Chapter VIII RECOVERY OF MUNICIPAL CLAIMS

Presentation of bills for taxes, rent and other claims-

1. (1) when any amount-
   • (a) which by or under any provisions of this Act, is declared to be recovered in the manner provided by this Chapter; or
   • (b) which, not being leviable under (1) of Section 157 or payable on demand on account of an octroi or a toll, is claimable as an amount or installment on account of any other tax which is being imposed or may hereafter be imposed in any Municipality; or
   • (c) which, on account of rent of any Municipal land, buildings, shops, gumits or any other property; shall have become due , the Chief Executive Officer shall with the least practicable delay cause to be presented to the person liable for the payment thereof a bill for the sums claimed as due,
2. (2) Every such bill shall specify-
   • (a) the period for which; and
   • (b) the property, occupation or thing in respect of which the sum is claimed; and shall also give notice of-
     • (i) the liability incurred in default of payment; and
     • (ii) the time within which an appeal may be preferred as hereinafter provided against such claim.
3. (3) If the person to whom a bill has been presented as aforesaid does not, within 15 days from the presentation thereof, either-
   • (a) pay the sum claimed as due in the bill; or
   • (b) show cause to the satisfaction of the Chief Executive Officer or of such officer as the Municipality may appoint in this behalf, why he should not pay the same; or
   • (c) prefer an appeal in accordance with the provisions of Section 172 against the claims; the Chief Executive Officer may cause to be served upon the person liable for the payment of the said sum a notice of demand in the form prescribed by rules.
4. (4) The sum claimed as due in the bill shall carry interest at the rate of 6 ¼ per centum per annum till the date it is paid and shall be recoverable along with the bill.

General power of recovery of arrears.

1. (1) If a person on whom a notice of demand has been served under sub-section
2. (1) of Section

164 does not within fifteen days from the service of such notice pays the sum demanded in the

notice, such sum with all cost of recovery and interest may be recovered on application of the Council to a Magistrate having jurisdiction within the limits of the Municipality, and such Magistrate may order recovery by distress and sale of any movable property or attachment and sale of immovable property belonging to such person within the limits of his jurisdiction: Provided that no interest shall be so recovered in any case in which the Magistrate, for reasons to be recorded in writing, considers it inexpedient that interest should be charged.

1. (2) When there is no sufficient movable or immovable property belonging to such person within the jurisdiction of such Magistrate, the Magistrate may, on the application of the Council, grant a certificate, of the amount due on account of arrears, with fees, and interest, if any, and shall forward the certificate to the Magistrate within whose jurisdiction any movable or immovable property belonging to such person is or is believed to be; and the Magistrate receiving such certificate shall proceed to recover, by distress and sale of any movable property or attachment and sale of any immovable property belonging to the defaulter within the limits of his jurisdiction, the amount certified, with any further sum leviable on account of fees and shall remit the amount recovered to the Magistrate by whom the certificate was granted.
2. (3) The following property shall not be distrained under this section, namely--
   • (a) the necessary wearing apparel and bedding of the defaulter, his wife and children, and utensils used for cooking and drinking;
   • (b) the tools of artisans;
   • (c) when the defaulter is an agriculturist, his implements of husbandry, seed grain and such cattle as may be necessary to enable him to earn his livelihood;
   • (d) books of account;
   • (e) religious books and idols of worship.

Extent of special provisions of recovery taxes.--

1. (1) The provisions of Sections 167 to 170 shall apply to such Municipalities to which they have been specially applied by the State Government, by notification, and on such application the provisions of Section 165 shall not apply in respect of such Municipality.
2. (2) The State Government may by a like notification, suspend the operation of Section 167 to 170 in respect of Municipality and from such date as may be specified therein, and on and from the due date so specified every amount due on account of any tax therefore recoverable under the said section shall be recoverable on application to a Magistrate in the manner provided in Section 165.

