V.G. Oak, J. - (1.) I have read the judgment prepared by my learned brother Satish Chandra, J. I agreed with him that water-tax at Chandausi was validity imposed.
(2.) The main question for consideration in these appeal is whether the authorities were required to follow the procedure prescribed by Sections 131, 132, 133 and 134 of U.P. Municipalities Act (hereafter referred to as the Act). It is common ground that the Government notification dated 21.10.1957 (published on 26.10.1957) operated as a resolution passed by the Municipal Board of Chandausi. The question for consideration is whether the constructive resolution of the Board was under Section 131 or under Section 134 of the Act.
(3.) For deciding that point, we have to examine the plan of Chapter V of the Act. Chapter V provides for imposition and alteration of municipal taxes. Secs 131 of 135 contain the normal procedure for imposing a tax. Section 130-A contain a special provision for dealing with a case. Where a Municipal Board has failed to carry out directions of the State Government. The material words of Section 130-A (3) are: "the State Government may pass suitable order imposing or modifying the tax" Section 131 lays down that, when a Board desire to impose a tax, it shall, by a special resolution, frame proposals specifying the tax. Section 134 provides for a resolution of the Board directing imposition of tax. Section 134(2) states: "......the Board shall by a special resolution direct the imposition of the tax with effect from a date to be specified in the resolution." It will be seen that the resolutions contemplated by Sections 131 and 134 of the Act deal with different stages of the proceeding. Under Section 131, the Board merely puts forward a preliminary proposal for imposing a tax. On the other hand, under Section 134, the Board takes a firm decision that the tax will be imposed. Under Section 130-A(3), the State Government does not merely put forward a suggestion or preliminary proposal. The State Government passes a definite order imposing a tax. Such an order is of the nature of a resolution directing the imposition of a tax rather than a preliminary proposal under Section 131. So, an order passed by the State Government under Section 130-A(3) has the effect of a special resolution passed by the Board under Section 134(2) of the Act. A resolution under Section 134(2) of the Act having constructively come into existence, there is no need to follow the various steps mentioned in Sections 131, 132, 133 and 134(1) of the Act.;