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2003 Supreme(MP) 966

2004(1) JLJ 26
(FULL BENCH)
Dipak Misra, S.K. Kulshrestha and K.K. Lahoti, JJ.
Sakhi Gopal Agrawal and others v. State of M.P. and others
W.P. Nos. 156, 1351, 1374, 1387, 1570, 1587, 1843, 2431, 2586, 2995, 3163 and 5829 of 1998; 3411, 3412, 4100 and 4890 of 1999; , 4184, 4342, 4344 to 4358, 5374 to 5377 of 2000; 2419 of 2001, 4009 of 1997, 250 and 1416 of 2002; Decided on 29.8.2003.

Advocates:
M.L. Jaiswal, Ms. Maya Verma, Rakesh Jain, P. Shandilya, Ms. Sudha Pandit, Ashok Agrawal, V.K. Jain, Prashant Singh, B.B.L. Agrawal, Manish Datt, Ms. Shobha Menon, Ravindra Shrivastava, Champalal Yadav, R.D. Bapat, A.S. Shrivastava, V.L. Palsikar, Ashok S. Garg, M.V. Apte, A.G. Dhande, Anil Shrivastava, N.K. Dave, Shobhit Aditya, Sanjay K. Agrawal, Alok Aradhe, P.N. Pathak and Bhoop Singh for petitioners; R.S. Jha, Deputy Advocate General for respondents.

Headnote:(1) Constitution of India -- Arts. 243W and 243X -- State Legislature -- has power to endow Municipalities with power to collect taxes, fees, etc.

       The bunch of matters can be categorised into two compartments: in one batch, assail is to certain provisions and rules of the M.P. Municipal Corporation Act, 1956 (for brevity ‘the Act‘) as ultra vires and, in the other, challenge is to the certain provisions of M.P. Municipalities Act, 1961 (in short ‘the Municipalities Act‘) and the rules framed for carrying out the purposes of the said statute. [Para 2

       Held : On a bare reading of the aforesaid Articles, it is perceptible that Article 243W clearly stipulates that subject to provisions of the Constitution, the Legislature of a State may, by law, endow the Municipalities with such powers. Thus, the source of power rests with the State Legislature. True it is, there is some concept of self-governance but the Constitution has not empowered the Municipalities to impose taxes on its own as if it has the power to impose taxes by itself, as that would have defeated and destroyed many a provision of the Constitution. Article 243X also postulates that the Legislature of a State may, by law, authorise a Municipality to collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits. The aforesaid provision is plain as day to indicate that the Legislature has the authority and it may authorise the Municipality to collect such taxes in accordance with such procedure and subject to such limits. The significance of the term ‘such‘ used at three places under Article 243X(a) cannot be allowed to be marginalised. Thus, the submission that the Legislature should have left it to the total discretion of the Municipality or Municipal Corporation, is absolutely sans substance. [Para 21

       (2) Municipal Corporation Act, 1956 (M.P.) -- S. 138(1) -- M.P. Municipalities Act, 1961 -- S. 126(1) -- Constitution of India -- Art. 13(3) (a) -- use of words ‘subject to the rules, as may be made by the State Government in this behalf‘ in both sections -- Constitution has allowed the State Legislature to endow such power by law -- term ‘Law‘ includes rules so framed -- some powers have to be conferred on rule making authority.

       The next contention that has been put forth is relatable to the realm of excessive delegation. Submission of learned counsel for the petitioners is that the Legislature, while en grafting the provisions, namely, section 126 of the Municipalities Act and section 138 of the Municipal Corporation Act, in sub-section (1) has used the words ‘as may be made by the State Government in this behalf and such a prescription in the said enactments is not permissible inasmuch as the Constitutional command is in favour of the Legislature alone. It is urged that the Legislature has abdicated its basic legislative powers. [Para 22

       Held: On a Xd`ray of the anatomy of both the provisions, it is luminescent that the Legislature, after providing certain parameters in sub-section (1) of section 138 as well as in sub-section (1) of section 126, has mentioned ‘subject to the rules, as may be made by the State Government in this behalf. The Constitution has allowed the State Legislature to endow such powers by law. The term ‘law‘ has been defined under Article 13(3) (a) of the Constitution and the said definition stipulates that law includes any Ordinance, order, bye-law, rule, regulation, notification, custom or usage in the territory of India having the force of law. The rules, which are statutory, have the force of law. The Municipalities Act as well as the Corporation Act have the provisions authorising the State Government to make rules. Section 138 of the Municipal Corporation Act and section 126 of the Municipalities Act stipulate subject to such rules. The rule making power is vested with the State Government. When the procedure is so laid do wn and is a part of the enactment and it comes within the definition of the term "law" as per the Constitution, the real crux of the matter is whether the Legislature should have itself said everything and dealt with every spectrum in the statute or left some aspects to be filled up or supplemented or backed by the rules. It is contended with vehemence that by such prescription not only there is violation of the provisions of the Constitution but there is abdication of the essential power of the legislative functions of the State Legislature. As far as the first facet of this contention is concerned, we are not at all impressed as the provisions in the Constitution use the word "law" made by the Legislature. Legislature itself has authorised under the statute the State Government to make rules. The second question that forms a part of this submission is whether such a power could have been delegated. It is well settled in law that the Legislature cannot visualize all circumstances. Some power has to be conferred on the rule making authority for carrying out the purposes of the Act. AIR 1951 SC 332, AIR 1959 SC 586, AIR 1958 SC 909, AIR 1959 SC 512, AIR 1965 SC 1107, AIR 1968 SC 1232, (1983) 3 SCC 253, (1992) 4 SCC 28 and (1998) 2 SCC 416 followed. [Para 22

