SHAHID HUSSAIN ZAHID HUSSAIN Vs. MUNICIPAL COUNCIL

JUDGEMENT

(1.) THE order passed in this petition shall also govern the disposal of Misc. Petition No. 214/92, M/s Siharchand Ratanchand Singh and Ors. v. State of M. P. and Ors. ; Misc. Petition No. 447/92, V K. Tiwari v. State of M. P. and Ors. ; Misc. Petition No. 1449/92, V. K. Bajpai v. State of M. P. and Ors. ; Misc. Petition No. 1450/92, Dharamvir Sharma v. State of M. P. and Ors. ; Misc. Petition No. 1067/92, Santosh Kumar v. State of M. P. and Ors. ; Misc. Petition No. 3755/92, Babbu Singh v. State of M. P. and Ors. ; Misc. Petition No. 3774/92, The Bharat Co-op. Transport Society Ltd. v. State of M. P. and Ors. ; Misc. Petition No. 53/93, Bus Operator Union v. State of M. P. and Ors. ; Misc. Petition No. 312/93, M/s R. S. Fouzdar Bus Service v. State of M. P. and Ors. ; Misc. Petition No. 859/93, B. P. Singh v. State of M. P. and Ors. ; Misc. Petition No. 1469/93, Ushman Khan v. State of M. P. and Ors. ; Misc. Petition No. 1549/93, A. N. Sharma v. State of M. P. and Ors. ; Misc. Petition No. 1547/93, Mahendra Kumar v. State of M. P. and Ors. ; Misc. Petition No. 1575/93, S. S. Chouhan v. State of M. P. and Ors. ; Misc. Petition No. 1832/93, R. K. Sinha v. State of M. P. and Ors. ; Misc. Petition No. 1940/93, Hemant Kumar v. State of M. P. and Ors. ; Misc. Petition No. 4414/93, Laxmi Bus Service v. State of M. P. and Ors. ; Misc. Petition No. 2217/94, Jawaharlal Jain v. State of M. P. and Ors. which was heard in motion hearing which raised some additional submissions. Since all the cases relate to the right of the local authorities to collect terminal tax on passengers by auction, the same are being decided by a common order. The main submissions made by the learned counsel for the petitioners are one that the rules framed for realisation of terminal tax are void on the ground that the law does not authorise framing of such rules and as such in excess of authority conferred on the delegate. The second submission made is that the amendment of Section 189-A in the Municipal Corporation Act is violative of the scheme under the Municipal Corporation Act.

(2.) WE deal with these submissions as under : Since both the submissions have same shades of argument they are decided together, Shahid Hussain and others, the first batch of cases, arc off-shoot of judgment of this Court reported in Indore Bhed Bakra Vikreta Sangh v. Municipal Corporation, Indore and Ors. , 1992 MPLJ 781, and Ibadatali Abbassali v. Municipal Council, Khargone and Ors. , 1993 MPLJ 640 all these decisions were held to be not good law in view of the findings recorded in the Full Bench case in Misc. Petition No. 2002 of 1993 decided on 15th April, 1994 (1995 MPLJ 176 ). However, it is submitted by the petitioners that the only question before the Full Bench was 'whether the terminal tax on passengers could be collected by adopting mode of auction', and validity of byelaws framed for the same and of the rules was not in question.

(3.) THE challenge before the Full Bench was in relation to the provisions of Sections 86, 87, 88, 132, 134 and byelaws making provisions under Sections 427 and 430 of the Municipal Corporation Act, 1956. The provisions of the M. P. Municipalities Act, 1961, considered in Full Bench case were Sections 105, 160 and Rule 12 of the M. P. Municipalities Terminal Tax on Passengers (Regulation of Assessment and Collection) Rules, 1988. Before we come to the arguments submitted by the learned counsel, it would be better to refer some of the findings recorded by the Full Bench. Reference may be made to the order in Full Bench referring to the proposition referred from Corpus Juris Secundum, Vol. 84 (Taxation page 1317):