Judgment

KULDIP SINGH, J.: - The question before the High Court was whether the levy of fee under Section 295(2) of the Orissa Municipal Act, 1950 (the Act) was unjustified for non-compliance of the principle of quid pro quo. The High Court answered the question in the affirmative and quashed the collection of the fee and restrained the Municipal Council from enforcing the demand. This appeal by way of special leave is against the judgment of the High Court by Dhenkanal Municipal Council.

2. There is a Hat (weekly market) known as "Darbar Hat" within the jurisdiction of Dhenkanal Municipal Council. Market is held in the said Hat every Sunday. Large number of people congregate for sale/ purchase of various articles like cattle, food stuffs and groceries etc. During the financial year 1973-74 sum of Rs. 36,000/- was recovered by the Municipal Council as fee from the traders who attended the market. In the year 1974-75 the fee collected by the Municipal Council was Rs. 46,600 / -.

3. Raja Rao Dhanik, the respondent, challenged the levy of the fee by way of writ petition under Article 226 of the Constitution on the ground that no services were being rendered by the Municipal Council. Acc