       (3) High Court Rules and Orders (M.P.) -- Chap. I R. 12 -- reference to Full Bench by Division Bench -- existence of two earlier conflicting decisions -- not a condition precedent -- involved issues of immense significance -- reference may be made. 1976 JLJ 706 and 1979 JLJ 745 relied on. [Para 1

       (4) Constitution of India -- Art. 243Q -- constitution of municipality -- word "Municipality" covers Municipal Corporation also. AIR 1995 SC 1210 followed. [Para 17

       (5) Constitution of India -- Arts. 243-Y and 243-I -- financial position of municipalities -- to be reviewed by Finance Commission constituted under Art. 243-I -- it shall make recommendations to Governor.

       Emphasis has been laid on Article 243-Y which provides that the Finance Commission constituted under Article 243-I shall also review the financial position of Municipalities and make recommendations to the Governor as to the principles which should govern the distribution between the State and the Municipalities of the net proceeds of the taxes, tolls and fees leviable by the State. The said provision also prescribes the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by the Municipalities. [Para 17

       (6) Municipalities Act, 1961 (M.P.) -- S. 129 -- procedure for imposition of tax prescribed under -- Legislature can leave it to the discretion to State to frame rules to effectuate purpose of the Act. 1994 JLJ 619 (DB) approved. [Para 23

       (7) Municipalities Act, 1961 (M.P.) -- S. 129 (amended) -- procedure laid down by Legislature -- State Government authorised to implement the same for which guidelines also laid down -- legislation is not faulty.1997(1) JLJ 402 (DB) approved. [Para 25

       (8) Constitution of India -- Arts. 245 and 246 -- Legislature cannot directly overrule, reverse or override a judicial decision by mere declaration -- under its plenary powers, it can render a judicial decision ineffective by enacting valid law. AIR 1976 SC 2250, AIR 1970 SC 192, AIR 1987 SC 2310, (1994) 6 SCC 77, (1997) 1 SCC 326, AIR 1962 SC 1753, AIR 1968 SC 1138 and (1985) 4 SCC 124 followed. [Para 30

       (9) Municipal Corporation Act, 1956 (M.P.) -- S. 138 -- M.P. Municipalities Act, 1961 -- S. 126 -- unamended and amended provisions under both the Acts -- have basic changes -- decisions rendered by Apex Court under unamended provisions -- have lost their binding force after amendment.

       In the earlier provision, there was the non-obstante clause but the wording used in the unamended section 138 "might reasonably" had garnered immense significance. [Para 31

       In the unamended provision, there has been reference to the provision under the M.P. Accommodation Control Act and where there has been no determination under the said Act, the words used were "reasonably be expected to let from year to year".

       Presently there is non-obstante clause in both the enactments. 1977 JLJ 101 (SC) and AIR 1995 SC 1480 have lost their binding force. (1998) 4 SCC 368, (1980) 1 SCC 685, AIR 1962 SC 151, (1970) 2 SCC 803, (1995) 5 SCC 440 and (1976) 4 SCC 535 followed. [Paras 32 & 33

       (10) Constitution of India -- Art. 14 -- M.P. Municipal Corporation Act, 1956 -- S. 138(2) -- M.P. Municipalities Act, 1961 -- S. 126 -- M.P. Municipality (Determination of Annual Letting Value of Building/Land) Rules, 1997 -- Rr. 3, 4 and 5 -- provisions under -- are not ultra vires -- classification is reasonable, rational, acceptable and non-arbitrary.

       In section 126 of the Municipalities Act, it is noticeable that the Legislature has referred to determination of the annual letting value of land or building on the basis of per square foot of the built-up area or per square foot of the land and while doing so, the factors which are to be taken into consideration are the area in which the building or land is situate, its location, situation, purpose for which it is used, its capacity for profitable use, quality of the construction of the building and other relevant factors. Quite apart from the above, the Legislature has not made the criteria exhaustive and further stipulated subject to the rules, as may be made by the State Government in this behalf. Similar language has been used in section 138 of the Municipal Corporation Act. Rule 3 of the Rules deals with the classification of municipal area. Rule 4 of the Rules deals with classification of buildings and lands. It classifies the buildings on the basis of quality of construction, the basis of use, and the basis of location. Rule 5 deals with rate of annual letting value. If the rules are understood in proper perspective and reflected in the logical prism, we have no hesitation in holding that the provisions which have been provided for classifying the buildings are reasonable, rational, acceptable and non-arbitrary. (1981) 4 SCC 675 and (1974) 1 SCC 19 discussed and followed. [Paras 40, 41 & 42

       (11) Municipal Corporation Act, 1956 (M.P.) -- S. 138(3) -provision under -- does not create any discrimination -- penalty of ten times -- may be reduced -- on non-filing of return surcharge is imposed‘ -- which cannot be reduced -- provision is valid.

