Municipal authorities must decide the representation on telecom valuation before enforcing the impugned demand.

The petitioners challenged a demand dated 5 April 2025 issued by the municipal authorities concerning premises Nos. 184 and 74/3, P. Mazumdar Road, Kolkata.

Petitioner No. 1 is a company engaged in providing mobile telephone infrastructure facilities to telecommunication service providers and is registered as an infrastructure service provider with the Department of Telecommunications.

It had entered into a leave-and-licence agreement dated 20 June 2008 with the private respondent for approximately 1,100 sq. ft. of rooftop space at the premises, which was subsequently extended by a supplementary agreement dated 24 June 2016.

The petitioners contended that the municipal authorities had historically determined the annual value of the premises on the basis of revenue generated from the mobile tower.

The petitioners accordingly sought withdrawal of the municipal demand and had submitted a representation dated 24 April 2025.

Whether the municipal demand dated 5 April 2025, including the determination of annual value on the basis of revenue generated from the mobile tower, could be sustained in light of the Telecommunications Act, 2023.

Whether the municipal authorities should be directed to consider and decide the petitioners’ representation dated 24 April 2025 in accordance with law.

Whether the demand should be enforced pending the municipal authorities’ decision on the representation.

The Court considered Sections 11 and 12 of the Telecommunications Act, 2023, concerning the right to use property for establishing telecommunication networks, and Sections 14 and 15, which, according to the petitioners’ submission, restrict the facility provider from acquiring any right, title, or interest in the property beyond the statutory right of use.

The Court also noted the notification dated 21 June 2024 bringing, inter alia, Sections 14 and 15 of the Telecommunications Act, 2023 into force, as well as the Telecommunications (Right of Way) Rules, 2024, which were directed by notification dated 15 May 2026 to be deemed effective from 18 January 2025.

The Court applied the procedural principle that a statutory authority must consider a representation raising such legal issues and pass a reasoned order in accordance with law; it did not finally adjudicate the merits of the petitioners’ challenge.

The Court recognised that the petitioners’ challenge raised issues concerning the effect of the Telecommunications Act, 2023 and the Telecommunications (Right of Way) Rules, 2024 on the municipal assessment of premises used for telecommunication infrastructure.

However, rather than deciding whether the statutory provisions invalidated or otherwise affected the impugned demand, the Court considered it appropriate for the municipal authorities—being the authority that issued the demand—to examine the petitioners’ representation and take an informed decision in accordance with law.

Since the representation raised a live challenge to the legal basis of the demand, the Court directed that the demand not be enforced until the representation was decided.

The Court expressly clarified that it had not entered into the merits of the dispute.

It directed the municipal authorities to pass a reasoned order on the petitioners’ representation dated 24 April 2025, preferably within three weeks from communication of the order.

Until such decision was taken, the authorities were restrained from enforcing the demand under challenge.

The writ petition, along with the connected application, CAN 1 of 2026, was accordingly disposed of.

The Court clarified that the municipal authority remained free to take an informed decision on the merits in accordance with law.