TMI Blog2001 (1) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... nds at New Delhi or elsewhere in the State of Delhi, to lay out and also maintain the same by providing club houses, pavilions, lavatories, kitchens, refreshment rooms, workshops, sheds and other conveniences for the use of its members and other persons either gratuitously or on payment of charges. The land measuring 183 acres situate in Wellesley Road, New Delhi, was being used by the New Delhi Municipal Committee (hereinafter referred to as the Municipal Committee) for running a Golf Course till 1950 and in the year 1950, the Municipal Committee handed over the said Golf Course to the Club. In the year 1952, a lease deed dated 10.12.52 was executed between the Municipal Committee and the Club under which the land together with old buildings existing thereon known as Golf Club with a plinth area of 3000 sq. feet and a new building identified as Office with plinth area of 450 sq. feet was granted on lease on an annual rent of ₹ 200/- for land and ₹ 50/- as rent for the old buildings and another ₹ 50/- as rent for the new buildings. Due to some development and turn of events in the Ministry of Works Housing and Supply, Land Development Office, Government of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e building standing thereon at the annual value of ₹ 1,32,83,357.71. As required in the notice, the Club, though felt surprised, filed its objections contending that the proposed assessment was wrong, illegal, ultra vires and without jurisdiction since the Club was neither the owner nor a permanent lessee of the property in question to attract liability under Section 61 of the Act and that, in any event, the valuation was also arbitrary and based on merely surmises and conjectures. The purpose and objects of the Club which was meant for the development and protection of the game of Golf and the fact that it is a non-profit making enterprise, was also duly highlighted. Though an opportunity to make personal representation was also granted in the notice, counsel deputed along with the Accountant was said to have been not allowed to state anything, making the entire exercise a mere pretence. Thereupon, vide a letter dated 3.5.69, the Club was informed that the assessment has been finally settled and confirmed with an annual value of ₹ 1,32,83,357.70 with effect from 1.4.69 vide Resolution No.19 (156) of the Ordinary Meeting of the Committee said to have been held on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this case:- I. The period of temporary lease will be for a period of 20 years, i.e., from 1.1.1991 to 31.12.2010. II. (I) The Delhi Golf Club shall be required to pay annual ground rent for 2.08 acres or area required as per building bye-laws for the covered area @ 5% of ₹ 39 lakhs per acre. (ii) The club shall pay the Licence Fee @ ₹ 1,000/- per acre for the green area measuring 176.92 acres. (iii) There will be complete ban of construction on green areas and prior permission of the Government would be necessary for any construction on 2.08 acres. (iv) The Delhi Golf Club shall pay the property tax/service charges or any other taxes demanded by local bodies to pay the Government the equivalent amount (in case Government is billed by local bodies) for the entire land under their occupation. Though the property taxes for the period prior to 1.1.91 does not form part of the Current Lease Agreement, the Club shall, however, settle all issues pertaining to outstanding property tax etc. with NDMC as communicated to them vide their office letter dated 26.4.1993 and make necessary payments to NDMC in this regard. Their will be no liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b purposes stringent and strict conditions have been imposed therein regulating the relationship and respective rights of parties in and over the property in question. At this stage, the Municipal Committee appears to have once again woke up by initiating proceedings and ultimately raised a demand in a revised bill No. dated 24.11.94 calling upon the Club to pay a sum of ₹ 4,37,56,289.90. The said sum was stated to include not only the arrears of House Tax due up to 3/94 but also the amount due for the year ending 3/95. A similar demand dated 5.12.94 appears to have been raised in the name of the Land and Development Officer in which, as against the column : Name of owner L D.O., Nirman Bhawan, has been specified. In the orders of assessment also the name of the owner has been specified as Land and Development Officer, only. On receipt of the demand dated 24.11.94 and the further communication dated 31.3.95 issued demanding payment of the amount on threat of coercive action, the Club has filed a Writ Petition No. CW 2349/95 in the High Court seeking for the relief noticed supra. The sum and substance of the challenge made to the levy and the threat of recov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and other meanings of the word in its generic sense as also upon the alleged object assumed to be underlying Section 61 (1)(a), i.e., to tax all persons who possess and use the land within municipal limits for the reason that any one possessing land and using the same does make use of municipal services. First of all, the levy is not a fee to be viewed as referable to the availing of municipal services. Further, the levy envisaged under Section 61(1)(a) is property tax levied qua ownership of the property within the municipal limits and income therefrom, not a service tax payable for the service rendered to the person in occupation of the land or building. That apart, the Act itself has a definition of its own rendering it unnecessary to delve into general connotation of the word and Section 3 (11) defines owner to include the person for the time being receiving the rent of land and buildings, or either of them, whether on his own account or as agent or trustee for any person or society or for any religious or charitable purpose or who would so receive the same if the land or building were let to a tenant. In contrast, clause (e) and (ee) of sub-section (1) of Section 61 specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in the lease deed restricting and regulating the mode and character of enjoyment by the lessee and the specific stipulation reserving absolute power in the lessor to terminate the lease and resume possession as and when required on giving a notice for the stipulated period militates against the lease being characterised as one in perpetuity. In the light of the above, the respondent has no legal authority or jurisdiction to levy the House/Property Tax against the appellant-Club in its capacity merely as a tenant in respect of the property, which is the subject-matter of the lease. The fact that certain constructions have been put up by the Club or that while so applying to the Municipal Body for permission to put up such constructions, the appellant-Club represented itself to be an owner is besides the point and wholly irrelevant in the matter of consideration of levy and collection of House/Property Tax on the property of the leasehold and which is the subject-matter of the lease on the Club qua its position and status as a mere lessee. In respect of the vacant land or land over which constructions have been put up by the owner of the land and all the buildings which were thems ..... X X X X Extracts X X X X X X X X Extracts X X X X
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