Municipal Corporation and Others vs Raghbir Kaur and Another

Hemant Gupta, J.—I have heard learned Counsel for the parties on the following substantial question of law:

Whether the Civil Court will have the jurisdiction to entertain the suit for injunction in respect of house-tax?

The plaintiff-respondents filed a suit for permanent injunction restraining the defendants from recovering an amount of Rs. 36,897.20 on account

of arrears of house-tax from the year 1998-99 to 2002-03 by challenging the notice of demand dated 29.10.2002 issued u/s 137 of the Punjab

Municipal Corporation Act, 1976.

The plaintiff-respondents are said to be the purchasers of the property from one Parveen Kumar S/o Kasturi Lal vide registered sale deed dated

23.7.1997. The house-tax at the rate of Rs. 1,247/- per annum was assessed at that time. The same rate of house-tax continued uptill 2000-01.

The house-tax from the year 2001-02 was enhanced to Rs. 14,560/-. It was alleged that the said house-tax has been enhanced without my notice

to the plaintiffs. The plaintiffs challenged the recovery of house-tax after the date of the purchase of the property, primarily on the ground that the

assessment has been framed without any notice to the plaintiffs.

It is the stand of the defendant-appellants that the suit property stands assessed to house-tax in the name of Parveen Kumar u/s 105 of the

Punjab Municipal Corporation Act, 1976. The plaintiffs have not furnished copy of any document of change of ownership in the office of the

Municipal Corporation. The same is assessed to house-tax for the last 9-10 years in the name of Parveen Kumar. The notice of recovery of

house-tax was issued to Parveen Kumar. But since the tax was not deposited, the property has been rightly sought to be attached for recovery of

arrears of the house-tax.

The learned trial Court recorded a finding that the Municipal Corporation was never informed of purchase of property by the plaintiff vide sale

deed dated 23.7,1997. It has also been found that since the property was already assessed to house-tax, when the plaintiffs have stepped into the

shoes of his predecessor Parveen Kumar, therefore, no opportunity was required to be given to the plaintiffs. However, the learned trial Court

found that increase of house-tax from Rs. 1,247/- to Rs. 14,256/- is without any basis as neither in the written statement nor in the statement

before the Court, any basis of the increase of house-tax has been disclosed. On the basis of such finding the suit was decreed. In appeal the said

decree, has been affirmed.

Learned Counsel for the appellants has relied upon Munshi Ram and Others Vs. Municipal Committee, Chheharta, , wherein it has been held

that the jurisdiction of the Civil Court is barred in respect of any matter pertaining to assessment of house-tax. Reference is also made to Kelash

Nath and Others Vs. Municipal Committee, Batala, , Romesh Kumar and Others Vs. The Municipal Committee, Gurdaspur and Others, , Rama

Krishna Rice Mills v. Municipal Committee, Sultanpur Lodhi (1985)87 PLR 221 (D.B.) and N.D.M.C. Vs. Satish Chand (Deceased) by Lr Ram

Chand, .

The Courts below have decreed the suit for the reason that in the, written statement or in evidence, the Corporation has not disclosed any basis

of increase of house-tax. Whether the house-tax is liable to be increased and to what extent, falls within the exclusive jurisdiction of the Municipal

Authorities under the Act. Such is the judgment of the Hon''ble Supreme Court in Munshi Ram''s case (supra), wherein it has been held to the

following effect:

From a conjoint reading of Sections 84 and 86, it is plain that the Municipal Act, gives a special and particular remedy for the person

aggrieved by an assessment of tax under this Act, irrespective of whether the grievance relates to the rate or quantum of tax or the principles of

assessment. The Act further provides a particular forum and a specific mode of having this remedy which is analogous to that provided in Section

66(2) of the Indian Income Tax Act, 1922. Section 86 forbids in clear terms the person aggrieved by an assessment from seeking his remedy in

any other forum or in any other manner than that provided in the Municipal Act.

It is well-recognized that where a Revenue Statute provides for a person aggrieved by an assessment thereunder, a particular remedy to be

sought in a particular forum, in a particular way, it must be sought in that forum and in that manner, and all other forums and modes of seeking it are

excluded. Construed in the light of this principle, it is clear that Sections 84 and 86 of the Municipal Act bar by inevitable implication, the

jurisdiction of the Civil Court where the grievance of the party relates to an assessment or the principle of assessment under this Act.

Relying upon the aforesaid judgment, the Hon''ble Supreme Court in N.D.M.C.''s case (supra) again reiterated the principle enunciated in

Munshi Ram''s case (supra). Before this Court a Division Bench in M/s Rama Krishna Rice Mills case (supra) considered the earlier judgments of

Division Bench of this Court in Ramesh Kumar''s case (supra) and held that in Ramesh Kumar''s case (supra) the question whether the assessment

and competition of house-tax could be challenged in the Civil Court wherein it was held that such challenge is not maintainable before the Civil

Court. It was held that challenge before the Civil Court in respect of assessment not made on the basis of fair rent is not maintainable. It was held

that merely raising the legality of the assessment order is beyond the jurisdiction of the Civil Court.

Though the aforesaid judgments are in respect of Sections 84 and 86 of the Punjab Municipal Act, 1911, but the said provisions are pari

materia to Sections 146 and 149 of the Punjab Municipal Corporation Act, 1976. Therefore, the enunciation of law as laid down in above

judgments is applicable to the facts of the present case as well.

Since the findings recorded by the Courts below are against the principles of law, therefore, such findings are unsustainable. Thus, the

substantial question of law as mentioned above is answered in favour of the defendants and against the plaintiffs.

In view of the above, the appeal is allowed. The judgment and decree passed by the Courts below is accordingly set aside and suit dismissed.