Gulam Husen Rashid Shaikh vs. The Commissioner And Another
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The Petitioners, Mohammadkhan Amirkhan Pathan and others, filed multiple writ petitions before the Bombay High Court, Aurangabad Bench. They challenged notices issued by the Municipal Corporation demanding rent for premises they occupied, and subsequent orders passed by the District Judge-4, Latur, which dismissed their appeals against these notices. The Petitioners argued that no rent agreements were executed, and the Corporation failed to follow procedures under sections 81(C) and 81(B) of the Maharashtra Municipal Corporations Act, 1949. They contended that the Corporation could not demand rent without a rent agreement or proper authorization, especially since the allotment was not permanent. The Appellate Court, despite acknowledging the absence of a rent agreement, dismissed the appeals solely based on the Petitioners' occupation of the premises.
Held
The Court held that the Petitioners, by occupying the premises of the Municipal Corporation, are bound to pay rent. The absence of a formal rent agreement or a decision by the State Government on fixing the rent does not exempt them from this liability. The Court found that the notices issued by the Municipal Corporation, which demanded rent and mentioned the GST amount, were not perverse. The Appellate Court's observation that the Petitioners were occupying the premises and thus liable to pay rent, even without a written agreement, was also deemed not perverse. The Court stated that if the Petitioners desired to have the rent fixed, they should submit a proper application to the Corporation, which would then be considered in accordance with the law. Consequently, the Court found no perversity in the orders passed by the Appellate Court or the notices issued by the Municipal Corporation.
Key Issues
1. Whether the Municipal Corporation can demand rent from the Petitioners in the absence of a formal rent agreement, contrary to the procedure contemplated under Section 81(C) and Section 81(B) of the Maharashtra Municipal Corporations Act, 1949? 2. Whether the notices issued by the Municipal Corporation demanding rent are vague and invalid due to the absence of a fixed rent by the State Government or a written agreement, rendering the subsequent dismissal of appeals by the Appellate Court perverse? Petitioner's Arguments: The Petitioners argued that the notices demanding rent were illegal as no rent agreement existed. They contended that the Corporation failed to follow the prescribed procedure under Section 81(C) and Section 81(B) of the Maharashtra Municipal Corporations Act, 1949, by not issuing proper bills. They further argued that the Appellate Court erred by dismissing their appeals, despite noting the absence of a rent agreement, solely on the basis of occupation. They also pointed out that the State Government had not yet decided on the proposal for fixing rent, making the notices vague. Respondents' Arguments: The Respondents (Municipal Corporation) argued that the Petitioners, by occupying the premises, were bound to pay rent as per the Corporation's policy, which mandates fixing rent at prevailing rates and regulations. They contended that the absence of a written agreement or a decision by the State Government did not absolve the Petitioners of their liability to pay rent. They also stated that if the Petitioners wished for rent to be fixed, they should submit a proper application to the Corporation.
Sections Cited
Section 81(C), Section 81(B)
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Cause title — parties, addresses and appearances
ORDER : Heard learned Advocate for the respective parties.
By way of present Writ Petitions, the Petitioners assail the notice issued by Respondent No.1 and the orders passed by the District Judge-4, Latur, whereby the Appeals filed by the Petitioners came to be dismissed, wherein the Petitioners have challenged the notices asking them to pay rent else proposing consequential action.
Mr. V. D. Salunke, learned Advocate strenuously submitted that the notices were issued by the Respondent – Corporation without there being any rent agreement executed between the parties and, therefore, in absence of any rent agreement, the Corporation ought not to have issued such notices asking the Petitioners to pay rent. He further submits that the procedure as contemplated under section 81 (C) of the Maharashtra Municipal Corporations Act, was not followed and bills were not issued as per section 81 (B) of the said Act. He further submits that after issuance of the notices asking the Petitioners to deposit the rent amount, the Petitioners immediately challenged the same and it was brought to the notice of the Appellate Court that in absence of any rent agreement or any authorization to that effect, the {3} wp12355-21 (modified).doc Respondent- Corporation cannot demand rent. Particularly when it is not a permanent allotment made in favour of the Petitioners, the notices issued by the Corporation itself are not in accordance with the provisions of the Maharashtra Municipal Corporations Act, 1949. He further submits that the Appellate Court though observed that admittedly there is no rent agreement but only on the ground that the petitioners were occupying the premises, the Appellate Court dismissed the Appeals. Therefore, he submits that the notices and the orders passed by the Appellate Court are required to be set aside. He further submits that as far as the proposal pending before the State Government for fixing of the rent is concerned, the State Government has not decided the same. He further submits that as the Municipal Corporation has not fixed the rent, therefore, the notices issued by the Corporation are vague and therefore, on such vague notices, the Municipal Corporation cannot be permitted to take action against the Petitioners. This was not considered by the Appellate Court and recorded the finding, which is perverse.
Heard learned Advocate for the Petitioners at length. I have gone through the notices issued by the Corporation with the assistance of learned Advocate for the Petitioners. The notices specifically reveal that the Petitioners who are occupying
{4} wp12355-21 (modified).doc the premises have not paid rent. The notices did not mention the period for which rent was demanded and the same was not in the form of Bill but in the form of simple notices, though the rent amount is mentioned therein. Only because rent agreements are not executed between the parties, that ground is not available to the Petitioners by stating that the Petitioners are not supposed to pay rent. As per the policy, the Corporation is supposed to fix the rent as per prevailing rates and regulations and once the Petitioners are occupying the premises of the Municipal Corporation, the Petitioners are bound to pay the rent and only because the rent is not fixed by the State Government and there is no written agreement, the Petitioners cannot escape from the liability of paying the rent. As far as the contention of the Petitioners that the Corporation has not decided the rent, it is for the Petitioners to submit proper application before the Corporation for fixing the rent. If such Application is filed by the Petitioners, the same shall be considered by the Corporation in accordance with law.
After going through the orders passed by the learned Appellate Court, it is clear that the Appellate Court has observed that the notices were issued to the Petitioners asking to pay rent and even the GST amount is also mentioned in the said notices
{5} wp12355-21 (modified).doc and after considering the submissions advanced by the Petitioners and the Corporation, the Appellate Court dismissed the Appeals.
In view thereof, I do not find any perversity in the orders passed by the Appellate Court. I also do not find any perversity in the notices issued by Municipal Corporation. Hence, the Writ Petitions are dismissed. No order as to costs.
[ SIDDHESHWAR S. THOMBRE ] JUDGE
drp/wp12355-21 (modified).doc
Reproduced from the public record of the Bombay High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.