Madras HC tells Crowne Plaza to pay Rs 10 crore in 3 instalments

CHENNAI: The Madras high court on Monday directed

Crowne Plaza Hotel

(Adyar Gate) to pay Rs 10 crore towards property tax dues it owes to

Greater Chennai Corporation

in three instalments by May 30.

In a little reprieve, the court passed an interim injunction directing the corporation to refrain from interfering with the peaceful running of the hotel.

“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 another Rs 3.5 crore by May 30,” Justice M

Duraiswamy

said and made it clear that the interim injunction granted shall stand vacated automatically without any reference to the court if the hotel failed to pay the instalments.

On March 21, having exhausted all options to receive pending taxes from

Crowne Plaza

Hotel, corporation officials reached the premises with drums to garner attention from the hotel administration, reminding that the hotel owed Rs 24.39 crore in property tax to the civic body.

This apart, according to the hotel management, corporation officials parked conservancy trucks in front of the hotel gate obstructing ingress and egress to the hotel, where international guests including IPL cricket players were staying.

In an attempt to refrain the corporation from resorting to such acts, the hotel moved the high court assailing the demand notice.

On March 23, refusing any interim relief, Justice Duraiswamy observed that it was only due to such defaults that the corporation was struggling to pay its staff. The plea was then adjourned to Monday for the hotel to inform how and when it could clear the dues.

When the plea came up for hearing, senior counsel

Satish Parasaran

for the hotel submitted that his client could pay Rs 2 crore in a couple of days, and another Rs 1 crore in a week and Rs 6 crore within two months. Refusing to accept the proposal, additional advocate general

Narmadha Sampath

said, “If the hotel is allowed to pay the tax dues in instalments, it would set a bad precedent to other such defaulters.”

Recording the submissions, Justice Duraiswamy directed the hotel to pay Rs 10 crore in three instalments and made it clear that such payment is made by the petitioner without prejudice to their contentions raised before the civil court.