CHERUKURI KUTUMBAYYA Vs. MUNICIPAL COUNCIL VIJAYAWADA

JUDGEMENT

(1.) The interpretation of Section 81 of the District Municipalities Act is involved in this second appeal. The question is whether the assessment of property tax on the appellants agricultural lands within the municipal limits of Vijayawada by the respondent under Section 81(2) instead of Section 81(4), of the District Municipalities Act, is ultra vires the powers of the Municipality.

(2.) The appellant owns Ac. 3-94 cents of land within the municipal limits of Vijayawada. For the years 1947-48, 1948-49, and 1949-50 the Municipality levied property tax on these lands at the rate of Rs. 86.00 per annum, proceeding under Section 81(2) of the District Municipalities Act, while the tax previously paid was Rs. 4.00 per year. The appellant, disputing the right of the Municipality to make the levy under Section 81(2), refused to comply with the demand to pay the enhanced tax.

(3.) This led the Municipality to raise a suit for recovery of the tax of Rs. 258-3-0 for the three years mentioned above. The suit was resisted on the grounds already indicated above. The district Munsif decided that as the subject-matter of assessment was agricultural land, the correct provision of law applicable was Section 81 (4) and not Section 81 (2) and consequently the plaintiff was not entitled to the relief asked for. In the result, he decreed the suit at the old rate, viz., Rs. 4.00 per annum.