NDLI: Nagar Panchayat,una Vs. Una Taluka Sahakari Kharid Vechan Sangh Ltd.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1961 Gujarat Panchayat Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Gujarat Panchayat Act, 1961 (6 of 1962)
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	A • c D E G H NAGARPANCHAYAT,UNA v. 407 UNA 'fALUKA SAHAKARIKHARID VECHAN SANGH LTD. September 17, 1970 [J. c. SHAH, AND A. N. G1lOVU, JJ.] G11jarat PanclrayatAct, 1961, s. 307(e) and (k}-NalJr in coming to the conclusionthat the Nagar Panchayat was not entitled to carry on the work of collection of octroiunderthe Ordinanceeven thoughthe Ordinancewhich imposedliability to payremainedin force. Section 307 oftheAct leave$ no roomfor doubtthat Wl!Jlrever a Napr Panchayatwas constitutedin place Qf themunicipality,the muni cipality disappeared and all its fundsincludingthe ·right to realisetaxes etc. -elted in the NagarPanchayat. In other words it was the Nagar Panchayat whichwas to functionas thelocalbody in the area previously coaatitiited as a municipality. Clause (k} of s. 307 clearlysaved all laws or rules which were applicableto thelocalarea which fonned a municipality '1Ud they were to continue to applyand to remain in force in the area for which the Nagar Pancbayatcame to be constituted. There waa no force In the contention that theOrdinancedid not become appli cable to the cities.and towns specified in ScheduleI which came to be constitutedas Grams or Nagarsunder the Act.[ 410 CJ 408 SUPREME COURT REPORTS [1971] 2 S.C.R. Even if in the ruJes framed under the Ordinancecertain expressioh createda difficultythat couldnot defeatthe rightand the powercon ferredon theNagarPancbayatby theAct of realisingand collectingthe octroiwhich was being done underthe Ordinanceas savedby clause (k) of s. 307. [4!0 HJ CIVIL APPELLATE JURISDCCTION: CivilAppealNo. 1059 of 1970. Appealfrom the judgmentand orderdatedFebruary18, 19.70, o{ the Gujarat· High Courtin Special Civil ApplicationNo. 387of 1968.. . D. V. Patel and Vineet Kumar .. fortheappellant. I. N. Shroff, for the respondent. TheJudgmentof theCourt was delivered by Grover, .J. Thisappealby certificatearises out of awrit petition filed by therespondentwhich is a Societyregisteredunder theBombay Cooperative SocietiesAct 1925challengingthe col lectionof octroi by theappellantwhich is the Una Nagar Panchayat. The appellant is a localbodyconstitutedunder the Gujarat Panchayat Act1961,hereinaftercalled the "Act, which came into forcewith effect from April I. 1963.Prior to itsenactmentthe BombayMunicipalAct 1901, as appliedto Saurashtra, 'was in forcein that regionof thepresent State of Gu.iarat. Under its ·provisionsUna Municipality was constituted. It was collecting octroion commoditieswhich were importedinto the municipal limitsof Una underthe Saurashtra Terminal Tax and Octroi Ordinance 1949. Under s. 3 ofthatOrdinancethe Government couldimposethe tax mentionedthereunderin thecitiesand towns specified or includedlater in Schedule I. One ofthesetaxes was a terminaltax on goodsimportedinto or exportedfrom the tenn.i nal tax limits.Octroi as defined by s. 2(-2) includeda tenninal tax.Section4 gavethe powerto theGovernmentto makerules bynotificationfor the purpose of carrying out the purposesof the Ordinance.'Rules were framedunder s. 4 intheGujarati l!ID guage. It was provided thereir. thatthe collection of Octroiand terminaitax would be donethroughthe Sudhrai (1I1t-m) of the areaenteredin thescheduleto theordinance. It is apparent:.hat under the Ordinance it was the State Governmentwhich imposed 'the octroi or thetenninaitax in the citiesand townsspecifiedin the Scheduleand the Sudhraiwas onlyan agency for collection thereof. By a notific'ation dated Deeember 12,1949issuedunder the Ordinancethe Governmentof theerstwhile State of Saurashtra includedthe townof Una in theScheduleto theOrdinance. · Thus A B c D E F G " A B c D E F G H NAGAR PANCHAYAT v. s. K. v. SANGH (Grover, /.) 409 octroi and terminaltax became levrable in that town on certaiIL commodities imported there. Section 9 oftheOrdinancemust also be noticed. According to it the Gavernment was to maintain aseparate fund in respect of all monies received by it onaccount of any of the taxes specified in s. 3 for every city or .town or. local area specified in Schedule I and such fund afterdeducting there from the expenditureincurred in connectionwith the levy and collection of such tax was to be applied for the benefit of the inhabitantsof the city or town or local area for which it was main·· talnod. The purpose of levying the octroi duty orterminal tnx underthe Ordinance clearly waa to add to the revenue of the locnl bod:y for the benefit of the people residing within the jurisdiction of that particularlocal body. · So long as Una Mu,nicipality r~mained, a municipality as con· stituted under the Act of J 901, there was 110 difficulty in thematter of collection of theoctroi. After the Act came into force the Na~ Panchayat replaced the Municipality in Una. · It continued to collect the octroi till 1967 when the respondent, for the first time, raised an objectionthat it waS' not entitled to do so. As the NagarPanchayat persisted in making the collection a petition. under Art. 226 of the Constitution was filed in theGujarat High Court.It has been held by the High Court that since in the Rules promulgated under the Ordinance in Gujaratithe collecting agency has been described as Sudhrai which means a municipality the NagarPanchayat was not competent to collect the octroi underthe Ordinan9e as it did not fall within the meaning or definition of the term "municipality" I'll our judgment the High Court was in error in coming to the conclusion that the Nagar Panchayat was not entitled to carry on the work of collection of octroiunder the Ordinance even though theOrdinance which imposed liability to pay remained in force. Under s. 307 of the Act where any local area was declared to !><' a gram or nagar under s. 9 and if thatarea was .:o-extensive with the limits of a municipal districtor municipalborough the muni cipality functioning in such local area was to cease to exist and in its place an Interim Grart1 Panchayat was to be constituted. According to clause ( c) of that section the unexpended balance of themunicipal fund and propertyincludingarrears ·of rates. ta~es and fees belonginl'? to the municipalityand all rights and powers which vested in the municipality were to vest in the Interim Gram or Nagar Panchayat fund until a new panchayat was constituted in accordance with the provisions of s. 308 ( 1). Clause ( g) provid ed that all officers and servants inthe employ of the municipality were to become officers and servants of the Interim Panchavar underthe Act. Clause (k) was in the following terms :- -4 l 0 SUPREME COURT REPORTS [1971) 2 S.C.ll. "Any law (otherthan the municipallaw) or any rule, by-law,notification or order issuedundersuch Jaw, whichwas applicable to and in force in the local area immediatelybefore it was declaredas a gram ornagar Ulldersection9, shallcontinue to apply to and to be in force in the localarea until it is superseded". ·:section 308 dealtwith the term of office of an Interim Panchay11t . .and the steps to betaken to holdelectionfor a newGramor Nagar Panchayat. The appellant in thepresentcase is indisputablythe .dulycoastitutedNagar Panchayat. .A B Section 307 of the Act leaves no room for doubtthat whereverC .a Nagar Panchayat was constituted in place of the municipality· themunicipalitydisappeared and all its fundsincludingthe right .torealisetaxes etc., vested in the NagarPanchayat.In. other · words it wasthe Nagar Panchayat whichwas to function as the localbody in the area previouslyconstituted. as a municipality.
Judge	Hon'ble Mr. Justice A.N. Grover
Neutral Citation	1970 INSC 195
Petitioner	NAGAR PANCHAYAT,UNA
Respondent	UNA TALUKA SAHAKARI KHARID VECHAN SANGH LTD.
SCR	[1971] 2 S.C.R. 407
Judgement Date	1970-09-17
Case Number	1059

