Judgment

HEGDE, J.: These are connected proceedings. Herein the validity as well as the interpretation of some of the provisions of the Bombay Provincial Municipal Corporation Act, 1949 (Act 59 of 1949) (to be hereinafter referred to as the Act) as amended from time to time by the Gujarat State comes up for consideration. In these proceedings some of the Textile Mills of Ahmedabad are ranged against the State of Gujarat as well as the Municipal Corporation of the City of Ahmedabad. They are seeking to get refund of some amounts paid as property tax by them, which amount according to them were illegally collected from them.

2. In order to understand the controversies involved in these proceedings, it is best to set out the course of events leading upto these proceedings. Various Textiles Mills which are involved in these cases will hereafter be referred to as the "companies". These companies own immovable properties consisting of lands and buildings in the city of Ahmedabad. The Municipal Corporation of the City of Ahmedabad (which will hereinafter be referred to as the "Corporation") in the purported exercise of its power under the Act and the rules framed thereunder assessed the immovable properties of the companies to property tax for the assessment years 1964-65 and 1965-66. Those assessments were done on the basis of the method popularly known as "flat rate" method. According to that method in valuing the lands, the value of plants and, machinery were also taken into consideration. The buildings were assessed on the basis of their floor area. Those assessments were challenged by means of writ petitions under Articles 226 and 227 of the Constitution before the High Court of Gujarat by the companies. Those petitions were dismissed by the High Court. The aggrieved companies thereafter brought up the matters in appeal to this Court. During the pendency of those appeals, the Corporation proceeded to assess those companies as well as others to property tax for the assessment year 1966-67. Those assessments were challenged before this Court by some of the companies by means of writ petitions under Articles 32 of the Constitution. Meanwhile on the strength of the assessment made for the assessment years 1964-65 and 1965-66, the Corporation initiated proceedings for recovery of the taxes due under those assessments. Some of the companies paid the tax assessed but some others including the new Manek Chowk Spinning and Weaving Mills Co. Ltd. did not pay the tax levied on them. Hence the Officers of the Corporation resorted to the attachment of their properties. At that stage, those companies challenged the validity of those attachment proceedings before the High Court of Gujarat under Article 226 of the Constitution. Those writ petitions were dismissed. The High Court also refused to grant certificates under Article 133 (1) of the Constitution. But the concerned companies appealed to this Court after obtaining special leave from this Court. In those appeals, those companies prayed for an interim stay of the recovery proceedings. This Court declined to stay the proceedings in view of the undertaking given on behalf of the Corporation to refund the tax collected within a month from the date of the judgment of this Court, if those companies succeeded in the writ petitions before this Court. By its judgment dated February 21, 1967, this Court struck down the rules framed under the Act permitting the Corporation to value the lands and buildings on the "flat rate" method. This Court opined that it was not permissible for the Corporation to value the premises on the basis of the floor area nor could it take into consideration the value of plants and machinery in determining the ratable value of the lands and buildings. That decision is reported in 1967 (2) SCR 679 New Manek Chowk Spinning and Weaving Mills Co. Ltd. v. Municipal Corporation of the City of Ahmedabad. In view of that conclusion the assessments impugned in the writ petitions were