       Though there is a provision for imposition of penalty, we are inclined to hold that if an owner of a building can explain to the authorities concerned that he had acceptable reasons to assess the tax in the manner in which he has done, the authority concerned can reduce the penalty depending upon the facts and circumstances of the case and using the discretion. (1997) 7 SCC 1 followed.

       It is noticeable that a person who does not file a return is liable to pay surcharge. A person who files the return does not incur the liability to pay surcharge. Thus, if we interpret the provision of section 138(3), a penalty can be reduced depending upon the facts and circumstances of the case, but the surcharge is not subject to reduction, there is no difficulty in upholding the Constitutional validity of the aforesaid provision. [Para 46

       (12) Municipal Corporation Act, 1956 (M.P.) -- Ss. 138(3), 138(4) and 149 -- M.P. Municipalities Act, 1961 -- Ss. 126(4) and 139 -- two forums of appeal -- appeal against imposition of penalty lies to Mayor-in-Council while against imposition of tax lies to District Judge -- similar is the case with municipalities.

       We are inclined to read the provisions in a harmonious manner. We have already stated that as far as penalty is concerned, appeal shall lie to the Mayor-in-Council but as far as the assessment is concerned, it is in a different compartment and is a different conception. Section 149 deals with assessment. On a harmonious reading, we would like to interpret that if a person is aggrieved by an order of assessment, he can prefer an appeal to the District Court and the District Court shall appropriately deal with it and if eventually the assessment order is quashed or the quantum is reduced, he may proportionately direct for reduction of penalty. If the order of assessment remains untouched, the District Court would have no option to deal with penalty inasmuch as that power is not vested under section 149, and section 138(4) deals with that facet. We are inclined to read it in that manner so that both the provisions can co-exist. In view of our preceding analysis, we do not find any inconsistency in the provisions. Similar is the situation in the Municipalities Act. In the Municipalities Act, section 126(4) provides that an appeal shall lie to the President-in-Council against the order passed under sub-section (3). An appeal lies to Civil Judge under section 139. [Para 50

       (13) Municipal Corporation Act, 1956 (M.P.) -- S. 421 -- M.P. Municipalities Act, 1961 -- S. 323 -- resolution unauthorisedly passed or order made in such manner n may be challenged before appropriate authorities provided in the Acts. [Para 52

       ¼1½ Hkkjr dk lafo/kku && vuq- 243&c rFkk 243&Hk && jkT; fo/kku&eaMy uxjikfydkvksa dks dj] ‘kqYd vkfn olwy djus dh ‘kfDr iznku djus dh ‘kfDr gSA

       ekeyksa dk iqat nks mi[kaMksa esa izoxhZd`r fd;k tk ldrk gS % ,d ?kku esa vk{ksi e-iz- uxjikfyd fuxe vf/kfu;e] 1956 ¼la{ksi ds fy, *vf/kfu;e*½ ds dfri; mica/kksa dk fu;eksa ds vf/kdkjkrhr gksus ds ckjs esa gS rFkk] nwljs esa vk{ksi e-iz- uxjikfydk vf/kfu;e] 1961 ¼la{ksi esa *uxjikfydk vf/kfu;e*½ ds dfri; mica/kksa rFkk mDr dkuwu ds iz;kstu iw.kZ djus ds fy, fojfpr fu;eksa ij fd;k x;k gSA ¿ iSjk 2À

       vfHkfu/kkZfjr % iwoksZDr vuqPNsnksa ds ikB ek= ls izR;{k gS fd vuqPNsn 243c esa Li"Vr% vuqc) gS fd lafo/kku ds mica/kksa ds v/khu jgrs gq,] fdlh jkT; dk fo/kku&eaMy] fof/k }kjk] uxjikfydkvksa dks ,slh ‘kfDr;k¡ iznku dj ldsxkA bl izdkj] ‘kfDr dk lzksr jkT; fo/kku&eaMy ds ikl gksrk gSaA lR; gS fd Lok;Ùk ‘kklu dh dqN ladYiuk gS ijarq lafo/kku esa uxjikfydkvksa dks Lo;a bl izdkj dj vf/kjksfir djus ds fy, l‘kDr ugha fd;k x;k gS tSls mls Lo;a dj vf/kjksfir djus dh ‘kfDr gks] D;ksafd mlls lafo/kku ds vusd mica/k fu"Qy vkSj fou"V gks tkrsA vuqPNsn 243Hk esa Hkh mi/kkj.k gS fd fdlh jkT; dk fo/kku&eaMy] fof/k }kjk] ,sls dj] ‘kqYd] iFkdj vkSj Qhlsa lax`ghr vkSj fofu;ksftr djus ds fy, fdlh uxjikfydk dks] ,slh izfØ;k ds vuqlkj rFkk ,slh ‘krksZa vkSj fucZa/kuksa ds v/khu jgrs gq,] izkf/kd`r dj ldsxkA iwoksZDr mica/k esa ;g fun‘kZu fnu ds mtkys Hkh Hkk¡fr Li"V gS fd fo/kku&eaMy dks izkf/kdkj izkIr gS rFkk og ,sls dj lax`ghr djus ds fy, fdlh uxjikfydk dks] ,slh izfØ;k ds vuqlkj vkSj ,sls fucZ/kuksa ds v/khu jgrs gq, izkf/kd`r dj ldsxkA vuqPNsn 243Hk ds varxZr rhu LFkkuksa ij iz;qDr in *,sls@,slh* dk egRo U;wu djus ugha fn;k tk ldrkA vr%] ;g fuonsu fd fo/kku&eaMy }kjk mls uxjikfydk vFkok uxjikfyd fuxe ds iw.kZ foosd ij NksM+ fn;k tkuk pkfg, Fkk] iw.kZr% lkjghu gSA ¿ iSjk 21À

