Food Corporation Of India vs State Of Punjab

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2000 Supreme(SC) 1938

2000(8) Supreme 423
SUPREME COURT OF INDIA
(From Punjab and Haryana High Court)
D.P. Mohapatra and Y.K. Sabharwal, JJ.
Food Corporation of India -Appellant
versus
State of Punjab & Ors. -Respondents
Civil Appeal No. 7423 of 1996
Decided on 1-12-2000
Counsel for the Parties :
For the Appellant : Y. Prabhakar Rao, Advocate.
For the Respondents : Ajay Majithia, Manu Beri, and S.B. Upadhyay, Advocates.

Headnote:Punjab Municipal Act, 1911-Section 67-Amendment of assessment-Condition precedent-Not less than one month s notice inviting objection must be given-Notice should not be vague and unspecific-In the instant case notice neither stated reason for or the ground on which amendment was proposed nor it indicated any material on basis of which revision was proposed-Notice defeated very purpose of statutory provision-Revised assessment order unsustainable-Order quashed.
       On reading the provisions of Sections 67 and 68A it is clear that while vesting the power in the Committee to amend an assessment list, the Legislature has taken care to specify the circumstances in and the grounds on which such amendment may be made; it has also laid down the manner in which such amendment or revision of the assessment list is to be made. Care has also been taken to comply with the principle of natural justice by making the provision for giving notice to the person who is likely to be affected by the proposed amendment giving him not less than a month s time to tender objection, if any, to the Committee and allowing him an opportunity of being heard in support of the objections raised. Notice to the affected person mandated in the section is not an empty formality; it is meant for a purpose. A vague and unspecific notice will not provide reasonable opportunity to the notice to file objection meeting the reasons/grounds on which the amendment of the assessment list is proposed to be made. Such a notice cannot be taken to be complying with the statutory requirement. On perusal of the notice issued to the Corporation, which is on record, it is evident that the notice is vague and lacks particulars. It neither states the reason for/or the ground on which the amendment is proposed to be made nor does it indicate any material on the basis of which the revision as stated in the notice is proposed to be made. It is apparent that the Commitee is not sure on which ground it proposes to proceed for amending the assessment list. Such a notice not only does not comply with the statutory requirements, it also defeats the very purpose of the statutory provisions. (Paras 9 & 10)
       The order passed by the assessing officer and confirmed by the appellate authority and the State Government are clearly unsustainable. The High Court was in error in dismissing the writ petition summarily by passing an unreasoned order as has been done in this case. (Para 12)

JUDGMENT

D.P. Mohapatra, J.-The legality and validity of the order amending the assessment list in respect of its property by the Municipal Committee, Sangrur in the State of Punjab is under challenge in this appeal filed by the Food Corporation of India (hereinafter referred to as the Corporation ).

2. The assessment in question relates to a godown described in the notice as "property unit No. 239-Block No. 1 situated within the local limits of the Municipality". By notice No.110/HP dated 27.6.1991 issued under Section 67 of the Punjab Municipal Act, 1911 (for short the Act ) the Municipal Committee intimated the Corporation that it intends to amend/revise the assessment in respect of its property and if the Corporation has any objection it may file the same along with documentary proof in support, within a month. The relevant portion of the notice is extracted hereunder :

"To

The District Manager,

Food Corporation of India,

Jakhal Road, Sunam.

Property Unit No. 239 Block No. 1

Which is situated in the Municipal limits Sunam, in connection with which you are hereby informed vide this notice that the amendment in the assessment of your this property is liable to be done necessarily due to the following reasons and is done as under :

Whereas your above mentioned property has wrongly been left out from the assessment list whereas it should be/should have been in the same.

2. Whereas the assessment of this property of yours was assessed less due to inadvertent mistake/fraud or intention, which needs amendment thereby.

Therefore, vide this notice you are hereby informed that your above mentioned property i.e. house/shop/plot alongwith office, godowns and quarters, the assessment of the same is being amended due to the aforementioned reasons w.e.f. the year 1986-87 as per details mentioned hereunder and the new assessment is fixed as below. Any objection in this behalf may be given in writing alongwith the documentary proofs in support of the same within one month from today.

Property House Name of Name of Annual Tax Unit No. Ward the Owner tenant assessed assess- No. of the if any rent ed property after 15% deducting 10%

Note :-

The differential 1. Godown of house tax in food grains, respect of the capacity years will be 206656 bags recovered from @ 20 paise 493972.00 69373/15 you after per bag per paise/ allowing the month. P.A. tax paid

2. Pedestals outside for 28790 bags @ 08 paise per bag per month 2303.00

3. Quarters of class IV employees attached 3600.00

4. Weigh Bridge 4000.00

5. Office two sets 8000.00

313875.00

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