Punjab & Haryana High Court Restores Trial Court Decree; Holds Civil Suit Barred in House Tax Assessment Matters Under Punjab Municipal Act

Case Name: Municipal Committee, Sangrur v. Ranbir Singh and Another
Date of Judgment: 11 December 2025
Citation: RSA-910-1996
Bench: Hon’ble Ms. Justice Mandeep Pannu

Held: The Punjab and Haryana High Court allowed the Regular Second Appeal filed by the Municipal Committee, Sangrur, holding that civil courts lack jurisdiction to entertain suits challenging assessment and levy of house tax under the Punjab Municipal Act, 1911. The Court held that Sections 84 and 86 of the Act provide a complete statutory mechanism, including an appellate remedy, thereby impliedly barring civil court jurisdiction. The judgment of the lower appellate court was set aside and the trial court decree dismissing the suit was restored.

Summary: The respondents instituted a civil suit seeking declaration that assessment orders passed by the Municipal Committee assessing house tax on their property were illegal, arbitrary, and void, along with a consequential injunction restraining recovery. It was alleged that the assessment was made without proper notice, without following statutory procedure, and without considering the age and location of the property.

The trial court dismissed the suit, holding that the assessment had been made in accordance with the Punjab Municipal Act and that the plaintiffs had already availed the statutory appellate remedy before the Deputy Commissioner. It was further held that civil court jurisdiction was barred in matters relating to municipal tax assessment.

In appeal, the lower appellate court reversed the trial court decree, holding that the civil suit was maintainable and that the Municipal Committee failed to justify the basis of assessment or prove compliance with procedural safeguards.

The High Court examined the statutory scheme of the Punjab Municipal Act, 1911, and noted that Sections 84 and 86 create a self-contained mechanism for challenging house tax assessments, including a statutory appeal. Relying on the settled principle laid down by the Supreme Court in Munshi Ram v. Municipal Committee, Chheharta, the Court held that where a statute creates a special right and provides a specific remedy, civil court jurisdiction stands impliedly barred.

The Court held that the dispute raised by the plaintiffs related exclusively to assessment and levy of house tax, which squarely falls within the exclusive domain of the municipal authorities and the appellate forum constituted under the Act. The lower appellate court was found to have erred in assuming jurisdiction contrary to the statutory bar.

Decision: The Regular Second Appeal was allowed. The judgment and decree of the lower appellate court were set aside and the judgment and decree of the trial court dismissing the civil suit were restored.