       ¼2½ uxjikfyd fuxe vf/kfu;e] 1956 ¼e-iz-½ && /kkjk 138¼1½ && e-iz- uxjikfyd] vf/kfu;e] 1961 && /kkjk 126¼1½ && Hkkjr dk lafo/kku && vuq- 13¼3½ ¼d½ && nksuksa /kkjkvksa esa ‘‘kCnksa **,sls fu;eksa ds] tSls fd jkT; ljdkj }kjk cuk, tk,¡] v/;/khu jgrs gq,** dk iz;ksx && lafo/kku esa jkT; fo/kku&eaMy dks ,slh ‘kfDr;ka fof/k }kjk iznku djus dh vuqKk nh xbZ gS && in *fof/k* esa bl izdkj fojfpr fu;e lfEefyr gS && fu;e cukus okys izkf/kdj.k dks dqN ‘kfDr;k¡ iznÙk dh tkuk gksrh gSA

       tks vxyk ladFku izLrqr fd;k x;k gS og vR;f/kd izR;ktkstu ds {ks= ls lacaf/kr gSA ;kphx.k ds fo}ku dkmUlsy dk fuosnu gS fd mica/k] vFkkZr~ uxjikfydk vf/kfu;e dh /kkjk 126 rFkk uxjikfyd fuxe vf/kfu;e dh /kkjk 138] lfEefyr djrs le; fo/kku&eaMy }kjk mi/kkjk ¼1½ esa ‘‘kCnksa *tSls fd jkT; ljdkj }kjk bl ckjs esa cuk, tk,¡* dk iz;ksx fd;k x;k gS rFkk mDr vf/kfu;fefr;ksa esa ,slk fofgr fd;k tkuk vuqKs; ugha gS D;ksafd lkafo/kkfud vkns‘k dsoy fo/kku&eaMy ds i{k esa gSA crk;k x;k gS fd fo/kku&eaMy }kjk viuh ewyHkwr fo/kk;h ‘kfDr vf/kR;Dr dj nh xbZ gSA ¿ iSjk 22À

       vfHkfu/kkZfjr % nksuksa mica/kksa dh ljapuk dk lw{e fo‘ys"k.k djus ij lanhIr gS fd /kkjk 138 dh mi/kkjk ¼1½ ds lkFk gh /kkjk 126 dh mi/kkjk ¼1½ esa Hkh fuf‘pr ekunaM micaf/kr djus ds i‘pkr~ fo/kku&eaMy us *,sls fu;eksa ds] tSls fd jkT; ljdkj }kjk bl ckjs esa cuk, tk,¡] v/;/khu jgrs gq,* dk mYys[k fd;k gSA lafo/kku esa jkT; fo/kku&eaMy dks ,slh ‘kfDr;k¡ fof/k }kjk iznku djus dh vuqKk nh xbZ gSA in *fof/k* dks lafo/kku ds vuqPNsn 13¼3½ ¼d½ esa ifjHkkf"kr fd;k x;k gS rFkk mDr ifjHkk"kk esa vuqc) gS fd fof/k ds varxZr Hkkjr ds jkT;{ks= esa fof/k dk cy j[kus okyk dksbZ v/;kns‘k] vkns‘k] mifof/k] fu;e] fofu;e] vf/klwpuk] :f<+ ;k izFkk gSA fu;eksa dks tks dkuwuh gksrs gS] fof/k dk cy izkIr gSA dks fu;e cukus ds fy, izkf/kd`r djus ds mica/k gSA uxjikfydk fuxe vf/kfu;e dh /kkjk 138 rFkk uxjikfydk vf/kfu;e dh /kkjk 126 esa ,sls fu;eksa ds v/khu vuqca/k gSA fu;e cukus dh ‘kfDr jkT; ljdkj esa fufgr gsA tc izfØ;k bl izdkj vf/kdfFkr gS rFkk og vf/kfu;fefr dk Hkkx gS vkSj og lafo/kku ds vuqlkj in *fof/k* dh ifjHkk"kk ds v/khu vkrh gS rc ekeys dk okLrfod ewy iz‘u ;g gS fd D;k fo/kku&eaMy dks Lo;a gh lc&dqN crkuk pkfg, Fkk vkSj dkuwu ds izR;sd igyw ij ppkZ djuk pkfg, Fkh] vFkok dqN igyw fu;eksa }kjk iw.kZ ;k laiwj.k ;k lefFkZr fd, tkus ds fy, NksM+ nsuk pkfg, FksA ifjJeiwoZd ladFku fd;k x;k gS fd ,slk fofgr fd;k tkus ls lafo/kku ds miac/kksa dk vfrØe.k gh ugha gqvk gS] vfirq jkT; fo/kku&eaMy ds fo/kk;h d`R;ksa dh lkjHkwr ‘kfDr dk vf/kR;tu gqvk gSA tgk¡ rd bl ladFku dk izFke i{k lacaf/kr gS] ge fdafpr~ Hkh izHkkfor ugha gq, gS D;ksafd lafo/kku ds mica/kksa esa fo/kku&eaMy }kjk cukbZ xbZ *fof/k* ‘‘kCn dk mi;ksx fd;k x;k gSA Lo;a fo/kku&eaMy us jkT; ljdkj dks fu;e cukus ds fy, dkuwu ds v/khu izkf/kd`r fd;k gSA tks f}rh; iz‘u bl ladFku dk Hkkx gS] og ;g gS fd D;k ,slh ‘kfDr izR;k;ksftr dh tk ldrh Fkh \ fof/k esa lqLFkkfir gS fd fo/kku&eaMy }kjk leLr ifjfLFkfr;ksa dh dYiuk ugha dh tk ldrhA vf/kfu;e ds iz;kstuksa dh iwfrZ ds fy,] fu;e cukus okys izkf/kdj.k dks dqN ‘kfDr iznÙk dh tkuk gksrh gSA , vkb vkj 1951 ,l lh 332] , vkb vkj 1959 ,l lh 586] , vkb vkj 1958 ,l lh 909] , vkb vkj 1959 ,l lh 512] , vkb vkj 1965 ,l lh 1107] , vkb vkj 1968 ,l lh 1232] ¼1983½ 3 ,l lh lh 253] ¼1992½ 4 ,l lh lh 28 rFkk ¼1998½ 2 ,l lh lh 416 vuqlfjrA ¿ iSjk 22À

