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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Vansh Electromechanical Devices Pvt. Ltd. - Appellant
Versus
North Delhi Municipal Corporation - Respondent
W.P.(C) 12678 of 2021
Decided On : 12-11-2021
Important Points
Subject
Administrative Law - Municipal Law
Headnote
(B) Procedural fairness - The respondent acknowledged the contention of the petitioner regarding being only a tenant and agreed to withdraw the assessment order, reserving rights to issue a fresh notice to the property owner. (Para 4)
Facts of the case:
The petitioner, a tenant, challenges a suo moto assessment under the mentioned Act, asserting non-receipt of notice.
Findings of Court:
The court allowed the petition, quashing the assessment based on the respondent's statement, clarifying it was not on the merits of the case.
Issues: The key issue was the propriety of the assessment order made without a show cause notice to the tenant.
Ratio Decidendi: The court emphasized the necessity of procedural fairness, particularly the issuance of a show cause notice before tax liabilities are assigned.
Result: Petition allowed.
| Table of Content |
|---|
| 1. petitioner challenges assessment order. (Para 1) |
| 2. petitioner argues no liability for tax. (Para 2) |
| 3. notice issued; proceedings are accepted. (Para 3) |
| 4. respondent acknowledges tenant status. (Para 4) |
| 5. assessment order quashed without prejudice. (Para 5) |
| 6. petition disposed in favor of the petitioner. (Para 6) |
JUDGMENT
Sanjeev Sachdeva, J. (Oral)
CM APPL. 39944/2021 (Exemption)
Allowed, subject to all just exceptions.
W.P.(C) 12678/2021 & CM APPL. 39943/2021 (stay)
1. Petitioner impugns assessment order dated 14.1.2021 whereby suo moto assessment has been done under Section 123-D of the Delhi Municipal Corporation Act, 1957.
2. Learned Senior Counsel for the petitioner submits that petitioner is merely a tenant in the subject property and there is no liability of the petitioner to pay any property tax. He submits that no show cause notice was received before the passing of the suo moto assessment order.
3. Issue notice. Notice is accepted by learned counsel appearing for respondent no. 1.
4. Learned counsel for respondent no. 1 under instructions submits that a show cause notice was issued to the petitioner. She, however, submits that since the petitioner contends to be merely a tenant in the property, the assessment order be deemed to be withdrawn and the Corporation reserves its right to issue a fresh show cause notice to the owner of the property and thereafter pass an assessment order in accordance with law.
5. In view of the above, petition is allowed. The assessment dated 14.10.2021 in the name of the petitioner is quashed. It is, however, clarified that the same has been quashed on the statement of the Corporation and not on its merit. This would be without prejudice to the rights and contentions of the parties and reserving the right of the Corporation to pass a fresh assessment order after issuance of a show cause notice to the owner.
6. The petition is disposed of in the above terms.