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Nagar Panchayat,una Vs. Una Taluka Sahakari Kharid Vechan Sangh Ltd.

Please Log-in to view this content

Nagar Panchayat, Kurwai & Anr. Vs. Mahesh Kumar Singhal and Ors.

Panchayat Varga Sharmajivi Samudaik Sahakari Khedut Coop. Society Ltd. and Ors. Vs. Haribhai Mevabhai and Ors.

Sabarkantha Zilla Kharid V. Sangh Ltd Vs. Commissioner of Income Tax

State of Gujarat Vs. Jamnadas G. Pabri and Ors. Etc.

Commissioner of Sales Tax, Gujarat Vs. M/s. Sabarmati Reti Udyog Sahakari Mandali Ltd.

Una Nagar Palika Vs. Kaliben Balubhai Makwana and Anr.

Shirdi Nagar Panchayat Vs. Kishor Sharad Borawake and Others

Jaipur Udyog Ltd Vs. Cement Work Karmachari Sangh, Sahu Nagar.

High Court of Gujarat and Anr. Vs. Gujarat Kishan Mazdoor Panchayat and Ors.

Nagar Panchayat,una Vs. Una Taluka Sahakari Kharid Vechan Sangh Ltd.

Nagar Panchayat,una Vs. Una Taluka Sahakari Kharid Vechan Sangh Ltd.

Please Log-in to view this content

Similar Documents

Nagar Panchayat, Kurwai & Anr. Vs. Mahesh Kumar Singhal and Ors.

Panchayat Varga Sharmajivi Samudaik Sahakari Khedut Coop. Society Ltd. and Ors. Vs. Haribhai Mevabhai and Ors.

Sabarkantha Zilla Kharid V. Sangh Ltd Vs. Commissioner of Income Tax

State of Gujarat Vs. Jamnadas G. Pabri and Ors. Etc.

Commissioner of Sales Tax, Gujarat Vs. M/s. Sabarmati Reti Udyog Sahakari Mandali Ltd.

Una Nagar Palika Vs. Kaliben Balubhai Makwana and Anr.

Shirdi Nagar Panchayat Vs. Kishor Sharad Borawake and Others

Jaipur Udyog Ltd Vs. Cement Work Karmachari Sangh, Sahu Nagar.

High Court of Gujarat and Anr. Vs. Gujarat Kishan Mazdoor Panchayat and Ors.

Nagar Panchayat,una Vs. Una Taluka Sahakari Kharid Vechan Sangh Ltd.