( 1 ) BEING aggrieved and dissatisfied by the Judgment and order dated 24/03/1986 passed the 2nd Joint (S. D.) Jamnagar below Ex. 5 in Special Civil Suit No. 171 of 1985 the Appellant Gujarat State Fertilizer Company Limited has filed this appeal.

( 2 ) THE appellant has filed the aforesaid suit before the Civil Judge (S. D ) Jamnagar seeking relief of declaration that it is entitled to exemption from payment of octroi duty and also for a permanent injunction restraining the Sikka Digvijay Gram Joint Nagar Panchayat Sikka and its agents or the Ijardars to whom the contract for recovery of octroi is given by the Panchayat from recovering the octroi. The plaintiff-Company has started a project to put up the plant for manufacturing Di-Ammonium Phosphate Fertilizer. The project envisages putting up a plant for manufacture of the said product and a part of this project namely Ammonia Storage Tank and storage facilities for phosphates etc. which are to be imported is to be located near Fisheries Office within the limits of Sikka Nagar Panchayat. It is further stated that the plant is being put up entirely as a new industry. The plaintiff has obtained lands from the Government of Gujarat for this part of the project within the limits of village Sikka. Foundation stone was laid on 16/07/1985 and the construction on the said lands at Sikka has commenced on or around 20/10/1985 It has been further stated that the plaintiff has awarded a contract for erection of the Tank and other civil structures on the land to one M/s. National Builders. Hence it is contended by the plaintiff that under Rule 36 of the Gujarat Gram and Nagar Panchayats (Taxes and Fees) Rules 1964 (hereinafter referred to as the Taxes and Fees Rules) the plaintiff is entitled to have exemption from octroi duty. Inspite of this position the defendant No. 1 or their agents were threatening to detain the goods of the plaintiff for non-payment of octroi duty. Therefore the suit was filed for declaration and permanent injunction. In that suit application Ex. 5 for temporary injunction against the defendants restraining them their servants agents employees etc. from claiming and/or recovering any octroi for any goods brought for the purpose of new industry of the plaintiff was filed on 19/11/1985 The learned Judge has rejected the said application as stated above by his judgment and order dated 23/03/1986

( 3 ) THE above Appeal From Order was filed on 6/05/1986 Along with the Appeal From Order Civil Application for interim relief was filed.

( 4 ) BEFORE that on behalf of the Nagar Panchyat a caveat was filed on 16/04/1986

( 5 ) THE matter came up for admission on 15/05/1986 The Court passed the following order:" Admitted. Paper Book dispensed with. Appellant to supply the paper book. To be hard in the week commencing from 23rd June 86 Mr. Hathi and Mr. S. M. Shah be service the rule On the Civil Application the Court has passed the following order" ;:interim relief refused on condition that the respondent Nos. 1 and 3 to file under :"taking in this High Court within 2 weeks from today to the effect that in the event of the appellant succeeding in this Appeal or in the suit the amount of octroi recovered from the appellant shall be refunded within such time as may be granted by this Court. It is clarified that this order will operate in the present proceedings only and in other proceedings the Court will deal with the same in accordance with law.

( 6 ) IN view of the aforesaid order on the same day on behalf of the Sikka Digvijay Gram Joint Nagar Panchayat Sikka its Secretary Rameshbhai Pandya filed an undertaking to the effect that in case the applicant Company succeeds in the appeal the Panchayat will refund the octroi amount collected from the Company.

( 7 ) ON the same day on behalf of the respondent No. 3 M/s. Amratlal and Company Prabhudas D. Kataria i. e. its partner has filed an undertaking as under:" I Prabhudas D. Kataria partner of Messrs. Amratlal and Co