SHIVJI KHETAI THACKER Vs. COMMR OF DHANBAD MUNICIPALITY

JUDGEMENT

(1.) This appeal by the plaintiffs involves the interpretation of Section 98 (1) and (2) of the Bihar and Orissa Municipal Act, 1922 (Bihar and Orissa Act VII of 1922), hereinafter referred to as "the Act".

(2.) The plaintiffs brought a suit, out of which the present appeal arises, for declaration that the assessment made by the defendant --Commissioners of the Dhanbad Municipality --on holding No. 594, in Ward No. 3, of the Dhanbad Municipality, was ultra vires and without jurisdiction. The plaintiffs' case was that holding No. 594 is a Cinema House known as "Ray Talkies" built in March, 1948, and, it was assessed with quarterly municipal tax of Rs. 900/-, and, a notice thereof dated the 31st of March, 1948 was served on the plaintiffs, as proprietors of the aforesaid Cinema House, under Section 115 (2) of the Act. The plaintiffs, thereafter, applied under Section 116 (1) for a review of the assessment, whereupon the Review Committee was constituted, and, it gave its decision by reducing the municipal tax to Rs. 810/- per quarter. The plaintiffs' further case was that the assessment should have been made under Section 98 (2), and not under Section 98 (1), of the Act, and, as such, the assessment was ultra vires.

(3.) The suit was contested by the defendant-Municipality. Its defence was that a portion of the building, on the holding in question, was let out to stall keepers, and, other vendors on a monthly rental of Rs. 600/-, and, another portion of it was used as residential quarters for the servants and staff of the Cinema, and therefore, the assessment had rightly been made under Section 98 (1) of the Act. The defendant also challenged the jurisdiction of the Civil Court to try the suit in view of Section 119 of the Act.