1(1) "annual value" means -
(a) in the case of land or building which is in the occupation of a tenant, the gross annual rent at which the land or building has actually been let:
Provided that in the event of increase in the rent, the Committee may make corresponding increase in the annual value :
Provided further that where the land or building has been let by the owner to any of his relations, and the Committee is of the opinion that the rent fixed does not represent the true rent, the rent fixed under the agreement of lease shall not be taken into consideration and the annual value shall be determined in accordance with the principles contained in clause (b);
(b) in the case of land or building which is occupied by the owner, the annual value shall be five per cent on the sum obtained by adding the present market value of the land and estimated cost of erecting the building less ten per cent depreciation :
Provided that in the calculation of annual value of any land and building, no account shall be taken of the furniture or machinery thereon ;
(c) in the case of any land on which no building has been erected but on which a building can be erected, and on any land on which a building is in the process of erection, the annual value shall be fixed at five per cent of the estimated market value of such land ;
(d) in the case of any land on which no building has been erected but on which a building can be erected, or which is partially built and is being used by erecting tents, temporary structures for the purpose of accommodating marriage parties, circus shows or for any entertainment purposes or such other purpose as may be specified in this behalf by the Committee with the previous sanction of the State government the annual value shall be twenty per cent of the estimated market value of such land;
Note: Section 3(1) of the Act as amended by Punjab Act 11 of 1994 has been struck down in the case of Model Town Residents Association v. State of Punjab 2002(2) RCR(Civil) 248(P&H)(DB). The unamended section is beein reproduced below;
(1) "Annual value" means
(a) in the case of land, "the gross annual rent at which it may reasonably be expected to let from year to year" provided that in the case of land assessed to land revenue or of which the land revenue has been wholly or in part released, compounded for, redeemed or assigned, the annual value shall if, the State Government so direct, be deemed to be double the aggregate of the following amount, namely :
i) The amount of the land revenue for the time being assessed on the land, 14 The Punjab Municipal Act, 1911, Section 3
1. Substituted by Punjab Amending Act 11 of 1994.
whether such assessment is leviable or not; or when the land revenue has been wholly or in part compounded for or redeemed, the amount which, but for such composition, or redemption would have been leviable; and ii) When the improvement of the land due to canal irrigation has been excluded from account in assessing the land revenue the amount of owner’s rate or water advantage rate or other rate imposed in respect of such improvement;
(b) In the case of any house or building, the gross annual rent at which such house or building, together with its appurtenances and any furniture that may be let for use or enjoyment forthwith, may reasonably be expected to let from year to year subject to the following deductions :
i) such deduction not exceeding 20 per cent of the gross annual rent as the committee in each particular case may consider a reasonable allowance on account of the furniture let therewith;
ii) a deduction of 10 percent for the cost of repairs and for all other expenses necessary to maintain the building in a state to command such gross annual rent. The deduction under sub-clause shall be calculated on the balance of the gross annual rent after the deduction (if any) under sub-clause (i);
iii) where the land is let with a building, such deduction not exceeding 20 percent of the gross annual rent as the committee in each particular case may consider reasonable on account of the actual expenditure, if any, annually incurred by the owner on the upkeep of the land in a state to command such gross annual rent;
Explanation-I. - For the purpose of this clause, it is immaterial whether the house or building, and the furniture and the land let for use or enjoyment therewith, are let by the same contract or by different contracts and if by different contracts whether such contracts are made simultaneously or at different times.
Explanation-II. - The term "gross annual value" shall not include any tax payable by the owner in respect of which the owner and tenant have agreed that it shall be paid by the tenant.
(c) in the case of any house building, the gross annual rent of which cannot be determined under clause (b), 5 per cent on the sum obtained by adding the estimated present cost of erecting the building, less such amount as the committee may deem reasonable to be deducted on account of depreciation (if any) to the estimated market value of the site and any land attached to the house or building;
Provided that - i) in the calculation of the annual value of any premises no account shall be taken of any machinery thereon;
ii) when a building is occupied by the owner under such exceptional circumstances as to tender a valuation at 5 per cent on the cost of erecting the building, less depreciation, excessive a lower percent age may be taken.
