STATE OF GUJARAT Vs. NARAYAN ENGINEERING WORKS

JUDGEMENT

(1.) These eight appeals have been filed against the judgment and order of the High court of Gujarat striking down Section 138 (2 (c) of the Gujarat Municipalities Act, 1963 as discriminatory and violative of Article 14 of the Constitution. The High court relying upon a decision under the Bombay Provincial Municipal Corporations Act, 1949 (for short 'the Act') held that a provision which required the amount assessed to be deposited before filing of the appeal was violative of Article 14 of the Constitution as this condition precedent was objectionable from the point of view of equality clause as it introduced the condition which classifies a taxpayer without there being any rational nexus between the basis of the classification and object of the law. The decision given on Section 406 (2 (e) of the Act came up for consideration before this court in Anant Mills Co. Ltd. v. State of Gujarat. It was held that such aprovision did not have the effect of making invidious distinction or creating two classes with the object of meting differential treatment to them; it only spells out the consequences flowing from the omission and default of a person who despite the fact that the deposit of the amount found due from him would cause him no hardship, declines of his own volition to deposit that amount. The bench consequently held that Section 406 (2 (e) of the Act which required the deposit of tax as condition precedent for entertaining an appeal was not invalid nor it was discriminatory of Article 14 of the Constitution. In view of this decision, the decision given by the Gujarat High court cannot be maintained.

(2.) The appeals are accordingly allowed. The judgment and order rendered by the High court is set aside. The writ petitions filed in the High court shall stand dismissed. As no one appears for the respondents, there shall be no order as to costs.