THE MUNICIPALITY OF SANGAMNER Vs. RAJASTHAN MANDAL

JUDGEMENT

(1.) On Aug. 20, 1943, some Councillors of the Sangamner Municipality made a proposal to the President of municipality that as no tax was being levied on the Madhav Chitra Mandir in regard to its shows a Theatre tax might be imposed with the permission of the Commissioner. They suggested that a tax of Rs. 2 be imposed on every show of cinema, drama, circus, tamasha, etc. They requested the President that their proposal be played before the next meeting of the General Board.

(2.) A Special General Meeting of the municipality was called on Sept. 2, 1943, to consider the aforesaid proposal. In that meeting it was unanimously resolved that the Theatre tax at the rate of Rs. 2 be levied as proposed by the Councillors and sanction for the same be obtained from the Commissioner.

(3.) On Nov. 2, 1943, the Commissioner sent a reply through the Collector that he saw no objection to the levy of the proposed tax since it was permissible according to the previous orders of the Government issued on July 24, 1941, and on Oct. 1, 1941. In his reply he mentioned that a copy of the Rules and Bye-laws which the municipality should adopt had been enclosed with the letter and he further stated that the municipality should be advised to adopt the Rules and Bye-laws and submit them for the Commissioner's approval after following. the usual procedure. After the copy of the Rules and Bye-laws was received by the municipality, it appears that the municipality resolved to adopt these rules and accordingly they gave a public notice containing the proposed Rules and Bye-laws and directed that such public notice be exhibited at all prominent places in the town. This notice had been given obviously for the purpose of inviting objections to the proposed Rules and Bye-laws. On Dec. 7, 1943, the proprietor of the Madhav Chitra Mandir put in his objections to the proposed Rules and Bye-laws. He stated that it was very difficult to run a Cinema Theatre at the Taluka village like Sangamner and at a place far away from the railway station, and some time it was difficult even to realise an amount equal to the expenditure incurred in running a show. He finally stated if at all any tax was to be imposed, it should not exceed more than Rs. 8 on every show at Sangamner. The objections made by the proprietor of Madhav Chitra Mandir came for consideration before the General Meeting of the municipality convened on Jan. 13, 1944. On that day, the General Body considered the objections and held that the objections did not deserve any consideration and accordingly further resolved that the Theatre tax should be levied at the rate of Rs. 2 per show and the final sanction of the Commissioner for the rules in respect thereof be obtained. This resolution speaks of obtaining sanction of the Commissioner for the rules proposed, under section 61 of the Bombay District Municipal Act of 1901. On Jan. 19, 1944, the President of the municipality in accordance with the resolution passed on Jan. 13, 1944, wrote to the Collector requesting him to move the Commissioner to accord his final sanction in the matter. In that letter it was mentioned that the objections which had been put in by the proprietor of the Madhav Chitra Mandir had been considered by the municipality and were held by it to be untenable.