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Delhi District Court

Panchshila Co­Operative Housing ... vs South Delhi Municipal Corporation on 21 April, 2018

PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION



            IN THE COURT OF MS TYAGITA SINGH
    SENIOR CIVIL JUDGE­CUM­RENT CONTROLLER (SOUTH), 
                 SAKET COURTS, NEW DELHI

CS SCJ 84592/16

CNR NO.: DLST03­001229­2016


IN THE MATTER OF:

PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. 
THROUGH ITS AUTHORISED REPRESENTATIVE
PANCHSHILA CLUB BUILDING 
N­BLOCK, PANCHSHILA PARK
N. DELHI­110016.
                                          ....PLAINTIFF

                                         VERSUS

SOUTH DELHI MUNICIPAL CORPORATION
THROUGH ITS COMMISSIONER
DR. SPM CIVIC CENTRE
MINTO ROAD
NEW DELHI­110002.
                                                                       ....DEFENDANT

DATE OF INSTITUTION                               :          20.07.2016
DATE OF RESERVING                                 :          20.04.2018
DATE OF PRONOUNCEMENT                             :          21.04.2018
DECISION                                          :          Dismissed

Advocates appearing in the case:

Sh. Anil Kumar Aggarwal and Mohd. Imtiaz, Ld. counsels for plaintiff. 
Ms. Promila Kapoor and Ms. Meenakshi, Ld. counsels for defendant. 

CS SCJ 84592/16                                                                     Page 1 of 20 
 PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION



                                       O R D E R

1.

Vide this order, I shall decide the point of maintainability of this suit. The present suit for declaration and permanent injunction has   been   filed   by   the   plaintiff   Panchshila   Co­operative   Housing Society   Ltd.   against   defendant   South   Delhi   Municipal   Corporation (henceforth referred to as 'SDMC'). 

2. Brief facts of the case (as mentioned in the plaint) necessary for decision upon point of maintainability are as follows:  

2.1  That   the   plaintiff   is   a   Co­operative   House   Building   Society, which was allotted land by DDA for development and construction of houses   for   its   members   and   the   layout   plan   was   prepared   and submitted by the Society to the erstwhile MCD and it was approved on 06.11.1966. 
2.2 That later on, following three plots were allotted by DDA to plaintiff Society on lease or licence basis:
(i) First Plot admeasuring 0.9 acre marked as public park in the layout   plan   of   the   colony   was   allotted   by   DDA   on   13.01.1971   on perpetual   lease   basis   on   yearly   rent   of   Rs.1/­   for   limited   use   as park/lawn.
CS SCJ 84592/16 Page 2 of 20 

PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION

(ii) Second plot admeasuring 1.2 acres, adjoining residential plot no.   N­33   was   allotted   on   08.06.1971   on   perpetual   lease   basis   on yearly rent of Rs.1/­, on which the plaintiff Society constructed and is running its office/Club as per the use permitted by the DDA/lessor. 

(iii) Third   plot,   earmarked   as   green   area   in   the   Master   Plan, admeasuring 3.5 acres, adjacent to the Club building was allotted by DDA on 10.08.1977 on licence basis for use as Tennis Court/sports activities on annul licence fee of Rs.1/­.  

2.3 That the plaintiff Society is not permitted to sub­let the said plots and it is also not permitted to raise any construction on first and third plots, and title of all the three plots is with DDA and plaintiff Society is merely a lessee/ licensee.

2.4 That on 28.03.2009, the defendant issued notice under Section 123 of Delhi Municipal Corporation Act, 1957 (hereinafter referred to as 'DMC Act') for the purpose of assessment of property tax on vacant land and thereafter, another notice under Section 123­D of DMC Act was issued on 10.01.2013 for short payment of property tax for the financial year 2005­2006 to 2012­2013.

2.5 That   the   plaintiff   provided   all   the   relevant   information including copies of lease and licence deed of the said three plots and CS SCJ 84592/16 Page 3 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION covered   area   certificate   of   the   club   building   from   the   registered Architect,   and   copies   of   audited   books   of   account   of   the   club   as demanded  by the Assessing Officer and contested the notice on merit as   well   as   on   the   ground   of   lack   of   jurisdiction,   and   a   written representation   vide   letter   dated   04.03.2016   and   15.03.2016   were also sent to the defendant, in which it was clearly mentioned that the land   under   first  plot  and  third   plot   have  been   kept  vacant   by   the plaintiff   and   are   not   subject   to   property   tax,   therefore,   plaintiff Society is not liable to pay any property tax in respect of the said two vacant plots as the owner of the said plots is DDA. That the Assessing Officer   deliberately   ignored   the   express   terms   and   conditions   of lease/licence deed and misapplied the law and passed the impugned order without any authority or jurisdiction, against the plaintiff.

