Judgement

THAKKAR, J. :- Is the Municipal Corporation of Hyderabad prohibited from levying Municipal taxes from persons inducted by it in the property of its own ownership under the hire purchase agreement? The validity of levy of Municipal taxes by the Municipal Corporation of Hyderabad from, allottees to whom the Municipal Corporation had allotted buildings constructed under "Low Income Housing Scheme" launched by it was questioned by the allottees. The learned single Judge upheld the validity but the Division Bench in appeal*1 took a contrary view. The Municipal Corporation has preferred the present appeal*2 and has contended that the learned single Judge was right in upholding the levy and the Division Bench was wrong in holding it invalid.

* 1. Under Clause 15 of the Letters Patent.

* 2. Appeal by Special Leave.

2. The facts giving rise to the writ petition instituted by the 72 allottees to whom the houses were allotted need to be stated briefly :-

The Hyderabad Municipal Corporation started a scheme called Low Income Housing Scheme in 1957. In pursuance of that scheme, the Corporation constructed several houses in various parts of the Hyderabad City including the locality of Mal