1. (1) In what cases warrant may issue.-- If a person on whom a notice of demand has been served under sub-section (3) of Section 164 does not, within 15 days from the service of such notice pay the sum demanded in the notice, such sum with all cost of recovery may be recovered under a warrant in the form prescribed by rules or to the like effect signed by the Chief Municipal Officer --
   • (i) by distress and sale of movable property belonging to such person; or
   • (ii) by attachment and sale of the immovable property belonging to him: Provided that, where any precautionary or other measures in respect of any such property have been taken by the State Government for the recovery of any sum claimed by it, no proceedings shall be taken or continued under this chapter, in respect of such property until the State Government's claim has been paid off.
2. (2) To whom the warrant should be addressed --- The warrant shall be addressed--
   • (a) where the property is in the Municipality, to an officer of the Municipality;
   • (b) where the property is in another Municipality, to the Chief Municipal Officer to such Municipality;
   • (c) where the property is within the limits of a Municipal Corporation, to the Municipal Commissioner of such Corporation;
   • (d) where the property is in a Cantonment, to the Chief Officer of the Cantonment;
   • (e) where the property is not within the limits of a Corporation, Municipality or Cantonment, to a Government Officer not below the rank of a Tehsildar; Provided that such Chief Municipal Officer, Municipal Commissioner, Chief Officer or Government Officer may endorse such warrant to a subordinate officer.
3. (3) Power of entry under special order.--- It shall be lawful for any officer to whom a warrant issued under sub-section (1) is addressed if the warrant contains a special order authorising him in this behalf, but not otherwise, to break open at any time between sunrise and sunset, any outer or inner door or a window of the building in order to make the distress directed in the warrant, if he has a reasonable ground for believing that such building contains property which is liable to seizure under the warrant, and if after notifying his authority and purpose and duly demanding admittance, he cannot otherwise obtain admittance: Provided that such officer shall not enter or break open the door of any apartment appropriated to the use of woman until he has given not less than three hours' notice of his intention and had given such woman an opportunity to withdraw.
4. (4) Warrant how to be executed.-- It shall also be lawful for such officer to distrain, wherever it may be found, any movable property or attach any immovable property of the person therein named as defaulter subject to the following conditions, exceptions and exemptions, namely:-
   • (a) the following property shall not be distrained :-
     • (i) the necessary wearing apparel and bedding of the defaulter, his wife and children, and utensils used for cooking and drinking;
     • (ii) the tools of artisans;
     • (iii) when the defaulter is an agriculturist, his implements of husbandry, seed-grain, and such cattle as may be necessary to enable him to earn his livelihood;
     • (iv) book of account;
     • (v) religious books and idols of worship;
   • (b) the distress shall not be excessive, that is to say, the property distrained shall be as nearly as possible equal in value to the amount recoverable under the warrant, and if any articles have been distrained which, in the opinion of the Chief Municipal Officer or of the persons to whom the warrant was addressed should not have been so distrained, they shall forthwith be returned to the person from whom it was distrained;
   • (c) the officer shall on distraining or attaching the property forthwith make an inventory thereof, and give to the person in possession thereof at the time of distress or attachment, a written notice in the form prescribed by rules that the said property will be sold as shall be specified in such notice;
   • (d) when the property is immovable :-
     • (i) the attachment shall be made by an order prohibiting the defaulter from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge;
     • (ii) the order shall be proclaimed at some place on or adjacent to the property by beat of drum or other customary mode, and a copy of the order shall be fixed on a conspicuous part of the property and upon a conspicuous part of the Municipal office and also when the property is land paying revenue to the State Government, in the office of the Tahsildar of the tahsil in which the land is situate;
   • (e) any transfer of, charge on, the property attached or of any interest therein made without the written permission of the Council shall be void as against all claim of the Council enforceable under the attachment.

Sale of goods distrained.--

1. (1) When the property seized is subject to speedy and natural decay, or when the expense of keeping it in custody together with the amount to be levied is likely to exceed its value, the Chief Municipal Officer shall at once give notice to the person in whose possession the property was, when distrained, to the effect that it will be sold at once; and shall sell it accordingly unless the amount named in the warrant is forthwith paid.
2. (2) On the expiry of time specified in the notice served by the officer executing the warrant, the property distrained or attached, or in the case of immovable property, a sufficient portion thereof, if not sold at once under sub-section (1) may be sold by public auction under the orders of the Chief Municipal Officer unless the warrant is suspended by him or the sum due is paid by the defaulter together with all costs incidental to the notice, warrant, distress, attachment or detention of the property, as the case may be.
3. (3) Where the sum due together with costs is paid by the defaulter as aforesaid, any attachment levied on his property shall be deemed to be removed and the property if immovable shall be removed.
4. (4) All sales of immovable property under this section shall so far as may be practicable, be regulated by the procedure laid down in the rules made by the State Government in that behalf.
5. (5) The sale proceeds or such part thereof as may be sufficient shall be applied, first, in discharge of any sum due to the State Government in respect of such property and secondly, in discharge of the sum due to the Council and all such incidental costs as aforesaid.
6. (6) After sale of the immovable property auction as aforesaid, the Chief Municipal Officer shall put the person declared to be the purchaser in possession of the same and shall grant him a certificate to the effect that he has purchased the property to which the certificate refers.
7. (7) It shall be lawful for the Council to offer a bid in the case of any immovable property put up for auction, provided the previous approval of the Collector is obtained to such bidding.
8. (8) The surplus proceeds shall be forthwith credited to the Municipal Fund and notice of such credit shall be given to the person in whose possession the property was at the time of distraint or attachment. If such person claims the surplus by written application to the Chief Municipal Officer within three years from the date of the notice given under this sub-section, the Chief Municipal officer shall refund the surplus to him.
9. (9) Any such surplus not so claimed shall be the property of the Council.

