- (1.) By this writ petition the petitioner Nagar Mahapalika, Varanasi has sought a direction against respondent No. 3 to pay the annual value of the building as assessed in accordance with Section 174(b) of U. P. Nagar Mahapalika Adhiniyam 1959 and has further sought the quashing of the judgment and orders dated 24-2-1978 and 18-4-1979 passed by Judge Small Causes Court and 2nd Additional District and Sessions Judge, Varanasi respectively.
(2.) The case of the petitioner is that respondent is a five star hotel and is situated at S. 20/54 Secrol Ward Mauza Arazi Line, Varanasi. The said hotel was assessed for annual value of Rs. 15,000.00 from 1-4-1967. Thereafter the same was assessed at Rs. 11,81,000.00 on and from 1-4-1974. On an appeal filed by respondent No. 3 before the Judge Small Cause Court, Varanasi, the said appeal was dismissed vide order dated 25-5-1974 passed by the Judge Small Causes Court. Respondent No. 3 filed second appeal before the District Judge Varanasi and took the plea that the petitioner had illegally assessed the annual value of the aforesaid premises under Section 174(b) of U. P. Nagar Mahapalika Adhiniyam, 1959 (hereinafter referred to as 'the Act of 1959') whereas the assessment should have been made in accordance with the provisions of Section 174(a) of the aforesaid Act. The District Judge by his judgment and order dated 30-1-1975 remanded the case back to the Nagar Mahapalika, Varanasi for fresh assessment of the annual value of the aforesaid premises after taking sufficient evidence. As against the said judgment and order respondent filed a review application, which was, however dismissed as not pressed. On remand the Nagar Mahapalika was to make fresh assessment of the annual value. The Tax Valuer of the Nagar Mahapalika however, made the assessment of the annual value of the aforesaid premises under Section 174(a) of the 1959 Act. When the said fact was brought to the notice of the Administrator. Nagar Mahapalika, the order passed on 24-7-1976 was cancelled and a fresh notice was issued to respondent No. 3 to file objection, if any. Thereafter, it is alleged in the petition that respondent No. 3 was given proper notice and sufficient opportunity to put forward his case before petitioner No. 3 and the assessment of the aforesaid premises was at Rs. 10,17,804.00 from 1-4-1974. As against the said order dated 6-6-1977 an appeal was filed before the Judge Small Causes Court Varanasi, who allowed the appeal on 24-2-1978. The property was assessed under the provisions of Section 174(a) of 1959 Act. As against the said judgment Nagar Mahapalika filed an appeal before the District Judge Varanasi. District Judge Varanasi, however, dismissed the appeal by his judgment and order dated 14-2-1978 and upheld the decision of the Judge Small Causes Court.
(3.) Presently, the petitioner by the instant petition is challenging the judgment and order of the District Judge dated 18-4-1979, inter alia, on the ground (a) that Section 174(b) of U. P. Nagar Mahapalika Adhiniyam, 1959 and not under Section 174(a) of the said Act (sic). The annual valuation should have been made on the basis of the rental income and not on the land, and building method, and secondly as the word 'hotel' has been excluded under the provisions of Section 174(a) of the Act of 1959 whereas the said word 'hotel' was present inSection 140 of the U. P. Municipalities Act, 1916 (hereinafter referred to as the Act of 1916), the annual value of the hotel is to be assessed under Section 174(b) of the Act of 1959. It was submitted that Hotel Clarks is a five star hotel and is being run purely for profit making motive and its valuation is to be taken on the basis of Section 174(b) of 1959 Act and not under Section 174(a) of the said Act.;