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IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

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201 CWP-4519-2006

Date of Decision: 29.01.2026

DIWAN CHAND GARG ...Petitioner

Vs.

MUNICIPAL CORPORATION AND ORS. …Respondents

CORAM:- HON'BLE MR. JUSTICE JAGMOHAN BANSAL

HON'BLE MR. JUSTICE AMARINDER SINGH GREWAL

Present:- Mr. Rishabh Gupta, Advocate

for the petitioner

Mr. Sanjeev Soni, Advocate with

Mr. Sarthak Soni, Advocate

for respondents-Municipal Corporation

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JAGMOHAN BANSAL, J. (ORAL)

1. The petitioner through instant petition under Articles 226/227 of

the Constitution of India is seeking setting aside of order dated 17.12.2004

and 23.11.2005 whereby respondent has assessed rental value of his house to

the tune of Rs.1,08,000/- p.a.

2. The petitioner is owner of House No.4697 situated at Old

Hospital Street, Bathinda. The property comprises ground and first floor.

First Floor is occupied for the purpose of residence and ground floor is let

out. The respondent issued notice dated 08.10.2004 proposing total rental

value of the property Rs.1,20,000/- p.a. The assessed value after deduction

was determined Rs.1,08,000/-. Annual house tax was assessed Rs.16,200/-.

The petitioner filed objections and respondent vide order dated 17.12.2004

upheld annual rental value as proposed in the show cause notice. The

petitioner unsuccessfully preferred appeal.

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3. During the course of hearing, learned counsel for the Municipal

Corporation produced calculation dated 19.01.2026 disclosing that

respondent for the period from 2004-05 to 2012-13 has assessed house tax to

the tune of Rs.1,45,800/-. The petitioner during said period has deposited

Rs.7,290/-.

4. Learned counsel for the petitioner claims that after 2012-13, the

property was subjected to property tax instead of house tax. As per his

instructions, the demised property is subjected to property tax to the tune of

Rs.5,000/- p.a. The petitioner has already sold demised property after seeking

NOC from Municipal Corporation.

5. Learned counsel for the respondents submits that petitioner has

not sold property after obtaining NOC from Corporation whereas he has

transferred demised property in favour of his wife and son and that too

without NOC. The rental value was assessed keeping in mind rent actually

fetched by adjoining properties. The property in question comprises 180 sq.

yards. The said property is used for commercial purpose, thus, respondent

has rightly assessed rental value. The State Government vide notification

dated 15.05.2025 in exercise of power conferred by Section 71 of Punjab

Municipal Act, 1911 framed policy whereby exemption from interest and

penalty was granted who deposited principal amount in lump sump by

31.07.2025. Whosoever deposited principal amount after 31.07.2025 but

before 31.10.2025 was entitled to waiver of 50% of interest and penalty. The

petitioner did not avail benefit of said notification.

6. Faced with this, learned counsel for the petitioner submits that

petitioner did not avail benefit of said notification because there was stay in

his favour. He may be granted an opportunity to deposit principal amount

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subject to waiver of interest and penalty.

7. The petitioner approached this Court in 2006. This Court while

issuing notice of motion vide order dated 27.03.2006 stayed recovery of

enhanced amount. The petitioner continued to pay liability as assessed by

him. As per respondent, liability of principal amount from 2004-05 to

2012-13 comes to Rs.1,45,800/-. The petitioner has already deposited a sum

of Rs.7,290, thus, outstanding liability comes to Rs.1,38,510/-. The

respondent has calculated interest and penalty besides fire cess.

8. In the wake of statement of learned counsel for the petitioner as

well as afore-stated amnesty scheme introduced by respondent, we deem it

appropriate to grant an opportunity to petitioner to deposit house tax plus fire

cess i.e. Rs.1,45,436/- on or before 01.03.2026.