The main legal point established in the judgment is the requirement for clear proof of the invalidity of proceedings of a statutory body and the compliance with statutory provisions in tax imposition.

Judgement

Consolidated Appeals (Nos. 3 and 4 of 1931) from two decrees of the Court of the Judicial Commissioner, Central Provinces (November 20, 1928), the first affirming a decree of the District Judge of Nimar (July 15, 1924), which affirmed a decree of the Subordinate Judge of Khandwa (April 11, 1924), the second reversing a decree of the Additional District Judge of Khandwa (February 6, 1926).

The appeals arose out of two suits brought by the appellants against the respondent Committee disputing the validity of a tax purporting to be imposed under the Central Provinces Municipal Act, 1903, on the trade of ginning and pressing cotton by means of steam or mechanical process. The decrees of the Court of the Judicial Commissioner dismissed both suits.

The facts, and the material terms of the above Act of 1903, and of the Central Provinces Municipalities Act, 1922, appear from the judgment of the Judicial Committee.

1933. Nov. 16, 17, 20, 21 ; Dec. 1. Dunne K.C. and Parikh for the appellants.

De Gruyther K.C. and Wallach for the respondents.

[Reference was made to Joshi Kalidas Sevakram v. Dakor Municipality (( 1883) I. L. R. 7 B. 399.) ; Municipality of Sholapur v. Sholapur Spinning and Weaving Co. (( 1895)

I. L. R. 20 B. 732.) ; Queen-Empress v. Earn Chandar (( 1897) I. L. R. 19 A. 493.); Indian Evidence Act, 1872, ss. 106, 114; and Central Provinces General Clauses Act, 1914, ss. 20, 23, 24.

Dec. 18. The judgment of their Lordships was delivered by

LORD THANKERTON. The appellants in these consolidated appeals are the plaintiffs in two suits in January, 1924, and August, 1925, respectively, in which they challenge the validity of a tax imposed on the trade of ginning and pressing cotton by means of a steam or mechanical process by the respondent, the Municipal Committee of Khandwa, in November, 1922. In the first suit the appellants seek an injunction to restrain the respondent from recovering from them the amount of the tax assessed upon the appellants for the year 1922- 1923. In the second suit the appellants seek repayment of the amount of the tax paid by them in respect of the year 1923- 1924.

These consolidated appeals are from one judgment and two decrees of the Court of the Judicial Commissioner, Central Provinces, dated November 20, 1928. The decree in the first suit confirmed in second appeal a decree of the District Judge of Nimar, dated July 15, 1924, which had confirmed a decree of the Subordinate Judge of Khandwa, dated April 11, 1924, dismissing the suit. In the second suit the Court of the Judicial Commissioner reversed a decree of the Additional District Judge of Khandwa, dated February 6, 1926, directing the Municipal Committee of Khandwa to refund to each of the present appellants the amount of the tax paid by them.

At the material time the respondent derived its power to impose taxation from the Central Provinces Municipal Act (Act XVI. of 1903). That Act was repealed by the Central Provinces Municipalities Act (Act II. of 1922, C.P.), which came into force on July 1, 1923, and to which it will be necessary to refer later in relation to a contention by the respondent.

Law. Rep. 61 Ind. App. 125 ( 1933- 1934) Radha Kishan Jaikishan V. Municipal C ommittee, Khandwa

251

The following are the material sections of the Act of 1903 —

" 35. Subject to any general rules or special orders which the Governor-General in Council may make in this behalf, a committee may, for the purposes of this Act, impose, with the sanction hereinafter specified in each case and in the manner required by section 39, any of the following taxes, namely —

(a) with the previous sanction of the Local Government—. . .. (iii) a tax on any person exercising any profession or art, or carrying on any trade or calling, within the limits of the municipality."

" 39.—(1.) A committee may resolve at a special meeting to propose the imposition of any tax for the purposes of this Act.

(2.) Where a resolution has been passed under sub-s. 1, the committ