MUNICIPAL BOARD FAIZABAD Vs. EDWARD MEDICAL HALL FAIZABAD

JUDGEMENT

(1.) THE plaintiffs filed a suit for injunction to restrain the defendant from interfering with and checking the plaintiffs from carrying drugs and medicines etc., from railway station Faizabad to any other place within Faizabad Municipality and in the alternative to restrain the defendants from charging octroi tax at a rate higher than 1.25 nP. per maund on patent medicines manufactured in India.

(2.) THE suit was resisted by the defendant on the ground inter alia that it was bad for want of notice under Section 326 of the U. P. Municipalities Act that none of the medicines brought by the plaintiffs was covered by Serial No. 73 but were covered by Serial No. 71 of the Schedule for non-refundable octroi and the duty charged was correct. At the trial of the suit it was also urged by the defendant that the civil Court had no jurisdiction to try the suit. 2-A. THE trial Court held that no notice was necessary to be given under Section 326 of the Municipalities Act and that the Civil Court had the jurisdiction to try the suit. It, however, found that the goods were brought by the plaintiffs from outside within the municipal limits and the octroi duty was, therefore, payable thereon but it held that the drug containing alcohol was exempt from payment thereof. It did not agree with the contention that Item No. 73 for non-refundable octroi at a reduced rate included all patent medicines manufactured in India according to any system of medicine. In view of these findings relief B claimed in the suit was not granted. With regard to relief A it was observed that it could be granted only in a restricted sense in accordance with the findings on Issue No. 3. In the result, the trial Court partly decreed the suit by granting a permanent injunction restraining the defendant from interfering in carrying drugs containing Alcohol from Railway Station, Faizabad to any other place within Faizabad Municipality or from charging any octroi duty thereon from the plaintiffs and dismissed the suit with regard to other relief.

(3.) FOR the appellant, Municipal Board, Faizabad, it was urged at the outset that the Civil Court had no jurisdiction to try the suit and the suit was bad for want of notice under Section 326 of the U.P. Municipalities Act. I shall deal with these points in seriatim. (1) Jurisdiction