Section 449 of The Delhi Municipal Corporation Act, 1957
- (1)Where any person, by reason of his receiving rent of immovable property as a receiver, agent or trustee, or of his being as a receiver, agent or trustee the person who would receive the rent if the property were let to a tenant, would under this Act or any byelaw made thereunder, be bound to discharge any obligation imposed on the owner of the property for the discharge of which money is required, he shall not be bound to discharge the obligation unless he has, or but for his own improper act or default might have had funds in his hands belonging to the owner sufficient for the purpose.
- (2)The burden of proving any fact entitling a receiver, agent or trustee to relief under sub-section (1) shall lie upon him.
- (3)Where any receiver, agent or trustee has claimed and established his right to relief under this section, the Commissioner may, by notice in writing require him, to apply to the discharge of his obligation as aforesaid the first moneys which may come to his hands on behalf, or for the use, of the owner, and on failure to comply with the notice, he shall be deemed to be personally liable to discharge the obligation.
Summary
- This provision protects people like receivers, agents, or trustees from having to pay for an owner's municipal obligations out of their own pockets.
- Such a person is only required to discharge the owner's financial obligation if they have sufficient funds belonging to the owner in their hands.
- The burden of proving that they do not have enough of the owner's funds rests on the receiver, agent, or trustee.
- The Commissioner can issue a written notice requiring the agent to use the very next funds they receive for the owner to pay the obligation.
- If the agent ignores this notice and does not apply the incoming funds to the debt, they become personally liable for it.
Practical examples
FAQ
1. As a property agent, am I personally liable for my client's municipal debts under Section 449 of the Delhi Municipal Corporation Act?
No, under Section 449 of the Delhi Municipal Corporation Act, 1957, you are not bound to discharge the obligation unless you have funds belonging to the owner in your hands, provided your own improper act or default did not cause the lack of funds.
2. Who has to prove that an agent has no funds under Section 449 of the Delhi Municipal Act?
Under Section 449 of the Delhi Municipal Corporation Act, 1957, the burden of proving any fact entitling a receiver, agent or trustee to this relief lies completely upon that receiver, agent or trustee.
3. What happens if an agent gets money later after claiming they had no funds under Section 449 of the DMC Act?
Under Section 449 of the Delhi Municipal Corporation Act, 1957, the Commissioner can issue a written notice requiring the agent to apply the first moneys they receive on behalf of the owner to the debt. If the agent fails to do so, they become personally liable.
Test yourself
Q1.Under Section 449 of The Delhi Municipal Corporation Act, 1957, what protects an agent from having to pay an owner's municipal obligation?
Q2.Under Section 449 of The Delhi Municipal Corporation Act, 1957, who bears the burden of proving that the agent or trustee does not have the owner's funds?
Q3.Under Section 449 of The Delhi Municipal Corporation Act, 1957, what can the Commissioner do if an agent establishes they currently have no funds?
Q4.Under Section 449 of The Delhi Municipal Corporation Act, 1957, what happens if a trustee receives the Commissioner's notice to use future funds for the debt but fails to comply?