- (1.) The short question which these two appeals raise for our decision in regard to the validity of the retrospective operation of the Bihar Taxation on Passengers and Goods (Carried by Public Service Motor Vehicles) Act, 1961 (No. XVII of 1961) (hereinafter called "The Act'). It is true that the two writ petitions Nos. 916 of 1961 and 918 of 1961 filed by the appellants Rai Ramkrishna and others and M/s Road Transport Co., Dhanbad and others respectively in the High Court at Patna along with 18, others under Articles 226 and 227 of the Constitution had challenged the validity of the whole of the Act. The High Court held that the Act is valid both in its prospective as well as its retrospective operation in their appeals brought to this Court by special leave against the said judgment, the appellants do not challenge the conclusion of the High Court that the Act is valid in so far as its prospective operation is concerned; they have confined their appeals to its retrospective operation. Eighteen other petitioners who had joined the appellants in the High Court have accepted decision of the High Court and have not come to this Court in appeal.
(2.) Before dealing with the points raised by the appellants, it is necessary to set out briefly the background of the present dispute: On March 30, 1950, the Bihar Legislature passed the Bihar Finance Act, 1950 (Bihar Act XVII of 1950); this Act levied a tax on passengers and goods carried by public service motor vehicles in Bihar. Nearly a year after this Act came into force, the appellants challenged its validity by instituting a suit No. 60 of 1951: in the Court of the First Subordinate Judge at Gaya on May 5, 1951. In this suit, the appellants prayed that the provisions of Part III of the said Act were unconstitutional and asked for an injunction restraining the respondent, the State of Bihar, from levying and realising the said tax. It appears that a similar suit was instituted (No. 47 of 1951) on behalf of the passengers and owners of goods for obtaining similar reliefs against the bus operators. This latter suit was filed by the passengers and owners of goods in a representative capacity under O. 1 Rule 8. Both these suits were transferred to the Patna High Court which heard the said two suits dismissed them on May, 8, 1952. The High Court found that the said Act of 1950 did not contravene Article 301 of the Constitution and so, its validity was beyond challenge The appellants then preferred an appeal to this Court No. 53 of 1952. Pending the said appeal in this Court, a simliar question had been decided by this Court in the Case of Atiabari Tea Co., Ltd. v. State of Assam. 1961-1 SCR 809 : (AIR 1961 SC 232). In consequence, when the appellant's appeals came for disposal before this Court, it was conceded by the respondent that the said appeal was covered by the decision of this Court in the case of Atiabari Tea Co., Ltd. 1961-1 SCR 809: (AIR 1961 SC 232) and that in accordance with the said decision, the appeal had to be allowed. That is why the appeal was allowed and the appellants were granted the declaration and injunction claimed by them in their suit. This Judgment was pronounced on December 12, 1960.
(3.) The respondent then issued an Ordinance (Bihar Ordinance No. II of 1961) On August 1, 1961. By this Ordinance the material provisions of the earlier Act of 1950 which had been struck down by this Court were validated and brought into force retrospectively from the date when the earlier Act had purported to come into force. Subsequently, the provisions of the said Ordinance were incorporated in the Act which was duly passed by the Bihar Legislature and received the assent of the President on September 23, 1961. As a result of the retrospective operation of this Act, its material provisions are deemed to have come info force on April l, 1950, that is to say, the date on which the earlier Act of 1950 had come into force. That, in brief, is the background of the present legislation.;