The main legal point established in the judgment is the interpretation of the mandatory or directory nature of statutory provisions and the substantial compliance with the requirements for imposing taxes under the Karnataka Municipalities Act 1964.

( 1 ) A Division Bench of this Court (consisting of on" of us) has referred to Full Bench the following two questions of law: (i) Is a notification published under sub-sec (1) of S. 97 of the Karnataka municipalities Act 1964, invalid if the resolutions sanctioned u S. 96 with all the modifications subject to which the sanction is given, have not been set out in that notification or does sub-sec (2) of S. 97 of the act prohibit any enquiry into the legality of such notification ? and (ii) For water supplied by a Municipal Council,, is it competent for it (the Municipal Council) under Cl (viii) of sub-sec (1) of S. 94 of the Karnataka municipalities Act 1964, to levy on an individual or individuals water rate or water rates in the form of tax assessed on buildings and lands and also to charge him or them for such supply of water according to the the quantity used or according to the terms agreed with him or them? the ground on which the first of the above two questions, was referred is that there is conflict between the decision of a Divn Bench in Gopal shetty v. Channardyapatna Town Municipality, (1970) 1 Myslj. 278. on the one hand, and the decisions of Divn Benches in Menjanatha Shetty v. State of Mysore , (1971) 1 Mysljj. 27 and the Hupchand Hindumal v. State of Mysore, (1971) 1 Myslj. 167. on the other.

( 2 ) THE ground on which the second of the aforesaid two questions, was referred, is that the Divn Bench before which the petition came up for hearing, was inclined to doubt the correctness of the decision of the single judge in WP. 3163 of 1970 and that of the Divn Bench in WA. 69 of 1974 affirming the decision of the single judge. We shall first take up the first of the aforesaid two questions. We may now look at the relevant provisions of the Karnataka Municipalities Act, 1964 (hereinafter referred to as the Muncipalities Act ). Sec. 94 of the Municipalities Act sets out several taxes which the Municipal Council can impose with the sanction of the Government. Sec. 95 of the Municipalities Act sets out the procedure preliminary to imposing such taxes. Before imposing a tax the Municipal Council is required to pass a resolution at its general meeting selecting one or other of the taxes specified in S. 94 of the Municipalities Act and specifying so far as may be applicable- (i) the classes of persons or of property or of both which the Municipal Council proposes to make liable, and any exemptions which it proposes to make; (ii) the amount or rate at which the Municipal Council proposes to assess each such class; and (iii) in the case of an octroi, the octroi stations. When such resolution has been passed, the Municipal Council is required to publish in the Official Ga?ettp and in such other manner as may be prescribed, a notice of such resolution in the prescribed form. After such resolution is published, any inhabitant of the Municipality objecting to the imposition of such Tax or to the amount or rate proposed, or to the classes of persons or property to be made liable thereto or to any exemptions proposed, may, within one month from the publication in the offil Gaz of the said notice, sed his objection in writing to the Mun Council. The Municipal Council is required to consider such objections either itself or authorise a committee to consider the same and to report thereon Unless the Municipal Council decides to abandon the proposed tax. it (the Municipal council) is required to submit to the Govt such objections with its opinion thereto and any modifications proposed to the original proposal for taxation. Sec. 96 of the Municipalities Act emowers the Government.- (i) to refuse to sanction the resolution submitted under S. 95; (ii) to return such resolution to the Municipal Council for further considpration; or (iii) to sanction such resolution without modification or subject to such modificaition not involving increase in the amount to be imposed or subject to such terms as the Govt deems fit.

( 3 )