MUNICIPAL CORPORATION Vs. NUCHEM LIMITED

JUDGEMENT

(1.) This is second appeal by Defendant Municipal Corporation, Faridabad, after it was successful in the trial court, but remained unsuccessful in the lower appellate court.

(2.) Suit was filed by Respondent-Plaintiff M/s Nuchem Limited against the Defendant-Appellant, challenging show cause notice dated 29.10.1998 and the assessment order of house tax and the demand of 1,04,051/-made by the Defendant from the Plaintiff as house tax for the property of the Plaintiff. The Plaintiff also sought consequential relief of R. S. A. No. 3989 of 2009 permanent and mandatory injunction. The Plaintiff alleged that pursuant to show cause notice dated 29.10.1998, the Plaintiff filed objections on 02.12.1998, but no opportunity of hearing was provided to the Plaintiff. Consequently, assessment order of house tax and the demand of house tax are illegal.

(3.) The Defendant controverted the plaint allegations and inter alia pleaded that house tax has been properly assessed as per calculation made in accordance with relevant provisions of the Haryana Municipal Corporation Act, 1994 (in short - the Act). Prevailing market rent was also taken into consideration. Issuance of show cause notice dated 29.10.1998 was admitted. Proposed assessment of ratable value of the property being 26,47,250/-mentioned in the show cause notice was finally reduced to 10,40,510/-. It was thus contended that the demand made by the Defendant is legal and valid. Various other pleas were also raised.