The Punjab Municipal Act, 1911, Section 3 15 1(2) "building" means any shop, house, hut, outhouse, stable, a factory, an industrial shed and a temporary structure erected by means of tents and structures raised for entertainment purposes whether roofed or not and whether used for the purposes of human habitation or otherwise and whether of masonry, bricks, wood, mud, thatched, metal or any other material whatever, and includes a wall and a well;
(3) "bye-laws" and "bye-law" means respectively the regulations made or to be made by the committee at a special meeting under the authority of this Act and any of such regulations.
(4) "committee" means a Municipal Council or a Nagar Panchayat, as the case may be, constituted under section 12 of this Act;
2[(4a) "Deputy Commissioner" or "Deputy Commissioner of the District" includes Additional Deputy Commissioner, Joint Deputy Commissioner or any person or persons at any time appointed by the State Government to perform in any district or districts the functions of a Deputy Commissioner under this Act:
3[(4b) "District Planning Committee" means a Committee constituted under Article 243 ZD of the Constitution of India;
(4c) " election" means and includes the entire election process commencing on and from the date of notification calling for such election of members and ending with the date of declaration and notification of results thereof;
Provided that no official shall be so appointed unless he has for three years exercised the powers of a magistrate of the first class.
(5) "erect or re-erect any building" includes -
(a) any material alteration or enlargement of any building,
(b) the conversion by structural alteration into a place for human habitation of any building not originally constructed for human habitation,
(c) the conversion into more than one place for human habitation of a building originally constructed as one such place,
(d) the conversion of two or more places of human habitation into a greater number of such places,
(e) such alterations of a building as effect an alteration of its drainage or sanitary arrangement, or materially affect its security,
(f) the addition of any rooms, buildings, out-houses or other structures to any building, and
(g) the construction in a wall adjoining any street or land not belonging to the owner of the wall, of a door opening on to such street or land.
4[(5a) "Executive Officer" means an Executive Officer appointed under the provisions of the Punjab Municipal (Executive Officer ) Act 2 of 1931.]
16 The Punjab Municipal Act, 1911, Section 3
1. Substituted by Punjab Act 11 of 1994.
2. Old (4a) omitted by Act 11 of 1994 and old 4(b) renumbered as 4a.
3. Old 4a omitted by Punjab Act 11 of 1994 and old 4b renumbered as 4a.
4. Municipal to which the Punjab Municipal (Executive Officer) Act, 1931, applies clause (5a) has been inserted by Item No. 2, Schedule II, Punjab Act 2 of 1931.
1[(5b) "ex-officio member" means a member referred to in clause (ii) of subsection (2) of section 12 of this Act;]
(6) "explosive" and "petroleum" have the meanings assigned to those words in the Indian Explosives Act, 1884, and the Indian Petroleum Act, 1899, respectively,
(7) "infectious disease" means cholera, plague, smallpox, 2[tuberculosis] or such other dangerous disease as the State Government may notify in this behalf.
(8) "inhabitant" includes any person ordinarily residing or carrying on business, or owning or occupying immovable property, in any municipality or in any local area which, the State Government has by notification under this Act proposed to declare to be a municipality ; and in case of any dispute, means any person or persons declared by the 3[Deputy Commissioner] to be inhabitant or inhabitants.
4[(8a) "land" includes benefits to arise out of land, things attached to the earth or permanently fastened to anything attached to the earth and rights created by law over any street.]
