Chandigarh: HC stays ₹31 lakh rent recovery by UT from Haryana CIC Prasad

Chandigarh: HC stays ₹31 lakh rent recovery by UT from Haryana CIC Prasad

The Punjab and Haryana High Court has issued a stay on a ₹31.13 lakh rent recovery notice served by the Union Territory administration to Prasad, who is linked to the Haryana Central Industrial Corporation.

The notice, dated April 23, had demanded payment of the outstanding amount after the UT claimed that Prasad had failed to meet his rental obligations. Prasad filed a petition challenging the notice, arguing that the factual basis of the case suggested the authorities needed to re‑examine their decision.

In its order, the bench observed that the preliminary facts indicated the respondent authorities were required to revisit the decision. Consequently, the court stayed the recovery proceedings until a final determination is made.

The stay effectively pauses the enforcement of the notice, giving Prasad time to present his case. It also reflects the court’s willingness to intervene when there are indications of procedural irregularities.

Prasad had been associated with the Haryana CIC for several years, and the rent recovery notice emerged during a broader audit of dues conducted by the UT. The audit aimed to identify outstanding payments and recover revenue for municipal services.

The Union Territory has been undertaking a series of recovery actions targeting outstanding dues from various parties, as part of a broader effort to improve revenue collection. Under the applicable municipal regulations, the UT is empowered to issue recovery notices, but the High Court retains the authority to review such actions for compliance with legal safeguards.

Legal observers note that the ruling underscores the importance of due process in recovery actions undertaken by municipal bodies. The High Court’s intervention may serve as a reference point for similar disputes involving rent arrears across the region.

The stay may influence how other pending recovery notices are handled, prompting officials to reassess their approach and ensure that proper verification steps are followed before enforcement.

If the court ultimately upholds the notice, Prasad may be required to pay the full amount, plus interest, while a reversal could see the demand withdrawn. The case comes amid ongoing discussions about the financial sustainability of municipal services and the balance between revenue collection and resident rights.

Prasad’s legal team is expected to argue that the notice was issued without adequate verification, and the interim order provides a pause for that discussion. The matter is slated for further hearing in the coming weeks, allowing both sides to submit additional evidence and arguments.

Source: Hindustan Times