HINDUSTAN VANASPATI MANUFACTURING CO LTD Vs. MUNICIPAL BOARD

JUDGEMENT

(1.) THIS is an appeal from an order of Mr. Justice Mehrotra. The appellant is a limited company incorporated under the Indian Companies Act. It has factories at various places in India, including one at Ghaziabad in this State. In this factory the appellant company manufactures banaspati, and for that purpose it requires supplies of raw materials which are brought into the factory premises in railway wagons. The factory premises are connected with the main railway line by a branch line known as an "Assisted Railway Siding" which terminates within the factory premises; and all wagons bringing supplies to the factory make use of this siding.

(2.) THE appellant companys premises at Ghaziabad are situated within the limits of the Ghaziabad Municipal Board. That Board claimed to be entitled to levy a toll under Sec.128 of the U.P. Municipalities Act, 1916, on the railway wagons bringing supplies to the appellant companys factory and to collect the amount thereof from the appellant company. The latter disputed its liability to pay, and thereafter certain criminal complaints were filed by the respondent Board against the appellant company in the Court of a Magistrate at Ghaziabad wherein it was alleged that the appellant company was guilty of contravening R.10 of the Rules for the assessment and collection of toll within the Municipality.

(3.) THE relevant provision of the U.P. Municipalities Act, 1916, is Sec.128, which, so far as it is material, provides that