Star hotel directed to pay Rs 10 crore tax dues

Passing interim orders on a plea moved by the hotel seeking to quash corporation’s demand notice and restrain it from taking any coercive steps, Justice M Duraiswamy said, “Rs 3 crore shall be paid by March 30 and the balance Rs 7 crore shall be paid in two instalments – Rs 3.5 crore by April 30 and the remaining Rs 3.5 crore by May 30.” 

The court also made it clear that the payment would not prejudice the case that the hotel moved in the civil court against the original tax demand. 

Crowne Plaza had moved the High Court contending that the corporation had resorted to tom-toming on March 21 to coerce it into paying the dues, though the matter was pending adjudication before a civil court. 

This apart, corporation officials parked conservancy trucks in front of the hotel gate, where international guests including IPL cricket players were staying, the management alleged, and sought the court to prevent the civic body from resorting to such tactics. 

However, Justice Duraiswamy refused to offer any interim relief, observing that it was only due to such defaults that the corporation was struggling even to pay salaries to its staff. The plea was adjourned to Monday to give time to the hotel to inform on the time required to pay Rs 10 crore.

When the plea came up for hearing, senior counsel Satish Parasaran appearing for the hotel submitted that they could pay Rs 2 crore in the next two days, and another Rs 3 crore in a week. But the remaining Rs six crore could be paid only within two months. 

Arguing against it, additional advocate general Narmadha Sampath said, “If the court allows the hotel to pay the tax dues in installments, it would set a bad precedent to other such defaulters.” But Justice Duraiswamy directed the hotel to pay Rs 10 crore in instalments, and also offered a minor reprieve by directing the corporation to refrain from interfering with the peaceful running of the hotel in any manner.