Kishore Kumar Bhargava And Anr vs State Of Raj And Anr … on 7 March, 2026

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    Rajasthan High Court – Jaipur

    Kishore Kumar Bhargava And Anr vs State Of Raj And Anr … on 7 March, 2026

    [2026:RJ-JP:9835-DB]
    
              HIGH COURT OF JUDICATURE FOR RAJASTHAN
                          BENCH AT JAIPUR
    
                       D.B. Civil Writ Petition No. 2883/2002
    
     1.      Kishore    Kumar        Bhargava        (deceased)         through   legal
     representative :-
     1/1. Abhishekh Bhargava son of late Kishore Kumar Bhargava,
     resident of 353, Vaishali Marg, Queens Road, Jaipur.
     1/2. Rajesh Kumar Bhargava son of Shri Gopal Narain Bhargava,
         resident of 353, Vaishali Marg, Queens Road, Jaipur.
    
                                                                         ----Petitioners
                                           Versus
     1. State of Rajasthan through Chief Secretary, Rajasthan
     Secretariat, Jaipur.
     2. Assistant Director, Department of Land & Building Tax,
     Chandpole Zone, Jaipur.
                                                                       ----Respondents
     For Petitioner(s)           :     None Present
     For Respondent(s)           :     None Present
    
    
    
    

    HON’BLE THE ACTING CHIEF JUSTICE MR. SANJEEV PRAKASH SHARMA
    HON’BLE MRS. JUSTICE SHUBHA MEHTA

    JUDGMENT

    SPONSORED

    07/03/2026

    1. It is an old case of the year 2002. It appears that the

    lawyers have decided to abstain from the work on the basis of

    illegal demand of the Bar Association asking lawyers to abstain

    from work on working Saturdays.

    2. The present writ petition has been filed by the petitioners

    stating that they had taken the premises on rent from the owners

    of the property Karim Manzil, M.I. Road, Jaipur @ Rs.2,300/- per

    month on 01.07.1988. A lease deed was executed for 20 years

    and the same continues.

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    3. The Assistant Director, Department of Land & Building Tax

    issued a notice to the petitioners for assessment of land & building

    tax under the Rajasthan Lands & Buildings Tax Act, 1964

    (for short ‘the Act of 1964’). The petitioners were asked to appear

    personally, however, they refused to appear and sent an

    application for adjourning of the case. Considering the end of the

    financial year, the respondents proceeded to pass the order of

    demand of tax of Rs.2,01,280/-.

    4. It is mentioned in the petition that along with the order, no

    information was conveyed with regard to the basis for passing the

    order and the information collected under Section 9 or Section 22

    of the Act of 1964, the petitioners have mentioned that they are

    the tenants and not the owners of the property and the terms of

    the lease deed cannot be read as against them for the purpose of

    demanding the land and building tax. It is also mentioned in the

    petition that out of 4 landlords, 3 landlords had already deposited

    their share of the land and building tax.

    5. A letter has also been placed on record with regard to

    assurance given by the land owner that he would deposit the

    amount of land and building tax but he has not deposited the

    same. The petitioners have also challenged the notice on the

    ground that the same is a composit order-notice of demand for

    two years, i.e., 2000-2001 and 2001-2002, which would be

    contrary to the provisions of Section 15A(4) of the Act of 1964.

    6. This Court while issuing notices on 08.05.2002 stayed the

    operation of the impugned order dated 15.03.2002. On

    04.07.2006, no one was present and the Court dismissed the

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    writ-petition in default. The same was restored on 25.07.2006.

    The Deputy Government Advocate prayed for time to file reply on

    07.11.2006 but we find that till date, the reply has not been filed.

    On 09.04.2007, the writ petition was admitted and the interim

    order was continued.

    7. We find that even as of today, no reply has been filed. No

    one appears for the Department even as on today.

    8. The Rajasthan Lands & Buildings Tax Act, 1964 provides the

    definition of word “owner” in Section 2(10) of the Act as under:

    “Owner: in respect of any [land or building] or
    portion thereof, includes the person, who for
    the time being receives, or who would be
    entitled to receive, the rent thereof, if the same
    were let, and includes-

    (a) an agent or trustee who receives such
    rent on account of the owner;

    (b) an agent or trustee who receives the
    rent of, or is entrusted with the
    management of, any [land or building]
    devoted to religious or charitable purpose;

    (c) a receiver, sequestrator or manager
    appointed by any court, competent
    jurisdiction to have the charge, or to
    exercise the rights of the owner, of the
    [land or building] or portion thereof; and

    (d) the mortgagees in possession thereof:

    Provided that in the case of [land or building]
    owned by the State Government, the lessee or
    grantee thereof from the State Government
    shall, for the purposes of this Act, be deemed
    to be the owner of the [land or building] as the
    case may be:

    Provided further that in the case of [land or
    building] held on lease for a term not less than
    [twenty years], the lessee shall, for the
    purposes of this Act, be deemed to be the
    owner of such [land or building.”

