J K INDUSTRIES LTD Vs. MUNICIPAL BOARD RAJSAMAND

JUDGEMENT

(1.) The brief facts of the case are that the plaintiff-appellant filed a suit for recovery of Rs. 25,394.27 + interest thereon of Rs. 6602.51 total Rs. 31,996.78 on the allegations that the plaintiff-appellant is a Company registered under the Companies Act and has its registered office at Calcutta. The plaintiff has a factory at Kankroli. The plaintiff Company carries on business of manufacture of tyres and tubes and import coal for the said purposes. The Municipal Board of Rajsamand realised import duty by way of octroi tax on the imported coal. Previously tax leviable on the coal was Rs. 5/- per metric tonne, later on the State Govt. by notification dated 30-3-1976 had reduced the octroi duty on the coal w.e.f. 6-5-1976 @ Rs. 1.80 per metric tonne, but somehow in spite of the notification issued by the State Govt. reducing the octroi duty on coal, the Company has paid the octroi duty at the old rate of Rs. 5/per metric tonne on coal imported for the period Nov., 1976 to Oct., 1977 and the same was also recovered by the defendant-respondent Municipal Board. On detection of the mistake, the Company informed the Board about the irregularities committed in deposit and recovery of the octroi duty at the old rate and thereafter of the octroi duty was deposited and recovered @ Rs. 1.80 per metric tonne from Nov. 1977. The Company had written to the Municipal Board requesting refund of the amount wrongly paid and recovered by the Municipal Board for the period Nov., 1976 to Oct., 1977. A letter was sent to the Municipal Board dated 7-12-1978, which was received by the Municipal Board on the same day giving the details of the octroi duty of Rs. 25,394.27 paid and recovered in excess by the Municipal Board. On 8-8-1978, a letter was written by the Executive Officer of the Municipal Board, Rajsamand, addressed to the Regional -Assistant Director, Local Bodies, Rajasthan Udaipur, copy to the Company that in fact an excess of Rupees 25,394.27 was recovered from the Company as octroi duty and on sanction being given by the Regional Assistant Director, Local Bodies Rajasthan, Udaipur, the amount shall be refunded back to the Company. The Municipal Board has not refunded the amount paid and recovered in excess, the plaintiff gave notice under Section 271 of the Rajasthan Municipalities Act, 1959 (for short 'the Act' hereinafter) on 8-3-1978 and thereafter a suit was filed on 18-1-1980.

(2.) The Municipal Board filed its written statement admitting all the allegations made in the plaint, only contending that as the previous rate of octroi on coal was Rs. 5/- per metric tonne, the octroi was rightly recovered at the same rate, which cannot be said to be without any authority. Further in para No. 11, it is stated that the plaintiff and the defendant are residing within the jurisdiction of the Court but the civil court has no jurisdiction to adjudicate the dispute raised in the plaint.

(3.) The trial court dismissed the suit on two counts: (i) that the civil court has no jurisdiction to try the suit in view of Section 139 of the Rajasthan Municipalities Act, 1959; and (ii) the suit is barred by limitation under Section 271(2) of the Rajasthan Municipalities Act, 1959.