BARSI MUNICIPAL COUNCIL Vs. SHANKAR IRANA GUNDEL

JUDGEMENT

(1.) The above second appeal filed by the Barsi Municipal Council, at the material time constituted under the Bombay Municipal Boroughs Act, 1925 up to June 15, 1966 and thereafter under the Maharashtra Municipalities Act, 1965, raises two points, firstly, whether the civil Court had jurisdiction to entertain the present suit for a declaration that the levy for apportionment of property or other taxes on the plaintiff respondent in respect of the suit property is illegal and ultra vires and for a permanent injunction restraining the defendant from recovering from the plaintiff the arrears and future taxes; and, secondly, whether the two Courts below were right in holding that the levy of the taxes on the respondent-plaintiff was ultra vires the powers of the Barsi Municipal Council.

(2.) The plaintiff filed the suit on Nov. 11, 1967, seeking the above relief's 011 the basis of the following allegations :-

(3.) City Survey No. 2555 is an open plot in Barsi Town belonging to the plaintiff. On July 23, 1967, one Dhanraj Nandram Soniminde executed a registered rent- note in favour of the plaintiff, which is produced at Ex. 30. It was a building lease for a period of ten years. The open plot was taken by him for constructing a factory at a rental of Rs.700/- per annum. As per the terms of the rent-note, Soniminde was to construct a building suitable for his factory and office after taking non-agricultural permission. He accordingly constructed a building in the year 1959 and the plot was no longer an open plot but was factory premises.