Sri Vasista Consumer Products Distributors Association vs. The State Of Andhra Aradesh
Held
The Court held that the 4th respondent, a private party, has no legal authority to demand or collect any 'Aaseelu' from the petitioner Society for their business operations. The Court noted that the petitioner had already obtained the necessary trade license from the Narasapuram Municipality and was registered under GST, indicating compliance with the established regulatory framework. The municipal authorities themselves conceded this lack of authority on the part of the 4th respondent. Since the petitioner had not yet formally complained to the competent authority regarding the 4th respondent's unauthorized demands, the Court directed the petitioner to approach the Commissioner of the 3rd respondent Municipality and file an appropriate complaint. The Commissioner was then directed to consider the complaint and take suitable action against the 4th respondent. The Court explicitly stated that the petitioner had no grievance against respondents 1 to 3.
Facts
The petitioner, Sri Vasista Consumer Products Distributors Association, a registered society engaged in selling consumer products, filed a writ petition challenging the demand for 'Aaseelu' by the 4th respondent, a private party. The petitioner had already obtained a trade license from the Narasapuram Municipality and registered under GST. The petitioner's grievance was solely against the 4th respondent, who they contended had no authority to collect any such fees for their business. The petitioner had no dispute with the municipal authorities (respondents 1-3). The municipal authorities conceded that the 4th respondent lacked the legal authority to demand these fees.
Key Issues
1. Whether the 4th respondent, a private party, has the legal authority to demand and collect 'Aaseelu' from the petitioner for conducting business in consumer products, thereby violating the petitioner's rights under the relevant trade licensing and GST regulations. Petitioner's contention: The petitioner argued that as a registered society with a valid trade license and GST registration, they are compliant with all legal requirements. They asserted that the 4th respondent, being a private individual, has no legal standing or authority to impose or collect any fees ('Aaseelu') from them for their business operations. They relied on their existing licenses and registrations as proof of their legitimate business conduct. Revenue/State's contention: The learned Government Pleader and Standing Counsel for the Municipality fairly conceded that the 4th respondent has no authority under law to demand any such 'Aaseelu' from the petitioner Society. They did not present any arguments or rely on any specific provisions to support the 4th respondent's claim.
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THE HON’BLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY
Writ Petition No.15531 of 2022
ORDER:
Heard learned counsel for the petitioner and learned Government Pleader for Municipal Administration and Urban Development for respondents 1 and 2; and Sri M.Manohar Reddy, learned Standing Counsel for the Municipalities, for 3rd respondent Municipality.
The Writ Petition has been filed questioning the action of the 4th respondent in demanding the petitioner Society to pay Aaseelu for doing business of selling consumer products.
The petitioner is a registered Society doing business in selling consumer products under the name and style “Sri Vasista Consumer Products Distributors Association”. The writ petitioner has paid the license fee as per the trade license issued by the Narasapuram Municipality and also registered under the GST as per the registration certificate issued to that effect. Now, the only grievance of the writ petitioner is that the 4th respondent, who is a private party, has been insisting and demanding the petitioner Society to pay Aaseelu for doing the said business. So, the grievance of the writ petitioner is essentially against
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