IMPORTANT POINT
Publication in the newspapers of public notice of assessment lists is in substantial compliance with the requirements of sub-section (1) of Section 149 of the Patna Municipal Corporation Act.

Headnote:(i) Patna Municipal Corporation Act, 1951-Sections 123, 133, 139, 149(1), 150, 151-Property Tax-Mode of giving public notice of assessment list-Publication in newspapers was in substantial compliance with requirements of Section 149(1)-Owners having been served with individual notices under Section 149(2)-They have also filed their objections under Section 150 to the assessment list-No legal flaw in preparation and publication of assessment list-Valuation as mentioned in assessment list must be given effect to till the time it is revised or amended.
       Held : That the mode of publication is a procedural provision is self-evident. But it is a mandatory provision? The High Court s finding as to the nature of the provision for publication under sub-section (1) of section 149 is somewhat contradictory. While holding that the manner of publication was mandatory and had to be complied with in terms thereof, in a subsequent portion of the judgment, it was held that it was a mere irregularity which could be waived. As we read sub-section (1) of section 149, the Chief Executive Officer is bound to give public notice of the assessment list. The word "shall" makes that clear. However the word "shall" does not qualify the next phrase which is separated from the words "public notice" by a comma. The phrase separated is "by beat of drum and by placards posted in conspicuous places throughout Patna ......" Generally speaking the object of giving a notice is to draw the attention of the persons sought to be affected to the matter notified. The purpose of specifying a particular mode of giving notice is to raise a legal presumption against such person of knowledge of the subject of the notice. In other words, once the mode specified for giving notice is complied with, the onus is on the persons notified to prove that they were not aware of the subject matter of the notice. There is otherwise no special sanctity given to the mode of service of notice. (Para 26)
       Nobody disputes that publication and the giving of notice to persons likely to be affected by the assessment list is a must. The appellants have admitted publication of the assessment lists in three newspapers. It is not their case that such publication did not serve the purpose of notifying those who might be affected by the assessment lists, of their existence. Indeed it appears to us that the requirement to notify people by beat of drum is an anachronism which appears to be inappropriate in the present day and age in a large city like Patna. The High Court s apprehension that "holding this provision as directory is likely to cause confusion and mischief in future and it is not for this Court to substitute the wisdom of the legislature with its own by holding that notice by newspaper will be sufficient in place of notice of the spot by beat of drum and placards" is founded both in law and in fact. It is an elementary principle of interpretation that words in statutory provisions take their colour from their context and object, keeping pace with the time when the word is being construed. When or where no other means of effective publication is available, no doubt, announcing the assessment list by beat of drum and by displaying placards would have to be complied with. Where equally efficacious, if not better, modes of publication are available, it would be ridiculous to insist on an obsolete form of publication as if it were a ritual. Had the High Court found that publication by newspapers was not effective enough to notify the public, the assessment list could not be given effect to unless publication were properly made. There is no such finding. On the other hand publication through newspapers is now an accepted form of giving general notice. Therefore, we have no hesitation in holding that the portion of section 149(1) which deals with the manner of publication, as opposed to the requirement for publication per se, is directory. Since there has been sufficient compliance in effecting the intention of the legislature to give notice to the public at large in the city of Patna, we cannot hold that the assessment lists prepared on the basis of the 1993 Rules are required to be set aside. (Para 27)
       (ii) Patna Municipal Corporation Act, 1951-Sections 123, 133, 138, proviso 149, 150, 151-Assessment of Annual Rental Value of Holding Rules 1993-Property Tax-Mode of determining annual rental value-Assessment based on localities as well as different kinds of properties, classified according to its user and type of construction.
       Held : The 1993 Rules and the notifications issued thereunder clearly provide for assessment based on the localities as well as different kinds of properties, classified according to its user and the type of construction. Admittedly, the proviso to section 138(1) expressly indicates that assessment lists may be prepared in respect of a specified area within the Corporation. Finally, Section 149 sub-section (1) itself shows that assessment lists may be made in respect of "any part of Patna" (Para 22)
       To put it differently, there could be several assessment lists operating in respect of different holdings in the municipal area. The position has been clarified by the introduction of the proviso to section 138(1) of the present Act, as we have already noted. (Para 25)
       (iii) Patna Municipal Corporation Act, 1951-Sections 151, 152-Property Tax-Objections-Recovery of tax on basis of assessment list published-Sustainability-Appellants claim that there cannot be any recovery of tax on basis of assessment list published unless their objections disposed of under Section 151-Assessment list had been properly prepared-There had been no legal flaw in its preparation and publication-Valuation as mentioned in assessment list must be given effect to till the time it is revised or amended under Sections 151 or 152.
       Held : Valuation and assessment lists remain in force until they are altered or amended in accordance with the procedure laid down in the Act. Alteration or amendment can take place pursuant to an order under sections 151 or 152. This is also clear from section 153 which says that "every valuation made by the Chief Executive Officer ... .... shall, subject to the provisions of sections 151 and 152, be final". The phrase `subject to means that until and unless the assessment list is revised or amended under section 151 or 152, the assessment list would continue to be final. This reading is in keeping with sub-section (2) of section 138 which provides that every valuation and assessment list shall be valid from the date on which the list takes effect in the Corporation and until the first day of the quarter next following the competition of a new list, thus indicating that an assessment list is valid from the date of its completion. Such an assessment list is subject to "any alteration or amendment made" and to the result of any application under Section 150. What needs to be emphasised is that the assessment list as prepared is valid and is unaffected by the mere filing of an application under Section 150. If the result of the application is in favour of the owner, the assessment list must be amended to give effect to such result. Unless the application of the appellants under Section 150 ends in a result which is different from the assessment list, the assessment list would continue to be operative, and the respondent can recover taxes on the basis of the assessment and valuation list despite the filing of objections under Section 150. Besides the reference to both sections 151 and 152 in Section 153 makes it clear that the same incidence relating to the recovery of taxes pending either the determination of the objections under section 151 or the adjudication of the appeal under section 152, would prevail. If this construction is not put on section 153, it would mean that by merely filing an objection, the objector would be able to effectively stop the realisation of tax on the basis of the assessment list until such time as his objection is heard and decided. This could not have been legislatively intended. As has been seen in this case that although the appellants had filed their objections in 1995, they are still pending. We, therefore, conclude that it is open to the Corporation to recover the tax as determined on the basis of the impugned assessment lists pending disposal of the appellants applications under Section 151, until and unless, by virtue of an order under Section 151 or 152 passed thereon, the assessment list is amended or altered. (Para 34)
       (iv) Interpretation of Statutes-Words in statutory provisions take their colour from their context and object, keeping pace with the time when the word is being construed-Publication of public notice-Where equally efficacious, if not better, modes of publication are available-It would not be proper to insist on an obsolete form of publication as if it were a ritual.

