Judgement

Appeal (No. 73 of 1945) from a judgment and decree of the High Court (March 20, 1942) which affirmed a judgment and decree of the Court of Small Causes at Sealdah (February 22, 1940).

The question for determination in this appeal was whether the assessment of premises, No. 10B, Garden Reach Road, Calcutta, to the consolidated rate was made in accordance with the provisions of s. 127 (a) of the Calcutta Municipal Act, 1923, which provided that " for the purpose of assessing land....to the consolidated rate, the annual value of land....shall be deemed to be the gross annual rent at which the " land ....might, at the time of assessment, reasonably be " expected to let from year to year….”

Law Rep. 74 Ind. App. 1 ( 1946- 1947) Bengal Nagpur Railway v. C orporation of C alcutta

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The facts and the relevant statutory provisions appear from the judgment of the Judicial Committee.

The High Court (Mukherjea and Akram JJ.), who affirmed the judgment of the trial court, held that in cases where the owner of land was not using it in any particular way—which they held was the case here—the standard must be " the rent which could " be expected from a tenant who would take the land as it is " and put it to such use as is possible for a yearly tenant to do, and they dismissed the appellant companys appeal against an assessment on that basis on an annual value of Rs. 22,485.

1946. July 24, 25. Tucker K.C. and B. MacKenna for the appellant.

Pringle K.C. and Khambatta K.C. for the respondent. .

Nov. 7. The judgment of their Lordships was delivered by LORD DU PARCQ. The subject of this appeal is a complaint by the appellant company (the Bengal Nagpur Railway Company) in respect of the assessment to the consolidated rate of a piece of land, situate in the city of Calcutta, of which it is the owner. The complaint is that the land has been valued on a wrong principle and at an excessive rate. The plot in question is about 13 bighas in extent, and is known as No. 10B, Garden Reach Road. It was bought by the company in 1926, not for present use, but to be kept in reserve against the companys future requirements. It is described as follows in the petition for leave to appeal to His Majesty in Council "The said land" is vacant and is occasionally used by members of Railway Officers Club for practice of the game of golf. It is not a regular golf course, having only four holes on it."

Before setting out the facts, it is necessary to refer to the relevant provisions of the Calcutta Municipal Act, 1923, in order that the point in dispute may be appreciated. The method of ascertaining the annual value of land is prescribed by s. 127 of the Act. Its material words are "The annual value of land....shall be deemed to be the gross annual rent at which the land....might at the time of assessment reasonably be expected to let from year to year.” The Act imposes a liability to pay rates not only on the occupier, but on the owner of land. Section 149 provides that "one-half of the consolidated rate shall be payable by the owners of the lands....and the other half by the occupiers thereof.” Thus, if land is unoccupied, the owner pays one-half of the full rate on the annual value. He may, in certain conditions, obtain relief which will reduce his burden to one quarter of the full rate. This result is produced by the provision made in s. 151 for the case of land " which has been assessed to the " consolidated rate " and has remained unoccupied and un-" productive of rent for a period of sixty or more consecutive 11 days. If due notice is given to the executive officer, " he " shall—(a) remit one-half of the owners share of the consolidated rate due on account of such period, or (b) if the whole " of such share has been paid, refund, on application made " therefor, one-half of such share.” There is a proviso that when any land (with certain immaterial exceptions) " which in " the opinion of the Corporation is suitable for a building site, " is not adequately