Case: Municipal Corporation of Delhi Vs. Suresh Chandra Jaipuria &amp; Another

After issuing a notice to show cause why special leave should not be granted, this Court granted, on 13th October, 1976, the leave prayed for to appeal against the judgment and order of a learned Judge of the Delhi High Court. That Court had interfered, under Section 115, Civil Procedure Code, with the concurrent findings of the Trial Court and the Appellate Court in this case that, as the plaintiff could not make out a prima vacie case, no. interim injunction could be granted to the respondent to restrain the appellant, the Municipal Corporation of Delhi, from realising a sum of Rs. 27, 216/on account of house tax from the plaintiffs pending the disposal of a suit for a permanent injunction. This Court directed a hearing of this appeal on 28th October, 1976.Accordingly, the appeal is now before us.2. The plaintiff had purchased a house in South Extension New Delhi, on 21st February, 1969, free from all incumbrances, demands, or liabilities under the sale deed, and the vendor, Mohan Singh, had undertaken to discharge these dues. It was, therefore, decided in a previous suit thatcould not recover the whole amount sought to be recovered as house tax from him. The respondent was absolved from liability for the period before the sale. But, the plaintiff was liable to pay the tax for the period after the purchase. He had also paid Rs. 6,It appears that proceedings for realisation of dues subsequent to the purchase had then been taken by the appellant Corporation. The plaintiffs suit for a permanent injunction was brought on the ground that this assessment of house tax had proceeded on an erroneous basis.3. It is matter of admission between the parties that the house on which the house tax was levied had not been let to any tenant since its construction. The Trial Court had found that, from the plaintiffs statement of accounts of tax, it appeared that the demand which was being recovered from him was in respect of the period subsequent to 31st March, 1969, and was based on a reateable value of Rs. 37, 800/per annum which had been provisionally adopted subject to results of proceedings in Courts of appropriate jurisdiction as to what the correct basis of assessment was. The trial Judge had granted an interim injunction initially, but, after hearing parties, had vacated it on 18th October, 1973, as he had found that no. prima facie case was made out to grant it.4. On an appeal by the plaintiff, the Appellate Court, after considering all the questions raised before it, dismissed the appeal. It gave the following finding on the question of balance of convenience raised before it :"The balance of convenience is also in favour of the defendant. The defendant renders services as a civic body and most of the amount which it spend has to come from owners of property in the form of property taxes. If the plaintiffs do not pay the property tax then the defendant might not be able to carry out its duty. The plaintiffs have also been unable to show that they would suffer irreparable injury if an injunction is not granted to them. If they ultimately prove that they are not liable to pay full amount demanded by the defendant as property tax then the plaintiffs could compel the defendant either to refund the amount realised in excess or to adjust the amount recovered in excess towards property tax for future years. The plaintiffs do not suffer irreparable injury if they are not granted the temporary injunction."5. The High Court, while agreeing with the view of the Appellate Court that the agreeing with the view of the Appellate Court that the balance of convenience was in favour of discharging the interim injunction, held that, as there was a prima facie case that the assessment had been erroneously made, the principles of assessment applicable to such cases had been already laid down by the Full Bench of the Delhi High Court in Dewan Daulat Ram Kapur v. New Delhi Municipal Committee, ILR (1973) 1 Delhi 363. He observed :"One of the principles laid down by the Full Bench decision is that where premises were never let at any time, annual value be fixed in accordance with Section 6(I) (A) (2) (b) or Section 6 (1) (B) (2) (b) by ascertaining market value of land and reasonable cost of construction. The facts noticed above, but missed by the Courts below, prima facie establish that the property was never let out; the prima facie materials which are available, inclusive of what the D. M.C. itself had conceded, show the plaintiffs were occupying the property for their own use. the plaintiffs case therefore, prima facie, falls within the above principle. Failure to perceive the above had resulted in the Courts below declining to exercise jurisdiction vested in them in the manner it should have been exercised".

Reasoning:
8. It is difficult for us to see what bearing the provisions cited from the Delhi Rent Control Act or the Full Bench decision of the High Court could have on the case now before us. It seems to us that Mr. Nariman is correct in submitting that the learned Judge of the High Court had himself misapprehended the law in holding that the Courts below had failed to find a prima facie case because of a misconception of law. However, as no. one has appeared on the date of the final hearing on behalf of the respondent., who had appeared through counsel to answer the show cause notice issued by this Court before granting special leave, we refrainfrom deciding the question whether the provisions cited by the learned Judge of the Delhi High Court have any bearing on the case before us or not.this is a matter which will be decided in the suit itself. We, therefore, leave it expressly open for determination.It also seems that the attention of the learned Judge was not directed towards Section 41 (h) of the Specific Relief Act, 1963, which lays down that an injunction, which is a discretionary equitable relief, cannot be granted when an equally efficacious relief is obtainable in any other usual mode or proceeding except in cases of breach of trust.