PALGHAT MUNICIPALITY Vs. NARAYANAN NAIR

JUDGEMENT

(1.) THE plaintiff in a suit for recovery of money is the appellant. THE plaintiff which is the Palghat Municipal Council instituted the suit for recovery of Rs. 8,485. 32 together with interest alleged to be due from the defendant towards fees payable by him in respect of a right farmed out to him to collect halting fee from taxis and autorikshaws parked in the halting places or stands constructed by the municipality. This right was sold in terms of S. 309 of the Kerala Municipalities Act, 1960 which we shall presently set out.

(2.) THE plaintiff contended that at an auction conducted on 26-12-1973 for the sale of that right, the highest bidder was the defendant and the sale was concluded in his favour for a total sum of Rs. 19,255/-as evidenced by Ext. A3. This amount was payable at various stages. A deposit of a sum of Rs. 3,851/-was payable in advance subject to that being adjusted towards the last instalment. THE balance amount was payable in monthly instalments of rs. 1,283. 67 each. THE defendant paid, in addition to the deposit, a sum of Rs. 6,918 68 in seven instalments, but defaulted payment of the other instalments. A suit was therefore instituted for Rs. 10,146. 88 inclusive of interest. THE plaintiff further contended that the sale of the right at the auction was subsequently evidenced by a document styled as a lease.

(3.) S. 309 of the Kerala Municipalities Act reads: "309. Provision of public cart stand, etc:- (1) The municipal council may subject to the provisions of sub-section (4), construct or provide public landing places, halting places and cart stands and may levy fees for the use of the same. (2) The council may (a) place the collection of any such fees under the management of such person as may appear to it to be proper; or (b) farm out the collection of any such fees for any period not exceeding three years at a time and on such terms and conditions as it may think fit. (3) A statement in English and a language of the locality of the fees fixed by the council for the use of such place shall be put up in a conspicuous part thereof. Explanation:- A cart stand shall, for the purposes of this act, include a stand for vehicles (including motor vehicles as defined in the motor Vehicles Act, 1939) and animals. (4) The power to construct or provide stands for motor vehicles under sub-section (1) may be exercised notwithstanding anything to the contrary contained in the Motor Vehicles Act, 1939 but shall be subject to any direction issued by the Government from time to time. " The only power which the plaintiff has, in terms of the section, is to farm out the use of public landing places, halting places and cart stands and collect fees for such use. This Section does not postulate any lease, but only licence.