MALIK, CJ. :- This is an appeal filed on behalf of the Municipal Board of Kanpur in a suit filed by the Dominion of India as the owner of the East Indian Railway through the General Manager, East Indian Railway, for the following relief :

"The plaintiff claims that the defendant be restrained by injunction from cutting off water supply from all or any of the holdings of the plaintiff East Indian Railway Administration mentioned in para 2 of the plaint."

The learned Civil Judge of Kanpur decreed the plaintiffs suit and it is against the order of the learned Civil Judge that this appeal was filed by the Municipal Board of Kanpur. The Municipal Board appears to have taken up a hopeless position as the facts given below will show :

2. The Municipal Board of Kanpur revised the house tax and water-rate of the buildings within its jurisdiction and enhanced the rate with the result that it demanded from the East Indian Railway Administration house tax and water-rate at the rate of Rs. 19,860/- per annum with effect from 1-4-1943, for a period of five years. The Railway Administration, under S. 135, Indian Railways Act, referred the matter to Shri F.N. Crofts, District Judge, Kanpur, for adjudication as he was the officer empowered by a notification of the Government issued under the Railways (Local Authorities Taxation) Act (Act No. 25 of 1941) to determine the amount payable in lieu of taxes by the Railway Administration. Shri Crofts gave his award on 1-8-1945, and determined that the sum of Rs. 3,000/- per annum was the proper amount payable by the Railway Administration to the Municipal Board as house tax and water-rate. As the determination was in respect of a lump sum for six properties which were separately numbered, he was asked to apportion the amount between the various properties and fix their liabilities separately. He, therefore, gave a supplementary award on 21-3-1946. Soon after the award was made by Shri Crofts, the Municipal Board passed a resolution, claiming to enhance the house tax and water-rate from Rs. 8,000/- per annum to Rs. 12,038/- and, to a protest made by the Railway Administration, it sent a reply dated 13-11-1946, that the Municipal Board had the right to increase the amount and that if the Railway Administration felt aggrieved, they can pay the amount under protest and take up the matter again before the District Judge.

The position taken, therefore, was that the Board had a right to fix such amount, as it thought proper for house tax and water-rate and it was for the Railway Administration, if they did not like the decision of the Board, to move the District Judge for a fresh award. It is this position, which has been maintained by learned counsel for the appellant. It will, therefore, be necessary to refer to the various provisions under which the local authorities are allowed to levy taxes on government properties.

3. Section 154, Government of India Act, 1935, (before the Adaptation Order) provided :

"154. Property vested in His Majesty for purposes of the government of the Federation shall, save in so far as any Federal law may otherwise provide, be exempt from all taxes imposed by, or by any authority within, a Province or Federated State :

Provided that, until any Federal law otherwise provides any property so vested which was immediately before the commencement of Part III of this Act liable, or treated as liable, to any such tax, shall, so long as that tax continues, continue to be liable, or to be treated as liable, thereto."

Similar provisions were made in Art. 285 of the Constitution but as this case is not governed by the provisions of the Constitution, it is not necessary for us to refer to the terms of that Article.

The Federal Law referred to in S. 154, Government of India Act, 1935, is S. 135, Indian Railways Act (Act 9 of 1890) which runs as follows :

"Notwithstanding anything to the contrary in any enactment, or in any agreement, or award based on any enactment, the following, rules