It is not the grievance of the Corporation that the taxes
are not paid.
4. In any case, since the petition filed before us pertain to
the non-payment of taxes for the year 2006, we must indicate
that for any other default on part of the Society to pay the
property taxes, it is open for the Corporation to issue fresh
demand notices, but the learned counsel for the petitioner
make a statement that no demand notice has been served upon
the petitioner.
5. In such circumstances, with almost two decades of
passing of the order showing indulgence in favour of the
petitioner Society, we deem it appropriate to dispose of the Writ
Petition by passing the following order :-
O R D E R
(a) The Petition is made absolute in terms of the order dated
3/4/2006.
Tilak
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(b) If the Corporation has any demand against the petitioner
Society, it is at liberty to raise such demand with an opportunity
being given to the Society to respond to the same.
(c) As far as the amount which is due and payable to the
auction purchaser as the Court by its order dated 3/4/2006
permitted that the withdrawal of the amount of Rs.2,74,000/-
(Rs.2,10,000/-, the amount deposited by the auction purchaser
+ Rs.64,000/-, the tax liability borne by the auction purchaser),
if at all it was deposited in the nationalised bank, and if it is
renewed, it shall be refunded to the intervenor. If there is any
change in the said entity, the withdrawal be allowed, by
producing on record the necessary documents proving its
entitlement for refund of the said amount. If the amount is not
invested by the Corporation and was appropriated, in that case,
we direct that the amount shall be refunded with the interest @
6% from the date of its deposit till it is actual withdrawn.
Rule is discharged.
(ASHISH S. CHAVAN, J) (BHARATI DANGRE, J.)
Tilak
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