Chennai: The Madras high court has directed Crowne Plaza Hotel to pay Rs 10 crore to the Chennai corporation towards the property tax dues in three installments by May 30.
“A sum of Rs 3 crore shall be paid by March 30 and the balance amount of Rs 7 crore shall be paid in two installments, Rs 3.50 crore by April 30 and another Rs 3.50 crore by May 30”, said Justice M.Duraiswamy.
The judge also granted interim injunction restraining the corporation from interfering with the peaceful running of the hotel, on a petition filed by Crowne Plaza Hotel, assailing the demand notice issued by the corporation.
The interim injunction granted shall stand vacated automatically without any reference to the court, if the hotel fails to pay the installments, the judge made it clear.
The corporation had on March 21, by using tom-tom (drum beaters), brought to the attention of the hotel management, the tax dues of '24.39 crore. Immediately, in an attempt to refrain corporation from resorting to such acts, the hotel filed the present petition, assailing the demand notice.
On March 23, the judge while refusing to give any interim relief posted to March 26, after senior counsel Satish Parasaran sought time to get instructions as to the exact amount the petitioner could pay and the time required.
When the case came up for hearing on Monday, senior counsel Satish Parasaran submitted that the hotel could pay Rs 2 crore in a couple of days, and another '3 crore in a week and Rs 6 crore in two months.
Vehemently opposing the proposal, additional advocate general Narmada Sampath submitted that if the hotel was allowed to pay the tax dues in installments, it would set a bad precedent to other such defaulters.
Recording the submissions, the judge directed the hotel to pay Rs 10 crore in 3 installments by May 30 and made it clear that such payment was made by the petitioner without prejudice to its contentions raised before the civil court.