5[(8aa) "market value" means the market value of the land or the building which is determined in accordance with the principles contained in section 23 of the Land Acquisition Act, 1894, or is determined in accordance with the provisions of the Registration Act, 1908;
(8b) "Municipal Council" means a Municipality constituted under sub- section (2) of section 4 of this Act for a smaller urban area ; and (8c) "Municipal area" means the territorial area of a Municipality specified under section 4 of this Act;’ 6[(9) "Municipality" means an institution of self government constituted as a Nagar Panchayat or a Municipal Council under sub-section (2) of section 4 of this Act;]
[(9a) "Nagar Panchayat" means a Municipality constituted under sub- section (2) of section 4 of this Act for a transitional area;]7 8[(9b) ‘newly constituted committee’ means a committee the members whereof have been elected at a general election but have been not taken or made an oath or affirmation of allegiance as required under section 24;]
(10) "occupier" includes an owner in actual occupation of his own land or building, and also any person for the time being paying or liable to pay to the owner the rent or any portion of the rent of the land or building in respect of which the word is used : for the purposes of Chapter V and IX The Punjab Municipal Act, 1911, Section 3 17
1. Added by Punjab Act 11 of 1994.
2. Inserted by the Punjab Municipal (Amendment) Act, 1933, section 3.
3. Substituted by Punjab Act 34 of 1953, section 5, Schedule II, for "Commissioner".
4. Added by Act 6 of 1995.
5. Added by Punjab Act 11 of 1994 as (8a) and renumbered by Act 6 of 1995.
6. Substituted by Punjab Act 11 of 1994.
7. Substituted by Amending Act 11 of 1994.
8. Inserted by Punjab Act 10 of 1972 and renumbered from 9(a) to 9(b) by Act 11 of 1994.
occupier shall include hotel-keeper, lodging house-keeper, and any owner whose premises are let to more than one tenant.
(11) "owner" includes the person for the time being receiving the rent of land and buildings, or either of them, whether on his own account or as agent or trustee for any person or society or for any religious or charitable purpose or who would so receive the same if the land or building were let to a tenant.
(11a) " population" means the population as ascertained at the last preceding Census, of which the relevant figures have been published;
1[(11aa) "premises" means any land or building or part of a building and includes -
(a) the garden, ground and out-houses, if any, appertaining to a building or part of a building ; and
(b) and fitting affixed to a building or part of a building for the more beneficial enjoyment thereof;]
(11b) "relation" in relation to an owner of any land or building means wife, husband, son, son-in-law, daughter, daughter-in-law, brother brother-inlaw, sister, sister-in-law of such owner;";
(12) "rules" and "rule" mean, respectively, the rules made or to be made and notified by the State Government under the authority of this Act, and any one of such rules.
(12a) "State Election Commission" means the Election Commission Constituted by the State Government under articles 243 K and 243 ZA of the Constitution of India;".
2[(3) (a) "street", shall mean any road, footway, square, court, alley, or passage, accessible, whether permanently or temporarily to the public, and whether a thoroughfare or not; and shall include every vacant space, notwithstanding that it may be private property and partly or wholly obstructed by any gate, post, chain or other barrier, if houses, shops or other buildings about thereon, and if it is used by any person as a means of access to or from any public place or thoroughfare, whether such persons be occupiers of such buildings or not, but shall not include any part of such space which the occupier of any such building has a right at all hours to prevent all other persons from using as aforesaid :
and shall include also the drains or gutters therein, or on either side, and the land, whether covered or not by any pavement, verandah or other erection, up to the boundary of any abutting property not accessible to the public.
(b) "public street" shall mean any street-
(i) heretofore levelled, payed, metalled, channelled, swerved, or repaired out of municipal or other public funds, unless before such work was carried out there was an agreement with the proprietor that the street 18 The Punjab Municipal Act, 1911, Section 3
1. Added by Act 6 of 1995
2. Substituted by Punjab Act 3 of 1933.
should not thereby become a public street, or unless such work was done without the implied or express consent of the proprietor; or
(ii) which under the provision of section 171, is declared by the committee to be, or under any other provision of this act becomes, a public street.
(14) "vehicle" shall include bicycles, tricycles and automotor cars, and every wheeled conveyance which is used or capable of being used on a public street.
