By judgment and decree dated 27.4.73, the suits were decreed as prayed for and it was held by the learned Judge that the Club had only a temporary lease of the property and, therefore, was number liable to be assessed to tax under Section 61 of the Act, that the suit was number barred under Section 86 of the Act and that the assessment was also number in companyformity with Section 3 1 of the Act.
Having regard to the nature of issues raised, certain factual details need elaborate reference to properly deal with and appreciate the same.
The Club was obliged to use the land and buildings for the bona fide purposes of the Golf Club and for numberother purpose and was further obligated to pay rent from 8.11.63 at the rates more fully set out therein.
Aggrieved, the Municipal Committee pursued the matter on appeal before the District Court in RCA No.12976 and 130/76.
As required in the numberice, the Club, though felt surprised, filed its objections companytending that the proposed assessment was wrong, illegal, ultra vires and without jurisdiction since the Club was neither the owner number a permanent lessee of the property in question to attract liability under Section 61 of the Act and that, in any event, the valuation was also arbitrary and based on merely surmises and companyjectures.
The land measuring 183 acres situate in Wellesley Road, New Delhi, was being used by the New Delhi Municipal Committee hereinafter referred to as the Municipal Committee for running a Golf Course till 1950 and in the year 1950, the Municipal Committee handed over the said Golf Course to the Club.
feet and a new building identified as Office with plinth area of 450 sq.
In the year 1952, a lease deed dated 10.12.52 was executed between the Municipal Committee and the Club under which the land together with old buildings existing thereon known as Golf Club with a plinth area of 3000 sq.
The period of lease under the document was to companymence from 1.1.91 and to be in currency for the duration of 20 years making it clear that any companytinuation beyond the expiry of the said period also has to be only on temporary basis.
The said sum was stated to include number only the arrears of House Tax due up to 3/94 but also the amount due for the year ending 3/95.
The purpose and objects of the Club which was meant for the development and protection of the game of Golf and the fact that it is a number profit making enterprise, was also duly highlighted.
While repudiating the said claims and demands through its companynsel on 23.10.69, and faced with the threat of recovery proceedings by the Authorities of the Municipal Committee, the Club filed two Suits Nos.419/69 and 367/70 in the Court of Subordinate Judge, 1st Class, Delhi, in respect of the assessment years 1969 70 and 1970 71 seeking for permanent injunction restraining the Municipal Committee from realisation, demand or recovery of any amount as house tax from the plaintiffs and or enforcing the demands made as numbericed above and or from taking companyrcive measures for the realisation of the said amount in any manner.
with NDMC as companymunicated to them vide their office letter dated 26.4.1993 and make necessary payments to NDMC in this regard.
A formal lease deed evidencing the grant of temporary lease deed incorporating the terms and companyditions governing the same was executed between the Club and the Government of India represented by the President on 5.8.96.
I The Delhi Golf Club shall be required to pay annual ground rent for 2.08 acres or area required as per building bye laws for the companyered area 5 of Rs.39 lakhs per acre.
There will be companyplete ban of companystruction on green areas and prior permission of the Government would be necessary for any companystruction on 2.08 acres.
A similar demand dated 5.12.94 appears to have been raised in the name of the Land and Development Officer in which, as against the companyumn Name of owner L O., Nirman Bhawan, has been specified.
On the service of the said proceedings on the Club on 5.5.69, an appeal was filed.
Simultaneously, the Land and Development Office by its letter dated 19.12.63 informed the Club about the said taking over and called upon them to pay a sum of Rs.25,000/ by means of a cheque towards the companypensation for the tools and plants etc.,
A restriction on any further companystruction without the prior permission of the Government and without obtaining the prior approval of building plans from the Local Body as well as the Land and Development Officer was also imposed.
Due to some development and turn of events in the Ministry of Works Housing and Supply, Land Development Office, Government of India, New Delhi, the entire property, numbericed above, was taken over by the Central Government on payment of a sum of Rs.25,000/ as companypensation for tools and plants as evidenced by a letter dated 19.12.63.
which were in the possession and use of the Club.
Thereupon, vide a letter dated 3.5.69, the Club was informed that the assessment has been finally settled and companyfirmed with an annual value of Rs.1,32,83,357.70 with effect from 1.4.69 vide Resolution No.19 156 of the Ordinary Meeting of the Committee said to have been held on 26.3.69.
Though the property taxes for the period prior to 1.1.91 does number form part of the Current Lease Agreement, the Club shall, however, settle all issues pertaining to outstanding property tax etc.
Their will be numberliability in Government of India whatsoever towards property tax.
It was followed by a further companymunication dated 20.6.95 informing about the companyplete ban of any companystruction on the land measuring 176.92 acres of green area and the restriction to use FAR of this green area for companystruction of the building.
1.1.91 to 31.12.95 Rs.8,94,600.00 The Government shall reserve its right either to cancel the lease for the green area or terminate the lease for the companyered area or both by giving six months numberice in case it is decided to put the land to alternative use for a public purpose.
Certain other companyditions regarding the manner of maintenance of the properties were also imposed and it is unnecessary to dwell at length on those companyditions.
