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Patna High Court

Padam Chand JainversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The Court set aside the impugned mutation order and restored the original holdings to the petitioners.

Summary

The petitioners, descendants of auction purchasers of a 3½ Katha plot (holdings 163 and 163A), challenged a 5 May 2012 order by the Bhagalpur Municipal Commissioner that transferred part of their holdings to respondent No.6, Raman Kumar Singh, creating new holdings 163/1 and 163A/1. The petitioners discovered the illegal mutation through a Right to Information request and alleged that the process was mechanical, lacked proper notice, and was based on a partition decree from 1955 unrelated to their title. The Municipal Corporation admitted the irregularity but claimed it lacked power to recall the order. The Court examined the historical acquisition, partition, and continuous possession and tax payment by the petitioners, and found the mutation order to be unlawful. Consequently, the Court set aside the impugned order, directed restoration of holdings 160 and 160A (original holdings) to the petitioners, and ordered the Municipal Corporation to accept and issue receipts for holding tax from 2017‑18 onward.

Issues considered

  • The validity of the Municipal Commissioner’s mutation order dated 5 May 2012 transferring part of holdings 163/1 and 163A/1 to respondent No.6.
  • Whether the municipal authority had the power to recall or set aside the mutation order.
  • Whether the petitioners are the rightful owners of holdings 163 and 163A based on auction purchase and subsequent partition.

Legislation cited

Subjects

  • mutation
  • municipal corporation
  • holding tax
  • property ownership
  • illegal transfer
  • Right to Information Act
  • public grievance
  • partition decree
  • auction purchase
  • civil writ jurisdiction

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.9849 of 2022
                 ======================================================
           1.     Padam Chand Jain Son of Late Dharam Chand Jain Resident of Mohalla-
                  Naya Bazar, Mahabir Prasad Dwivedi Road, Police Station- Kotwali,
                  District- Bhagalpur and presently residing at Todar Mal Lane, Kanya
                  Pathshala Gali, Police Station- Kotwali, District- Bhagalpur.
           2.    Nirendra Kumar Jain Son of Late Shanti Lal Sarogi Resident of Mohalla-
                 Naya Bazar, M.P. Dwivedi Road, Police Station- Kotwali, District-
                 Bhagalpur and presently residing at Chitrakut Apartment, Marwari Tola
                 Lane, Police Station- Kotwali, District- Bhagalpur.
           3.    Rajeev Kumar Jain Son of Padam Chand Jain Resident of Mohalla- Naya
                 Bazar, Mahabir Prasad Dwivedi Road, Police Station- Kotwali, District-
                 Bhagalpur and presently residing at Todar Mal Lane, Kanya Pathshala Gali,
                 Police Station- Kotwali, District- Bhagalpur.

                                                                              ... ... Petitioner/s
                                                Versus
           1.    The State of Bihar through the Principal Secretary, Housing and Urban
                 Development Department, Government of Bihar, Patna.
           2.    The Principal Secretary, Housing and Urban Development Department,
                 Government of Bihar, Patna.
           3.    Bhagalpur Municipal Corporation, through Municipal Commissioner,
                 Bhagalpur.
           4.    The Municipal          Commissioner,   Bhagalpur    Municipal       Corporation,
                 Bhagalpur.
           5.    Mr. Awnish Kumar, the then Municipal Commissioner, Bhagalpur Municipal
                 Corporation, Bhagalpur.
           6.    Raman Kumar Singh Son of not known Resident of Mohalla- Sukhpur,
                 Police Station and District- Supaul.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s     :      Mr. P.N. Shahi, Sr. Advocate
                                                 Mr. Sanjeev Kumar, Advocate
                                                 Mr. Pravashankar Mishra, Advocate
                                                 Mr. Anand Bhushan, Advocate
                                                 Mr. Rajeev Shekhar, Advocate
                 For the Res. Nos. 3 & 4 :       Mr. Manish Kumar, Advocate
                 For the Res. No. 6      :       None
                 For the State           :       Mr. Yogendra Pd. Sinha (AAG-07)
                                                 Mr. Deepak Kumar, AC to AAG-07
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE ANIL KUMAR SINHA
                                       ORAL ORDER

7   20-01-2026                   Heard learned counsel for the parties concerned.
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                      2. The petitioners have challenged the order dated

          05.05.2012 passed in AD case bearing no. 1293/2010-11 by

          which part of holdings of petitioners have been transferred in

          the name of respondent no. 6.

                      3. Mr. P.N. Shahi, learned senior counsel for the

          petitioners submits that one Mr. Champa Lal Sarawagi (now

          deceased) has two sons, namely, Mr. Shanti Lal Saragai (now

          deceased) and Mr. Dharam Chand Jain (now deceased). The

          area of 3½ Katha situated at holding no. 14, Ward No. 3, Circle

          No. 6 was acquired by late Champa Lal Sarawagi in the auction

          held by the Corporation and a Sale Certificate was issued in his

          favour. The said plot was divided between two sons of late

          Champa Lal Sarawagi. The half area admeasuring 1¾ Katha

          was given to his son, namely, late Shanti Lal Sarawagi which

          has been registered as holding no. 163 and the remaining area

          admeasuring 1¾ katha was given to his second son, namely, late

          Dharam Chand Jain which has been registered in the records of

          the Corporation bearing holding number 163A. The petitioner

          no. 1 is the son of late Dharam Chand Jain who is the rightful

          owner of holding no. 163A whereas, the petitioner no. 2 is the

          son of late Shanti Lal Sarawagi who is the rightful owner of

          holding no. 163. The petitioner no. 3 is the son of petitioner
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          no.1.

