MADANLAL KISHANGOPAL Vs. MUNICIPAL COUNCIL TARANA

JUDGEMENT

(1.) BY this writ petition under Article 226 of the Constitution, the petitioners pray quashing of an order dated 23-12-1969 (Annexure-6)passed by the Administrator, Municipal Council, Tarana, relating to increase in the rate of octroi tax and also the gazette notification dated 23-1-1970 in respect of the same (Annexure-7), The petitioners further seek a direction that section 130 of the M. P. Municipalities Act, 1961 is ultra vires.

(2.) THE facts of the case are that the petitioners 1, 2 and 3 are registered partnership firms while the petitioners 4 and 5 are sole proprietors of the firms Jagdishchandra Hariram and Ashok Kumar, Kishore Kumar respectively. Petitioners 1, 3, 4 and 5 carry on the business of sale and purchase of cloth while petitioner No. 2 carries on the business of sale and purchase of Kirana goods at Tarana, district Ujjain. In Tarana, Municipal Council is constituted and is a body corporate by the name of the Municipal Council, Tarana. In the year 1969, the Municipal Council was dissolved under section 328 of the m. P. Municipalities Act, 1961, (hereinafter referred to as "the Act") and an administrator was appointed. Since 7-4-1968, a schedule of rates of octroi (Annexure P/4) as published in the M. P. Raj Patra dated 7-3-1968 were in force. The Administrator vide his order dated 23-12-1969 (Annexure-P/6)passed under section 130 increased the rates of octroi, on the suggestion made by the Revenue Inspector of the said Council. It was also ordered that it may be published under section 130 (4) of the Act in the M. P. Raj Patra. Thus, the increase of rate of octroi tax on various commodities together with the proposal were published in the M. P. Raj Patra dated 23-1-1970 (Annexure 7 ). The increase of the octroi tax rates has come into force with effect from 22-2-1970 within the municipal limits of Tarana. As it appears from the return submitted on behalf of respondent No. 2 (State of Madhya Pradesh) that subsequently on special representation made from business class, the said respondent reduced the rate of octroi on cotton and silk cloth only vide order dated 21-7-1970. The petitioners have come up before this Court in the present petition challenging the increase of octroi rates being illegal arid without jurisdiction and the vires of section 130 of the Act.

(3.) LEARNED counsel for the petitioners submitted the following points for our consideration:-