OAK,C.J. - (1.) JUDGEMENT This second appeal by plaintiff arises out of a suit for permanent injunction. The Tulsipur Sugar Company Limited filed a suit against the Town Area Committee, Tulsipur, on the following allegations.
(2.) THE plaintiff is a joint stock company carrying on the business of manufacturing and selling sugar at the Sugar Factory at Tulsipur. The factory w situate within the agricultural village of Shitalapur, district Gonda. The plaintiff has to import stores and materials for the purposes of the factory. In the year 1955 a notification under Section 3 of the U.P. Town. Areas Act, hereinafter referred to as the Act, was issued establishing a Town Area at Tulsipur. The notification under Section 3 of the Act is void and has no legal effect. In the year 1959 the authorities took certain steps to introduce octroi duty for the Town Area. A series of notifications were published in 1959 and 1960 on this subject. These notifications also are invalid. The result is that no octroi duty is in force within the Town Area. Further, the plaintiff in particular is not liable to pay any octroi duty. But the defendant has been interfering with the plaintiffs business. The defendant has been claiming octroi dues from the plaintiff. This demand is illegal. The plaintiff, therefore, brought the suit for permanent injunction to restrain the defendant from interfering with the carrying of goods, etc., by the plaintiff. There was also a prayer to restrain the defendant from levying or collecting any octroi dues from the plaintiff at the plaintiffs sugar factory. The plaintiffs claim was opposed by the defendant. It was pleaded that the notification under Section 3 of the Act is valid, and the Town Area was validly established at Tulsipur. The defendant also supported the various notifications issued in 1959 and 1960 and pleaded that octroi duty had been legally imposed within the Town Area. During the pendency of the suit the Town Area Committee was converted into Notified Area Committee. The Notified Area Committee was accordingly substituted as defendant in the suit.
(3.) THE case was tried by the Munsif, Utraula at Gonda. He upheld the plaintiffs claim that the notification under Section 3 of the Act is invalid, and so are the notifications issued in the years 1959 and 1960 imposing octroi duty. On these findings, the plaintiffs claim for permanent injunction was decreed by the trial Court. The defendant appealed. The appeal was allowed by the Civil Judge, Gonda. He upheld the validity of the impugned notifications and declaration. In the result, the plaintiffs suit was dismissed.;