STATE OF ANDHRA PRADESH Vs. SOMASANKARA SASTRY

JUDGEMENT

(1.) These four connected appeals arise out of O. S. Nos. 31 and 33 of 1956, which were tried together with another suit (O. S. No. 61 of 1957) and a common judgment rendered on 28-9-1957. The two suits (O. S. Nos. 31 and 33 of 1956) were filed under the following circumstances:

(2.) The plaintiff in O. S. No. 31 of 1956 and the plaintiff in O. S. No. 33 of 1956 are motor transport operators plying their vehicles in the Krishna District. The State Government in exercise of its powers under Section 43 (1) (ii) fixed by a notification the maximum fare for passengers at seven pies per mile, and fares were being collected by the plaintiffs at that rate. In 1952, the composite State of Madras enacted the Madras Motor Vehicles (Taxation of a Passengers and Goods) Act XVI of 1952, which came into force on 1-2-1953. Section 3 of the said Act provided that a tax of nine pies in the rupee be levied and collected on passengers and goods on the fares and freights payable to the operators of the stage carriages. The first proviso to Section 3 of the said Act enacted that the fare charged by the operators, inclusive of the tax leviable under Section 3 shall not exceed the maximum fare prescribed by the Government under the Motor Vehicles Act, 1952. Some of the stage carriage operators, like the two plaintiffs filed petitions under Article 226 of the Constitution in the High Court of Madras, praying for a writ of Mandamus directing the State Government to forbear from collecing the tax. By a decision dated 18-9-1953 (which has been reported as Mathurai Pillai v. State of Madras, a Bench of the Madras High Court consisting of Rajamannar, C. J., and Venkata Rama Ayyar, J. held that there was no force in either of the contentions. They, however, held that the 1st proviso to Section 3 of the Act was bad and should be struck down. After the judgment of the High Court the plaintiffs issued notices to the Government and to the Regional Transport Officer demanding the refund of the sums already paid by them under the provisions of Act XVI of 1952. In the meantime with effect from 1-10-1953 the Andhra State was constituted and it became the successor State in respect of all the rights and liabilities of the State of Madras. On 24-10-1953 some of the operators made a representation (Ex. B-1) that they would thereafter collect the tax from the passengers. The Regional Transport Officer, Vijayawada, intimated to them that the maximum rates as fixed in the notification could not be increased, and any contravention by the operaors will be regarded as violation of the conditions of the permit. The plaintiffs continued to pay the tax as compounded under Section 4 of the Act. On 27-51954, the Government issued a notification under Section 43(1)(ii) of the Act amending its previous notification and stating that the maximum fares fixed are exclusive of any lax leviable under the Madras Vehicles Act XVI of 1952. On 16-81954, the Andhra Government passed an Ordinance (No. III of 1954) deleting the first proviso to Section 3 of Act XVI of 1952 with effect from 18-9-1953. On 13-121954 the Ordinance was replaced by the President's Act XI of 1954.

(3.) The plaintiffs after giving notices as provided under the law instituted two suits for the refund of the money alleged to have been illegally collected under the Act. In both the suits, the plaintiffs allege that by reason of the striking down of the proviso by the High Court the entire levy and collection of the tax under Section 3 had become illegal and that the Government was bound to refund the sum to them on the foot of moneys had and received. The plaintiff in O. S. No. 31 of 1956 claims that a sum of Rs. 6,879-14-6 was illegally collected from him from 1-21953 to 31-8-1954. He claimed interest in a sum of Rs. 894-0-0 and prayed for a decree for the payment by the 1st defendant. The State of Andhra a sum of Ps. 7,773-14-6. The plaintiff in O. S. No. 33 of 1956 claims that a sum of Rs. 5,386-68 bad been illegally collected from him. He claimed an interest in a sum of RS. 761-12-0. He prayed for a decree in a sum of Rs. 6,148-2-8.