Facts of the Case

This is a tenancy dues dispute between a tenant and a state industries development corporation, unrelated to GST beyond the tenant's routine payment of GST as part of its monthly charges. M/s Vijay Interiors, a tenant of the West Bengal Small Industries Development Corporation Limited (WBSIDCL) in a shop room previously rented to another concern (Kemex India), was saddled with rental dues and statutory taxes claimed to be owed by the predecessor tenant. WBSIDCL demanded Rs.1,47,372/- from the petitioner by an order dated 23rd April 2012. The petitioner's representation against this demand went unconsidered, leading to an appeal before the Managing Director, WBSIDCL, which remained pending. The petitioner filed WPA No.21688 of 2012 before the Calcutta High Court. During the pendency of the petition, the petitioner deposited Rs.75,000/- without prejudice, and continued to pay up-to-date rent, municipal taxes, security charges, and GST to WBSIDCL. The petitioner also complained that despite disconnection of the shop's electric connection since 2007, it was still being billed for electricity. The matter was decided on 13.09.2023.

Issues Involved

  1. Whether WBSIDCL should be directed to furnish a proper statement of account before pursuing recovery of alleged dues from the petitioner.
  2. How the pending appeal against the original demand order should proceed given the dispute over the actual dues.

Petitioner's Arguments

  • Since the petitioner had been regularly depositing rent, municipal taxes, security charges, and GST, WBSIDCL should be directed to ascertain and disclose the actual dues owed, if any, and correct any wrongful electricity charges billed since the connection was disconnected in 2007.

Respondent's Arguments

  • No specific counter-arguments are recorded on behalf of WBSIDCL in the order; the matter proceeded on the petitioner's request for accounts.

Court Order / Findings

  • The Calcutta High Court held that it was the duty of the respondents to ascertain the actual dues, if any, payable by the petitioner.
  • The writ petition was disposed of by directing WBSIDCL to hand over a statement of account to the petitioner.
  • The petitioner was given liberty to file objections before the Managing Director, WBSIDCL, within 30 days of receiving the account statement.
  • The Managing Director was directed to dispose of the pending appeal against the 2012 demand order within 60 days of receiving the petitioner's objections, after giving an opportunity of hearing, based on the statement of account and any objections filed.

Important Clarification

This order does not decide the amount actually owed by the tenant, nor any GST question — GST is mentioned only as one of several ongoing charges the tenant had been regularly paying. The Court's direction is procedural: it requires the landlord corporation to produce a clear account before the dispute over dues is finally adjudicated.

Sections Involved

  • Constitution of India, 1950 — Article 226 (writ jurisdiction)
  • Tenancy/licence terms governing rent and statutory charges with WBSIDCL (state corporation regulations, not a GST statute)

Decision – In Favour of

Disposed of with a procedural direction favourable to the Petitioner, Vijay Interiors — WBSIDCL was directed to furnish accounts and decide the pending appeal within a fixed timeline; the actual quantum of dues was left open for that appellate process.

Case Details

High Court at Calcutta, Constitutional Writ Jurisdiction, Appellate Side | WPA No.21688 of 2012 | Coram: Hon'ble Justice Bibek Chaudhuri | Date: 13.09.2023.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.