- (1.) These two appeals are by Certificate granted by the Punjab and Haryana High Court at Chandigarh in C. W. No. 444/1968 and C. W. No. 2975 of 1967 respectively. The petitions were disposed of by a Full Bench of the High Court on 15-12-1969.
(2.) The Appellants who were the petitioners before the High Court prayed for a writ of certiorari or mandamus or any other appropriate writ for quashing the resolution No. 6 dated 21st July, 1965 of the Municipality and letter of the Government of Haryana to the President of the Municipal Committee, Bahadurgarh dated 30-10-1967. The facts of the case briefly are as follows :- The Municipal Committee of Bahadurgarh, Respondent No. 2, established Mandi Fateh in Bahadurgarh Town, with a view to improve trade in the area. The Municipal Committee decided that the purchasers of the plots for sale in the Mandi would not be required to pay octroi duty on goods imported within the said Mandi. In pursuance of this decision, resolution No. 8 dated 20-11-1916 was passed by the Municipality, Handbills were issued for the sale of the plots on the basis of the resolution and it was proclaimed that Fateh Mandi would remain exempt from payment of octroi. Subsequently by resolution No. 4 dated 20-5-1917, the Municipal Committee decided that the term No. 14 to the conditions of sale, namely, that the plots would not be required to pay octroi, be amended to the effect that the Mandi shall remain immune from payment of Octroi Duty forever. When the resolution was received by the Commissioner of Ambala, in paragraph 3 of his letter dated 26-6-1917 marked as Annexure A in the writ petition, he noted :- "I note that by its resolution No.4 of 20-5-1917, the Municipal Committee has undertaken that octroi shall never be imposed in the Mandi. This is ultra vires, the Municipal Committee cannot make such an undertaking and this should be explained to the purchasers of sites before they begin building so that if they wish they may withdraw from the purchase. Of course, it is unlikely that octroi will be imposed". On receipt of this letter, the President of the Municipal Committee made representations that if octroi duty was to be levied, there will be no purchasers for the plots and the entire scheme will fall through. On receipt of this representation on 20-9-1917 (Annexure B), the Commissioner revised his view and stated that he was cancelling para 3 of his letter dated 26-6-1917, that is to say, "that in deference to the strong views of the Municipal Committee and to your own opinion that the market will collapse if I insist upon it. I withdraw my objection to the undertaking made by the Municipal Committee that octroi will not be imposed on the market. As soon as the market is established it will be necessary to consider what form of taxation is best to cover the market share of Municipal expenses". The Municipal Committee on 10-3-1919 imposed house-tax of Rs.3-14-6 per cent per annum on the shopkeepers to cover the expenditure of the market.
(3.) The state of affairs continued till 4-9-1953 when the Municipal Committee by notification No. 9697-C-53/63830 dated 4-9-1953 included Fateh Mandi, Bahadurgarh, within the octroi limits. The examiner of local funds pointed out that the Municipal Committee is under obligation to charge octroi on goods imported into Fateh Mandi. The President of the Municipal Committee made a representation to the Deputy Commissioner on 24-2-1954. The Municipal Committee again passed another resolution No.1 dated 2-3-1954 that the Feteh Mandi will remain free from octroi duty according to the terms of the proclamation of the sale relating to the sale of plots. The matter was referred to the Punjab State which after thoroughly examining the whole matter, confirmed Resolution No.1 passed by the Municipal Committee on 2-3-1954. Subsequently, the Municipal Committee changed its mind and by its resolution dated 8-5-1954, resolved that octroi duty should also be levied on the goods imported into Fetch Mandi. But this resolution was annulled by the Punjab Government under Section 236 of the Punjab Municipal Act. The Examiner of the Local Funds Accounts in the meantime insisted on the levy of octroi duty on the goods imported into Fateh Mandi and the Punjab Government after discussing the issue on 9-4-1956 informed the President of the Municipal Committee that the Government's action in confirming the resolution No.1 of 2-3-1954 of the Municipal Committee, Bahadurgarh exempting goods imported into Fateh Mandi from levy of octroi duty under Section 70 (2) (c) of the Municipal Act, 1911, is quite in order and that no separate notification to this effect was necessary under the rules. Again on 21-7-1965, the Municipal Committee Bahadurgarh resolved that the Government be requested to cancel Resolution No.1 dated 2-3-1954. The State of Haryana Respondent No.1 which came into existence on 1-11-1964 under the Punjab Reorganisation Act, by its memo dated 30-10-1967 approved the Resolution No.6 dated 21-7-1965 of Municipal Committee and cancelled the Municipal Resolution No. 1 of 2-3-1954. As a result of the decision of the Government, the Municipal Committee started charging octroi duty on the goods imported into the Mandi. On these facts, the petitioners submitted that the resolution No.6 of the Municipal Committee dated 21-7-1965 (Annexure G) and the approval granted by the Haryana State as per its order dated 30-10-1967 (Ann.H) are illegal and ultra vires and without jurisdiction.;