2.6 That the Assessing Officer wrongly and illegally overstretched and enlarged the statutory definition of "owner" to include the person who is in beneficial enjoyment of property and wrongly held that the club, who is in beneficial enjoyment of the plots, is the owner of land for the purpose of tax liability and wrongly imposed tax liability upon the plaintiff.

2.7 That the DDA is the owner of the said plots and DDA alone is primarily liable to pay property tax as per Section 120 (1)(a) of DMC Act, 1957. That the Assessing Officer has wrongly relied upon one CS SCJ 84592/16 Page 4 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION term of the lease/licence deed that "the lessee/licensee will pay all rates,   taxes   and   charges   which   are   now   payable   or   hereinafter   be payable  in  respect of  the said plot.". The plaintiff alleged that the liability of the defendant, if any, is towards the lessor/licensor DDA and   defendant   is   not   entitled   to   take   benefit   of   this   term   of lease/licence deed to impose the liability upon plaintiff.

2.8 That   the   Assessing   Officer   has   committed   gross   error   in considering all the three plots as a single unit of assessment, ignoring the fact that all the three plots were allotted to plaintiff by DDA on different  dates  for  entirely different  usage  and  permission  and  the said   plots   are   entirely   independent   and   capable   of   separate enjoyment. Plaintiff alleged that usage of first and third plot is not intrinsically linked to club building erected on the second plot and, therefore, the first and third plot cannot be considered as part of the second plot and club building.

2.9 That   the   Assessing   Officer   failed   to   consider   that   the   club building,   parks,   lawns,   playground   and   parking   lots   are   common assets and property of the residents of the area and wrongly held that all the three plots are not meant for public.

2.10 The plaintiff alleged that there is no other efficacious or speedy remedy against the impugned order except to file the present suit.

CS SCJ 84592/16 Page 5 of 20 

PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION

3. On   the   basis   of   abovestated   facts   and   circumstances,   the plaintiff   has   prayed   for   relief   of   declaration   for   declaring   the assessment   order   dated   31.05.2016   bearing   No. Tax/A&C/HQ/SDMC/2016/D­348   and   all   consequential   actions, demands and orders, as ab­initio null and void and non­est in eyes of law. The plaintiff has also prayed for relief of permanent injunction restraining   the   defendant,   its   agents,   servants,   employees,   officers from   taking   any   coercive   steps   for   recovery   of   any   demand   for property   tax   as   per   the   impugned   assessment   order   dated 31.05.2016. 

4. The defendant was duly served with summons. The defendant took preliminary objections that the  suit of  plaintiff  is liable to be dismissed   on   the   ground   that   as   per   Section   169   of   DMC   Act,   an appeal against the levy/assessment or revision of assessment of any tax   under   DMC   Act   shall   lie   to   the   Municipal   Taxation   Tribunal (MTT)  constituted  under   this  Section.  The   most  basic  objection  of defendant   was   of   Section   169   DMC   Act   and   on   this   ground, defendant prayed that suit is not maintainable and civil Court has no jurisdiction to entertain the present suit since the remedy lies before Municipal Taxation Tribunal and not before the Civil Court.   

5. The   defendant   further   stated   in   the   written   statement   that plaintiff was given enough opportunity to put forward its arguments CS SCJ 84592/16 Page 6 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION and   to   submit   information,   and   personal   hearing   was   given   on various dates, and a detailed speaking order has been passed by the Assessor   and   Collector,   SDMC   after   considering   all   the   facts   and circumstances,   therefore,   assessment   order   dated   31.05.2016   does not suffer from any infirmity or lack of jurisdiction, as alleged by the plaintiff. 

6. The   facts   regarding   passing   of   the   impugned   order   and regarding the lease deed/licence deed in respect of all the three plots have been admitted by the defendant. However, the defendant has categorically   stated   in   the   written   statement   that   the   impugned assessment order was passed after giving detailed hearing to plaintiff and it does not suffer from any illegality and the remedy to plaintiff is only under Section 169 of DMC Act, hence, the suit of the plaintiff is not maintainable. 

