Judicial review of economic policy decisions by municipal corporations is limited to procedural legality; substantive authority to revise municipal taxes is not subject to judicial re-evaluation unless illegal.

JUDGMENT :

Sandeep Mehta, J.

1. Heard learned counsel for the parties and perused the material available on record.

2. The judgment dated 9th October, 2019 in Public Interest Litigation No. 42 of 2018 and order dated 24th January, 2020 in MCA (Review) No. 42 of 2020 passed by the Division Bench of the High Court of Judicature at Bombay, Nagpur Bench¹[Hereinafter, being referred to as “High Court”.] are subject matter of challenge in these appeals filed by the Akola Municipal Corporation²[Hereinafter, being referred to as “appellant-Corporation”.].

3. The aforesaid writ petition in public interest came to be filed by respondent No.1-Dr. Zishan Hussain³[Hereinafter, being referred to as “respondent-writ petitioner”.] with the following prayers.

“i) Issue any appropriate writ, order or direction in the nature of mandamus and thereby declare that the revision of property tax by the respondent no.2 Municipal Corporation for the year 2017-18 to 2021-22 is illegal, contrary to law and the revision of property tax is made without following due process of law;

ii) Issue any appropriate writ, order or direction and thereby quash and set aside revision of property tax by respondent no.2 Municipal Corporation for the year 2017-18 to 2021-22 in the interest of justice;

iii) Stay the effect and operation of the revision of property tax by respondent no.2 Municipal Corporation for the year 2017-18 to 2021-22 in the interest of justice”

4. The appellant-Corporation took a specific objection in its written submissions filed before the High Court regarding the grievances sought to be agitated by way of the public interest litigation, viz., the challenge to the jurisdiction of the Corporation to levy/revise the rates of property tax. Specific averments made in paragraph Nos. 9 and 11 of the written submissions filed by the appellant-Corporation explaining the detailed procedure for increasing the rate of property tax are germane to the controversy. For the sake of ready reference, the aforesaid paragraphs are reproduced hereinbelow: -

“9. The Petitioner has rightly stated in Para 5 of his petition that the assessment, revaluation of taxable values was not done from the year 2002 by Akola Municipal Corporation. It is submitted that the property tax is the main source of income of Akola Municipal Corporation. To strengthen the tax recovery system there was necessity to re-assess the taxable values for the year 2015-2016 till 2020-2021 and therefore by the Written Communication dated 01/12/2015 the Respondent No.3 made a request to Assistant Director of Town Planning, Akola to propose the rate of expected Annual Letting Value and ratable value of properties for various categories of buildings depending upon their age, location, type of constructions, use etc. within the limits of Akola Municipal Corporation Accordingly by the Written Communication dated 01/01/2016 (Annexure 7) the rates wore proposed by the in-charge Assistant Director Town Planning, Akola. On the basis of these details and other documents, official note (Annexure B) was prepared by then Municipal Commissioner regarding taking decision of revised rates of calculation and valuation of expected letting values for entire properties (Buildings and Lands) situated within Municipal Limits for the calculation and assessment