UNITED COLD STORAGE Vs. MUNICIPAL COMMITTEE

JUDGEMENT

(1.) This judgment will dispose of five petitions - Civil Writ Petition Nos. 2226, 2230, 2750, 4021 and 6835 of 1976 as a common question of law is involved in all of them.

(2.) The petitioners in all the five petitions are the proprietors of Cold Storage at Jullundur. The Municipal Committee Jullundur assessed the annual value of the said premises for the purpose of property tax relating to the year 1975 on the basis of the approximate rental income and the storage charges. The basis adopted by the Municipal Committee is obviously unwarranted by the provisions of Section 3(b) of the Punjab Municipal Act, 1911 , which is the relevant provision for assessing the annual value of the premises in dispute. The annual value, according to this provision, in the case of any house or building means the gross annual rent at which such house or building together with its appurtenances and any furniture that may be let for use or enjoyment therewith, may reasonably be expected to let from year to year subject to the deductions mentioned in that clause. As held by the Supreme Court in New Delhi Municipal Committee v. M.N. Soi etc., 1976 CurLJ 601(SC), the Municipal Authority cannot assess the annual value at a rate higher than the fair rent if the owner is getting more rent than the fair rent. In view of this decision, the basis adopted by the Municipal Committee for assessing the annual value are patently erroneous and against the provisions of the statute. Consequently, assessment orders, Annexures P-3 and P-5, in all the five petitions are hereby quashed. No costs. Petitions accepted.