7. Vide   order   dated   23.07.2016,   ad   interim   ex­parte   injunction was passed in favour of the plaintiff and the defendant was restrained from taking any coercive steps for recovery of the demand of property tax   in   terms   of   impugned   order   of   Assessing   Officer,   dated 31.05.2016. 

8. Arguments on maintainability were heard at length on behalf of both the parties on the last date of hearing and case was kept for CS SCJ 84592/16 Page 7 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION order for today.   

9. During   arguments,   Ld.   counsel   for   plaintiff   has   vehemently argued that as per definition of "owner" under Section 2 (37) of DMC Act read with Section 120 (1)(a) of DMC Act, the property tax on any land or building shall primarily be leviable upon the owner. In the present   case,   DDA   is   the   owner   and   plaintiff   is   merely   a licensee/lessee   of   DDA   and   hence,   the   DDA   is   responsible   for payment   of   property   tax   to   the   defendant   and   defendant   is   not entitled to claim any tax from plaintiff directly. 

10. Ld.   counsel   for   plaintiff   relied   upon   following   judgments   in support of his arguments:

(a)   Today   Homes   &   Infrastructure   Pvt.   Ltd.   &   Ors.   v.   South   Delhi Municipal Corporation & Ors., 222 (2015) DLT 182  (DB);
(b) Ganga Ram Hospital Trust v. Municipal Corporation of Delhi, 2001 (60) DRJ 549 [referred and relied in Today Homes & Infrastructure Pvt.

Ltd.'s case (supra)]; 

(c) Munshi Ram & Ors. v. Municipal Committee Chheharta, reported as (1979)   118   ITR   488   (SC)   [referred   and   relied   in   Today   Homes   & Infrastructure Pvt. Ltd.'s case (supra)];

(d) Indian Hotels Company Limited v. New Delhi Municipal Council, 63 CS SCJ 84592/16 Page 8 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION (1996) DLT 163 [referred and relied in Today Homes & Infrastructure Pvt. Ltd.'s case (supra)];

(e) Gurbax Singh v. Financial Commissioner & Anr., 1991 Supp (1) SCC 167;

(f)   Delhi   Transport   Corporation   v.  Commissioner,   Service   Tax,   2015 (149) DRJ 668;

(g) Yashod Kumari & Anr. v. MCD & Ors., 111 (2004) DLT 33;

(h)   Raghunath   Das   v.   Union   of   India   &   Anr.,   (1969)   1   SCR   450 [referred and relied in Yashod Kumari & Anr.'s case (supra)].

11. On   the   other   hand,   Ld.   counsel   for   defendant   vehemently argued that as per Section 120 (2) of DMC Act, if any land has been let to a tenant for a term exceeding one year and such tenant has built upon such land, the  property tax  assessed in  respect of  such land and in respect of the building erected thereon, shall be payable by   such   tenant,   whether   the   land   and   the   building   are   in   the occupation of such tenant or a sub­tenant of such tenant.   

12. Ld.   defence   counsel   argued   that   in   the   present   case,   the plaintiff has erected a club building on the second plot and the first and third plots are being used as part of the club building erected upon second plot. Therefore, all the three plots are liable for payment CS SCJ 84592/16 Page 9 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION of tax as a single unit in the hands of plaintiff as per Section 120 (2) of DMC Act. 

13. Ld. defence counsel further brought attention of this Court to Section 169 of DMC Act, in which it is specifically mentioned that an appeal against the levy or assessment or revision of assessment of any tax   under   this   Act   shall   lie   to   the   Municipal   Taxation   Tribunal constituted   under   this   section,   provided   that   full   amount   of   the property   tax   shall   be   paid   before   filing   any   appeal.   Ld.   defence counsel   relied   upon   the   following   judgments   in   support   of   her arguments:

(i) Vinod Chawla v. M/s V.C. Investment Pvt. Ltd. & Anr., AIR 2001  Delhi 112; 
(ii) Kirpal Singh Surjeet Singh v. Municipal Corporation of  Delhi,   1995 IIAD Delhi 405;
(iii)  Municipal Corporation of Delhi & Anr. v. Tata Engineering %   Locomotive Company Ltd., 128 (2006) DLT 300; 
(iv) Municipal Corporation of Delhi v. C.L. Batra, JT 1994 (5) SC   241; 
(v)  Mahesh Kapoor & Anr. v. Municipal Corporation of Delhi, 105   (2003) DLT 77; 
CS SCJ 84592/16 Page 10 of 20 

PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION

(vi) NDMC v. Satish Chand (Deceased) by LR Ram Chand, Appeal   (Civil) 2700 of 1997, dated 11.09.2003, passed by the   Hon'ble   Supreme Court of India.