1[(15) "Medical Officer of Health" means such person as the committee has appointed Medical Officer of Health, or such person as the [State] Government may by notification appoint Medical Officer of Health or failing such appointment, the District Medical Officer of Health.]
(16) "factory" shall have the meaning assigned to it in the Indian Factories Act, 1911.2 3[(17) "Public place" means a space which is open to the use or enjoyment of the public whether or not private property and whether or not vested in the committee.
(18) (a) "built area" is that portion of a municipality of which the greater part has been developed as a business or residential area.
(b) "unbuilt area" is an area within the municipal limits which is declared to be such at a special meeting of the committee by a resolution confirmed by the State Government, or which is notified as such by the State Government.]
4[(19) "dung" for the purposes of sections 154-A and 154-B shall include night-soil, sewage, sullage, sludge, refuse, filth or rubbish or animal matter of any kind.
(20) "compost manure" means the produce prepared from dung by subjecting it to the process of compost making in the manner prescribed by rules.]
5[(21) "prescribed" means prescribed by rules made under this Act.]
Section 4
4. Specification of Local areas to be smaller urban areas or transitional areas and constitution of Municipal Councils and Nagar Panchayats. 6 (1) The State Government may, having regard to population of the area the density of the population therein, the revenue generated for local administration the percentage of employment in non- agricultural activities, the economic importance or such other factors, as it may deem fit, specify, by notification in the Official Gazette, any area to be a transitional area or a smaller urban area for the purposes of this Act :
Provided that no military cantonment or any part thereof shall be included in such transitional area or a smaller urban area :
Provided further that such an urban area or part thereof, as the State Govern- The Punjab Municipal Act, 1911, Section 4 19
1. Substituted by Punjab Act 11 of 1994. Substituted by Punjab Act 3 of 1993.
2. Since repealed, Now see The Factories Act, 1948.
3. Clause 17 and 18 were inserted by Punjab Act 3 of 1933. Section 3 (vi).
4. Inserted by East Punjab Act 20 of 1249, section 2.
5. Clause 21 inserted by Punjab Act 24 of 1973, section 2.
6. Substituted by Act 11 of 1994 ment may, having regard to the size of the area and municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as it may deem fit, by notification, specify to be an industrial township shall not form part of a transitional area or a smaller urban area.
(2) Where an area is specified as a transitional area or as a smaller urban area under sub-section (1), the State Government may, by notification in the Official Gazette, constitute for the transitional area so specified a Nagar Panchayat and for the smaller urban area so specified a Municipal Council of the first class, second class or third class :
Provided that the State Government may, after consulting the Municipal Council by notification change its classification from one class to another.
(3) where any area which is within the jurisdiction of any other local authority, is constituted as or included in a transitional area or smaller urban area, the State Government may pass such orders as it may deem fit as to the transfer of such area to the Nagar Panchayat of such transitional area or disposal otherwise, of the assets or institutions of such local authority and as to the discharge of the liabilities, if any, of such local authority, relating to such assets or institutions.
(4) Where any area is excluded from a transitional area or a smaller urban area and included in the area of any other local authority, the State Government may pass such orders as it may deem fit as to the transfer to such local authority or disposal otherwise of, the assets or institution, of such local authority in that area or as to the discharge of the liabilities, if any, of such local authority, relating to such assets and institutions.
(5) Every area, which immediately before the commencement of the Punjab Municipal (Amendment) Act 11, 1994 was constituted as a Municipality under this Act, shall be deemed to have been constituted as smaller urban area under sub-section (1) and Municipality existing for that area before such commencement and specified in Schedule II shall be deemed to have been constituted under this Act for that area.
(6) Every area, which immediately before the commencement of the Punjab Municipal (Amendment) Act 11, 1994, was constituted as a Notified Area under section 241 of this Act, shall be deemed to have been specified as a transitional area or a smaller urban area under sub-section (1), and a Municipality of the category as indicated in schedule III shall be deemed to have been constituted under this Act for that area.