                      4. It has further been submitted that the aforesaid

          holdings have been running in the name of the petitioners for

          about 60 years. From the holdings numbers 163 and 163A

          another holding bearing 163/1 and 163A/1 have been culled out

          vide order dated 05.05.2012. The petitioners did not come to

          know about the illegal transfer of part of the holding in favour

          of respondent no. 6 and the holding tax was being paid by the

          petitioners to the Municipal Corporation and the receipt was

          issued in the year 2016-17. When for the year 2017-18, the

          holding tax was not being accepted, the petitioner inquired into

          the matter and came to know about impugned order of transfer

          of holding in the name of respondent no. 6 passed by the then

          Municipal Commissioner. With great difficulty, the petitioners

          got the information and knowledge about the impugned order

          by virtue of Right to Information Act and finally the certified

          copy was obtained by the petitioners on 08.06.2022. It has

          further been argued that the inquiry was conducted by Secretary

          to the commissioner under the Public Grievance Redressal Act,

          2015 and a report thereof was submitted on 27.06.2019. It was

          mentioned in the said inquiry that any case bearing no. 1293 of

          2010-11 was initiated on 15.09.2010 by the then Municipal
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          Commissioner directing the Tax Collector/Assistant Tax

          Collector to submit an inquiry report with regard to present

          holding in question. On 15.09.2010 it was directed by the

          Municipal Commissioner to issue notice (aam Suchna) upon all

          concerned parties. The report of Tax Collector was submitted on

          05.05.2012 and services of notice and the service report of

          notice (aam suchna) received in the records of A.D. case no.

          1293-2010-11 pertained to another A.D. case bearing no.

          2553/2010-11 and on the same day, i.e., 05.05.2012, the

          Municipal Commissioner, Bhagalpur passed the order granting

          mutation in favour of respondent no. 6, namely, Raman Kumar

          Singh.

                      5. The entire proceeding of mutation was carried out

          in a mechanical fashion in one sitting itself in connivance with

          respondent no. 6. It has also been submitted by learned senior

          counsel for the petitioners that mutation in the name of

          respondent no. 6 was done on the basis of decree in partition

          suit passed by learned Sub Judge, Saharsa in case no. 12 of 1955

          by which the property in question was partitioned amongst the

          family members of respondent no. 6 and others. The submission

          is that after the partition decree, the auction of the property was

          held by the Municipal Corporation in the year 1956.
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                      6. No-one appears for private respondent no. 6 despite

          service of notice.

                      7. Mr. Manish Kumar, learned counsel appearing for

          Bhagalpur Municipal Corporation referring to the counter

          affidavit submits that the entire exercise of mutation was done

          in mechanical manner by the then Municipal Commissioner.

          The notice was allegedly issued under the signature of

          Municipal Commissioner on 15.03.2011 whereas the date of

          service of notice has been shown as 29.09.2010 which is logical

          discrepancy. The petitioners and their family are in physical

          possession of the property and the holding nos. 163 and 163A

          had been running in their names since long. The irregularity in

          the mutation process has been highlighted by the Secretary to

          the Commissioner in his report and since the administrative

          authority does not have power to review the order, Municipal

          Commissioner is not in a position to recall the impugned

          order.

                      8. I have heard learned counsel for the parties and

          have perused the materials on record including the report of the

          secretary of the Municipal Commissioner. It appears that the

          predecessor in interest of the petitioners are auction purchasers

          of the property in question situated at holding nos. 163 and
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          163A and after purchase of the property in auction sale, the

          partition was done between the family members of the

          petitioners and one 1 ¾ Katha each was divided between

          petitioner nos. 1 and 2. The holdings in favour of the petitioners

          were created in AD Case No. 2 of 1963-64 on 29.06.1963 and

          since then the holdings created in favour of the petitioners have

          been continuing and the petitioners have been paying rent

          continuously and the last holding tax paid and accepted by the

          respondent corporation is in the year 2017. The respondent

          Municipal Corporation in its counter affidavit has accepted that

          mutation in the name of respondent no. 6 of the present property

          and creation of new holding in his name having holding nos.

          163/1 and 163A/1 was done in illegal and mechanical manner.

                      9. Considering the aforesaid discussion, the impugned

          order dated 05.05.2012 annexed at Annexure 12 is set aside. The

          Municipal Commissioner, Bhagalpur is directed to restore the

          holding nos. 160 and 160A in favour of the petitioner nos. 1 and

          2. Municipal Corporation is also directed to accept holding tax

          from the petitioners and issue receipt of the same in favour of

          the petitioners starting from the year 2017-18 up till now and

          shall also continue to accept the holding tax from the petitioners

          till further decision is taken in accordance with law regarding
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                     the mutation and creation of holding in favour of bonafide third

                     person, if any.

                                 10. Accordingly, with aforesaid direction, the present

                     application stands disposed of.



                                              (Anil Kumar Sinha, J)
Siwani/-

U


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