14. During arguments, Ld. counsel for plaintiff has heavily relied upon   judgment   titled   'M/s   Today   Homes   and   Infrastructure   Pvt. Ltd. v. South Delhi Municipal Corporation & Ors.' (2012) 222 DLT 182   (DB).   In   this   judgment,   the   Hon'ble   High   Court   of   Delhi discussed various judgments of Hon'ble Supreme Court of India and Hon'ble   High   Courts,   and   observed   that   a   limited   window   was opened to the plaintiffs to maintain the civil action, where there is no absolute bar to the maintainability of a suit. In abovesaid case, the Hon'ble High Court of Delhi cited the case titled 'Dhulabhai v. State of Madhya Pradesh' (1968) 3 SCR 662, in para 17 of its judgment and observed that five Judge Bench of the Hon'ble Supreme Court in Dhulabhai's case (supra) laid down the following principles: 

"(1) Where the statute gives a finality to the orders of the special tribunals the civil court's jurisdiction must be held  to   be  excluded   if   there  is  adequate   remedy   to   do what the civil courts would normally do in a suit. Such provision, however, does not exclude those cases where the   provisions   of   the   particular   Act   have   not   been complied with or the statutory tribunal has not acted in conformity   with   the   fundamental   principles   of   judicial CS SCJ 84592/16 Page 11 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION procedure.
(2) Where there is an express bar of the jurisdiction of the court, an examination of the scheme of the particular Act   to   find   the   adequacy   or   the   sufficiency   of   the remedies provided may be relevant but is not decisive to sustain the jurisdiction of the civil court.

Where there is no express exclusion the examination of the remedies and the scheme of the particular Act to find out the intendment becomes necessary and the result of the   inquiry   may   be   decisive.   In   the   latter   case   it   is necessary to see if the statute creates a special right or a liability and provides for the determination of the right or   liability   and   further   lays   down   that   all   questions about the said right and liability shall be determined by the   tribunals   so   constituted,   and   whether   remedies normally   associated   with   actions   in   civil   courts   are prescribed by the said statute or not. 

(3) Challenge to the provisions of the particular Act as ultra   virus   cannot   be   brought   before   Tribunals constituted under that Act. Even the High Court cannot go into that question on a revision or reference from the decision of the Tribunals.

(4)   When   a   provision   is   already   declared unconstitutional or the constitutionality of any provision CS SCJ 84592/16 Page 12 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION is to be challenged, a suit is open. A writ of certiorari may include a direction for refund if the claim is clearly within the time prescribed by the Limitation Act but it is not a compulsory remedy to replace a suit.

(5)  Where the particular Act contains no machinery for refund of tax collected in excess of constitutional limits or illegally collected a suit lies.

(6) Questions of the correctness of the assessment apart from   its   constitutionality   are   for   the   decision   of   the authorities and a civil suit does not lie if the orders of the authorities are declared to be final or there in an express prohibition   in   the   particular   Act.   In   either   case   the scheme of the particular Act must be examined because it is a relevant enquiry.

(7) An exclusion of the jurisdiction of the civil court is not readily to be inferred unless the conditions above set down apply."

15. After   enumerating   the   principles   laid   down   by   the   Hon'ble Supreme   Court   of   India   in  Dhulabhai's   case   (supra),   the   Hon'ble High   Court   remanded   the   case   back   to   Ld.   Single   Judge   for   re­ determination     of   the   issue   of   maintainability   in   the   light   of   law declared by the Hon'ble Supreme Court of India and reiterated by the various   devision   benches   of   the   Hon'ble   High   Court   in   various CS SCJ 84592/16 Page 13 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION judgments,   as   discussed   in   this   case   of  M/s   Today   Homes   and Infrastructure Pvt. Ltd. (supra). 

16. On   the   strength   of   abovestated   judgments,   Ld.   counsel   for plaintiff argued that the Assessor and Collector SDMC has exceeded his jurisdiction in passing the impugned order dated 31.05.2016 and in giving a finding that the definition of "owner" in Section 2 (37) DMC Act, is an inclusive definition and it includes " a person who has a   right   to   let   or   a   right   to   beneficial   enjoyment"   over   the property/land. 

