LexCALCUTTA GUJRATI EDUCATION SOCIETY AND ANR. versus CALCUTTA MUNICIPAL CORPORATION AND ORS.
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CALCUIT A GUJRA TI EDUCATION SOCIETY AND ANR. A v. CALCUITA MUNICIPAL CORPORATION AND ORS. AUGUST 25, 2003 [M.B. SHAH AND D.M. DHARMADHIKARI, JJ.] B Calcutta Municipal Corporation Act, 1980: Section 194 read with section 230 and sections 181, 184, 186- Consolidated rate-Determination of-Process of valuation, assessment, C revision or amendment of assessment-Participation of tenants, sub-tenants and occupiers-Held: Tenants, sub-tenants and occupiers share appreciable extent of burden of tax, thus entitled to an opportunity to participate in the process-They are entitled to public and written notices-However non- issuance or non-service of notices to persons primarily liable does not D invalidate the proceedings unless serious prejudice is caused to the persons aggrieved. ----~> Section I 95-Providingfor recovery of consolidated rate from occupiers by attaching rent payable by them on failure to recover the same from person primarily liable-Tenant pleading that the Corporation would collect E whatever landlord declares to be the rent-Held: If there is a dispute between landlord and tenant regarding rent, tenant can raise it before the competent authority-However, the finalisation of assessment cannot be made to wait till then. ' Sections 184, 186 and 17 4-/ncrease of tax based on market valuation- F Hearing for assessment-Non-participation of owner/landlord-Effect of- Held: Even though the landlord remains inactive by not contesting the assessment proposed, tenant or occupier bearing the burden of tax has to be vigilant and has right to raise objections pursuant to notices. Section I 89(5) and (6)-Right of appeal-Grant of-Held: Tenant, G sub-tenant or occupier share burden of an appreciable portion of consolidated rate on the property-Hence, have right of appeal on pre-deposit of portion of tax levied and made recoverable from them-To demand deposit of whole consolidated rate for the entire building for maintaining tenant's appeal is 915 H 916 SUPREME COURT REPORTS [2003) SUPP. 2 S.C.R. A unreasonable-Interpretation of statutes. Section 178(6)-Municipal assessment code-Furnishing of necessary information regarding apportionment of consolidated rate on land or building by authorities to parties liable to pay' tax-Whether obligatory-Held: On payment of the requisite fee, authorities are under statutory obligation to B provide necessary information otherwise parties can take recourse to remedies in law. Section 231-Mode of recovery-Portion of tax payable by the owner- Recovery from the occupier as rent-Justification of-Held: The provision creates a legal fiction by which the tax apportioned on the tenant would be C treated as rent and would be recoverable as such-Further, there is no conflict between Act of 1980 and the Tenancy Act-Both are to be applied harmoniously-Interpretation of statutes-West Bengal Premises (Tenancy) Act, 1956. D Section 171-Consolidated rate on lands and buildings-Whether tax liability higher on tenants, sub-tenants or occupants than on landlords- Held: Tax liability not disproportionately higher. Sections 230 and 231-Apportionment and mode of recovery of tax- Tenants of rented premises covered by Tenancy Act, and others not covered- £ Whether treatment discriminatory-Held: Act does not make any discrimination -West Bengal Premises (Tenancy) Act, 1956. Calcutta Municipal Act, 1951 levied equal tax on owner and occupier of the lands and buildings within the municipal area. Occupant's share of tax was collected from the tenant. However, in the case of premises having more F than one occupier, the taxes would be paid by the owner, but in turn, he was competent to ·collect half of the total taxes paid i.e. occupier's share proportionately from each occupier. The taxes were charged on the rent payable and the rate was also low. This resulted in development of a system where the occupier's share of tax was included in the rent by the owner and both the shares were paid by the owner to the municipality instead of owner paying G the taxes and then pursuing remedies against the' tenants for collection of the portion of tax imposed by the Act on the tenant or occupier. The revenue collected through property tax was limited by the fair rent fixed under the tenancy law. With the ever-increasing population of Calcutta, requirement was felt for increasing and improving the civic.amenities for which it is found H necessary to increase property
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