       ¼3½ mPPk U;k;ky; fu;e rFkk vkns‘k] ¼e-iz-½ && v/;k; 1 fu- 12 && [kaM U;k;ihB }kjk iw.kZ U;k;ihB dks funsZ‘k && nks iwoZrj fojks/kh fofu‘p;ksa dk vfLrRo esa gksuk && iwoZ&‘krZ ugha && varofyZr fook|d vR;f/kd egRoiw.kZ && funsZ‘k fd;k tk ldrk gSA 1976 ts ,y ts 706 rFkk 1979 ts ,y ts 745 voyafcrA ¿ iSjk 1À

       ¼4½ Hkkjr dk lafo/kku && vuq- 243Fk && uxjikfydk dk xBu && ‘‘kCn **uxjikfydk** ls uxjikfyd fuxe Hkh vkPNkfnr gSA , vkb vkj 1995 ,l lh 1210 vuqlfjrA

        ¿ iSjk 17À

       ¼5½ Hkkjr dk lafo/kku && vuq- 243&e rFkk 243&> ^^ uxjikfydkvksa dh foÙkh; fLFkfr && vuq- 243&> ds v/khu xfBr foÙk vk;ksx }kjk iqufoZyksdu fd;k tk,xk && mlds }kjk jkT;iky dks flQkfj‘ksa dks tk,¡xhA

       vuqPNsn 243&e ij cy fn;k x;k gS] ftlesa micaf/kr gS fd vuqPNsn 243&> ds v/khu xfBr foÙk vk;ksx] uxjikfydkvksa dh foÙkh; fLFkfr dk Hkh iqufoZyksdu djsxk rFkk jkT; }kjk mn~xzká djksa] iFkdjksa vkSj Qhlksa ds ‘kq) vkxeksa ds jkT; vkSj uxjikfydkvksa dks chp forj.k dks ‘kkflr djus okys fl)krksa ds ckjs esa jkT;iky dks flQkfj‘k djsxkA mDr mica/k esa ,sls djksa] ‘kqYdksa] iFkdjksa vkSj Qhlksa dk vo/kkj.k] tks uxjikfydkvksa dks leuqfn"V dh tk ldrh ;k muds }kjk fofu;ksftr dh tk ldsaxh] Hkh fofgr fd;k x;k gSA ¿ iSjk 17À

       ¼6½ uxjikfydk vf/kfu;e] 1961 ¼e-iz-½ && /kkjk 129 && dj vf/kjksi.k ds fy, fofgr izfØ;k && fo/kku&eaMy] vf/kfu;e dk iz;kstu iw.kZ djus ds fy, fu;e fojfpr djuk jkT; ds foosd ij NksM+ ldrk gSA 1994 ts ,y ts 619 ¼[kaM U;k;ihB½ vuqeksfnrA

        ¿ iSjk 23À

       ¼7½ uxjikfydk vf/kfu;e] 1961 ¼e-iz-½ && /kkjk 129 ¼la‘kksf/kr½ && fo/kku&eaMy }kjk vf/kdfFkr izfØ;k && jkT; ljdkj ogh dk;kZfUor djus dks izkf/kd`r ftlds fy, ekxZn‘kZd fl)kar Hkh vf/kdfFkr && fo/kku =qfV;qDr ughaA 1997¼1½ ts ,y ts 402 ¼[kaM U;k;ihB½ vuqeksfnrA ¿ iSjk 25À

