Simplified Explanation of the Judgment
In a recent judgment passed by the Hon'ble Patna High Court in CWJC No. 2121 of 2024, the Court addressed an arbitrary demand by the Patna Municipal Corporation (PMC) for a mutation fee of Rs. 61,25,689. The petitioners, a couple, had purchased Plot No. 157, Block-B, Type-C, measuring 377.22 square yards in Rajendra Nagar, Patna, via a registered sale deed dated 17.01.2011.
Upon applying for mutation of the said property in their names, the petitioners received a letter dated 28.11.2023 from the Land Estate Officer of PMC asking them to pay an exorbitant amount as mutation charges. The demand lacked legal clarity and justification.
The petitioners contended that similar demands had previously been set aside in the landmark case of Sanjay Singh vs. State of Bihar & Ors. (CWJC No. 13886 of 2011), wherein the High Court ruled that PMC could not demand such charges unless the transfer was made within 10 years of lease execution. In their case, the transfer occurred well beyond the 10-year period.
The PMC had lost appeals against the Sanjay Singh judgment at every judicial level, including an SLP in the Supreme Court. Despite this, the Corporation continued issuing such notices without referencing the legal basis.
The Court observed that the Corporation was deliberately ignoring binding precedents and harassing citizens. It strongly criticized PMC for not learning from earlier judicial pronouncements.
Implications of the Judgment
This judgment is significant for property owners and prospective buyers in Bihar. It reiterates that PMC cannot impose arbitrary mutation charges, especially when prior judgments have clarified the legal framework. The ruling protects citizens from unjust financial burdens and affirms judicial accountability.
Legal Issues Decided and the Court's Decision
Whether PMC can demand mutation charges after 10 years of lease execution: No
Whether such demands violate the terms of the original lease and judicial precedent: Yes
Final decision: Demand notice quashed; PMC directed to complete mutation within 3 months of application without levying an arbitrary fee
Judgments Referred by Parties
Sanjay Singh vs. State of Bihar & Ors., CWJC No. 13886 of 2011
Judgments Relied Upon or Cited by the Court
Sanjay Singh vs. State of Bihar & Ors., upheld in LPA No. 512 of 2016
Special Leave Petition (Civil) No. 12463 of 2018 dismissed by the Hon'ble Supreme Court
Case Title:
Bipin Trivedi & Anr. vs. State of Bihar & Ors.
Case Number:
CWJC No. 2121 of 2024
Citation(s): 2024(4) PLJR (600)
Coram:
Hon'ble Mr. Justice Rajiv Roy
Advocates:
Mr. Siddhartha Prasad for the Petitioners
Mr. Prasoon Sinha for the Respondents
Link to the Judgment:-
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