Section 5
15. Alteration of limits of Municipality.(1) The State Government may, from time to time, keeping in view the provisions of sub-section (1) of section 4 and after consultation with the concerned Municipality, by notification in the Official Gazette alter the limits specified for any municipal area so as to include therein or to exclude therefrom such area as may be specified in the notification.
(2) The power to issue a notification under sub-section (1) shall be subject to the condition of previous publication.
20 The Punjab Municipal Act, 1911, Section 5
1. Substituted by Punjab Act No. 11 of 1994.
Section 6
6. Section 6 omitted by Act 11 of 1994.
Section 7
7. Section 7 omitted by Act 11 of 1994 Section 8
8. Reservation of Seats. 1 (1) In every Municipality, out of the total number of elected members determined under sub-section (3) of section 12, the State Government shall, by notification, reserve-
(a) such number of seats for the Scheduled casts as may be determined by the State Government, subject to the condition that the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in that Municipality, as the population of the Scheduled Castes, in the Municipal area bears to the total population of that area, and, such seats may be allotted by rotation to different constituencies to be known as wards in the Municipality;
(b) one seat for the Backward Classes, and, such a seat may be allotted by rotation to different constituencies to be known as wards in the Municipality.
(2) Not less than one-third of he total number of seats reserved under clause (a) of sub-section (1) shall be reserved for women belonging to the Scheduled Castes.
(3) Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes) of the total number of seats to be filled by direct election in every Municipality shall be reserved for women and such seats may be allotted by rotation to different constituencies to be known as wards in the Municipality.
Explanation.-In this section the expression,-
(a) "Scheduled Castes" shall have the meaning assigned to them in clause
(24) of Article 366 of the Constitution of India; and
(b) "Backward Classes" means the Backward Classes as the State Government may, from time to time, declare by issuing a notification in the Official Gazette.".
Section 8-A 8-A. Reservation of offices Presidents. 2 Offices of Presidents of the Municipalities in the State shall be reserved by rotation in the prescribed manner in the following ratio, namely :-
(a) five per cent for the Scheduled Castes;
(b) five per cent for women including women belonging to the Scheduled Castes ; and
(c) two per cent for the Backward Classes.
Section 9
9. Section 9 Omitted by Act 11 of 1994.
The Punjab Municipal Act, 1911, Section 6 21
1. Substituted by Act 11 of 1994
2. Added by Act 11 of 1994.
Section 10
10. Section 10 Omitted by Act 11 of 1994.
Section 11
11. Section 11 Omitted by Act 11 of 1994.
Section 12
12. Composition of Municipalities. 1 (1) A Municipal Council or a Nagar Panchayat constituted under section 4 shall consist of a body of members, specified in section (3), having authority over such area.
(2) The Nagar Panchayat or the Municipal Council constituted under sub- section
(1) shall be a body corporate having perpetual succession and a common seal with powers, subject to the provisions of this Act, to hold, acquire and dispose of property and may by that name sue or be sued.
(3) The Nagar Panchayat or the Municipal Council constituted under sub- section
(1) shall consist of the following members, namely :-
(i) such number of elected members as may be determined from time to time by the State Government in accordance with the prescribed principles;
and
(ii) all members of the Legislative Assembly of the State representing constituencies comprising wholly or partly the Municipal area."
Section 12-A Section 12-A [Omitted by Act 11 of 1994] Section 12-B Section 12-B [Omitted by Act 11 of 1994] Section 12-C Section 12-C [Omitted by Act 11 of 1994] Section 12-D Section 12-D [Omitted by Act 11 of 1994] Section 12-E Section 12-E [Omitted by Act 11 of 1994] Section 13
13. Duration of Municipalities. 2(1) Every Municipality save as otherwise provided in this Act, shall continue for five years from the date appointed for its first meeting and no longer.
