KHADYA PEYA VIKRETA SANGH Vs. MUNICIPAL COUNCIL AKOLA

JUDGEMENT

(1.) Khadya Peya Vikreta Sangh, Akola, an association of persons carrying on business of running lodging and boarding houses in the town of Akola and its 22 members have by this petition challenged the new mode of determination of the rateable value of the buildings in which the business in carried on for the levy of the consolidation property tax by the Municipal Council, Akola, the sole respondent. The petitioners Nos. 2 to 14 who are carrying on the business in rental buildings have also challenged the imposition of the said levy upon them.

(2.) Until September/October 1985 the said tax was being levied only on the owners of the buildings and that too after determining the rateable value of the building on the basis of actual rent. The respondent drastically changed the old measure of determination of the rateable value. Room rent charged from the guests in the lodging houses in the town was taken to be the new measure. Average room rent was determined at Rs. 8/- per room per lodge, average occupancy was determined at 50 per cent and so calculated, annual letting value for all lodges in the town was determined at the rate of Rs. 4/- per day per room. Liability to pay tax in respect of the tenanted premises was fixed both on the landlord and the tenant. Owner was made liable as before to pay the tax determined upon the rateable value based on actual rent and the tenant was made liable to pay on the basis of rateable value based on the average income of the room rent as indicated above after deducting the rent paid by the tenant.

(3.) Two contentions are raised in this petition.