Indian Kanoon - Search engine for Indian Law

P. C. Bhartari, J. B. Dadachanji and Ravinder Narain, for respondent No. 2 (in C. A. No. 2222 of 1970).

The Judgment of the Court was delivered by Ray, J. These two appeals are by certificate against the common judgment dated 18 May, 1970 of the High Court of Punjab and Haryana dismissing the applications of the appellants for a writ of mandamus restraining the Municipality of Sonepat from levying against and collecting from the appellants any octroi in respect of raw materials, components and parts imported by the appellants into the factory of the appellants situated at Industrial Area, Sonepat.

The factory of each of the appellants was situated at Industrial Area, Sonepat. The appellants carry on business of manufacturing bicycles and bicycle components and parts.

On 30 September, 1966 a notification dated 15, September, 1966 was published in the Punjab Government Gazette to the effect that under section 5(1) of the Punjab Municipal' Act, 1911 (referred to for the sake of brevity as the Act) the President of India was pleased to declare his intention of including within the municipal limits of Sonepat in the Rohtak District, the area specified in the Schedule to the notification. The Schedule included the Industrial area of, Sonepat where the factory of the appellants was situated. Under section 5(2) of the Act the inhabitants of the area who objected to the proposed inclusion of the said area could submit their objection in writing within six weeks- of the date of publication of the notification. The appellants. filed objections in writing.

On 1 November, 1966 after the bifurcation, of Punjab, the State of Haryana came into existence. A notification dated 11 August, 1967 was published in the Haryana. Government Gazette. The Gazette notification was to the effect that the Governor of Haryana, was pleased to,, include within the Municipality of Sonepat in the Rohtak District the areas mentioned in the notification. The industrial area within which the factory of the appellants was, situated was thus included within the local limits of the Municipality of Sonepat.

"When any local area has been included in a municipality under sub-section (3) of this section of this Act, and, except as the State Government may, otherwise by notification direct all rules, bye-laws, orders, directions and powers made, or conferred under this Act and in force throughout the whole municipality at the time, shall apply to such area."

The respondent-municipality relied on the provisions ,contained in section 5(4) of the Act that all rules, bye- laws, orders, directions and powers made, or conferred under the Act and in force throughout the whole municipality would apply to such an area, and, therefore, the notification No. 3798-C-42/60545 dated 3 November, 1942 issued under ,section 62(10) of the Act notifying the imposition of octroi within the octroi limits of the Sonepat Municipality became applicable to the area included.