Superintendent & Legal ... vs Corporation Of Calcutta on 7 December, 1966
The relevant facts are simple and are not in dispute. The
State of West Bengal was carrying on the trade of a daily
market at 1, Orphanganj Road, Calcutta, without obtaining a
licence as required under s. 218 of the Calcutta Municipal
Act, 1951 (West Bengal Act 33 of 1951) hereinafter called
the Act. The Corporation of Calcutta filed a complaint
against the State of West Bengal in the Court of the
Presidency and Municipal Magistrate, Calcutta, under s. 541
of the Act for contravening the provisions of s. 218
thereof. Under s. 218 of the Act, every person who
exercises or carries on in Calcutta any trade, shall take
out a licence and shall pay for the same such fee as is
mentioned in that behalf in Schedule IV to the Act.
Admittedly for the year 1960-61, the Government of West
Bengal did not take out a licence under the said section but
carried on the said trade. The main contention of the
Government was that the State was not bound by the pro-
visions of the Act. The learned Magistrate, accepting the
said contention, acquitted the State. On appeal, the High
Court of Calcutta held that the State was carrying on the
business of running a market and, therefore, it was as much
bound as a private citizen to take out a licence. It
distinguished the decision of this Court in Director of
Rationing and Distribution v. The Corporation of Calcutta(1)
on the ground that the said decision was concerned with the
sovereign activity of the State. In the result the State of
West Bengal was convicted under s. 537 of the Act-s. 537
appears to be a mistake for s. 541-and sentenced to pay a
fine of Rs. 250, with the direction that when realized, it
should be paid to the Corporation. Hence the present
appeal.