School & Ors Vs. Cantonment Board, Meerut & Ors  INSC 194 (5 February 1996)
Reddy, B.P. (J) Jeevan Reddy, B.P. (J) Paripoornan, K.S.(J)
JT 1996 (3) 33 1996 SCALE (1)818
O R D
counsel for the parties.
appeals are preferred against the judgment of the Allahabad High Court allowing
the writ petition filed by the Cantonment Board, Meerut and remitting the matter to the appellate authority with a
direction that the appellate authority shall give an opportunity to the
petitioners to comply with Section 87 of the Cantonment Act. The question
pertains to the assessibility of the buildings owned by the petitioner to
property tax. The appellants' case is that by virtue of Section 99 of the Act,
they are exempt from tax.
assessing authority held that they do not satisfy the requirement of Section 99
and, therefore, not entitled to exemption. Against that order the appellants'
filed an appeal but they did not deposit the tax as required by Section 87.
Even so, the appeal was allowed by the appellate authority on the ground that
the appellants are entitled to the benefit of Section 99. It is against the
order that the writ petition was filed by the Cantonment Board in the High
Court. The High Court held that the requirement of Section 87 is mandatory and
accordingly remitted the matter with the above directions.
learned counsel for the appellants, challenges the validity of Section 87 on
the ground that it places onerous conditions in the way of the right of appeal.
earned counsel relies upon the decision of this Court in Shyam Kishore &
Ors. v. Municipal Corporation of Delhi & Anr. [1993 (1) S.C.C.22] which
deals with a similar provision of appeal, viz., Section 107(b) of the Delhi
Municipal Corporation's Act, 1957. The validity of the said provision was
challenged and it was repelled with the following observations and
see nothing wrong in interpreting the provision as permitting the appellate
authority to adjourn the hearing of the appeal thus given time to the assessee
to pay the tax or even specifically granting time or instalments to enable the assessee
to deposit the disputed the tax where the case merits it, so long as it does
not unduly interfere with the appellate court's calender of hearings. His
powers, however, should stop short of staying the recovery of tax till the
disposal of the appeal. We say this because it is one thing for the Judge to
adjourn the hearing leaving it to the assessee to pay up the tax before the
adjourned date or permitting the assess to pay up the tax, if he can, in
accordance with his directions before the appeal is heard. In doing so, he does
not and cannot injunct the department from recovering the tax if they wish to
do so. He is only giving a chance to the assessee to pay the tax if he wants
the appeal to be heard. It is, however, a totally different thing for the judge
to stay the recovery till the disposal of the appeal; that would result in
modifying the language of the proviso to read: "no appeal shall be
disposed of until the tax is paid".
of this, however, there is no reason to restrict the power unduly; all he has
to do is to ensure that the entire tax in dispute is paid up by the time the
appeal is actually heard on its merits. We would, therefore, read clause (b) of
Section 170 only as a bar to the hearing of the appeal and its disposal on
merit and not as a bar to be entertainment of the appeal itself." It is
agreed by both the parties that the said observations and clarifications shall
equally govern these matters, i.e., the appeals arising under the Cantonment
it is directed that any appeal filed under Section 84 of the Cantonment Act
shall be dealt with, insofar as deposit of tax is concerned [i.e., with respect
to the requirement of Section 87] in the light of and in accordance with the
above observations and clarifications.
appeals are accordingly disposed of. The appellate authority shall examine the
matter in the light of this judgment and dispose it of according to law.
of the above orders passed in these appeals, no orders are called for, in the
writ petition. Dismissed .