Assessment notice publication is directory when effective notice is given and tax recovery may proceed during objections

Where the statute requires public notice of an assessment list, the prescribed mode of publication was held directory because effective notice had been achieved through newspaper publication and individual service, with objections actually filed. An assessment list duly prepared and published remained operative and could be used for tax recovery while objections or appeals were pending, since filing objections did not suspend enforceability absent a contrary statutory order. The Court also accepted area-wise and phased assessment, holding that the governing provisions and rules permitted fresh assessment lists for specified areas within the corporation. The statutory challenge to the assessment process therefore failed.

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Issues: (i) Whether the mode of publication prescribed in section 149(1) of the Patna Municipal Corporation Act, 1951 for the assessment list was mandatory or directory. (ii) Whether the Corporation could recover tax on the basis of the assessment list prepared under the 1993 Rules pending disposal of objections under sections 151 and 152. (iii) Whether area-wise and phased preparation of assessment lists under the 1993 Rules and the Act was legally permissible.

Issue (i): Whether the mode of publication prescribed in section 149(1) of the Patna Municipal Corporation Act, 1951 for the assessment list was mandatory or directory.

Analysis: The statutory scheme required public notice of a prepared or revised assessment list, but the specific mode of publication was separated from the core requirement of notice. The purpose of notice was to inform affected persons, and the Court treated the prescribed mode as a means to achieve that purpose rather than an end in itself. The assessment lists had in fact been published in newspapers, and the appellants had also received individual notices under section 149(2) and filed objections under section 150. The Court applied the principle of substantial compliance and held that insistence on the obsolete ritual of beat of drum and placards was unnecessary where effective newspaper publication had occurred.

Conclusion: The mode of publication in section 149(1) was directory, and newspaper publication was sufficient compliance. The challenge failed, in favour of Revenue.

Issue (ii): Whether the Corporation could recover tax on the basis of the assessment list prepared under the 1993 Rules pending disposal of objections under sections 151 and 152.

Analysis: The Court read the scheme of sections 151, 152, 153 and 154 together and held that an assessment list, once duly prepared and published, remained operative unless altered or amended on objection or appeal. Mere filing of objections did not suspend the enforceability of the list. The reference in section 153 to finality subject to sections 151 and 152 meant that the list continued to have effect until a contrary order was passed. Otherwise, filing an objection would automatically stall tax recovery, which the statute did not contemplate.

Conclusion: Recovery of tax on the basis of the assessment list pending disposal of objections was permissible, in favour of Revenue.

Issue (iii): Whether area-wise and phased preparation of assessment lists under the 1993 Rules and the Act was legally permissible.

Analysis: The Court held that the 1993 Rules and the notifications issued under them validly provided a revised method of valuation and assessment based on locality, use and construction. The proviso to section 138(1) expressly permitted preparation of a fresh assessment list in respect of a specified area within the Corporation, and section 149(1) itself contemplated assessment of any part of Patna. On that basis, phased or area-wise assessment lists were consistent with the statutory framework.

Conclusion: Area-wise and phased assessment was legally permissible, in favour of Revenue.

Final Conclusion: The statutory challenge to the assessment process failed. The assessment notices and lists were upheld, tax recovery could proceed pending objection proceedings, and the Corporation's phased assessment exercise under the 1993 Rules was sustained.

Ratio Decidendi: Where the statute requires public notice of an assessment, the prescribed mode of publication is directory if the legislative purpose of effective notice is otherwise substantially achieved, and a duly prepared assessment list remains operative until altered or amended in the statutory objection or appeal process.

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