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    9. Section 2(8) of the Act defines the definition of “occupier” as

    under :

    “Occupier: means the person in actual occupation
    or use of the [land or building] or a portion thereof,
    in respect of which the tax is payable, and includes-

    (a) the owner in occupation;

    (b) the tenant who for the time being is
    paying or is liable to pay rent in respect
    thereof to the owner;

    (c) the rent-free tenant or licensee thereof;
    and

    (d) the person who is liable to pay to the
    owner damages for unauthorized use and
    occupation thereof.”

    10. Section 3 of the Act of 1964 that lays down the manner of

    levying of lands and buildings tax is reproduced as under :

    “(1) There shall be levied and collected with effect on
    and from 1st April, 1973, for each year a tax on
    lands and buildings situate in an urban area
    (hereinafter referred to as Lands and Buildings Tax),
    from the owner of such lands and buildings, at such
    rate not exceeding 2% of the market value thereof
    as the State Government may, by notification in the
    Official Gazette declare in this behalf :

    Provided that the State Government may fix
    graduated rates of tax on different slabs of market
    values of urban lands and buildings:
    Provided further that until a notification declaring rate
    of tax is issued under this subsection, the rate of tax
    on lands and buildings shall be as follows:-
    On the first Rs. 1,00,000/- of the market Nil
    Value of the land and building.

    On the next Rs.2,00,000/- of the market ½%
    value of the land and building.

    On the next Rs.7,00,000/- of the market 1%
    value of the land and building.

    On the balance of the market value of the ₁½%
    land and building in excess of Rs.10,00,000/-

    Provided further that with effect on and from the date
    of commencement of the Rajasthan Lands and
    Buildings Tax (Amendment) Act, 1995 (Act No. 14 of
    1995) no tax shall be levied and collected on lands
    and buildings situate in an urban area having a

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    population of less than one and a half lakh according
    to the latest census figures:

    Provided further that if any area is declared a
    cantonment, or is constituted a Municipality, after the
    commencement of the Rajasthan Urban Land Tax
    (Amendment) Act, 1973, the tax on lands and
    buildings situate in such area shall be levied and
    collected with effect from the commencement of the
    year following the year during which the area is
    declared a cantonment or is constituted a Municipality.
    [x x x]
    (1-A) For removal of doubt it is declared that the tax
    shall be levied on land or building or both separately
    as units.

    (1-B) (a) An Assessee may pay one-time-tax in lieu of
    the tax payable for each year under sub-section(1):

    [xxx]

    (b) The one-time-tax shall be the amount of tax
    arrived at after multiplying the amount of yearly tax,
    assessed and levied under the provisions of this Act,
    by the calculation factor, not exceeding ten, to be
    notified by the State Government in the Official
    Gazette, from time to time.

    (c) Where any building, on which one-time-tax has
    been paid, is so rebuilt or enlarged as to make the
    asses see liable to pay an enhanced or additional
    amount of tax under this Act, the asses see shall,
    subject to the other provisions of this Act, be liable to
    pay the amount of enhanced or additional yearly tax
    or one-time-tax.

    [xxx]
    (2) The tax shall be in addition to any other tax for the
    time being payable in respect of the land and building
    or portion thereof under any other law for the time
    being in force.”

    11. As per Section 7 of the Act of 1964, the owner of the land or

    building is liable to submit return. However, the assessment can

    be made by the Assessing Authority by following procedures under

    Section 11 of the Act of 1964, where ever the owner of land or

    building has failed to furnish the return, the tax has to be

    determined on the basis of the market value.

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    12. Section 15A of the Act of 1964 lays down the provisions as to

    how the tax and penalty has to be realized and as per Section

    15A(4), a separate notice of demand is required to be served on

    the assessee. Section 15A of the Act of 1964 is reproduced herein

    below :

    “15A. Realisation of tax and penalty.-(1) After
    the assessment of the market value and
    determination of the amount of tax under sections
    10
    , 11, 13, 15 or 15-B, the prescribed officer shall
    cause a notice of demand to be served on the
    assessee. Such notice shall specify the amount of
    tax payable by the assessee and shall contain such
    other particulars as may be prescribed.
    (2) The notice referred to in sub-section (1) shall
    call upon the assessee to pay the tax specified
    therein within such time and subject to such
    conditions in such installments as may be
    prescribed.

