The Calcutta High Court set aside a closure notice issued by the Kolkata Municipal Corporation against a guest house, holding that the notice violated the mandatory show-cause requirement under Section 416(5) proviso of the Kolkata Municipal Act, 1980 and was issued without serving the inspection report, thereby failing the test of colourable exercise of power.
Background & Facts
The Dispute
The petitioner, Srikrishna Das, operates a guest house named Srideep Guest House from premises No. 207 Shanti Pally, Block BE, Plot No. 1, Rajdanga Main Road, Kolkata 700107. He holds a valid certificate of enlistment No.1 and a police licence for the guest house business.
Key Facts
- The petitioner possesses all requisite licences for carrying on guest house operations.
- The certificate of enlistment issued in favour of the petitioner No.1 is valid till the financial year 2026-27.
- An inspection was carried out by the members of the Joutha Committee in terms of office order No. 33 dated 19th August 2026.
- On 7th September 2026, the Kolkata Municipal Corporation issued a notice directing closure of the petitioner’s business and suspension of the certificate of enlistment.
- The notice alleged violation of Section 416 of the Kolkata Municipal Act, 1980 for running a guest house from a residential/non-residential G+III storied building without requisite permission and without appropriate certificate of enlistment.
- The copy of the notice served on the petitioner bears the signature ‘Sd/-’ rather than the original signature of the Municipal Commissioner.
- The inspection report was not supplied to the petitioner.
Procedural History
- 19th August 2026: Office order No. 33 issued, directing inspection by Joutha Committee.
- 7th September 2026: Notice of closure and suspension of certificate of enlistment issued by KMC.
- 29th September 2026: Judgment delivered by the Calcutta High Court.
Relief Sought
The petitioner sought quashing of the notice dated 7th September 2026, restoration of the certificate of enlistment, and permission to continue the guest house business subject to compliance with law.
The Legal Issue
The central question was whether a notice issued under Section 416 of the Kolkata Municipal Act, 1980 that fails to provide a show-cause notice as required by the proviso to subsection (5) and does not serve the inspection report can be sustained as a valid exercise of municipal power.
Arguments Presented
For the Petitioner
The petitioner contended that the notice was mechanically issued, lacked the original signature of the Municipal Commissioner, was passed without affording any opportunity of hearing, and violated the mandatory show-cause requirement under Section 416(5) proviso. Reliance was placed on principles of natural justice and the requirement that punitive municipal action must be preceded by a show-cause notice.
For the Respondent
The Kolkata Municipal Corporation argued that the notice was preceded by an inspection/enquiry which revealed violations of Section 416, that the notice was issued by the Municipal Commissioner, and that the copy bearing ‘Sd/-’ was a procedural formality. The State’s representatives supported the municipal position, emphasizing that the inspection had uncovered unlawful use of the premises.
The Court's Analysis
The Court focused on Section 416(5) proviso which makes it mandatory for municipal authorities to issue a show-cause notice before passing any order for infringement of the section. It observed that the notice dated 7th September 2026 was issued without any show-cause notice, the inspection report was not served on the petitioner, and the notice appeared to be mechanically issued without original signature. The Court held that these defects rendered the notice unsustainable as a colourable exercise of power.
"Having regard thereto, at this stage without deciding on the validity of the inspection report of the Joutha Committee, the above notice which directs closure of the petitioner’s business and the suspension of the petitioner’s certificate of enlistment, in my view, cannot be sustained as having been issued in colourable exercise of power, and the same is accordingly set aside, leaving it open to the municipal authorities to take steps as may be advised in accordance with law."
The Court further noted that the petitioner holds a valid certificate of enlistment and police licence, and that the municipal authorities remain free to take lawful steps after complying with procedural requirements.
The Verdict
The petitioner succeeded. The Court set aside the notice dated 7 September 2026 directing closure of Srikrishna Das's guest house and suspension of his certificate of enlistment No.1, holding that the notice was issued without the mandatory show-cause under Section 416(5) proviso and without serving the inspection report. No compensation, costs, or interest were awarded. The municipal authorities were left free to take further steps in accordance with law after observing due process.
What This Means For Similar Cases
Show-Cause Notice Is Mandatory Under Section 416(5)
Municipal authorities must issue a show-cause notice before passing any closure or suspension order under Section 416 of the Kolkata Municipal Act, 1980. Failure to do so renders the order liable to be quashed.
Mechanically Issued Notices Lack Legitimacy
Notices bearing facsimile signatures (e.g., ‘Sd/-’) without the original signature of the competent authority, and issued without opportunity of hearing, are vulnerable to being set aside as non-application of mind.
Inspection Reports Must Be Served
Where an inspection precedes municipal action, the inspection report must be served on the affected party; non-service undermines the validity of the ensuing notice.
Opportunity of Hearing Is Non-Negotiable
Principles of natural justice require that the party affected be given a chance to respond before any punitive municipal measure is taken.
