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of <h1>Lessee in exclusive possession without lease deed is 'owner' liable for property tax under Punjab Municipal Act, 1911</h1> <h3>Delhi Golf Club Limited Versus New Delhi Municipal Corporation</h3> Delhi Golf Club Limited Versus New Delhi Municipal Corporation - TMI ISSUES: Whether a lessee holding land under a temporary lease without execution of a formal lease deed qualifies as an 'owner' liable to pay property tax under the Punjab Municipal Act, 1911.Whether prior civil court judgments restraining recovery of property tax for specific years operate as res judicata to bar subsequent demands for property tax for later years. RULINGS / HOLDINGS: Under Section 61(1)(a) read with Section 2(11) of the Punjab Municipal Act, 1911, a person need not hold full title or fee simple ownership to be liable for property tax; it is sufficient that the person has the right to possess and use the land exclusively, making such person an 'owner' for the purpose of the Act. The petitioner, despite not executing a formal lease deed, holds land on terms conferred by the Government and has constructed substantial buildings, thus qualifying as an 'owner' liable to pay property tax.A civil court judgment restraining recovery of property tax for a particular year does not constitute res judicata against demands for subsequent years. The doctrine of res judicata and estoppel do not apply to successive taxation assessments or demands, as each year's liability is a separate and distinct question. Therefore, prior injunctions or judgments do not bar fresh demands for property tax in later years.The demand for property tax for the years 1969-70 and 1970-71, which were the subject matter of prior civil suits and decrees restraining recovery, cannot be included in subsequent demands and must be quashed. RATIONALE: The Court applied the statutory framework of the Punjab Municipal Act, 1911, particularly Section 61(1)(a) imposing tax on 'owners' of lands and buildings and the inclusive definition of 'owner' in Section 2(11), which extends beyond strict ownership to persons possessing and using property to the exclusion of others.Precedents from this Court and others were relied upon to establish that leasehold rights, even without formal lease deed execution, constitute an interest in 'land' and attract property tax liability. Notably, decisions held that a lessee or person in possession under Government grants is liable to pay property tax notwithstanding absence of formal lease documentation.The Court referred to authoritative legal definitions from Black's Law Dictionary and Supreme Court decisions to interpret 'owner' and 'ownership' broadly, emphasizing possession and use rights rather than fee simple title.Regarding res judicata, the Court analyzed the nature of taxation assessments as sui generis exceptions to the doctrine, citing Supreme Court rulings that res judicata and estoppel principles do not bind subsequent assessments or tax years. The Court also examined Privy Council decisions resolving conflicts on this issue, concluding that taxation liability for each year is a separate matter not precluded by prior judgments.The Court distinguished the limited scope of prior civil suits, which sought injunctions against recovery for specific years only, and held that such judgments cannot bar fresh demands for other years. The public interest in correct taxation was emphasized as outweighing any convenience-based estoppel.The Court recognized that while the petitioner failed to execute the lease deed as required, it cannot benefit from its own default to avoid tax liability.
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