1996 Supreme(Kar) 98
Karnataka High Court
V.M.GOVINDASWAMY - Appellant
Versus
SHIMOGA CITY MUNICIPAL COUNCIL, SHIMOGA - Respondent
Decided On : 02-08-96
The exclusion of jurisdiction of a Civil Court is not readily inferred and must either be explicitly expressed or clearly implied. The Civil courts have jurisdiction to examine cases where the provisions of the Act have not been complied with or the statutory tribunal has not acted in conformity with the fundamental principles of judicial procedure.
Headnote:
Municipal Charges - Jurisdiction of Civil Court - The court held that the exclusion of jurisdiction of a Civil Court is not readily inferred and that such exclusion must either be explicitly expressed or clearly implied. The court found that the respondent had not followed the statutory provisions and had not complied with the principles of natural justice, thus falling within the exceptions mentioned in previous decisions. The demand notice was declared unenforceable, and the suit was decreed, leaving the respondent the liberty to proceed afresh in accordance with the law.
Fact of the Case:
The appellant filed a suit for a declaration that the respondent Municipality has no right to demand development, betterment, or layout charges from the appellant in respect of the suit schedule property and for a permanent injunction. The trial Court held that the suit is barred under Section 150 (4) of the Act and dismissed the suit. On appeal, the additional Civil Judge concurred with the findings of the Trial Court and dismissed the appeal.
Finding of the Court:
The court found that the respondent had not followed the statutory provisions and had not complied with the principles of natural justice, thus falling within the exceptions mentioned in previous decisions. The demand notice was declared unenforceable, and the suit was decreed, leaving the respondent the liberty to proceed afresh in accordance with the law.
Issues: The main issue was whether the suit was maintainable in view of the provisions of Section 150 (4) of the Karnataka Municipalities Act, 1964.
Ratio Decidendi: The court held that the exclusion of jurisdiction of a Civil Court is not to be readily inferred and that such exclusion must either be explicitly expressed or clearly implied. It further found that the respondent had not followed the statutory provisions and had not complied with the principles of natural justice, falling within the exceptions mentioned in previous decisions.
Final Decision: The judgments and decree of the Courts below were set aside, and the suit was decreed, leaving liberty to the respondent to proceed afresh, in accordance with the law. No costs were awarded.
( 1 ) OF the Munsiff, Shimoga for declaration, that the respondent Municipality has no right to demand development, betterment or layout charges from the appellant in respect of the suit schedule property and for a permanent injunction. The suit was contested inter alia on the ground that the layout charges were due from the appellant and that the suit is barred under Section 150 (4) of the Karnataka Municipalities Act, 1964 ('the Act' for short ). The trial Court held that the suit is barred under Section 150 (4) of the Act and dismissed suit. On appeal by the plaintiff, in regular Appeal No. 6 of 1988, the additional Civil Judge, shimoga concurred with the findings of the Trial Court and dismissed the appeal.
( 2 ) THE learned Counsel for the appellant contended that Section 150 (4) of the Act is not a bar and the Civil Court has the jurisdiction and the suit is maintainable, in view of the findings that the provisions of law were not complied with. He further contends that the recovery sought to be made from the appellant under Exhibit P-6-notice was not for the recovery of betterment charges as mentioned therein, but was for the recovery of layout charges as mentioned in the written statement and hence the amount cannot be recovered under Chapter VII of the Act and therefore sub-section (4) of Section 150 is not applicable.
( 3 ) THE learned Counsel for the respondent submitted that the mention of layout charges in the written statement was made by a mistake and what was sought to be recovered was only betterment or development charges which can be recovered under section 168 under Chapter VII and hence the suit is barred as per the provisions of sub-section (4) of Section 150 of the Act.
( 4 ) THE demand notice Exhibit P-6 makes it clear that the amount is sought to be recovered towards betterment charges and not towards layout charges. It is therefore clear that what is stated in the written statement was a mistake as contended by the learned Counsel for the respondent. In the plaint, the appellant clearly stated that the respondent has no right to demand development charges and sought a declaration to that effect. Section 168 confers the Municipality to recover betterment charges or development charges in the manner provided in Chapter VII. When that is so, it is open to the municipality to invoke Section 142 (a) and proceed to recover the amount as laid down under Section 148 (2 ).
( 5 ) AN appeal lies to the Magistrate against any claim included in any notice of demand served under sub-section (3) of Section 142 or under sub-section (1) of Section 148 which may be made to the Judicial Magistrate having jurisdiction over the area concerned. Sub-section (4) of Section 150 lays down that no entry in the assessment list made under the provisions of the Act and no sum claimed by any person under Chapter VII shall be called in question before any Court or other authority. It is therefore clear that there is an express bar to the jurisdiction of the Civil courts to entertain any suit with regard to any claim by any person under Chapter VII.
( 6 ) FOLLOWING the decision in Secretary of State v Mask and Company and Dhulabhai v State of Madhya Pradesh and another the Supreme Court in State of West Bengal v Indian iron and Steel Company Limited , held that it is settled law that the exclusion of jurisdiction of a Civil Court is not to be readily inferred but that such exclusion must either be explicitly expressed or clearly implied. It was further held that it is well-settled that even if the jurisdiction is so excluded, the Civil courts have jurisdiction to examine into cases whether the provisions of the Act have not been complied with, or the statutory tribunal has not acted in conformity with the fundamental principles of judicial procedure.
( 7 ) AS observed supra, sub-section (4) of Section 150 is an express bar to the Civil Court from entertaining suits against claims of the Municipality under Chapter