JUDGMENT

Ruma Pal, J.-This case relates to the assessment of the appellants holdings in Patna under the Patna Municipal Corporation Act, 1951 (hereinafter referred to as the Act).

2. A brief survey of the relevant provisions of the Act is necessary before considering the facts of the case since the appellants grievances are that the provisions of the Act have not been followed in assessing the appellants properties to tax.

3. The Act, which came into force on 15th August 1952, was passed to consolidate and amend the law relating to the municipal affairs of the town and suburbs of Patna. Section 123 of the Act allows the Corporation, with the previous approval of the State Government, to impose various taxes and fees. We are concerned with clauses (a), (b) and (c) of section 123 which provide for the imposition of property tax, water tax and latrine tax on holdings situated within Patna - the tax being assessed on the annual letting value. Section 130 provides that the annual value of a holding shall be deemed to be the gross annual rental at which the holding may reasonably be expected to let. This however is subject to rules that may be prescribed by the State Government. Any tax which is assessed on the annual value of a holding, other than the latrine tax or drainage tax, is payable by the owner of the holding within the Corporation. The latrine or drainage tax is payable by the persons in actual occupation of such holdings. (Section 132(1), (2)).

4. Section 133 provides for the preparation of a Valuation List in four stages.-(i) determination to impose a tax to be assessed on the annual value of holdings (ii) inquiry to be held by the Chief Executive Officer (iii) the determination of the annual value of all holdings and (iv) the entry of the value in a valuation list. The percentage at which tax is payable is fixed under section 136 by the Corporation on the basis of reports submitted by the Chief Executive Officer and the Standing Committee. This relates to stage (i) of section 133. For the purposes of stage (ii) the Chief Executive Officer may require owners or occupiers, or both, of holdings to furnish him with returns of the rent or annual value thereof and such other particulars as he may require for the preparation of the valuation list. The Chief Executive Officer is also empowered to inspect or cause any holding to be inspected and measured, if necessary, after giving notice to the occupier, (Section 134). The preparation of the Assessment List follows the Valuation List. This is done under section 137 which also sets out the particulars which must be contained therein namely :

(a) the name of the street in which the holding is situated.

(b) the number of the holding on the register;

(d) the annual value of the holding;

(e) the name of the owner and occupier;

(f) the amount of tax payable for the year;

(g) the amount of quarterly instalment; and

(h) if the holding is exempted from assessment, a notice to that effect.

5. Both the Valuation and the Assessment List should ordinarily be prepared once in every five years under section 138(1). In terms of the proviso to section 138(1) "in between the two general assessments, the State Government may, on the recommendation of the Corporation, authorise it to prepare a fresh assessment list in respect of any specified area within the Corporation". Every valuation and assessment list is, under Section 138(2), valid "from the date on which the list takes effect in the Corporation and until the first day of the quarter next following the completion of a new list". This is subject to any alteration which may be made under Section 139 and to the result of any objection to the valuation or assessment by any person under Section 150.

6. The next relevant provision is section 149. Since the main plank of the appel

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2003 Supreme(SC) 592

IMPORTANT POINTPublication in the newspapers of public notice of assessment lists is in substantial compliance with the requirements of sub-section (1) of Section 149 of the Patna Municipal Corporation Act.

Cases Referred (6)

IMPORTANT POINT
Publication in the newspapers of public notice of assessment lists is in substantial compliance with the requirements of sub-section (1) of Section 149 of the Patna Municipal Corporation Act.