Essence of the fee pointed out.

The petitioner is a firm carrying: on the business of storing and dealing in diesel oil, kerosene, petrol and other petroleum products as the agents of Burmah Shell at Nellikuppam in South Arcot District. The petitioner has got a petrol bunk at Nellikuppam within the limits of the Nellikuppam Municipality, the respondent herein. On 12th December, 1969, the respondent-municipality passed a resolution enhancing, the licence fee in regard to storing or selling kerosene oil and petrol among other things. The resolution was passed purporting to be in exercise of the powers under section 249 and some other sections of the Madras District Municipalities Act, 1920 (hereinafter referred to as the Act). The notification containing the resolution was published in the South Arcot District Gazette, dated 12th December, 1969. The item relating to storing or selling kerosene oil or petrol was item 33 of the notification. It reads:

“Storing or selling kerosene oil or petrol- Rs. P.

(a) Large scale .. 200.00

(b) Medium .. 50.00

(c) Small scale .. 15.00.”

The petitioner challenges the validity of this notification on several grounds. Though in the affidavit filed in support of this petition allegations have been made challenging the vires of section 249 of the Act, no argument was advanced in that respect. The other contentions urged to show that the notification is invalid may be dealt with seriatim.

2. Sub-section (1) of section 249 reads:

“249 (1). The council may publish a notification in the district gazette and by beat of drum that no place within municipal limits or at a distance within three miles of such limits shall be used for any one or more of the purposes specified in Schedule V without the licence of the Executive Authority and except in accordance with the conditions specified therein.”

(proviso not relevant.) Chapter XVI of the Act deals with procedure and miscellaneous matters. Section 321 lays down the general provisions regarding licence and permissions. Sub-section (1) of that section reads:

"321 (1). Every licence and permission granted under this Act or any rule or by-law made under this Act shall specify the period, if any, for which and the restrictions, limitations and conditions, subject to which the same is granted, and shall be signed by the Executive Authority".

Schedule V enumerates the purposes for which premises cannot be used without a licence under section 249. The clause with which we are concerned is clause (q), which reads:

"Storing any explosive or combustible materials:

Provided that no licence shall be required for storing petroleum and its products in quantities exceeding those to which the operation of this Act is limited by the provisions of the Petroleum Act, 1934, or the rules or notifications issued thereunder."

This provision corresponds to the relevant entry in Schedule VI of the Madras City Municipal Corporation Act, 1919. There, the relevant entry reads:

"Petroleum products-Storing, packing, pressing, cleansing, preparing or manufacturing by any process whatever:

Provided that no licence under this Act shall be required for storing petroleum and its products in quantities exceeding those to which the operation of this Act is limited by the provisions of the Petroleum Act, 1934, or the rules or notifications issued thereunder".

3. It would be seen from a reading of section 249 of the Act with clause (q) of Schedule V that without a licence under Section 249, no premises could be used for storing any, explosive or combustible material. It is, however, subject to the proviso that no licence is required for storing petroleum and its products in quantities exceeding those to which the operation of the Act is limited by the provisions of the petroleum Act or the rules or notifications issued thereunder. As per the rules framed under the Petroleum Act of 1934, the authority to levy the licence fee and grant the licence in respect of storage of petroleum in a tank in connection with the pump out-fit for fu