EO order imposing misuse charges on SCO quashed

Dushyant Singh Pundir

Chandigarh, November 3

In a relief to the owner of an SCO, the court of UT Chief Administrator has set aside the proceedings of misuse charges imposed by the Estate Office.

Varinder Kumar Sethi of Kurali had filed an appeal in the court of Dr Vijay Namdeorao Zade against the orders passed by the SDM (South) on December 1, 2016, and August 9, 2017, and Assistant Estate Officer (AEO)

on November 4, 2014, whereby officials of the Estate Office were asked to calculate misuse charges in respect of SCO No. 286, Sector 35, Chandigarh.

It is clear that the classification of trades was done in 1975, and cannot be applied to the SCO allotted in 1970. How can misuse charges be sought in the case? —Chief Administrator

Vikas Jain, counsel for the appellant, contended that the SCO was allotted in 1970 and conveyance deed executed in 1974. No classification of trades existed at that time, which was introduced in 1975. Thus, the SCO could be used entirely for commercial purpose for any trade as per the terms and conditions of allotment letter and conveyance deed.

Therefore, the misuse charges could not be demanded as per the letter dated October 23, 2003, issued by the UT Finance Secretary in context of notification dated June 5, 2002, issued by the Chandigarh Administration.

During inspections, it was found that the first floor of the SCO was being “misused” for sale of CDs. A show-cause notice dated October 31, 2011, was served upon the owner as well as the occupiers. Thereupon, the AEO ordered to calculate the misuse charges and vide order dated November 4, 2014, intimated the misuse charges as calculated by the authorities concerned. Later, the SDM (South) vide orders dated December 1, 2016, and August 9, 2017, directed the Estate Officials to calculate the misuse charges.

The SCO was transferred in the name of the appellant vide letter dated October 19, 2007. As per the terms and conditions of the allotment letter and the conveyance deed wherein no restriction has been incorporated by the Administration that particular floor will not be used for commercial purpose, the site in question was rented out to the tenant.

The Estate Office had issued a show-cause notice dated October 31, 2011, in the name of Prithvi Raj Sethi, who had expired on July 3, 2007, by alleging that the first floor of SCO was being used by the tenant for selling CDs.

The Chief Administrator observed: “So the plain reading of the letter dated October 23, 2003, makes it clear that the reclassification of trades was done in 1975, and cannot be applied to the SCO which was allotted in 1970. How the misuse charges could be demanded in the present case?”

“The proceedings of misuse charges are thus liable to be set aside. Consequently, the present appeal is accepted and the orders passed by the AEO-cum-Estate Officer and by the SDM (South)-cum-Estate Officer be set aside,” the Chief Administrator ruled.