Case Note & Summary
The petitioners, including a co-operative housing society and its members, challenged the reassessment of property tax by the Municipal Corporation of Greater Bombay. The property in question was originally assessed in 1972 after the society was registered and an indenture of assignment was executed. In 2003, the Corporation issued a notice proposing to revise the rateable value of the property, claiming that the earlier assessment was erroneous. The petitioners contended that the reassessment after 30 years was barred by limitation and that no proper notice or opportunity of hearing was given. The court examined the provisions of the Mumbai Municipal Corporation Act, 1888, particularly Section 154, which requires the Corporation to give notice and hear the party before revising the assessment. The court found that the Corporation had not complied with these requirements and that the reassessment was arbitrary. The court allowed the writ petition, quashing the impugned assessment orders and directing the Corporation to follow the proper procedure if it wished to reassess the property.
Headnote
A) Property Tax - Reassessment - Limitation - Section 154 of the Mumbai Municipal Corporation Act, 1888 - The Municipal Corporation sought to reassess the rateable value of a property after 30 years from the original assessment. The court held that such a belated reassessment without issuing a notice under Section 154 and without affording an opportunity of hearing to the society is arbitrary and violative of principles of natural justice. The court quashed the impugned assessment orders. (Paras 1-10) B) Natural Justice - Notice and Hearing - Section 154 of the Mumbai Municipal Corporation Act, 1888 - The court emphasized that before revising the rateable value, the Corporation must issue a notice to the owner/occupier and provide a reasonable opportunity of being heard. Failure to do so renders the reassessment invalid. (Paras 5-8)
Issue of Consideration
Whether the reassessment of property tax after a lapse of 30 years without issuing a proper notice and affording an opportunity of hearing to the society is valid under the Mumbai Municipal Corporation Act, 1888.
Final Decision
The court allowed the writ petition, quashing the impugned assessment orders and directing the Corporation to follow the proper procedure under Section 154 of the Mumbai Municipal Corporation Act, 1888 if it wishes to reassess the property.
Law Points
- Principles of natural justice
- Section 154 of the Mumbai Municipal Corporation Act
- 1888
- limitation for reassessment
- notice requirement
- opportunity of hearing
