Back
2003 Supreme(P&H) 904
PUNJAB & HARYANA HIGH COURT
G.S.Singhvi and N.K.Sud JJ.
British India Corporation Limited
Versus
State Of Punjab
Civil Writ Petition No. 7761 of 2002,
Decided On : JULY 8, 2003
The duty of judicial and quasi-judicial authorities to comply with the rules of natural justice, including the necessity of giving reasons for decisions.
Headnote:
Natural Justice - House Tax Assessment - Punjab Municipal Act, 1911 - Section 68-A, Section 85 - The court found that the order dismissing the appeal was vitiated due to violation of the principles of natural justice as it did not satisfy the requirement of a speaking order. The court referred to the decisions of the Full Bench of Gujarat High Court and a Constitution Bench of the Supreme Court to emphasize the necessity of giving reasons and the duty of judicial and quasi-judicial authorities to comply with the rules of natural justice. The court quashed the order and directed a fresh decision to be made within a specified period.
Fact of the Case:
The petitioner challenged the order dismissing the appeal and the house tax assessment demand on the grounds of violation of natural justice and principles of law.
Finding of the Court:
The court found that the order dismissing the appeal was vitiated due to violation of the principles of natural justice as it did not satisfy the requirement of a speaking order.
Issues: Violation of natural justice, validity of the order dismissing the appeal, house tax assessment demand.
Ratio Decidendi: The court emphasized the necessity of giving reasons and the duty of judicial and quasi-judicial authorities to comply with the rules of natural justice.
Final Decision: The court partly allowed the writ petition, quashed the order dismissing the appeal, and directed a fresh decision to be made within a period of 3 months.
G.S.Singhvi, J.
1. In this petition, the petitioner has made the fol lowing substantive prayers:-
"(i) a writ in the nature of certiorari quashing the order dated 23.10.2001, Annexure P/11, passed by respondent No. 2 whereby the appeal filed by the petitioner-company has been dismissed without passing a speaking and reasoned order and the order of recovery dated 26.2.2002, Annexure P/12, passed by respondent No. 3 whereby the petitioner company has been directed to deposit the house tax as assessed by the Municipal Committee, which is totally illegal and arbitrary.
(ii) a writ in the nature of certiorari for quashing the house tax assessment demand for the years, 1999-2000 and 2000-2001 amounting to Rs. 43,21,275/- and Rs. 42,78,140.68 raised vide demand bills dated 12.10.1999 and 25.5.2000 respectively, Annexure P/2 and P/4 and also for quashing the notice dated 7.12.2000, Annexure P/6, vide which the petitioner company has been directed to deposit the amount against the aforesaid demands (Annexure P/2 and P/4) within seven days, as the same are against law and the said demands have been raised without following the principles of natural justice."
2. Although, the petitioner has challenged the impugned orders and notices on various grounds and respondents No. 1, 2 and 3 have tried to defend the exercise undertaken by the competent authority of Municipal Council, Dhariwal (respondent No. 3) under Section 68-A(1) of the Punjab Municipal Act, 1911 (for short, the Act) to re-assess the value of the petitioners property and the demand notices impugned in this petition, we do not consider it necessary to deal with and decide the issues raised by the parties because after hearing learned counsel and perusing the record, we are convinced that order dated 23.10.2001 (Annexure P11) passed by Deputy Director, Urban Local Bodies, Amritsar (respondent No. 2) dismissing the appeal filed by the petitioner under Section 68-A read with Section 85 of the Act is vitiated due to violation of the principles of natural justice, inasmuch as, it does not satisfy the requirement of a speaking order and is liable to be quashed on that ground.
3. A perusal of the record shows that C.W.P. No. 17378 of 2000 filed by the petitioner for quashing bills dated 12.10/1999 and 25.5.2000 and notice dated 7.12.2000 raised/issued by respondent No. 3 was dismissed on 15.3.2001 as withdraw with liberty to file appeal. The operative part of that order reads as under:
"Hence, the writ petition is dismissed as withdrawn with liberty to the petitioner to file appeal. We also give liberty to the petitioner to file an application under Section 85(1) of the Punjab Municipal Act, 1911 for condonation of delay and hope that the appellate authority will dispassionately and objectively consider its request for condonation of delay keeping in view the averments made therein."
4. Thereafter, the petitioner filed an appeal under Section 68-A read with Section 85 of the Act against assessment list/order dated 30.8,1999 and also prayed for condonation of delay. Respondent No. 3 opposed the prayer of the petitioner for condonation of delay. The parties also filed written arguments. Thereafter, respondent No. 2 dismissed the appeal by recording the following order:
"B.I.C. Limited Mills Dhariwal submitted the appeal against the assessment order of house tax dated 30.8.1999 of Municipal Council, Dhariwal under Section 68-A of the Punjab Municipal Act, 1911 and condonation of delay under Section 85(1) dated . 27.3.2001 which was submitted in my Court on 10.4.200,1. The Municipal Council, Dhariwal submitted its reply to the appeal on 31,3.2001 and in response to which M/s B.I.C. Limited, Dhariwal submitted reply on 6.7.2001. Both the parties were heard on the given dates for which M/s B.J.C. Limited and Municipal Council, Dhariwal submitted the written arguments on 1.8.2001 and 14.9.2001 respectively. I, Bhupinder Singh, P.C.S., Deputy Director, Urban Local Bodies, Amritsar, aft
