1977 (8) TMI 178 - SC - Indian Laws

Summary

Issues Involved:
1. Jurisdiction of the Municipal Committee under Section 67 of the Punjab Municipal Act, 1911, to amend the assessment lists of previous years.
2. Interpretation of Sections 66 and 67 of the Punjab Municipal Act, 1911, regarding the amendment of assessment lists.
3. Applicability of the principle of reasonable time in the exercise of the power to amend assessment lists.
4. The effect of amendments made under Section 67 on the assessment lists of previous years.
5. Comparison of Section 67 with Section 68A of the Punjab Municipal Act, 1911, and Section 82(3) of the Bombay Municipal Boroughs Act, 1925.

Detailed Analysis:

1. Jurisdiction of the Municipal Committee under Section 67 of the Punjab Municipal Act, 1911, to amend the assessment lists of previous years:
The primary issue was whether the Municipal Committee had the jurisdiction under Section 67 of the Punjab Municipal Act, 1911, to amend the assessment lists of previous years. The High Court had held that the Municipal Committee did not have such jurisdiction, as the assessment lists settled under Section 66 could only operate prospectively for the financial year next following and not for any previous year. However, the Supreme Court disagreed with this interpretation, stating that the Municipal Committee has the undoubted power under Section 67 to amend an assessment list "at any time." This power is not limited by the consideration that the list has already become final by authentication.

2. Interpretation of Sections 66 and 67 of the Punjab Municipal Act, 1911, regarding the amendment of assessment lists:
The Supreme Court emphasized that Sections 66 and 67 must be read together as integral parts of a scheme for the preparation, assessment, and amendment of assessment lists. Section 66 deals with the finalization of the assessment list after objections have been heard, while Section 67 provides for the amendment of the list "at any time" to correct errors or omissions. The Court held that the expression "at any time" in Section 67 should be given its full force and effect, allowing the Municipal Committee to amend an assessment list even after it has come into force.

3. Applicability of the principle of reasonable time in the exercise of the power to amend assessment lists:
The Supreme Court acknowledged that the power to amend an assessment list under Section 67 should be exercised within a reasonable time, even though the statute uses the expression "at any time." However, the concept of reasonableness did not arise in this case, as it was not raised in the High Court. The Court noted that the Municipal Committee's power to amend an assessment list is not constrained by the finalization of the list and can be exercised even after the expiry of the year for which the list is to remain in force.

4. The effect of amendments made under Section 67 on the assessment lists of previous years:
The Supreme Court clarified that an amendment made under Section 67 to an assessment list becomes effective for the year for which the list itself was effective. For example, if a list finalized on March 25, 1970, is amended in August 1973, the amendment becomes effective for the year April 1, 1970, to March 31, 1971. The Court rejected the High Court's view that the amended list operates only prospectively for the financial year next following the amendment.

5. Comparison of Section 67 with Section 68A of the Punjab Municipal Act, 1911, and Section 82(3) of the Bombay Municipal Boroughs Act, 1925:
The Supreme Court compared Section 67 with Section 68A, which was introduced by Act 8 of 1974. Section 68A deals with the erroneous valuation or assessment of properties and provides that amendments made under it have no retrospective operation. The Court noted that the absence of words of limitation in Section 67, as compared to Section 68A, indicates that amendments under Section 67 can have a wider operation. The Court also discussed Section 82(3) of the Bombay Municipal Boroughs Act, 1925, but found no parallel between it and Section 67 of the Punjab Municipal Act.

Conclusion:
The Supreme Court allowed the appeals and set aside the judgment of the High Court. The writ petitions filed by the respondents were dismissed. The appellant, the New Delhi Municipal Committee, was entitled to recover its costs from the Life Insurance Corporation of India. The Court held that the Municipal Committee has the power to amend assessment lists under Section 67 "at any time," and such amendments can be effective for previous years, subject to the principle of reasonableness.