BRIJPAL DAS Vs. BANARAS MUNICIPAL BOARD

JUDGEMENT

(1.) Premises No. S. 20/54 Mall Road Banaras which is popularly known as Clark's Hotel Building is a dedicated property and is managed by the trustees who are Maharaja P. M. Tagore, Jimut Prakash Ganguli, Shri Sudhir Kumar Basu, and Shri S. K. Das Gupta. Under instrument dated 5th April 1952 the said premises were leased out to the petitioner and his brothers for a period of 20 years at a monthly rent of Rs. 583/5/4 and there is a clause in the lease under which it is renewable for a further period of 20 years. The petitioner and his brothers, the lessees are carrying on hotel business in the said premises under the name and style of Clark's Hotel. The last assessment of taxes in the Municipal Board of Banaras was made in the year 1951 and the premises were assessed on an annual rental of Rs. 7,500/-. The Municipal Board, Banaras came under the control and management of the Administrator. On the 19th August 1954 a notice was issued by the Banaras Municipal Board through Its Administrator purporting to be one under section 147 (1) (c) of the U. P. Municipalities Act. Under this notice it was proposed to revise the assessment of the premises with a view to assess it at an enhanced rental value of Rs. 21,600/-. The petitioner and the trustees both were asked to file objections. Objections were filed and one of the points taken was that there was no power to revise the assessment as there was no allegation of misrepresentation, mistake or fraud in the last assessment. The objections were overruled by the Appeal Officer, Municipal Board, Banaras who has been given power to decide such objections. An appeal was filed under Section 160 of the U. P. Municipalities Act against the Order of the Appeal officer to the Commissioner, Banaras Division. The order of the Appeal Officer was maintained but the annual rental value was fixed at Rs. 15,000/-.

(2.) On these facts the present petition has been filed under Article 226 of the Constitution for a direction not to enforce the order of the 4th February 1955 passed by the Appeal Officer, Municipal Board, Banaras and confirmed on the 31st August 1955 by the Commissioner, Banaras Division.

(3.) In the counter affidavit it is stated that in the quinquennial assessment of 1950-55 a notice was issued on 9th July 1949 to the Manager, Clark's Hotel, the then lessee Mrs. F. M. De Hoxar calling upon her to supply certain information. In the information supplied to the Board it was said that the approximate cost of the building was about 2 lacs. A notice was again issued to the owner on the 1st August 1949 asking for the approximate value of the land. Thereafter an inspection was made by the Assessment Officer who proposed the premises to be assessed at a rental value of Rs. 15,000/- per annum. The Administrator took charge on the 10th July 1953 and on the 29th September 1953 he sent a letter to the Commissioner that it had come to his notice that considerable number of houses had escaped proper assessment of house and Water Tax due to misrepresentation or mistake and in some cases fraud and he proposed to take action under section 147 (1) (c) of the U. P. Municipalities Act. Thereafter necessary staff was appointed on the 11th February 1954, and the assessment work began from the 15th February 1954. The Assessment Officer then inspected this building again and proposed that the premises be assessed at the rental value of Rs. 21,600/-. On that the proceedings were taken, objections were invited and the Appeal- Officer held that the assessment had been made under a mistake and the Commissioner upheld the finding and fixed the assessment at Rs. 15,000/-.