( 1. ) THIS is a petition filed by the petitioner seeking a direction for quashing of the notice purporting to have been issued under section 146 of the M. P. Municipal Corporation Act, dated 13-9-1983. According to the petitioner, by this notice it was alleged that the valuation of the building has been increased and accordingly it is proposed to assess the property tax from 1-1-1981, at the rate of Rs. 17,94,230 per year on annual letting value Rs. 89,71,150. It is alleged that this notice mentions four inconsistent reasons for the said increase: (1) assessment for the first time under section 143, (2) increase in annual letting value on reassessment, (3) increase in cost of building or its market value, and (4) on account of increase in rent. It is also alleged by the petitioner that the notice does not show as to on account of which out of the above four reasons the increase is proposed. This notice proposed imposition of increased property tax with retrospective effect from 1-1-1981. At the time of arguments it was also contended that this notice does not mention the details of property and its situation.

( 2. ) ACCORDING to the petitioner, the petitioner is a company under the companies Act and is engaged in the business of manufacture of yarn and textiles. It has also constructed quarters and houses to accommodate some of the employees working in it and the quarters and bungalows, are situate in Gwalior. Part of these buildings including the factory are situated on the north of the road leading from Hazira Chouraha to Gola Ka Mandir and the rest are on the south of the aforesaid road. According to the petitioner, the company commenced production in the year 1 923 and the quarters and bungalows were constructed since 1956.

( 3. ) IT is further alleged that on 27-6-1964 the President gave assent to the M. P. Nagariya Stbawar Sampatti Kar Adhiniyam, 1914 and section 4 of this Adhiniyam made a provision for levying of tax on immovable property. The said section provided for imposition of property tax on lands and buildings situate in an urban area and the "urban area" has been defined in the Act under section 2 (b) as an area comprised within the corporation limits, Gwalior. It is alleged that the competent authority under the aforesaid Act purported to complete the assessment proceedings under that Act and the petitioner company raised a dispute that all the lands and buildings belonging to the petitioner company were beyond the area comprised in the Municipal Corporation, Gwalior and hence not subject to property tax. This dispute ultimately was decided by the Second additional District Judge, Gwalior, in Civil Original Suit No. 4-A of 1975 by his judgment dated 31-3-1977 and in this judgment the Court held that all buildings and lands belonging to the petitioner company which were situate to the north or the road running from Hazira Chouraha to Gola Ka Mandir fall beyond the area of Municipal Corporation, Gwalior, and were not liable to imposition of property tax and hence the assessment proceedings in relation to these properties are without jurisdiction. It is alleged that in consequence of this decision the Property Tax Officer assessed and imposed property tax on lands and buildings belonging to the petitioner company and situate to the south of the road leading from Hazira chouraha to Gola Ka Mandir at Rs. 2372. 16 per year. This assessment, according to the petitioner, was applicable to the petitioner from 1964-65 to 1975-76, and in 1976 by Act No. 50 of 1976 the provisions of the M. P. Municipal Corporation Act were amended by Municipal Laws (Amendment) Act, 1976, and this amendment came into force on 1-4-1976 and it is alleged that because of this amendment the property tax now became leviable by the Municipal Corporation. It is alleged that the Municipal corporation, Gwalior, is also entitled to assess, impose or levy tax only in respect of properties situated within the area comprised in the Municipal c