       ¼8½ Hkkjr dk lafo/kku && vuq- 245 rFkk 246 && fo/kku&eaMy] dsoy ?kks"k.kk }kjk] fdlh U;kf;d fofu‘p; ds lh/ks myV ugha ldrk] ml dk v/;kjksg.k ugha dj ldrk && viuh lokZaxh.k ‘kfDr ds v/khu og fof/kekU; fof/k vf/kfu;fer dj U;kf;d fofu‘p; dks fu"izHkkoh dj ldrk gSA , vkb vkj 1976 ,l lh 2250] , vkb vkj 1970 ,l lh 192] , vkb vkj 1987 ,l lh 2310] ¼1994½6 ,l lh lhb 77] ¼1997½ 1 ,l lh lh 326] , vkb vkj 1962 ,l lh 1753] , vkb vkj 1968 ,l lh 1138 rFkk ¼1985½ 4 ,l lh lh 124 vuqlfjrA ¿ iSjk 30À

       ¼9½ uxjikfyd fuxe vf/kfu;e] 1956 ¼e-iz-½ && /kkjk 138¼1½ && e-iz- uxjikfyd] vf/kfu;e] 1961 && /kkjk 126¼1½ && nksuksa vf/kfu;eksa ds v/khu la‘kksf/kr rFkk val‘kksf/kr mica/kksa esa && ewyHkwr ifjorZu gS && mPpre U;k;ky; }kjk vla‘kksf/kr mica/kksa ds v/khu fn, x, fofu‘p; && la‘kks/ku ds i‘pkr~ mudk vkc)dkjh cy lekIr gks x;k gSA

       iwoZrj mica/k esa loksZifj [kaM Fkk ijarq vla‘kksf/kr /kkjk 138 esa iz;qDr ‘‘kCnksa *;qfDr;qDr :i ls----- dh tk ldrh gS* tks dks vR;f/kd egRo izkIr FkkA ¿ iSjk 31À

       vl‘kksf/kr mica/k esa e-iz- LFkku fu;a=.k vf/kfu;e ds v/khu mica/k dk funsZ‘k fd;k x;k Fkk rFkk tgk¡ mDr vf/kfu;e ds v/khu vo/kkj.kk ugha gqvk gS ogk¡ iz;qDr ‘‘kCn Fks] *o"kkZuqo"kZ HkkVd ij fn, tkus dh ;qfDr;qDr :i ls izR;k‘kk dh tk ldrh gS*A orZeku esa nksuksa vf/kfu;fefr;ksa esa loksZifj [kaM gSA 1977 ts ,y ts 101 ¼mPpre U;k-½ rFkk , vkb vkj 1995 ,l lh 1480 dk vkc)dkjh cy lekIr gks x;k gSA ¼1998½ 4 ,l lh lh 368] ¼1980½ 1 ,l lh lh 685] , vkb vkj 1962 ,l lh 151] ¼1970½ 2 ,l lh lh 803] ¼1995½ 5 ,l lh lh 440 rFkk ¼1976½ 4 ,l lh lh 535 vuqlfjrA ¿ iSjk 32 ,oa 33À

       ¼10½ Hkkjr dk lafo/kku && vuq- 14 && e-iz- uxjikfyd fuxe vf/kfu;e] 1956 && /kkjk 138¼2½ && e-iz- uxjikfydk vf/kfu;e] 1961 && /kkjk 126 && e-iz- uxjikfydk ¼Hkouksa Hkwfe ds okf"kZd HkkM+k ewY; dk vo/kkj.k½ fu;e] 1997 && fu- 3] 4 rFkk 5 &7 mica/k && vf/kdkjkrhr ugha gS && oxhZdj.k ;qfDr;qDr] ;qfDrlaxr] Lohdk;Z rFkk xSj&euekus gSaA

