ASSISTANT GENERAL MANAGER CENTRAL BANK OF INDIA Vs. COMMISSIONER MUNICIPAL CORPORATION FOR THE CITY OF AHMEDABAD

JUDGEMENT

(1.) Delay condoned.

(2.) Leave granted. Heard S/Sri G. L. Sanghi, Rohinton Nariman, V.R. Reddy and Andhyarujina for the Appellants and S/Sri F. S. Nariman, Soli Sorabjee, B. K. Mehta for the Respondents.

(3.) The contention of the learned Counsel for the appellants-tenants is this : by virtue of the agreements entered into between the appellants and their respective landlords, the obligation to discharge the property taxes has been placed exclusively upon the tenants. The landlord receives the rent exclusive of the property taxes which means that any increase/enhancement of property taxes affects the tenant and tenant alone and not the landlord. The tenants, therefore, have a direct stake in determination/assessment of property taxes. Even apart from the agreements between the parties, Sec. 10 of the Bombay Rent Act empowers the landlord to increase the rent correspondingly where the rates or cesses payable in respect of the said premises (which includes the property taxes) are enhanced. Inasmuch as the liability to pay the property taxes is cast upon the tenants both by virtue of the agreement between the parties and also by virture of the Bombay Rent Act, the landlords are not taking any interest nor are they filing complaints or taking other proceedings to have the property taxes correctly assessed. In many cases, the landlords are using the enhancement of assessment as a lever of pressure to make the tenant vacate the premises. Notwithstanding such direct interest of the tenant in the matter of determination/assessment of property taxes, the High Court has held that they have no right to file an appeal against the assessment of property taxes. This is causing grave prejudice to the tenants. They are being punished by uncalled for increases in property taxes while at the same time depriving them of the right to appeal and the question the enhancement. The scheme and provisions of the Municipal Corporations Act do enable the tenant to question the assessment or the enhancement in assessment, as the case may be, in respect of the premises occupied by him and also to file appeal and take other proceedings in that behalf. On the other hand, it is submitted by the learned Counsel for the Corporation that the Act makes the owner of the premises alone primarily liable for property taxes and it is that person alone who is entitled to file a complaint or appeal in case he feels aggrieved by the assessment or enhancement of the assessment. The Act does not confer any such right upon the tenant nor does it recognise any such right of the tenant impliedly. The learned Counsel supports the reasoning and conclusion of the Gujarat High Court in this behalf.