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Writ Petition No. 621‑R of 1961, decided on 28th June 1963.

Sch. I, Paras. I & 4‑Transfer of house‑House assessed by Municipal Corporation to house tax on basis of annual rental of Rs. 108 and by Excise and Taxation Depart ment at Rs. 180‑Determining price of house on evaluation basis‑Lesser of two assessments to be made basis of computation-- Making higher of two assessments basis of evaluation‑Illegal Settlement Laws Manual, p. 28 Press note dated 16‑7‑59.

Mian Fazli Muhammad for Petitioner.

Major Ishaq Muhammad Khan for Respondent.

The petitioner is the transferee of house No. A‑2025/A Bazar Sathan, Lahore which was previously owned by Mst. Yashpal Kaur widow of S. Tirlok Singh. It was assessed by the Corporation of the City of Lahore to house tax on the basis of a monthly rent of Rs. 9 i.e. Rs. 108 per annum and by the Excise and Taxation Department to an annual rent of Rs. 180 p. m. for the purpose of calculating the value of this house the respondent has accepted the latter figure. The question is whether this decision is according to law.

Paragraph 4 of Schedule I of the Act provides for the transfer of a house to a local "on payment of the prevailing market value".

Section 2 (8) of the Displaced Persons (Compensation and Rehabilitation) Act, 1958 defines prevailing market value as‑

"the amount of the value of the property as determined by the Chief Settlement Commissioner."

By a press note issued on 16‑7‑1959, which is reproduced at page 28 of the Manual the Chief Settlement Commissioner pres cribed the following formula for the determination of prevailing market value "Price determined on evaluation basis payable by claimants, plus‑

(1) -------------------

(2) fifteen per cent. for houses and shops in Lahore, Lyallpur, Rawalpindi, Peshawar, Multan and Hyderabad, and

(3) ------------------ "

Paragraph 22‑A of Scheme No. I provides that‑

Where the assessment made by Government for 1946 under any of the immovable property tax laws and that made by the Local Body concerned for the same year is different the lesser of the two assessments shall be adopted."

This paragraph appears in Chapter IV of the Scheme which deals with "Determination of Amounts Payable by Transferee" for determining the price on evaluation basis, therefore, the lesser of the two assessments has to be made the basis of computation and since the prevailing market value is to be arrived at by adding 15% to this price, the impugned order which makes the higher of the two assessments the basis of evaluation is against law, the same is hereby set aside. The respondent shall now proceed to calculate the value of the house assuming Rs. 108 per annum to be the assessment of rent.

The parties shall be left to bear their own costs.

K. B. A./A. H. Order set aside.

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