       uxjikfydk vf/kfu;e dh /kkjk 126 esa /;ku nsus ;ksX; gS fd fo/kku&eaMy us fdlh Hkwfe ;k Hkou dk okf"kZd HkkM+k ewY; dk fufeZr {ks= ds izfr oxZQqV ;k fdlh Hkwfe ds izfr oxZQqV ds vk/kkj ij vo/kkj.k dk funsZ‘k fd;k gS rFkk ,slk djrs le; ftu ckrksa ij fopkj fd;k tkuk gS && og gS] og {ks= ftles Hkou ;k Hkwfe fLFkr gS] mldh vofLFkfr] fLFkfr] iz;kstu ftlds fy, mldk mi;ksx gks jgk gS] ykHknk;d mi;ksx dh mldh {kerk] Hkou ls lféekZ.k dh xq.koÙkk rFkk vU; lqlaxr dkjdA mi;qZDr ds vfrfjDr] fo/kku&eaMy us laiw.kZ ekunaM gks jgk gS] ykHknk;d mi;ksx dh mldh {kerk] Hkou ls lféekZ.k dh xq.koÙkk rFkk vU; lqlaxr dkjdA mi;qZDr ds vfrfjDr] fo/kku&eaMy us laiw.kZ ekunaM ugha cuk, gSa vkSj vkxs ,sls fu;eksa ds] tSls fd jkT; ljdkj }kjk bl ckjs esa cuk, tk,¡] v/khu jgus dk Hkh vuqca/k fd;k gSA uxjikfyd fuxe vf/kfu;e dh /kkjk 138 esa blh izdkj dh Hkk"kk iz;qDr dh xbZ gSA fu;eksa dk fu;e 3 uxjikfyd {ks= ds oxhZdj.k ds ckjs esa gSA fu;eksa dk fu;e 4 Hkouksa vkSj Hkwfe ds oxhZdj.k ds ckjs esa gSA mlesa Hkouksa dks lféekZ.k dh xq.koÙkk ds vk/kkj ij] mi;ksx ds vk/kkj ij rFkk vofLFkfr ds vk/kkj ij oxhZd`r fd;k x;k gSA fu;e 5 okf"kZd HkkM+k ewY; dh nj ds ckjs esa gSA ;fn fu;eksa dks mfpr ifjizs{; es le>k tk, rFkk rdZ dh dlkSVh ij ij[kk tk, rc gesa ;g vfHkfu/kkZfjr djus es dksbZ ladksp ugha gS fd Hkouksa d oxhZdj.k ds fy, tks mica/k fn, x, gSa og ;qfDr;qDr] ;qfDrlaxr] Lohdk;Z rFkk xSj&euekus gSaA ¼1981½ 4 ,l lh lh 675 rFkk ¼1974½ 1 ,l lh lh 19 foosfpr rFkk vuqlfjrA ¿ iSjk 40] 41 ,oa 42À

       ¼11½ uxjikfyd fuxe vf/kfu;e] 1956 ¼e-iz-½ && /kkjk 138¼3½ && mica/k && foHksn dkfjr ugha gksrk && nl xq.kk dh ‘kkfLr && dh tk ldrh gS && fooj.kh Qkby ugha djus ij vf/kHkkj vf/kjksfir fd;k tkrk gS && tks de ugha fd;k tk ldrk && mica/k fof/kekU; gSA

       Hkys&gh ‘kkfLr ds vf/kjksi.k ds fy, mica/k gS] gekjk >qdko ;g vfHkfu/kkZfjr djus dh vksj gS fd ;fn Hkou dk Lokeh laca) izkf/kdkfj;ksa dks Li"V dj ldrk gS fd mlus ftl jhfr esa dj dk fu/kkZj.k fd;k gS] ml jhfr es djus ds fy, mlds ikl Lohdk;Z dkj.k gSa] rc lac) izkf/kdkjh] ekeys ds rF;ksa vkSj ifjfLFkfr;ksa ij fuHkZj jgrs gq, rFkk foosd dk iz;ksx djrs gq,] ‘kkfLr de dj ldrk gSA ¼1997½ 7 ,l lh lh 1 vuqlfjrA

       /;ku nsus ;ksX; gS fd fooj.k Qkby ugha djus okyk O;fDr vf/kHkkj lanÙk djus ds fy, nk;h gSA fooj.k Qkby djus okyk O;fDr] vf/kHkkj lanÙk djus dk nkf;Ro mixr ugha djrkA vr%] ;fn ge /kkjk 138¼3½ ds mica/k dk fuoZpu djsa rc] ekeys ds rF;ks vkSj ifjfLFkfr;ksa ij fuHkZj jgrs gq,] ‘kkfLr de dh tk ldrh gS ijarq vf/kHkkj dh dVkSrh ugha gks ldrh] iwoksZDr mica/k dh lkafo/kkfud fof/kekU;rk ekU; Bgjkus es dksbZ dfBukbZ ugha gSA ¿ iSjk 46À

       ¼12½ uxjikfyd fuxe vf/kfu;e] 1956 ¼e-iz-½ && /kkjk 138¼3½] 138¼4½ rFkk 149 && e-iz- uxjikfydk vf/kfu;e] 1961 && /kkjk 126¼4½ rFkk 39 && vihy ds nks U;k;ky; && ‘kkfLr ds vf/kjksi.k ds fo#) vihy es;j&bu&dkmfUly dks gksrh gS tcfd dj ds vf/kjksi.k ds fo#) vihy ftyk U;k;k/kh‘k dks gksrh gS && ,slh gh fLFkfr uxjikfydkvksa ds lkFk gSA

