A LAKSHMIKANTA NAYAK Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) These petitions have given rise to a common question of law which can be, disposed of by this common order. The petitioners in WP.3870 off 1973 are the Councillors of the Town Municipal Council, Udipi. WPs.97, 541 & 1143 of 1973 are filed by the Councillors of the Town Municipalities of Karkal, Coondapur and Pultur respectively. The petitioners in WP.3870 of 1973 have challenged the Govt WP. 3870 of 1973 etc.

(2.) Noti. dt 4th Oct. 1973 issued under S.141 read with S.95 of the Karnataka Municipalities Act, 1964 (hereinafter referred to as 'the Act) imposing octroi duty on certain articles which are imported into the town municipal limits of Udini for purposes of sale, use and consumption. Similarly, the petitioners in the other three petitions have challenged the Notifications issued by the State Govt levying octroi on goods imported into their limits. The case of the petitioners is that the impugned notifications are liable to be set aside on the ground that the condition precedent, that should evist' for issuing the said Notifications, is lacking in these cases. S.141 of the Act confers power on th State Govt to reauire the Municipal Council constituted under the Act to levy any tax which may be imposed under S.94 of the Act by the Municipal Council.

(3.) The relevant part of S.141 of the Act reads as follows : 141. Power of Govt to require Municipal Council, to impose taxes: A reading of S.141 would show that it would be, open to the State Govt to impose anv new tax or to enhance any existing tax which may be imposed by the Municipality only when it is satisfied that either of the two following conditions exists, viz., (1) that the balance of the municipal fund of any municipal council is insufficient for meeting the expenditure under S.307, or (2) that the Govt feels that for performance of any duties in respect of which the municipal council shall have been declared under S.313 to have committed default, it is necessary to impose the tax or enhance the tax. Sec.307 of the Act empowers the Deputy Commr tq provide, for execution of any work which in the opinion of the Deputy Commr should be executed immediately in the interest of general public. When the Deputy Commr has directed to execute such work, the expenses fqr executing the. work should be spent out of the municipal funds. If the municipal council finds it difficult to meet the, expenses of such work under S.307 of the Act, it is open to the State Govt to direct the imposition of a, new tax or the enhancement of existing tax under S.141 of the Act.