17. Ld. counsel for plaintiff further argued that the Assessor and Collector also exceeded his jurisdiction in taking benefit of the lease/ licence between the plaintiff and DDA in which it was mentioned that "the   lessee   will   pay   all   rates,   taxes   and   charges   which   are   now payable  or  hereinafter   be   payable   in   respect   of   the  said  plot".   Ld. counsel   for   plaintiff   vehemently   argued   that   the   Assessor   and Collector   being   third   party   cannot   take   benefit   of   the   terms   of lease/licence   between   plaintiff   and   DDA   and   even   if   any   tax   is chargeable upon the vacant plots of land, DDA being the owner shall be asked to pay the tax and plaintiff who is merely a licensee/lessee in respect of the said plots cannot be compelled to pay any tax in respect of the vacant land falling in "first plot" and "third plot". 

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PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION

18. Ld. counsel for the plaintiff has also put forth the  argument that   remedy   of   the   appeal   provided   under   Section   169   read   with Section 170 and 171 of DMC Act, against the order of Assessor and Collector is not an adequate remedy as the appellant is compelled to deposit   100%   of   the   tax   amount   at   the   time   of   filing   the   appeal, hence, this is a burdensome/onerous right and it cannot be said to be a just and proper remedy in the eyes of law. Ld. counsel for plaintiff prayed that the suit of the plaintiff is maintainable in the Civil Court as there is no express bar to the jurisdiction of the Civil Court and the implied   bar   has   to   be   construed   and   interpreted   only   in   terms   of guidelines of the Hon'ble Supreme Court of India as discussed above.

19. On the other hand, Ld. defence counsel has argued that only a limited   window   is   kept   open   as   per   the   guidelines   of   the   Hon'ble Supreme Court of India in Dhulabhai's case (supra) and only those cases   can   be   entertained   in   Civil   Court   wherein   the   statutory authority   has   exceeded   its   jurisdiction   or   where   the   statutory authority did not comply with the provisions of the statute and did not   act   in   conformity   with   the   fundamental   principles   of   judicial procedure, however, in the present case, the statutory authority i.e. Assessor   and   Collector   had   duly   complied   the   provisions   of   the statute and had acted in conformity with the fundamental principles of judicial procedure, as opportunity of hearing was given to plaintiff many times and all the documents submitted by the plaintiff before CS SCJ 84592/16 Page 15 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION the   statutory   authority   were   duly   considered,   before   passing   the impugned   order   dated   31.05.2016,   therefore,   implied   bar   of jurisdiction of Civil Court duly applies in this case and the limited window of challenge to the  order of the  statutory authority is not open to the plaintiff in this case. 

20. I have heard detailed arguments on behalf of both the parties and   have   duly   perused   written   arguments   of   plaintiff   as   well   as judgments cited by both the parties. 

21. I   have   also   perused   the   impugned   order   of   Assessor   and Collector   dated   31.05.2016   which   is   under   challenge   in   this   suit. Perusal of impugned order dated 31.05.2016 reveals that the issue of tax assessment of the three plots was pending since year 2009 when notice   123­C   of   DMC   Act   was   issued   to   plaintiff   on   28.03.2009. However, plaintiff kept paying the property tax proportionately, in respect of the second plot of land upon which the club building has been constructed, but did not pay the remaining tax, due to which notice under Section 123 DMC Act was again issued to plaintiff on 10.01.2013, for short payment of property tax since 2005­06 to 2012­

13. 

22. Vide   impugned   assessment   order   dated   31.05.2016,   the assessment of tax for period 2005­06 to 2015­16 was made. Perusal CS SCJ 84592/16 Page 16 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION of   impugned   order   dated   31.05.2016   further   reveals   that   detailed hearing was given to plaintiff on various dates and plaintiff had filed various  representations  and  had  also submitted  various  documents including account books, lease deed/licence deed, etc. for perusal of Assessor and Collector and only after perusal of all the documents submitted   by   the   plaintiff   and   only   after   consideration   of   all   the representations, a detailed speaking order was passed by the Assessor and Collector running into seven pages. Therefore, it cannot be said that   no   opportunity   of   hearing   was   given   to   the   plaintiff   and   his documents   and   representation   were   not   duly   considered   before passing the order. 