       gekjk >qdko mica/kksa dk lkeatL;iw.kZ ikB djus dh vksj gSA geus igys&gh dgk gS fd tgk¡ rd ‘kkfLr dk laca/k gS] vihy es;j&bu&dkmfUly dks gksxh] ijarq tgk¡ rd fu/kkZj.k dk laca/k gS] og fHké dksfV esa gS rFkk mldh ladYiuk fHké gSA /kkjk 149 fu/kkZj.k ds ckjs esa gSA lkeaL;iw.kZ ikB djus ij ge ;g fuoZpu djuk ilan djsaxs fd ;fn dksbZ O;fDr fu/kkZj.k vkns‘k vfHk[kafMr fd;k tkrk gS ;k ifjek.k de fd;k tkrk gS rc ‘kkfLr dh vkuqikfrd dVkSrh fufnZ"V dh tk ldrh gSA ;fn fu/kkZj.k dk vkns‘k vizHkkfor jgrk gS rc ftyk U;k;ky; dks ‘kkfLr ij ppkZ djus dk fodYi ugha gksxk D;ksafd /kkjk 149 ds v/khu ,slh ‘kfDr fufgr ugha gS rFkk /kkjk 138¼4½ bl igyw ds ckjs esa gSA gekjk >qdko mldk ikB bl jhfr esa djus dh vksj gSA ftlesa nksuksa mica/kksa dk lg&vfLrRo jg ldsA gekjs iwoZorhZ fo‘ys"k.k dh n`f"V ls] gekjk fu"d"kZ mica/kksa ls vlaxfr ugha gksus dk gSA uxjikfydk vf/kfu;e esa blh izdkj dh fLFkfr gSA uxjikfydk vf/kfu;e esa] /kkjk 126¼4½ esa micaf/kr gS fd mi/kkjk ¼3½ ds v/khu ikfjr vkns‘k ds fo#) vihy izslhMsaV&bu&dkmfUly dks gksxhA flfoy U;k;k/kh‘k dks vihy /kkjk 139 ds v/khu gksxhA ¿ iSjk 50À

       ¼13½ uxjikfyd fuxe vf/kfu;e] 1956 ¼e-iz-½ && /kkjk 421 && e-iz- uxjikfydk vf/kfu;e] 1961 && /kkjk 323 && vizkf/kd`r :i ls ikfjr ladYi vFkok ,slh jhfr eas fd;k x;k vkns‘k && vf/kfu;eksa esa micaf/kr leqfpr izkf/kdkjh ds le{k vkf{kIr fd;k tk ldrk gSA

        ¿ iSjk 52À

ORDER

Misra, J. -- 1. Expressing the view that the issues involved are of immense significance and placing reliance on the decisions rendered in the cases of Abdul Taiyab Abbasbhai Malik and others v. The Union of India and others, 1976 JLJ 706 = AIR 1977 MP 116 and Balkrishan Das v. Harnarayan, 1979 JLJ 745 = 1979 MPLJ 644, wherein it has been herd that the existence of two earlier conflicting decisions on the same point is not a condition precedent to make a reference for a decision of a question by a Larger Bench, the Division Bench referred the matter in entirety to be adjudicated by a Larger Bench and that is how the batch of cases has been placed before us.

2. The bunch of matters can be categorised into two compartments: in one batch, assail is to certain provisions and rules of the M.P. Municipal Corporation Act, 1956 (for brevity 'the Act') as ultra vires and, in the other, challenge is to the certain provisions of M.P. Municipalities Act, 1961 (in short 'the Municipalities Act') and the rules framed for carrying out the purposes of the said statute. As the assail and attack is to the constitutional validity of such provisions in both the enactments relating to the imposition of property tax, the jurisdiction, the manner, the mode and the method, we are inclined to deal with the same in a composite order though we will be adverting to the pertinent provisions in both the statutes separately wherever it is necessitous. We may also hasten to state here that in addition to the challenge of the provisions in issue, there is also a prayer for quashment of the resolutions passed by the various Municipalities and Municipal Corporations, and the directions issued by the State Government and notices issued to the owners for levy of property tax and in some cases water tax and other taxes. It is condign to mention here that the centrum issue being relatable to the questioning of the constitutional validity of the provisions pertaining to property tax, we would be dealing with the said aspect and thereafter' would address ourselves in relation to other facets depending upon the nature of the attack as facts warrant.

3. To appreciate the factual score, it is seemly to state that in W.P. No. 1374/98 the relevant provisions, namely, 126, 127 and 127-A of the Municipalities Act and M.P. Municipality (Determination of Annual Letting Value of Building/Land) Rules, 1977 (hereinafter referred to as 'the 1997 Rules') are under scrutiny and in W.P. No. 2431/98, the relevant provisions of the Corporation Act, 1956, namely, sections 132, 135 and 138 are under question. For the sake of clarity and convenience, we would refer to the factual matrix in both the cases. In W.P. No. 1374/98, the petitioner No.1, Panagar Sangarsh Samiti, has been constituted to look after the interest of the residents of Panagar so far as various taxes are imposed by the Panager Municipal Committee is concerned. The said Samiti is represented by its President, and the petitioner Nos. 2 and 3, the members of the said Samiti are the residents of two wards situated within the limits of the Municipal Area and they have been personally aggrieved. It is put forth that section 126 of the Municipalities Act provides for determination of the annual letting value of land or a building. The procedure has been prescribed how the same has to be determined. The said provisions have been incorporated by M.P. Act No. 18 of 1997 which came into force on 21.4.1997. Section 127 of the Act confers power on the Municipal Council to impose several taxes including water tax, general sanitary tax, general lighting tax, general fire tax and general welfare tax, etc. Reference has been made to section 127(4) which deals with water tax. Section 126(1) empowers the State Government to make certain rules in regard to the annual letting value. The said rules have been brought into existence by Notification dated 29.5.1997, and thereafter, certain amendments were introduced in the rule by notificat




































































































































































































































































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