- (1.) THE plaintiff has alleged that they are the partners of an unregistered firm, which :is carried on under the name and style of messrs Das and Co. The trade tax of that firm was assessed at Rs. 4/- by the Municipal Corporation of chandernagor (defendant) under the Schedule IV, serial 2, Clause (h) of the Bengal Municipal Act, 1982; But the Corporation acted according to the provision of Serial ho. 1 of Clause (d) of the Schedule iv of; the Act and arbitrarily raised the tax to Rs. 20/- for six months and at rs. 40/- per annum. A bill was sent to that effect on 29. 1. 1967 for the trade tax of the second half of 1966-67. Such assessment is illegal and without jurisdiction. The suit is for a permanent injunction on declaration that assessment is illegal.
(2.) THE defendant filed a written statement pleading inter alia that the suit was barred by limitation and the imposition was properly made.
(3.) THE suit has a chequered career. Initiailly the suit was dismissed An appeal was taken out and the suit Was sent back on remand. The learned Munsif held that the plaintiffs' firm should be described as a joint Hindu family business. The notice under section 535 of the Act was issued on behalf of the partners. There was no paid up capital of the firm and so the imposition of trade tax according to the provisions of the serial no. 1 of the Schedule IV of the bengal Municipal Act was not legal and valid. That court held that the cause of action accrued on 29. 1. 1967, when the tax was first imposed. But the plaint was filed on 22nd December; 1967, that is beyond six months from 29. 1. 1067. He held that in view of the provisions of sub-section (2) of section 535 of the act, the suit was barred by special, law of limitation. The plaintiffs preferred an appeal and the appellate court came to the same findings. Hence this, appeal.;