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HIGH COURT OF CALCUTTA
D.N. SINHA, A.C.SEN, JJ.
Corporation Of Calcutta - Appellant
Versus
Royal Calcutta Golf Club – Respondent
Decided On : Aug 08, 1963
MUNICIPAL LAW - ASSESSMENT AND VALUATION - VALIDITY - JURISDICTION OF CIVIL COURT - BENGAL MUNICIPAL ACT, 1932, SECTIONS 128, 148, 149, 150 - RULES 8(A), 8(B).
Fact of the Case:
The Royal Calcutta Golf Club challenged the assessment and annual valuation of its holding by the Tollygunge Municipality, claiming it was not done in accordance with the Bengal Municipal Act and the rules. The club filed a suit seeking cancellation of the valuation and a declaration that it was a nullity. The trial court dismissed the suit, but the appellate court allowed the appeal and set aside the assessment and valuation. The club also sought a refund of the taxes paid in excess, but the appellate court did not grant this relief.
Finding of the Court:
The High Court held that the civil court had jurisdiction to entertain the suit as the assessment and valuation were not done in accordance with the provisions of the Act and the rules, and the tribunal constituted under the Act had not acted in conformity with the fundamental principles of judicial procedure. The court found that the administrator did not follow the provisions of the Act or the rules in calculating the annual value of the holding and, therefore, the assessment and valuation were invalid.
Issues: 1. Whether a suit lies in a civil court challenging an assessment and valuation made under the Bengal Municipal Act, 1932? 2. Whether the assessment and valuation of the club's holding was done in accordance with the provisions of the Act and the rules? 3. Whether the club was entitled to a refund of the taxes paid in excess.
Ratio Decidendi: 1. The jurisdiction of civil courts is not taken away by the Bengal Municipal Act, 1932, unless it is explicitly expressed or clearly implied. The civil courts have jurisdiction to examine into cases where the provisions of the Act have not been complied with or the statutory tribunal has not acted in conformity with the fundamental principles of judicial procedure. 2. The assessment and valuation of the club's holding was not done in accordance with the provisions of the Act and the rules. The administrator did not compare the holding with similar holdings in the vicinity, did not consider the gross annual rental of similar structures, and did not calculate the value of the building or buildings or the ground rent. Therefore, the assessment and valuation were invalid. 3. The club was not entitled to a refund of the taxes paid in excess because there was no pleading in the plaint to that effect and no evidence was adduced.
Final Decision: The appeal was partially allowed. The judgment of the appellate court, in so far as it passed a decree for the sum of Rs. 4813/- against the defendant, was set aside. The rest of the judgment and decree of the lower appellate court was affirmed. The cross objection was dismissed.
1. This is a second appeal against an order dated the 20th November 1958 passed by the learned Additional District Judge of Alipore by which an order passed by the learned- Subordinate Judge, 3rd Court, Alipore dated the 31st day of May 1956 was reversed. The facts are briefly as follows: the respondent, the Royal Calcutta Golf Club is a body corporate, limited by guarantee, registered under Act VI of 1892. It owns land of the area of 49 Bighas and 2 cottahs being holding no. 18, Golf Club Road, at Tollygunge in the suburbs of Calcutta. The lands belonging to the Golf Club are maintained and used for the playing of golf and there are two courses, each course comprising of 12 holds in 18 greens with 18 tees. On the land there are also some structures and sheds forming part of the Golf Club. As I have stated above, the Golf Club (hereinafter referred to as "club")is situated in Tollygunge. Originally the area was within the jurisdiction of the Tollygunge Municipality.
2. The subject-matter of this case relates to the quinquennial assessment of the said club in respect of the said holding, commencing from the first quarter of 1952-53. On or about the 12th of July 1952 the Tollygunge Municipality was superseded and in exercise of power conferred by sec-554 of the Bengal Municipal Act, 1832 Government appointed Mr. P. N. Bose, as Administrator. Meanwhile what had happened was that the quinquennial assessment list was prepared and general notice was given on or about the 17th July, 1952. The club was assessed to an annual valuation of Rs. 1,00,000/ -. Special notice was also served upon the club inasmuch as the previous assessment of Rs. 40,000/-, had been increased to Rs. 1,00,000/ -. However even before the special notice was issued or served, the club preferred an objection under section 148 of the said Act. Section 148 provides that any person who was dissatisfied with the amount assessed upon him or with the valuation or assessment of any holding, may apply to the Commissioners to review the amount of assessment or valuation as the case may be. By virtue of this order of supersession, and in terms thereof, Mr. P. N. Bose was entitled to perform the duties of the Review Committee, appointed under section 149 of the said Act. It is provided therein that the committee shall give notice to the applicant of the time and place by which the application of objection will be heard and after taking such evidence and making such enquiry as it may deem necessary, in the presence of the objector or his agent, pass such order as it thinks fit. In this particular case, notice was given by Mr. 3. Bose and the objection was heard. On the 23rd July 1952. Mr. Bose acting as the Review Committee passed an order reducing the valuation from Rs. 1,00,000/- to Rs. 75,000/- The wording of the order which appears to have been scribbled on a copy of the notice is as follows:
"Mr. Banerjee appears for the objector. About 500 bighas of land by Golf Club heard. The neighbouring Jala lands are left out at Rs. 2/- per cottah p. m. I have found this golf land must be highly developed land and this is better land. After considering the largeness of the area it would be fair and quite reasonable to take the rent at Rs. 0/12/- annas per cottach and valuation of the, structures, valuation reduced to Rs. 75,000/ -. "
Upon this the club objected and on the 23rd of March 1953 a suit was filed by the club against the said Mr. P. N. Bose as the Administrator or the authority appointed by the Government of West Bengal to administer the Tollygunge Municipality and the state of West Bengal. By notification published on the 31st March 1953 the Government of West Bengal, in exercise of power under section 594 of the Calcutta Municipal Act, included the Tollygunge Municipality within the jurisdiction of the Corporation of Calcutta. Thereafter, the plaint was amended by substituting the Corporation of Calcutta in the place of the defendants. In the plaint filed in the
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