DHANIRAM Vs. JANAPAD SABHA

JUDGEMENT

(1.) THIS is an application under Article 226 of the Constitution for the issue of a writ of certiorari for quashing proceedings initiated against the petitioners for recovery of an amount of Rs. 16,000/- said to be clue from them to the Janpad Sahha, janjgir, on account of a contract for recovery of "cattle sale registration fees" us if it were arrears of land revenue.

(2.) BY a notification issued on 31st March 1947 in exercise of the powers conferred on it by the Central Provinces and Berar Local Self Government Act, 1920, and the rales made thereunder, ihe District Council of Bilaspur imposed "cattle sale registration fees" at the rate of "three pies per rupee per head on the purchase money payable by the purchaser''. On the enactment of the Central Provinces and berar Local Government Act, 1948, repealing the C. P and Berar Local Self government Act, 1920, the Janapad Sabha, Janjgir, came into existence and that body continued the levy of the catile sale registration fees imposed by the notification dated 31st March 1947. The Jan-pad Sahha sold by public auction the right of collection of this fee for the period from 1st April 1957 to 31st March 1958 to the petitioner Dhaniram for a consideration of Rs. 32000/ -. The other applicant dhajaram furnished a surely bond for the payment of the amount of Rs. 32,000 by dhaniram to the Janpad Sabha. When the petitioner Dhaniram failed to pay to the janpad Sabha an amount of Rs. 16,000/-said to be due from him in respect of the contract, proceedings for recovery of the amount as if it were arrears of land revenue were started against both Dhaniram and Dhajaram.

(3.) THE petitioners contend that under Section 89 (d) of the Act of 1948 the Janapad sabha could impose only a fee and not a tax on the registration of animals sold in any public market; that the imposition made by the notification dated ihe 31st march 1947 was one of a tax and not of fees and was in excess of the powers conferred on the Janpad Sabha by the statute and thus illegal; that Sections 98 and 94 of the Act permitted the teasing out of the right to collect only those tolls or fees, which the Sabha could validly impose and not of those impositions which were in excess of or in contravention of the powers conferred on it by the Act, and likewise Section 94 enabled the Janpad Sabha to recover, as if it were arrears of land revenue, the amount of only those cesses, fees, tolls and rates which if had the power to levy; that as the imposition by the Sabha of cattle sale registration fee with reference to the sale price of the animal sold was illegal and beyond the powers of the Sabha, the lease to the petitioner Dhaniram of the right to collect the cattle sale registration lee was void and there was no liability on the petitioners to pay any amount under that lease to the Sabha; and that even if under the contract of lease the petitioners were liable to pay any amount to the sabha, in any case it could not be recovered as if it were arrears of land revenue.