HARIHAR PRASAD Vs. MUNICIPAL COMMISSIONER

JUDGEMENT

(1.) These are appeals by the plaintiffs in actions in which they claimed a declaration that the assessment by the Municipality of Arrah of their holdings was not in accordance with the Bihar and Orissa Municipal Act of 1922. One point is common to both appeals, being that the plaintiffs are not liable under the Act to pay the assessment as they are not the "owners" within the meaning of the Act. The other contention which applies more particularly to Appeals Nos. 224 and 225 is that the commissioners arbitrarily amalgamated the holdings or plots into one holding, and assessed the amalgamated plots contrary to the provisions of the Act. The plaintiffs in each case are the proprietors of estates within the Municipal area of Arrah.

(2.) In Appeals 224 and 225 it is contended that in constituting a holding assessable under the Act, the Municipal Commissioners have taken the bakasht land in the occupation of the proprietor, together with plots in the occupation of tenants thus constituting a holding and have assessed the plaintiffs as owners thereof. The substantial point which is argued by Sir Sultan Ahmad on behalf of the appellants in the case of Harihar Prasad V/s. Municipal Commissioners of Arrah, is, that he is not the owner and therefore not liable. It would appear that the land thus amalgamated as a holding is held by permanent tenants who have the right to sell, mortgage or alienate their interest in any way they choose. It is therefore contended that they are the owners within the meaning of the Act and therefore liable to assessment and not the plaintiff.

(3.) The Bihar and Orissa Municipal Act is an Act to which the Municipal Commissioners owe their existence. It is a Code for the purpose of regulating the assessment, liability and collection of the Municipal taxes imposed under the Act. Section 82 gives power to the commissioners from time to time, with the sanction of the local Government to impose, inter alia, a tax on holdings situate within the Municipality assessed on their annual value. Section 84 provides that the tax on holdings shall not be imposed at a rate exceeding 7 1/2; per centum except in the Patna City Municipality. The annual value of a holding under Section 98 shall be deemed to be the gross annual rental at which the holding may reasonably be expected to let. A holding for the purpose of the Act is defined by Section 3, Clause (9), a holding meaning lands "held under one title or agreement and surrounded by one set of boundaries." Clause (18) of Section 3 provides that "owner" includes every person who is entitled for the time being to receive any rent in respect of the land with regard to which the word is used, whether from the occupier or otherwise.