JUDGMENT
Syed Shah Mohammed Quadri, J.
1. The petitioner purchased a house bearing No. 3-5-997, Narayanaguda, Hyderabad tinder a registered sale deed dated 12-3-1981 from its owner and possessor called Prakashbabu. He filed an application for mutation of his name in the municipal records Under Section 208 of the Hyderabad Municipal Corporation Act. It is stated that inspite of repeated requests mutation was not effected in the name of the petitioner. A notice was issued in the name of one Shiva Prasad for recovery of the tax for houses bearing door Nos. 3-5-997 and 3-5-998, Narayanaguda, Hyderabad, raising a demand of Rs. 17,266-50 and was served on the petitioner seeking recovery of the amount. The petitioner challenged the correctness of the said notice in this writ petition.
2. Sri Vinyakumar, the learned counsel for the petitioner, submits that when the petitioner filed an application for mutation of his name in the municipal records in respect of the house, the respondent ought to have mutated the name of the petitioner and raised demand of tax after duly assessing the property tax in respect of house No. 3-5-997. The counsel for the petitioner further submits that the petitioner is not bound to pay the tax in demand which relates to his house and another house with which he is not concerned.
3. Sri Janardhana Rao, the learned Standing Counsel for the respondent, submits that Under Section 207 of the Hyderabad Municipal Corporation Act, 1955, the petitioner ought to have given notice within three months from the date of transfer. He further submits that the petitioner can as will file an appeal against the impugned demand and that therefore, the writ petition may be dismissed.
4. To appreciate the rivil contentions of the parties, it will be useful to refer to the relevant provisions of the Hyderabad Municipal Corporation Act, 1955, for short, “the Act”, fixing liability for payment of property tax.
5. Section 204 of the Act provides that property taxes assessed on a premises shall be leviable primarily :
(1) If the premises are held immediately from the Government or from the Corporation, from the actual occupier of the premises ;
(2) in other cases :
(a) if the premises are let, from the lessor;
(b) if the premises are sublet, from the superior lessor; and
(c) if the premises are unlet, from the person in whom the right to let the same vests and
(3) if any land has been let for any term exceeding one year to a tenant, and such tenant has built upon the land, the property taxes assessed upon the said land and upon the building erected thereon, shall be primarily leviable from the said tenant or his legal representative, whether the premises be in the occupation of the said tenant or of his legal representative, or of sub-tenant.
6. Section 205 of the Act deals with apportionment of responsibility for property tax when the premises assessed are let or sub-let. Section 206 of the Act says’ where a person who is primarily liable for payment of any property tax, himself pays rent to another person other than the Government or the Corporation in respect of the premises upon which such tax, is assessed, he shall have credit in account with such other person for such sum as would be leviable on account of the said tax as if the amount of the rent payable by him was the rateable value of the said premises. Section 207 of the Act which enjoins giving notice of transfer of premises assessable to property tax and on which reliance is placed by the learned Standing Counsel, reads :
(1) “Whenever the title of any premises, to or over such premises is transferred the person whose title is so transferred shall within three months from the date of the execution of the instrument of transfer, or its registration, if it be registered, or effecting the transfer if no instrument be executed, give notice of such transfer, in writing, to the Commissioner.
(2) In the event of the death of any person primarily liable as aforesaid, the person to whom the title of the deceased shall be transferred, as heir or otherwise, shall give notice of such transfer to Commissioner within one year from the death of the deceased”.
It provides that where title of any property assessed to tax, is transferred the vendor of the property shall give notice of transfer within three months from the date of execution of the instrument. It also provides that m the event of the death of any person primarily liable for payment of tax, the person with whom the title of the deceased shall stand transferred whether as heir or otherwise, shall give notice within one year from the date of the death of the deceased. Section 208 prescribes the form of notice. Section 209 is in two parts. The first limb provides that every person primarily liable for the payment of property tax on any premises who transfers his title to or over such premises without giving notice of such transfer to the Commissioner Under Section 207, shall continue to be liable for payment of property tax from time to time in respect of the said premises until he gives such notice, or until the transfer is recorded in the Commissioner’s book. The second limb provides that the liability of the transferee for payment of the property tax shall not be diminished nor the claim of the Commissioner for recovery of the property tax due thereupon Under Section 238, shall, in any way, be affected on the ground that the vendor continues to be liable Under the first limb of Section 209.
7. From a combined reading of the Sections 204, 207 and 209 of the Act, it follows that where any property is sold, the property tax will be leviable from the purchaser of the properly as the right to let vests in him consequent upon transfer of title by virtue of sale of the property of which the vendor is bound to give notice Under Section 207 of the Act in the form prescribed Under Section 208 of the Act. In the event of failure to give notice of transfer as provided Under Section 207, the person primarily responsible Under Section 204 of the Act the transferor of the property would continue to be liable for payment of the property tax till such property is mutated in the name of the transferee. But this liability arising out of default of the transferor of the property tax to give notice of transfer would neither diminish the liability of the transferee nor affect the claim of the Commissioner for recovery of the property tax due Under Section 238 of the Act. Further where a property having more municipal numbers than one, is, assessed to tax as a single premises, but is sold in different units, the transferee of each unit is liable to pay property tax of the unit purchased by him/ her as he/she become entitled to let the same ; but he/she is under no obligation to pay property tax of the entire premises or other unit as in respect of the unit other than the one purchased by him/her, he/she cannot be made liable under any of the provisions of the Act. However, the person primarily liable/transferor (Under Section 204 of the Act) will continue to be liable to pay property tax for the whole premises if he/she did not give notice Under Sections 207 and 208 of the Act till the unit/units is/are mutated in the name of the purchaser.
8. In the instant case, tax is demanded in respect of two units of the premises i.e. 3-5-997 and 3-5-998. The petitioner is not liable for payment of tax in respect of house bearing No. 3-5-998 as he purchased only one unit ie. 3-5-997 and is liable to pay property tax for that unit only. Therefore the amount mentioned in the impugned demand notice which relates to both the units of the premises, cannot be collected from the petitioner alone.
9. For the aforesaid reasons, a declaration shall issue that the respondent is not entitled to collect the amount in demand which relates to two units of premises bearing Nos. 3-5-997 and 3-5-998, from the petitioner.
10. Having regard to the circumstances of the case, the petitioner is directed to file notice of transfer in the form prescribed Under Section 208 of the Act, along with, a covering letter giving particulars of the transfer etc., within four weeks from to day. On receipt of such an application, the Commissioner of the respondent is directed to assess the tax in respect of the unit purchased by the petitioner (3-5-997, Narayanaguda, Hyderabad) and mutate the same in his name in the register of the respondent, within three months thereafter. Till the disposal of the representation/notice, no demand of tax shall be made from the petitioner on condition that the petitioner deposits Rs. 8,000/- with the respondent within three months from today. After assessment of the property tax on the unit purchased by the petitioners, it will be open to the respondent to demand tax due from the petitioner, but not for the period earlier to the date of purchase of the said unit by him, after giving credit to the said amount of Rs. 8,000/- deposited pursuant to this order, which the petitioner should pay within the time fixed by the respondent. The writ petition is accordingly allowed. No costs.