The liability for property tax on transfer of property is concurrent between the transferor and the transferee, and the transferee's liability cannot be avoided even if the transferor has not given notice of the transfer to the Municipal Commissioner. However, the principles of natural justice require a hearing before a distress warrant is issued for the sale of property for recovery of tax.

I.P.Mukerji, J.

1. THE writ petitioner is aggrieved by a distress warrant issued by the respondent corporation on 6th November, 2008. By this distress warrant the writ petitioner's flat No. 16 measuring 1892 sq.ft. super built up area on 1, R.N. Mukherjee Road. Kolkata -1 has been attached for non-payment of municipal tax, penalty and interest amounting to Rs. 14,00,157.13. THE writ petitioner bought this flat on 7th January, 2008 from the respondent No. 6 by a deed of conveyance.

2. THE writ petitioner says that he is an innocent purchaser and that such attachment ought not to have been made.

Learned Counsel appearing for the writ petitioner submits that the transferor did not give notice of transfer of the flat to the Municipal Commissioner and that by sub-section (4) of section 183 continues to be liable for payment of the property tax.

3. LEARNED Counsel for the respondent corporation draws my attention to sub-section (1) of section 183 which says that both the transferor and the transferee have concurrent obligations to notify the corporation within three months of the execution of conveyance about the transfer.

4. IN this case, the transferor has admittedly not notified the respondent corporation about the Transfer. The writ petitioner submits that this tax, interest and penalty liability is of the erstwhile owner of the flat. Now, that he is the owner of the flat, this flat should not be sold to satisfy the above liability.

To decide the issue in the writ application some basic principles of law need to be noticed.

5. THE first basic principle is that property tax is a liability attached to the property and travels with the property. It does not matter who is the owner of the property or in occupation of the property or has any other interest in it. If some tax is due for a particular property, that tax can be realised by sale of the property. So, for realisation of property tax, directions in personem, like orders upon the owner or occupier or trustee or beneficiary to pay the property tax may not be necessary. THE property itself is sold and the tax realised out of the sale price. Just like in maritime law, maritime liens are attached to the ship or res and are discharged by sale of the ship and distribution of the sale proceeds in satisfaction of those claims. [See Municipal Corporation of Delhi vs. Trigon Investment and Trading Private Limited and Anr., reported in 1996 SC 1579].

6. THE Calcutta Municipal Corporation Act, 1980 (in short the Act) has a detailed scheme for levy and collection of taxes. Levy of taxes is provided for in sub Parts A to G of Part IV. This part provides detailed provisions for determination of annual valuation, provisional assessment, invitation of objections to it and final assessment. Sub part 'G' provides for incidence and payment of property tax. Section 193 enacts that if the land or building is un-let (as is the case here) tax would have to be paid by the person who has the right to let such land or building. THErefore, before transfer of this flat the erstwhile owner had the liability to pay the property tax and after transfer, the buyer. Now let us come to the Transfer of Property Act, 1882. THE seller has to pay the property tax which has accrued in respect of the property up to the date of the sale. (Section 55 (l)(g)]. THE seller is therefore liable to pay any tax liability up to the date of sale and the buyer such liability which accrues after the date of sale. This is the general law. Section 183(1) enjoins both seller and buyer to give notice of transfer to the corporation within three months of such transaction. In this case neither seller nor buyer had notified the corporation. What is the effect of such default? Section 183(4) says that if the transferor defaults he continues to be liable. It adds that 'nothing in this section would be deemed to affect the liability of the transferee for payment of the property tax on such land and building.' THErefore, under this s