Explanation :- In this section "first meeting" means the meeting of the newly constituted Municipality held for the election of its President and Vice- President under section 20 of this Act.
(2) All Municipalities existing immediately before the commencement of the Constitution (Seventy-Fourth) Amendment Act, 1992, shall continue till the expiration of their duration unless sooner dissolved by a resolution passed to that effect by the State Legislature.
(3) An election to constitute a Municipality shall be completed,- 22 The Punjab Municipal Act, 1911, Section 10
1. Substituted by Act 11 of 1994.
2. Substituted by Act 11 of 1994
(a) before the expiry of its duration specified in sub-section (1);
(b) before the expiration of a period of six months from the date of its dissolution:
Provided that when the remainder of the period for which the dissolved Municipality would have continued is less than six months, it shall not be necessary to hold any election under clause (b) for constituting the municipality for such period.
(4) The first election to a Municipality constituted under this Act after the commencement of the Punjab Municipal (Amendment) Act 1994, shall be held within a period of six months of its being notified as such.
(5) Elections to the Municipalities where no elected body exists immediately before the commencement of Punjab Municipal (Amendment) Act 1994, shall be held within a period of six months from the date of such commencement.
6. A Municipality constituted upon the dissolution of a Municipality before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Municipality would have continued under sub- section (1) had it not been so dissolved.
Section 13-A 13-A. Power of State Government to direct holding of general election. 1 (1) Subject to the provisions of this Act and the rules made thereunder, the State Government, may, by notification, direct that a general election of the members of the Municipalities or an election to fill a casual vacancy shall be held by such date as may be specified in the notification and different dates may be specified for elections for different Municipalities or group or groups of Municipalities.
(2) As soon as a notification is issued under sub-section (1), the Election Commissioner shall take necessary steps for holding such general election.
Section 14
14. Dissolution of Municipalities. 2 (1) If in the opinion of the State Government, a Municipality is not competent to perform its duties or persistently makes default in the performance of duties imposed on it by or under this Act or any other law for the time being in force, or exceeds or abuses any of its powers, the State Government may, by an order publish, alongwith reasons thereof, in the Official Gazette, dissolve such Municipality:
Provided that a Municipality shall be given a reasonable opportunity of being heard before its dissolution.
(2) When a Municipality is dissolved under sub-section (1),-
(i) all members of the Municipality shall vacate their offices forthwith;
(ii) all powers and duties of the Municipality during its dissolution shall be exercised and performed by such person or authority, as the State Government may, by notification, appoint in this behalf; and
(iii) all property in possession of the Municipality shall be held by the State Government.
The Punjab Municipal Act, 1911, Section 13-A 23
1. Added by Act 11 of 1994.
2. Substituted by Act 11 of 1994.
(3) Upon dissolution of a Municipality under sub-section (1) the State Government shall re-constitute a Municipality as specified under section 12 and election to reconstitute such Municipality shall be completed before the expiration of a period of six months from the date of dissolution:
Provided that where the remainder of the period for which dissolved Municipality would have continued is less than six months, it shall not be necessary to hold any election under this sub-section for reconstituting the Municipality for such period.
(4) The Municipality reconstituted upon the dissolution of the existing Municipality before the expiration of its duration, shall continue only for the remainder of the period for which the dissolved Municipality would have continued under section 13 had it not been so dissolved.
Section 15 1[15. Resignation of member of committee.- If a member of committee wishes to resign his office he shall submit an application in writing through the Deputy Commissioner to the State Government. If such resignation is accepted, it shall be notified in the gazette on a date not less than 15 days and not more than 60 days after the receipt of the said member’s application by the Deputy Commissioner whereupon the member shall be deemed to have vacated his seat:
Provided that if a member who has submitted an application to resign wishes to withdraw his resignation he may apply to the Deputy Commissioner within 15 days of the receipt by the Deputy Commissioner of his application to resign, and the application to resign shall then be deemed to have been withdrawn.]
Section 16