Court Declares Retrospective Amendments Unconstitutional, Orders Refunds for Overpayments
In a significant judgment, the Calcutta High Court has quashed a retrospective property tax demand imposed by the Kolkata Municipal Corporation (KMC) on the Sahujain Charitable Society. The case, which challenged the constitutional validity of Section 3 of the Kolkata Municipal Corporation (Amendment) Act, 2022, was decided by Justice Gaurang Kanth on March 24, 2026. The court found that the retrospective amendments made to Section 179(2)(d) of the Kolkata Municipal Corporation Act, 1980, were unconstitutional and violated the principles of separation of powers, as well as Articles 14 and 300A of the Constitution of India.
The judgment comes after the KMC had issued a demand letter on July 23, 2024, seeking Rs. 11,24,27,669 in alleged property tax arrears, along with a penalty. This demand was based on a retrospective revision of annual property valuations, a practice the court has now declared impermissible.
The court noted that while legislatures have the power to enact retrospective laws, such laws cannot override binding judicial decisions unless the underlying constitutional defects are addressed. The court held that the non-obstante clause and sub-clause (ii) of the amended Section 179(2)(d), which sought to validate retrospective revisions beyond the prescribed period, were unconstitutional. The court further directed the KMC to issue revised tax demands in accordance with settled judicial determinations and refund any excess payments made by the petitioner.
This ruling reinforces the doctrine of separation of powers and underscores the court’s role in protecting constitutional mandates against legislative overreach. It also provides relief to taxpayers who were facing substantial retrospective tax liabilities.
Bottom Line:
Retrospective legislative amendments cannot override or nullify binding judicial pronouncements unless the underlying constitutional infirmity identified by the court is duly addressed.
Statutory provision(s):
Kolkata Municipal Corporation Act, 1980, Section 179(2)(d) as substituted by Kolkata Municipal Corporation (Amendment) Act, 2022; Constitution of India, Articles 14, 300A.
