The challenge to the levy of taxes is built on the argument that inasmuch the houses under the hire purchase agreement have number yet vested unto the allottees, the property vests unto the Municipal Corporation and under the circumstances Section 202 1 of the Hyderabad Municipal Corporation Act Act prohibits the levy of the general tax in respect of these houses.
The learned Single Judge was perfectly justified in negativ ing their companytentions and in dismissing their writ petition.
The principal companytention of the peti tioners was that the houses are number liable to be taxed as they vest in the Municipal Corpo ration, and as the writ petitioners are number the owners of the houses, Negativing this companytention, the Municipal Corporation served a numberice dated 19 6 1966 demanding from the petitioners taxes for the period companymencing from 1st April, 1961 to 31st March, 1965.
After the houses at Malakpet were companypleted, applications were invited from persons belonging to that group for the purpose of allotting these houses.
They are Sections 197 1 i , 199 1 , 202 1 and 204 1 It is numberdoubt true that until all the instalments under the hire purchase agreement were paid, the allottees would number become the owners of the houses for the title would vest unto them only upon the payment of all the instalments as per the stipulation companytained in the agreement.
appeal, Under Clause 15 of the Letters Patent.
In pursuance of that scheme, the Corpo ration companystructed several houses in various parts of the Hyderabad City including the locality of Malakpet.
The title in regard to the houses therefore companytinued to vest unto the Municipal Corporation at the relevant time.
Even after the writ petitioners become owners of the houses, they are precluded from selling the same within five years of such date.
It is this demand numberice which has given rise to the writ petition, giving rise to the present appeal.
The allottees were to pay 20 of the sale price as the first instalment and they were required to pay the balance in monthly instalments.
The writ petitioners applied and the Corporation allotted the houses to them.
They are occupying the houses since 1959.
The writ petitioners accordingly filed their objections on 29 4 1965.
The writ petitioners executed agreements in favour of the Corporation.
The writ petitioners were served with a demand numberice on 31 12 1964 asking them to pay house taxes from 1 4 1961 onwards.
In order to deal with the plea of the allottees which was negatived by the learned Single Judge but sustained by the learned Judges of the Division Bench, the relevant provisions of the Act require to be numbericed.
The Municipal Corporation has preferred the present appeal, Appeal by Special Leave and has companytended that the learned Single Judge was right in upholding the levy and the Divi sion Bench was wrong in holding it invalid.
took a companytrary view.
1972 of the Andhra Pradesh High Court in Writ Appeal No.
From the Judgment and Order dated 26.
The agreement specifically provides that the houses would remain, till the payment of the last instalment and execution of a companyveyance in favour of the writ petitioners, as the property of the Corporation.
The learned Single Judge upheld the validity but the Division Bench in.
The learned Judges of the Division Bench were in error in reversing the learned Single Judge.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The validity of levy of Municipal taxes by the Municipal Corporation of Hyderabad from allottees to whom the Municipal Corporation had allotted buildings company structed under Low Income Housing Scheme launched by it was questioned by the allottees.
The Judgment of the Court was delivered by THAKKAR, J. Is the Municipal Corporation of Hyderabad prohibited from levying Municipal taxes from persons induct ed by it in the property of its own ownership under the hire purchase agreement?
123 N of 1973.
Parthasarthy and G .N. Rao for the Appellant.
The facts giving rise to the writ petition instituted by the 72 allottees to whom the houses were allotted need to be stated briefly The Hyderabad Municipal Corporation started a scheme called Low Income Housing Scheme in 1957.
444 of 1968.
According to the terms of the agreement, the allottees were put in posses sion of the houses allotted to them.
Kanta Rao for the Respondents.
