The Commissioner cannot issue distress warrant for arrears of property tax due without having any regard to the question of limitation.

( 1 ) THIS is an application for the issue of a writ of certiorari to quash the distress warrant issued by the Additional Commissioner, Municipal Corporation, hyderabad, dated 9th November, 1965, and the order of the Chief Judge, city Small Causes Court, dated 4th July, 1966, made in I. A. No. 357 of 1965. The relevant facts are that the petitioner is the managing partner of Ganesh commercial Corporation, which is the present owner of the premises known as rajeswara Talkies, Secunderabad. The said Commercial Corporation purchased the cinema business and the theatre premises known as Rajeswar Talkies situate at the Market Street, Secunderabad bearing municipal No. 3991 (3992 old) and 7671 (new) from S. Anthiah and Shankaramma, the previous owners, under a registered sale deed dated 3rd March, 1964.

( 2 ) THE Additional Commissioner of Hyderabad Municipal Corporation, Secunderabad division, issued a warrant of distress under section 269 of the Hyderabad municipal Corporation Act, 1956, hereinafter called "the Act," against the petitioner for a sum of Rs. 15,195-25 np. on 9th November, 1965. On the same date, all the available moveable properties of considerable value found in the premises of the Rajeswar Talkies were attached and were carried away by the Additional commissioner.

( 3 ) DISSATISFIED with that act of the Additional Commissioner, the petitioner preferred an appeal under section 282 (1) of the Act before the Chief Judge, City Small causes Court, Hyderabad. The appeal was not entertained because the petitioner failed to deposit the amount mentioned in the distress warrant. It is this distraint warrant that is now challenged in this writ petition.

( 4 ) THE principal contention of Smt. Ramaseshamma, the learned Counsel for the petitioner, is that the moveable property could not have been attached for the taxes due for the years 1956-64. The contention is that for the taxes prior to 1962, the claim of the Corporation being time barred, the time barred taxes cannot be recovered by adopting coercive process by the Corporation.

( 5 ) IN order to understand the implications of this contention it is necessary to read some of the provisions of the Act. Section 269, which relates to the distress, in so far as it is relevant, reads as follows : " (1) If the person liable for the payment of the said tax does not within fifteen days from the service of the notice of demand pay the sum due, or show sufficient cause for non-payment of the same to the satisfaction of the Commissioner, and if no appeal is preferred against the said tax, as hereinafter provided, such sum, with all costs of the recovery may be levied under a warrant in the form of Schedule L or to the like effect, to be issued by the Commissioner, by distress and sale of the goods and chattels of defaulter or if the defaulter be the occupier of any premises in respect of which a property tax is due, by distress and sale of any goods and chattels found on the said premises or, if the tax due in respect of any vehicle or animal by distress and sale of such vehicle or animal in whom soever s ownership, possession or control the same may be. "

( 6 ) IT is only under this provision of law that the impugned distress warrant has been issued by the Additional Commissioner of the Corporation. The real question, however, is whether the distress warrant under section 269 can be issued for arrears of tr. xes without any restriction as regards limitation. Section 278 authorises the Corporation to institute a suit for arrears of taxes if it is found necessary. The section runs as follows : "instead of proceeding against a defaulter by distress and sale as hereinbefore provided, or after a defaulter shall have been so proceeded against unsuccessfully or with only partial success any sum due or the balance of any sum due, as the case may be, by such defaulter, on account of a property-tax or of tax on vehicles and animals or profession tax, may be recovered from him by a suit in any co

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