MUNICIPAL COMMITTEE Vs. JASWANT RAI

JUDGEMENT

(1.) THIS Reference to Division Bench has posed a legal issue of considerable importance. The legal issue raised was whether the Municipal Committee has a right to recover the house tax under Section 81 of the Punjab Municipal Act, 1911, after a lapse of a period of three years from the date it fell due.

(2.) THE factual basic terrafirma with brevity is that the Special Executive Magistrate issued a notice, dated January 8, 1986, under Section 81 of the Punjab Municipal Act. 1911, to the effect that the amount of Rs. 14 580/- was due on account of house tax for the years 1979 to 1985 The plaintiff-respondents were directed to deposit the amount in the Court failing which recover" was to be effected by sale of the immovable property of the plaintiffs The plaintiffs deposited the house tax for the preceding three years and challenged the recovery prior to that, inter alia, on the ground that since the Municipal Committee was not entitled to recover the amount beyond three years being barred by time, it could have been recovered within three years from the date it fell due The limitation for recovery is governed by Article 113 of the Indian Limitation Act, 1963. Thus, no recovery can be made and issuance of notice is illegal.

(3.) THE trial Court found that the house tax prior to the period of three years could not be recovered under Section 81 of the Punjab Municipal Act. Thus, the notice to the extent of recovery of the house tax for a period from April l, 1979 to March 31, 1982 was found to be illegal and without jurisdiction. To this extent it was quashed. However, the recovery for the remaining period was found to be within limitation and notice was found to be valid. Resultantly, the Municipal Committee was restrained from recovering the amount of the house tax from April I, 1979 to March 31, 1982, under Section 81 of the Punjab Municipal Act, 1911.