On receipt of the demand dated 24.11.94 and the further companymunication dated 31.3.95 issued demanding payment of the amount on threat of companyrcive action, the Club has filed a Writ Petition No.
Though, numberformal lease deed as such was executed, the Government of India, Ministry of Works Housing and Supply, Land and Development Office, vide its letter dated 23.4.68 companymunicated the sanction of the President of India for the temporary allotment for the period upto 1980 of land measuring about 180 acres for the use of the Club on the terms and companyditions set out therein.
While matters stood thus, the Municipal Committee served a numberice dated 13.2.69 purporting to assess the property in the hands of the Club and proposed to assess the house property tax under Section 65 of the Punjab Municipal Act, 1911 hereinafter referred to as the Act in relation to the Golf area open land and the building standing thereon at the annual value of Rs.1,32,83,357.71.
The lease was also stated to be a temporary one terminable within one month numberice from either side, with an obligation to the Club, in case of such termination to restore and surrender possession.
Ground rent of area 2.08 acres Rs.4,05,600/ A w.e.f.
All the trees standing on the land were declared to be the Government property which are number to be cut or removed without the prior approval of the Government.
In the orders of assessment also the name of the owner has been specified as Land and Development Officer, only.
feet was granted on lease on an annual rent of Rs.200/ for land and Rs.50/ as rent for the old buildings and another Rs.50/ as rent for the new buildings.
Though the matter was further pursued before the High Court on second appeal in RSA Nos.206 207/77, the appeals came to be dismissed as withdrawn on 30.8.1985.
Though an opportunity to make personal representation was also granted in the numberice, companynsel deputed along with the Accountant was said to have been number allowed to state anything, making the entire exercise a mere pretence.
The Delhi Golf Club shall pay the property tax service charges or any other taxes demanded by local bodies to pay the Government the equivalent amount in case Government is billed by local bodies for the entire land under their occupation.
If the terms and companyditions referred to above are acceptable, acceptance thereof alongwith the payment of above dues may be sent to this office within 30 days from the date of receipt of this letter failing which the terms companymunicated to you for the extension of temporary allotment will be withdrawn and cancelled without any further numberice to you.
An application filed seeking for review in CM No.1250/85 also came to be dismissed on 20.9.85.
Thereafter, the matter was under suspense for some time so far as the parties are companycerned.
The land shall be used for its bonafide activities of promoting the sport of Golf.
In the light of the above position, you are required to pay the following dues to this office on account of licence fee, ground rent etc.
The learned First Appellate Judge also companycurred with the judgment and decree of the Trial Court and the appeals came to be dismissed on 5.3.77.
The club shall pay the Licence Fee Rs.1,000/ per acre for the green area measuring 176.92 acres.
In the meantime, on 8.10.69 a numberice came to be issued calling upon the payment of Rs.16,60,420.68 as house tax for the period from 1.4.69 to 31.3.70 within 7 days from receipt of the numberice on threat of action under Section 80 3 of the Act.
The Delhi Golf Club limited hereinafter referred to as the Club is a limited companypany incorporated under the Companies Act, 1956 with the object of promoting the game of Golf and for that purpose provide companyrses and grounds at New Delhi or elsewhere in the State of Delhi, to lay out and also maintain the same by providing club houses, pavilions, lavatories, kitchens, refreshment rooms, workshops, sheds and other companyveniences for the use of its members and other persons either gratuitously or on payment of charges.
for the period from 1.1.91 to 31.12.1995.
The Club made the necessary payment as required in the letter dated 23.4.68.
The Club has been making representations for grant of a regular lease of the land and the buildings or the super structure standing thereon.
Meanwhile, the Government of India, Ministry of Urban Development, Land Development Office, by its proceedings dated 20.7.94 companymunicated its decision to allow the Club to use the land measuring about 179 acres beyond 31.12.90 for 20 years, i.e. from 01.01.1991 to 31.12.2010, subject to the terms and companyditions more fully set out therein, of which the following may be mentioned as relevant and necessary for the purposes of this case The period of temporary lease will be for a period of 20 years, i.e., from 1.1.1991 to 31.12.2010.
1.1.91 to 31.12.95 Rs.20,28,000.00 Licence fees of area 176.92 acres Rs.1,76,920/ A. w.e.f.
LITTTTTTJ J U D G M E N T Raju, J. The appellants, who had lost before the High Court, filed this appeal against the judgment of the Delhi High Court dated 14.7.97 in CWP No.2349 of 1995 since reported in AIR 1997 Delhi 347, whereunder the challenge made by the appellants to a demand raised by the respondent to the tune of Rs.4,37,56,295.90 on account of property tax for the period from 1.4.69 to 31.3.95 in their house tax bill dated 24.11.94, numberice of demand dated 31.3.95 and a letter dated 13.6.95 came to be rejected.
The other companyditions also specifically provided for including the stipulated number of numberinees from the Government of India on the Management Committee of the Club with full voting rights, preferential rights and priority to use upto the stipulated extent and requirement, the Government servants as also those who companye to Delhi on tenure basis.
