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TMI Blog1957 (1) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... icipal Corporation of Ahmedabad and the rateable value of these tenements for the year 1952-53 had to be fixed. It appears that there was a covenant in a lease executed between the applicants and their tenants whereby the tenants were to pay the rent as well as the Municipal taxes to their landlords. The Municipal Corporation calculated the rateable value, treating the rent and taxes as rent recovered by the landlords. 3. The applicants, feeling aggrieved by the aforesaid method of calculation, contended that they were entitled to deduct the amount of taxes as the applicants were merely the agents of the Corporation when they collected the taxes from their tenants. They took the contention that the rateable value should, therefore, be fixe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther account whatever". It should be noticed that, according to Rule 7(1), there is a flat rate of deduction which is a reduction of 10 per cent of the annual rent and it is significant that the rule goes on to provide that the deduction shall be in lieu of all allowances for repairs or on any other account whatever. The expression "in lieu of all allowances for, repairs or on any other account whatever" is significant. This shows that once a ten per cent deduction is made then there is no other allowance permissible according to Rule 7(1). Now, the expression 'rent' is not defined in the Act, But it will be convenient to mention two definition's as given in Section 2(53) and 8 2(54). In Section 2(53), the term & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. It may again be in the form of service or it may take the form of Siny other thing to be so rendered. Now, in this case, there was a covenant between the landlords and the tenants, and under the covenant the tenants were to pay the rent in addition to the municipal taxes to the landlords. There can be no doubt, therefore, that according to the terms of the lease, it was the tenant who was liable to pay the municipal taxes. But the liability under the Act is primarily the liability of a landlord. In this connection, reference may be made to Section 105 which, by Sub-section (1)(b) (i). says: "If the premises are not so held, from the lessor if the premises are let." This shows that the primary liability is upon a landlord, and n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed be included. But, we think that that is not necessarily the only construction. After all, there is a covenant and under the covenant the liability is placed upon the tenant. But the primary liability is upon the landlord. Therefore, the payment of municipal taxes may well be in the nature of rent, though not the rent, strictly so-called. 5. In this connection, one may refer to what the learned author of the Transfer of Property Act, 4th Edition, 1956, has observed at page 609 under the caption 'Rent'. The following passage occurs there: "But in Indian Law, any payment by the lessee that is part of the consideration of the lease is rent. Thus when the lease provides for collection charges in addition to rent, such charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, to that extent, from the payment of municipal taxes, there is no reason why we should not consider the municipal taxes as forming part of the rent. It is at least in the nature of rent and this view is supported by the observations to which reference has been made already and also having regard to the definition of the expression 'rent' as occurring in Section 105 of the Transfer of Property Act. 8. In our view, therefore, the decision of the learned Assistant Judge is right. 9. Mr. R. M. Shah, has pointed out Section 413 of the Act as affording an answer to the applicants' contentions. Section 413, by Sub-section (1), provides that every rateable value fixed under the Act against which no complaint is made as hereinbefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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