THE LIMITATION FOR RECOVERY OF HOUSE TAX IS GOVERNED BY ARTICLE 113 OF THE LIMITATION ACT, WHICH PROVIDES A LIMITATION OF THREE YEARS FOR THE RECOVERY OF THE AMOUNT DUE FROM THE DATE THE RIGHT TO SUE ACCRUES.

, J.

1. This Reference to Division Bench has posed a legal issue of considerable importance. The legal issue raised was whether the Municipal Committee has a right to recover the house tax under Sec.81 of the Punjab Municipal Act, 1911 , after a lapse of a period of three years from the date it fell due.

2. The factual basic terrafirma with brevity is that the Special Executive Magistrate issued a notice, dated January 8, 1986, under Sec.81 of the Punjab Municipal Act.1911, to the effect that the amount of Rs.14 580/- was due on account of house tax for the years 1979 to 1985 The plaintiff-respondents were directed to deposit the amount in the Court failing which recover" was to be effected by sale of the immovable property of the plaintiffs The plaintiffs deposited the house tax for the preceding three years and challenged the recovery prior to that, inter alia, on the ground that since the Municipal Committee was not entitled to recover the amount beyond three years being barred by time, it could have been recovered within three years from the date it fell due The limitation for recovery is governed by Article 113 of the Indian Limitation Act, 1963 . Thus, no recovery can be made and issuance of notice is illegal.

3. The trial Court found that the house tax prior to the period of three years could not be recovered under Sec.81 of the Punjab Municipal Act. Thus, the notice to the extent of recovery of the house tax for a period from April l, 1979 to March 31, 1982 was found to be illegal and without jurisdiction. To this extent it was quashed. However, the recovery for the remaining period was found to be within limitation and notice was found to be valid. Resultantly, the Municipal Committee was restrained from recovering the amount of the house tax from April I, 1979 to March 31, 1982, under Sec.81 of the Punjab Municipal Act, 1911 .

4. The Additional District Judge, keeping in view the observations made in Faqir Chand and Ors. V/s. Municipal Committee, Sultanpur, Lodhi and Ors. , 1984 (1) L. L. R.443 affirmed the finding of the trial Court. Nothing beyond this was urged before the learned Additional District Judge.

5. The Municipal Committee challenged the finding of the Courts below and urged that in view of Sec.80 of the Punjab Municipal Act, 1911 , the house tax payable being a first charge on the property with respect to which it was payable, the recovery would be governed by Article 62 of the Indian Limitation Act (hereinafter referred to as the Limitation Act) and not by Article 113. Article 62 provides a limitation of 12 years for recovery. Consequently, the recovery being within limitation, the entire amount was payable and is due; the Municipal Committee is at liberty to recover the same under Sec.81 of the Punjab Municipal Act, 1911 (hereinafter referred to as the Municipal Act ).

6. The learned counsel for the appellant relied on Mt. Badrunnissa and Ors. V/s. Municipal Board, Agra, A. I. R.1989 All.510. Shidrao Narayanrao Gumaste Patil V/s. Municipality of Athni, A. I. R.1943 Bom.21, Nripendra Nath Roy Choudhary V/s. Commissioner of Chaibasa Municipality and Ors. ,4 Faqir Chand and Ors. V/s. Municipal Committee, Sultanpur lodhi and Ors. , 1984 (1) L. L. R.443 and Lakhmi Chand V/s. Municipal Corporation of Delhi, A. I. R.1981 Pat.47, (1984) 4 L. R. S. Pb.6.

7. In order to answer the question posed, it would be expedient to reproduce the statutory provisions of the Municipal Act as well as the Limitation Act, for reference.

8. Sections 80 and 81 of the Municipal Act run as under :-

" 80. Recovery of taxes payable by owner.-- (1) When any sum is due on account of a tax payable under this Act in respect of any property by the owner thereof the committee shall cause a bill for the amount, stating the property and the period for which the charge is made to be delivered to the person liable to pay the same. (2) If the bills be not paid within ten days from the delivery thereof the committee may cause a notice o