In this situation, in a built-up area, are you obliged to refrain from overtaking the preceding vehicle on its right side?

In the photo you are driving in a town along a street with tram tracks built into the roadway; ahead of you, in the lane with the tracks, there is a dark car, and on the right there is a free lane. In a built-up area you are not obliged to refrain from overtaking it on the right. The answer is: no.

The Road Traffic Act allows overtaking on the right on a section of road with marked lanes on a two-way roadway, if at least two lanes in a built-up area are intended for traffic in the same direction. The street in the photo is two-way and has two lanes in your direction: the lane with the tram tracks, in which the dark car is driving, and the right lane next to it - and in a town that is enough. So you may overtake the car in the right lane, after making sure that you have visibility and space, nobody is overtaking you and its driver is not signalling a move to the right. Note: you must not overtake at a junction or before a pedestrian crossing without traffic lights, and a car driving on the tracks may move to the right to give way to a tram.

Legal basis: Art. 24 para. 10 point 2 and para. 1 of the Road Traffic Act (Prawo o ruchu drogowym)