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WHAT TO DO? about trade license notices?!

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By Dr CSRaju

 

Despite High Court stays in Andhra Pradesh (and similar precedents elsewhere) exempting or limiting municipal trade licence fees on hospitals/clinics (as they are essential services, not typical "trades" under municipal acts), many hospitals in AP continue receiving demand notices from local bodies like in Kurnool (where fees hiked sharply, e.g., ₹8k to ₹50k for nursing homes) and KADAPA.

This appears to stem from inconsistent enforcement, lack of uniform circulars, or municipal overreach pending final adjudication.

SO,WHAT TO DO?

Recommended steps for affected hospitals:

  1. Immediately reply to the notice in writing, attaching copy of relevant High Court stay order(s) / judgment(s) and politely requesting withdrawal/quashing of the demand.
  2. File a contempt petition in the High Court if the municipal body persists despite knowledge of the stay (or seek fresh interim protection via WP if needed).
  3. Coordinate through IMA/AP chapter or local medical association for collective representation to the State Govt / Commissioner of Municipal Administration for statewide compliance directive.
  4. Avoid payment under protest if possible – document everything for potential refund/waiver claims.

Below is a structured, legally tenable approach with formal draft:

I. STRATEGIC LEGAL POSITION

If municipal authorities are repeatedly issuing trade licence demands despite binding High Court orders, the issue engages:

  1. Article 141 & 144 of the Constitution (binding nature of court orders)

  2. Doctrine of Judicial Discipline

  3. Contempt of Courts Act, 1971

  4. Principle against administrative harassment

  5. Abuse of statutory power

Best Practical Solution (Stepwise)

  1. Immediate Representation to Municipal Commissioner enclosing:

    • Certified copy of High Court order

    • Earlier representations

    • Proof of continued illegal demands

  2. Seek:

    • Withdrawal of fresh demand notices

    • Written clarification of compliance

    • Internal circular to subordinate officers

  3. If non-compliance continues:

    • Issue Legal Notice

    • File Contempt Petition before High Court

    • Seek costs + personal accountability of officer

  4. Simultaneously escalate administratively to:

    • Commissioner, MAUD

    • Hon’ble Minister, MAUD

II. LEGALLY TENABLE REPRESENTATION

(To Municipal Commissioner, ______( CITY NAME)

Subject: Illegal Re-Issuance of Trade Licence Demand in Violation of Hon’ble High Court Orders – Immediate Withdrawal Requested

To
The Municipal Commissioner
_________ Municipal Corporation
 Andhra Pradesh

Respected Sir,

I write to bring to your attention the repeated issuance of trade licence demand notices to the undersigned, despite the clear and binding directions of the Hon’ble High Court in W.P. No. ___ of ___ dated ___.

The Hon’ble Court has categorically held that:

  • [Insert operative portion of order verbatim]

  • [Insert specific direction restraining recovery / coercive action]

The continued issuance of fresh demand notices:

  1. Is contrary to the judicial mandate;

  2. Violates principles of administrative propriety;

  3. Constitutes wilful disobedience attracting proceedings under the Contempt of Courts Act, 1971.

It is settled law that administrative authorities are bound to implement judicial orders in letter and spirit. Repeated demands on the same issue amount to harassment and misuse of statutory power.

In view of the above, you are requested to:

  1. Immediately withdraw the impugned demand notice dated ___;

  2. Confirm in writing compliance with the High Court order;

  3. Issue internal instructions to prevent recurrence;

  4. Refrain from any coercive steps.

Failing compliance within 7 days, the undersigned shall be constrained to initiate appropriate legal proceedings including contempt, at your risk as to costs and consequences.

This representation is made without prejudice to all legal remedies available.

Yours faithfully,
[Name]
[Address]
[Contact Details]

III. If You Want Maximum Legal Pressure

If violations are blatant and repeated, the most effective remedy is:

File Contempt Petition seeking:

  • Personal appearance of Commissioner

  • Costs

  • Direction restraining further demands

  • Compensation for harassment

Courts take post-order harassment seriously.

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Hope IMA and other sister associations involve and represent the matter with GoAP

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