23. The argument of the plaintiff that it is a liability of the DDA to pay the tax for vacant land falling in first plot and third plot, is not tenable   since   the   effective   use   and   enjoyment   of   the   land   is   with plaintiff and bare perusal of the plaint as well as lease deed/licence deed reflects that the  two chunks of land falling in first and third plots are being used for the benefit of club members only. The club building is situated in the second plot. Therefore, the argument of the plaintiff   that   all   the   three   plots   are   independent   of   other   and   are capable of being used independently is not tenable. It is clear from the  perusal  of  lease deed of  "first plot", that it was to be  used as lawn/park. Perusal of licence deed of the "third plot" reveals that it was to be used for tennis, functions /parties and marriage purposes.

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PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION The perusal of plaint itself reflects that the land of all the plots is being used for benefit of members of the society and residents of the colony only. All the three plots are not open for use of general public. Therefore,   argument   of   the   plaintiff   that   the   plots   in   question   are open   for   public   use   and   are   not   liable   for   tax   assessment,   is   not tenable.

24. With due respect to the Hon'ble Supreme Court and Hon'ble High Court of Delhi, the  facts of the  case  are completely different from the facts of the case in  M/s Today Homes and Infrastructure Pvt. Ltd. v. South Delhi Municipal Corporation & Ors. (supra). In present   case,   the   entire   use   and   enjoyment   of   property   is   with plaintiff,   and   DDA   is   merely   getting   nominal   rent/licence   fee   of Rs.1/­ per annum. Therefore, effectually, the plaintiff is liable to pay the taxes, as per the terms and conditions of the lease deed. After due perusal of the impugned order dated 31.05.2016, this Court is of the opinion   that   the   Assessor   and   Collector   has   not   exceeded   his jurisdiction in any manner, and he has acted in conformity with the fundamental principles of judicial procedure and has duly complied with   all   the   provisions   of   DMC   Act,   before   passing   the   impugned order.

 

25. Due   opportunity   of   hearing   was   given   on   various   dates,   to plaintiff before passing the impugned order, therefore, only remedy CS SCJ 84592/16 Page 18 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION to plaintiff was to approach the Municipal Taxation Tribunal (MTT) under   Section   169   read   with   Section   170   and   171   of   DMC   Act. Section   171   of   DMC   Act   clearly   provides   finality   to   the   appellate orders   of   the   Municipal   Taxation   Tribunal.   Therefore,   as   per   the guidelines   of   the   Hon'ble   Supreme   Court   in  Dhulabhai's   case (supra), the jurisdiction of Civil Court is impliedly barred. This Court has duly considered the question of maintainability of the suit vis­a­ vis  principles laid down by the Hon'ble Supreme Court of India and this Court is of the opinion that no ground is made out in favour of the plaintiff, for challenging the impugned order dated 31.05.2016 in the Civil Court. 

26. It is pertinent to mention here that the Hon'ble Supreme Court of   India   has  observed  in   the   guidelines  mentioned   in  Dhulabhai's case (supra)  that,  "Questions of the correctness of the assessment apart   from   its   constitutionality   are   for   the   decision   of   the authorities   and   a   civil   suit   does   not   lie   if   the   orders   of   the authorities   are   declared   to   be   final   or   there   is   an   express prohibition in the particular Act. In either case, the scheme of the particular Act must be examined because it is a relevant enquiry."

27. In   the   present   case,   due   opportunity   of   hearing   has   already been availed by the plaintiff and plaintiff is trying to challenge the correctness   of   the   assessment   order   dated   31.05.2016   which   is CS SCJ 84592/16 Page 19 of 20  PANCHSHILA CO­OPERATIVE HOUSING SOCIETY LTD. V. SOUTH DELHI MUNICIPAL CORPORATION certainly outside the purview of the civil court. Civil court cannot sit in appeal over the decision of the Assessor and Collector, since the appellate authority in this case is Municipal Taxation Tribunal (MTT). Therefore, no ground for maintainability of the suit is made out. 

28. The   suit   is   dismissed,   as   not   maintainable   in   view   of   the provisions of Section 169Section 170 and Section 171 of DMC Act. Parties to bear their own costs.  

29. Decree sheet be prepared accordingly. 

30. File be consigned to record Room.  

(Announced in the open                                    (Tyagita Singh)
Court on 21.04.2018)                     SCJ­cum­RC (South), Saket Courts 
                                                              New Delhi




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