    (3) In default of the payment of tax payable under
    sub-section (2) or of penalty under section 16-A or
    17, the amount of tax or penalty [including interest
    under section 17-A] shall be recoverable as an
    arrear of land revenue.

    (4) In respect of the tax payable for each year a
    separate notice of demand shall be served on the
    assessee.

    (5) If no assessment has been made under section
    10
    , 11 or 13 the owner shall continue to pay the
    amount of tax due according to the return under
    section 7 or 13 for every year in advance on or
    before the last day of June or at his option, in two
    equal installments payable on or before the last day
    of June and December until assessment is made.”

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    13. Section 15D of the Act of 1964, which is relevant for the

    present purpose, provides that recovery of tax from occupier can

    be made in certain cases as under :

    “(1) Where the owner of any land or building is
    himself not the occupier thereof and is in
    default of payment of the tax, such tax may be
    recovered in the manner prescribed from the
    occupier out of the rent or other sum which has
    or may fail due to the owner in respect of such
    land or building.

    (2) Any occupier who has paid the tax under
    sub-section (1) shall be entitled to deduct the
    amount so paid from the amount of rent or any
    other sum payable from time to time to the
    owner.”

    14. The petitioners before us would come within the definition of

    “occupier” and the grounds which have been raised would not be

    available to an occupier to contest, as he cannot step into the

    shoes of the owner. Of course, once a tax has been imposed, the

    occupier can always take steps for recovery of the same from the

    owner, as laid down under Section 15D(2) of the Act of 1964.

    15. Having noticed the aforesaid provisions, we are of the firm

    view that the order of demand cannot be quashed solely on the

    ground that notice has not been given to the occupier, since the

    notices have to be originally sent to the concerned owner who

    admittedly has failed to deposit the tax, the recovery is being

    affected from the occupier who would be liable to pay the amount.

    16. In view thereto, we dismiss the present writ petition and

    vacate the stay granted by this Court and direct the petitioners to

    deposit the land and building tax as demanded along with interest

    @12% per annum.

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    17. We, however, refrain from imposing any penalty considering

    that this Court had passed the stay order.

    18. The Department shall be free to recover the amount from the

    present writ petitioners who are the Lrs of the deceased.

    19. At the same time, it would be open for the petitioners to

    recover the amount by adjusting the said amount from the rent in

    terms of Section 15D(2) (supra). The law in this regard has been

    settled by the Apex Court in the Judgment of “Indore

    Development Authority (LAPSE-5 J.) v. Manoharlal”, (2020)

    8 SCC 129, wherein the Court has held as under:

    “325. In Karnataka Rare Earth v. Deptt. of Mines &
    Geology [Karnataka Rare Earth v. Deptt. of Mines &
    Geology, (2004) 2 SCC 783], this Court observed
    that maxim actus curiae neminem gravabit requires
    that the party should be placed in the same position
    but for the court’s order which is ultimately found to
    be not sustainable which has resulted in one party
    gaining advantage which otherwise would not have
    earned and the other party has suffered but for the
    orders of the court. The successful party can
    demand the delivery of benefit earned by the other
    party, or make restitution for what it has lost. This
    Court observed :

    10. In … the doctrine of actus curiae
    neminem gravabit and held that the
    doctrine was not confined in its
    application only to such acts of the
    court which were erroneous; the
    doctrine is applicable to all such acts
    as to which it can be held that the
    court would not have so acted had it
    been correctly apprised of the facts

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    and the law. It is the principle of
    restitution that is attracted. When on
    account of an act of the party,
    persuading the court to pass an order,
    which at the end is held as not
    sustainable, has resulted in one party
    gaining advantage which it would not
    have otherwise earned, or the other
    party has suffered an impoverishment
    which it would not have suffered, but
    for the order of the court and the act
    of such party, then the successful
    party finally held entitled to a relief,
    assessable in terms of money at the
    end of the litigation, is entitled to be
    compensated in the same manner in
    which the parties would have been if
    the interim order of the court would
    not have been passed. The successful
    party can demand : (a) the delivery of
    benefit earned by the opposite party
    under the interim order of the court, or

    (b) to make restitution for what it has
    lost.”

    20. The present Civil Writ Petition is accordingly dismissed with

    aforesaid observations.

    21. All pending applications stand disposed of.

    (SHUBHA MEHTA),J (SANJEEV PRAKASH SHARMA),ACTING CJ

    AMIT/1

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