Rent is not a tax and cannot be recovered as arrears of land revenue under Section 173-A

The Allahabad High Court in the case Manjeet Singh & Others. v. State of U.P. observed and has held that the U.P. Municipalities Act, 1916 does not empower any Municipality to recover arrears of rent for a shop as arrears of land revenue as stated under section 173-A of the Act.
The bunch of writ petitions have been filed wherein challenging the recovery certificates which are issued by the Executive Officer of Nagar Palika Parishad of Bareilly for recovering the arrears of rent, which is due on the petitioners and consequential recovery citations issued by the Collector under Section 173-A (Recovery of taxes as arrears of land revenue) of the Act.
The counsel appearing for the petitioner submitted before the court that any alleged arrears of rent due on any shopkeeper in possession of a shop allotted to him by the Municipality can be recovered only under Section 292 (Recovery of rent of other immovable property) reading with Chapter-VI of Act, 1916. However, the Rent in the case is not due on the land and thus cannot be recovered as land revenue as stated under Section 173-A or Section 291, which empowers the Collector in order to collect rent on land as land revenue.
The court in the case observed that as per the procedure laid down in Chapter IV, the Recovery of Municipal Claims of the Act, 1961 the said bills were to be raised as stated under Section 167. Thus, the Failure of the petitioner to satisfy the said bill within a period of 15 days and the demand notice cannot be issued as stated under Section 168. Thus, any failure would attract Section 169, i.e., issue of warrant, which can be executed in the manner prescribed as stated under section 170, section 171 of the Act, 1916.
The plea filed stated that no bills had been raised prior to issuance of recovery certificates and consequential recovery citation as stated under Section 173-A.
The bench comprising of Justice Salil Kumar Rai and Justice Arun Kumar Singh Deshwal in the case observed and has quashed the certificates which are the recovery citations issued by the Collector as being without jurisdiction. It held that the U.P. Municipality Act, 1912 does not empower the Municipality to recover arrears for rent of a shop as arrears of land revenue. Therefore, the said court provided 15 days to the defaulter for payment of any dues. Only after he fails to fulfil his dues within the said period, can further proceedings under Chapter VI of the Act can be initiated.
The court in the case stated that reading of Section 292 of the Act, 1916 indicates that any arrears of rent for a shop from a person in possession of the shop after the same having been allotted to him by the Municipality and the same can be recovered only in the manner prescribed in Chapter-VI. Therefore, Rent is not a tax and, thus, it cannot be recovered as arrears of land revenue under section 173-A of the Act, 1916.
Accordingly, the court allowed the writ petitions.