The main legal point established in the judgment is that a Nagar Panchayat has no authority under the M.P. Municipalities Act, 1961 to establish a bus-stand and levy a fee for its use.

JUDGMENT : 

This intra-Court appeal arises out of a common order dated 15-1-2008, whereby four writ petitions were dismissed by the learned Single Judge. The appellants had preferred W.P. No. 2463/2000, therefore, we may notice the relevant facts from the said writ petition for the disposal of this appeal.

2. Appellants carry on business of public transport service and for that purpose, they hold several stage carriage permits for plying public service vehicles. Details of those permits were set out in Annexure P/1 annexed with the writ petition. The said writ petition was filed challenging the Resolution No. 10 dated 9-2-2000 passed by Nagar Panchayat, Khujner, District Rajgarth (Biaora) for imposition of bus-stand fee on the public service vehicles and stage carriage coming and going from Nagar Panchayat, Khujner at the rate mentioned therein. Said imposition of fee was made effective from 1-4-2000. They challenged the levy of bus-stand fee on the ground that there was no provision of levy of such fee under the M. P. Municipalities Act, 1961 (hereinafter referred to as "the Act" for short) on the ground that the Nagar Panchayat, Khujner has no power or authority to set up a bus-stand or charge any fee in respect thereof, therefore, the imposition of fee in terms of Resolution No. 10 dated 9-2-2000 is illegal and unauthorised.

3. A reply was filed by the Nagar Panchayat, Khujner and it was stated that Nagar Panchayat, Khujner under the provisions of the Act had power to establish a bus-stand and in order to maintain the bus-stand by providing cleanliness, sheds for passengers, urinals, etc. Nagar Panchayat, Khujner had validly imposed the said fee on the vehicles using the said bus-stand within the limits of Nagar Panchayat, Khujner. Thus, Nagar Panchayat, Khujner justified the Resolution No. 10 dated 9-2-2000. Nagar Panchayat, Khujner had also taken a stand that the levy of such fee was justifiable under section 349 of the Act and had placed reliance on a decision rendered in W. P. No. 321/1996, Bus Operators Association, Tikamgarh and others vs. State of M. P. and others.

4. Learned Single Judge after hearing the rival submissions has upheld the levy while dismissing the writ petitions. Learned Single Judge placed reliance on a decision of Supreme Court in the matter of Municipal Board Hapur vs. Jassa Singh and others, AIR 1997 SC 2689. Being aggrieved by the order of learned Single Judge, as stated hereinabove, this writ appeal has been preferred.

5. We have heard Shri Chaphekar, learned senior counsel appearing for the appellants and Shri Mukati, learned counsel appearing for the contesting respondents at length. Perused the record.

6. According to Shri Chaphekar, the controversy involved in the matter stands concluded by a decision of the Supreme Court in the matter of Municipal Council, Bhopal vs. Sindhi Sahiti Multipurpose Transport Co-op. Society Ltd. and another, AIR 1973 SC 2420. In that case, their Lordships dealt with the provisions of section 349(ii) and 358(7)(m) of the Act vis-a-vis sections 68 and 76 of the Motor Vehicles Act, 1940. While dealing with section 349(ii) of the Act, it was observed as under : -

"The section itself does not enable the Municipal Council to require that permission should be obtained for any purpose. It deals with levy of fees for permissions which are required to be taken for various purposes under other sections of the Act. Section 187(3) which deals with permission to erect, alter, add to or reconstruct buildings, and section 194 which deals with permission to the owners or occupiers of buildings in public street to put up verandahs, balconies or rooms, to project from any upper storey thereof are instances in point. The permission mentioned in section 194 is one of the matters for which fees can be prescribed under section 349(ii). Section 223(4) deals with allowing any temporary occupation or erection in any public street on occasions of festivals and ceremonies, or allow