Association argues legal practice is not commercial activity or trade, cites SC rulings; council chief asserts acting within its bye-laws; says advocates must comply or challenge move legally
The Margao Municipal Council building.
MARGAO
After citizens groups, city-based lawyers have red-flagged Margao Municipal Council’s decision to bring advocate’s chambers under the trade licence net.
Terming the decision as unjust and also goes against the well-established legal principles, the South Goa Advocates Association has petitioned to the Margao civic body to reconsider the decision.
Margao Municipal Chairperson Damu Shirodkar, however, struck a defiant note, asserting the civic body is well within its powers empowering the Council to levy trade licence fees on advocates as per the Municipal bye-laws.
The South Goa Advocates Association, an association of lawyers predominantly practicing in the District of South Goa and comprising of more than 850 advocates across six talukas of South Goa, however, asserted that the advocate profession is not a commercial activity, adding that advocates do not conduct any trade.
“We submit this representation, which is based on the recent Public Notice published by the Margao Municipal Council wherein the Margao Municipal Council has made it mandatory for advocate’s office to obtain trade licence and has imposed trade licence fees. The notices require advocates to obtain a trade licence is not only incorrect but also contrary to well-established legal principles upheld by the Supreme Court,” asserted SGAA President Adv Prasad Naik.
He said the imposition of trade licence fees on advocates’ chambers is based on the erroneous assumption that the advocate profession is a commercial activity or trade, which is contrary to the established legal position. “The Supreme Court has consistently held that the legal profession is not a commercial activity, and advocates do not conduct any trade. This principle has been reiterated in various judgements, including V Sashidharan v/s Peter & Karunakar & Ors. & M.P. Electricity Board and Ors v/s Shiv Narayan and others,” he said, while attaching copies of judgements pronounced by the Supreme Court with the objection.
In the light of these judicial pronouncements, Adv Prasad Naik requested the Margao Municipal Council to reconsider its decision to impose trade licence fees on advocates’ chambers.
While the SGAA made a request to the Council to issue an official clarification confirming the exemption of advocates’ offices from the requirement of obtaining a trade licence and the payment of trade licence fees, Margao civic chief Damu Shirodkar said the MMC has effected the hike as per the bye-laws, adding that the advocates are free to challenge the decision. “Definitely, the MMC will issue notices to the advocates to obtain trade licence from the Council,” Damu asserted.
Damu defends fee hike, says exercise long overdue
MARGAO: As a storm is brewing over Margao Municipal Council’s decision to hike the fees on various heads, Margao civic chief Damu Shirodkar defended the hike saying the Municipality is effecting the hike after a gap of two decades.
The MMC chairperson further refuted criticism blaming Margao MLA Digambar Kamat is behind the hike in fees and taxes, asserting that the Margao MLA is no way responsible for the Council’s decision to increase the fees.
Addressing the media in the presence of Vice-Chairperson Babita Naik, Chief Officer Melvyn Vaz and senior Municipal officials, Damu said he has called for the media briefing since certain persons have been going around the town spreading false reports that the MMC has effected hike in the fees by over thousand per cent in order to mop up revenue running into lakhs and crores of rupees. “I request these people not to create confusion in the minds of the people and unnecessarily blame Margao MLA Digambar Kamat. “We have effected minimum hike in the fees not to mete out harassment to the citizens. This exercise was long overdue. The civic body did not effect the hike on certain heads for the last 20 years,” Damu said.
He added; “The Council had conducted a study before revising the rates and fees. While doing so, we had called for the rates and fees charged by the Corporation of City of Panaji, Mormugao Municipal Council and the Mapusa Municipal Council. Our study revealed that the fees and rates charged by the A Class Margao Municipal Council were far less compared to the fees and rates of these civic bodies,” he said.
Making a fervent plea to the people not to misguide Madgavkars on the hike, the civic chief said the citizens should study and compare the rates notified by the civic body and those charged by other Councils before arriving at a conclusion. “Our intention was not to rush with the hike in the rates. If that was the plan, the Council would not have notified the draft rates and fees and invited public suggestions for a period of one month,” he said.
Citing a couple of cases, the MMC Chairperson said the rates notified by the MMC are still less compared to the rates charged by the CCP and Mormugao Municipal Council. “One should understand that the MMC is hard pressed to arrange funds to meet the monthly salary bill amounting to Rs 2.5 crore. Besides, he said the civic body has to arrange funds to the tune of Rs 50 lakh to meet other expenses,” he added.
