IMPORTANT POINT
A fair criticism by an elected Municipal Councilor of the house tax assessment list prepared and finalised by the Council does not constitute misconduct within the meaning of the expression occurring in clause (e) of sub-section (1) of Section 16 of the Punjab Municipal Act.

Headnote:Punjab Municipal Act, 1911-Section 16(1)(e)-Removal from office of Council-Misconduct-Appellant, elected Municipal Councilor-Criticism by appellant of house tax assessment list prepared and finalised by Council-Whether constituted misconduct within the meaning of Section 16(1)(e)-(No)-Whether there is any rational connection between the act attributed to appellant and alleged loss of revenue suffered by Municipal Council?-(No)-No finding of loss suffered by Council because of the act of appellant.
       Held : Here, the appellant criticised the house tax assessment list and asked the tax payer to come to him for sorting out the grievances. The appellant as an elective representative of the Ward held his office in trust for the public and was expected to exercise his functions in the interest of the public. This being the case, his criticism of the house tax assessment list was in furtherance of what he believed to be in public interest. Keeping in view the aim, object and the scheme behind the provisions of the Act and also in the context the expression misconduct has been used, such a criticism by the appellant against the house tax assessment list cannot be construed as misconduct . We are, therefore, of the view that the criticism by the appellant of the house tax assessment list prepared and finalised by the Council did not constitute misconduct within the meaning of the expression misconduct occurring in clause (e) of sub-section (1) of Section 16 of the Act. (Para 13)
       A fair criticism of the house tax assessment list by the appellant has no bearing on the alleged loss in revenue of the Council. According to us, what is contemplated in clause (e) of sub-section (1) of Section 16 of the Act is that the loss of revenue must be a direct result of misdemeanour of a municipal councilor. We, therefore, find that there is no rational nexus between the act attributed to the appellant and the alleged loss in revenue to the Council. (Para 14)
       It is not disputed that house tax assessment list was a new list and 85% of the tax payers paid the house tax and merely an insignificant number of tax payers did not pay the house tax. It, therefore, does not mean that house tax dues were lost and became unrecoverable. In fact, there was no loss in revenue and only recovery of taxes were deferred. It is not disputed that arrears of tax can be recovered as arrears of land revenue by the Collector. In that view of the matter, we are of the view that, in fact, there was no loss in revenue to the Council. The appellant was exercising only his democratic right of fair criticism of the house tax assessment list prepared and finalised by the Council and such an act had no rational nexus with the alleged loss in revenue suffered by the Council. (Para 14)

JUDGMENT

V.N. Khare, J.-Leave granted.

2. Municipal Council, Jandiala Guru, district Amritsar, Punjab (hereinafter referred to as the Council ), is established and constituted under the provisions of the Punjab Municipal Act, 1911 (hereinafter referred to as the Act ). In the last election for constituting the Council, the appellant herein was elected as a Municipal Councilor (in short as Councilor ) from Ward No. 3 of the Council. In the year 1998, the Council prepared and finalised the house tax assessment list for all buildings within its limit indicating therein the value of the buildings and the amount of tax assessed thereto. The total revenue receipt out of the said levy was nearly ten lacs. However, out of the said gross receipt, a sum of Rs. six lacs was sought to be assessed and recovered as house tax from the houses falling within Ward No. 3 from where the appellant was elected. When the said fact came to the notice, the appellant publicly criticised the house tax assessment list as being illegal and arbitrary. A writ petition was also filed before the Punjab and Haryana High Court challenging the said house tax assessment list as prepared and finalised by the Council. It is alleged that the then Chairman of the Assessment Committee nourished ill-will against the appellant and, therefore, he made a complaint to the government for his removal from the Council. It is alleged that on the basis of the said complaint, the State Government served a show cause notice on the appellant calling upon him to show cause as to why he should not be removed from the office of the Council under clause (e) of sub-section (1) of Section 16 of the Act. The charges leveled against the appellant are extracted below:

"Executive Officer Nagar Council, Jandiala Guru has reported vide his office letter No. 99/1111 dated 14.9.99 that Nagar Council acting as per new directions and after completing the survey for House tax had decided 90% cases of the House Tax by 30.3.90. Nobody has opposed the house tax except you from the whole city. You have also issued a pamphlet in which you have made allegation that the Nagar Council is collecting the house tax as per its own wish and you have appealed to the residents that the objections regarding house tax be given to you and your M.C. colleagues between 9 AM to 1 PM on 9.4.99 in the office of the Nagar Council so as appropriate steps can be taken to stop the arbitrariness of the Nagar Council. You have also got it announced through speaker in the city and you stayed in the office of the Nagar Council to hear the objections regarding house tax. Only 10-15 persons met you. Due to this the Nagar Council had suffered great difficulty in collection of house tax from the people.

Due to the facts as mentioned above Nagar Council Jandiala Guru has suffered difficulty while collecting the house tax and as a result of which financial loss has been caused to the Nagar Council. Therefore you have violated Punjab Municipal Act, 1911. Therefore, there is a proposal to remove you from the membership of Nagar Council, Jandiala Guru u/s. 16(1)(e) of the Punjab Municipal Act, 1911."

3. On receipt of the said show cause notice, the appellant furnished an explanation. In the said explanation the appellant denied that he had either flagrantly abused his position as a member of the Council or committed any misconduct as a result of which the Council was put to any financial loss. It was also alleged therein that the show cause notice was mala fide. It was also stated therein that it was out of sheer ill will that his constituency was picked up for arbitrary and excessive taxation and, therefore, as a representative of the said Ward, he protested against the house tax assessment list prepared by the Committee. The government of Punjab by an order dated 25.8.1999 removed the appellant from the office of the Council under clause (e) of sub-section (1) of Section 16 of the Act. Aggrieved, the appellant preferred a writ peti

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2002 Supreme(SC) 226

IMPORTANT POINT A fair criticism by an elected Municipal Councilor of the house tax assessment list prepared and finalised by the Council does not constitute misconduct within the meaning of the expression occurring in clause (e) of sub-section (1) of Section 16 of the Punjab Municipal Act.

Cases Referred (1)

IMPORTANT POINT
A fair criticism by an elected Municipal Councilor of the house tax assessment list prepared and finalised by the Council does not constitute misconduct within the meaning of the expression occurring in clause (e) of sub-section (1) of Section 16 of the Punjab Municipal Act.