Sale outside Municipal area.-- Where the warrant is to be executed outside the Municipal area the Chief Municipal Officer may, by endorsement, direct the officer to whom the warrant is addressed, to sell the property distrained or attached; and in such case it shall be lawful for such officer to sell the property and to do all things incidental to the sale in accordance with the provisions of the preceding section and to exercise the powers and perform the duties of the Chief Municipal Officer under sub-section (1) and (2) of section 168 in respect of such sale except the power of suspending the warrant. Such officer shall, after deducting all costs of recovery incurred by him, remit the amount recovered under the warrant to the Chief Municipal Officer who shall dispose of the same in accordance with the provisions of the preceding section.

Fees and costs chargeable.- The fees for ---

1. (a) every notice issued under section 164;
2. (b) every warrant issued under sub-section (1) of Section 167, or distress or attachment made under sub-section (4) of the said section;
3. (c) the maintenance of any live-stock seized under sub-section (4) of Section 167. shall be chargeable at such rates as the Council may, by bye-laws, determine and they shall be included in the costs of recovery to be levied under Section 167.

Sale outside Municipal area.-- Where the warrant is to be executed outside the Municipal area the Chief Municipal Officer may, by endorsement, direct the officer to whom the warrant is addressed, to sell the property distrained or attached; and in such case it shall be lawful for such officer to sell the property and to do all things incidental to the sale in accordance with the provisions of the preceding section and to exercise the powers and perform the duties of the Chief Municipal Officer under sub-section (1) and (2) of section 168 in respect of such sale except the power of suspending the warrant. Such officer shall, after deducting all costs of recovery incurred by him, remit the amount recovered under the warrant to the Chief Municipal Officer who shall dispose of the same in accordance with the provisions of the preceding section.

Appeal to Civil Judge Appeal to Civil Judge.--

1. (1) Appeals, against any claim included in a bill presented in accordance with the provisions of this Act, or the rules made thereunder, be made to the Civil Judge, Class I, having jurisdiction over the Municipal area and if there be no Civil Judge, Class I, at the headquarters of the Municipality the Civil Judge, Class II having jurisdiction at such headquarters if there be no such Civil Judge Class II at the headquarters to the Civil Judge at the headquarters having jurisdiction and in case of more than one such Civil Judge at the headquarters having jurisdiction, as the case may be, to such one of them as the District Judge may specify.
2. (2) No such appeal shall be heard and determined unless --
   • (a) the appeal is brought within 15 days next after presentation of the bill complained of ;
   • (b) an application, in writing, stating the ground on which the claim of Council is disputed, has been made to the Council in the case of a rate on building or land within the time

fixed in the notice given in accordance with the provisions of the Act or the rules made

thereunder or of the assessment or alteration thereof, according to which the bill is prepared;

1. (c) the amount claimed from the appellant has been deposited by him in the Municipal office.

1. (3) The decision of the Civil Judge in an appeal made under sub-section (1), shall, subject to the decision in revision by the Court to which appeals against the decision of such Civil Judge ordinarily lie, be final.

Amount of tax, etc. to be final.--

1. (1) The amount of every sum claimed from any person under the Act on account of tax or otherwise, shall, subject and decision in appeal or revision, if any, preferred under Section 172, be final.
2. (2) Effect shall be given by the Council to every decision in any appeal or revision against any such claim.

Liability of Buildings, lands, etc., for taxes.- All sums due from any person in respect of taxes on any land or buildings shall, subject to prior

payment of any land revenue in respect of it due to the Government, be a first charge upon the

said land or building and upon any movable property found within or upon such land or building and belonging to the said person:

Receipts to be given for all payments Receipts to be given for all payments.- For every sum paid on account of any tax under this Act, a receipt shall be tendered by the person receiving these payments, stating the sum and the tax on account of which it has been paid.

¹⁷⁶ Omitted

Omitted

Saving.-(1) No distress or sale made under this Act shall be deemed unlawful on account of an error, defect or want of form in the bill, notice, warrant of distress, inventory, or other proceeding relating thereto.

Writing off of irrecoverable sums due to Council.-- The irrecoverable sums due to the Council shall be written off in such manner and by such authority as may be prescribed by rules.