UNION OF INDIA Vs. CITY MUNICIPAL COUNCIL BELLARY

JUDGEMENT

(1.) A substantial question of law as to the interpretation of Art. 285 of the Constitution of India is involved in this appeal by certificate granted by the Mysore High Court (now the Karnataka High Court).

(2.) The City Municipal Council, Bellary filed a suit against the Union of India as owner of the Southern Railway in the Court at Bellary for a decree for the arrears of all taxes etc. amounting to Rs. 38,988/-. The claim in the suit was on account of Municipal taxes due in respect of certain buildings and land owned by the said Railway within the Municipal limits of Bellary. It was for the period April 1, 1957 to March 31, 1963. Since the Union of India denied its liability to pay any tax to the Municipal Council of Bellary in respect of the property in question on the ground of Article 285 of the Constitution, the High Court withdrew the suit under Art. 228 from the Bellary Court and has itself disposed it of. It has passed a decree against the Union of India as owner of the Southern Railway in favour of the Municipal Council, Bellary. Hence the former has preferred this appeal to this Court.

(3.) The District of Bellary was a part of the erstwhile Madras State. Under S. 4 of the Andhra State Act, 1953. Central Act XXX of 1953 a good portion of the Bellary District was added to the State of Mysore (now Karnataka) on and from Oct. 1, 1953 whereupon it ceased to be a part of the State of Madras. The Bellary Municipal Council was realizing certain municipal taxes in respect of the Railway properties in accordance with S. 81 of the Madras District Municipalities Act, 1920. The property belonged to the erstwhile Madras and Southern Mahatta Railway owned by a non-Government company. Subsequently the said Railway was taken over by the Central Government. But even thereafter taxes were being realized by the Municipal Council in accordance with the Madras Act.