NEW VASANT MASALA INDUSTRIES Vs. ZALOD MUNICIPAL BOROUGH

JUDGEMENT

(1.) PRESENT case has a little chequered history and the wrinkles are required to be creased out for appropriate appreciation of the dispute between the parties.

(2.) THE petitioner, New Vasant Masala Industries, had installed its factory within the local limits of Zalod Nagar Panchayat for grinding, packing and packaging of different spices. Under Rule 36(2) of the Gujarat Gram and Nagar Panchayat Taxes and Fees Rules, 1961, it applied for grant of exemption from the levy of the octroi. The application was rejected by Zalod Nagar Panchayat. Being aggrieved by the said order, the petitioner preferred an appeal to the District Panchayat Committee, which allowed the same on 1st November, 1991. Zalod Nagar Panchayat, being aggrieved by the order passed by the District Panchayat Committee, filed a revision to the Development Commissioner, who vide his order dated 31st March, 1992 allowed the said revision and upheld the decision of the Nagar Panchayat rejecting the application. The petitioner thereafter filed Special Civil Application No.3273 of 1992, which was allowed by this Court on 11th May, 1992 granting liberty to the petitioner to apply afresh to the Nagar Panchayat for grant of exemption.

(3.) SHRI Vakil, learned Counsel for the petitioners, referring to the Government Resolution dated 15th April, 1994, submits that after conversion of the Nagar Panchayat, into the Municipality, the Municipality would be liable for all debts and obligations incurred by the Nagar Panchayat and the rights, which have accrued in favour of any person who entered into any contract with the Municipality, would not come to an end. He submits that the judgement dated 27th November, 1995 passed by the Secretary against the Nagar Panchayat, in fact, would create liability against the Municipality because the said judgement would bind every successor of the Nagar Panchayat. According to him, the rules framed if do not allow any exemption from 1st July, 1995, then too, in the present case, in view of the judgement, the Municipality would be bound and will have to extend the exemption upto 18th January, 1998. He submits that the earlier judgement delivered by the Secretary would operate as res judicata between the parties, especially, when the respondent -Municipality claims to be the successor of the Nagar Panchayat.