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IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

RSA-3343-1999 (O&M)

Harbans Singh and Another . . . . Appellants

Vs.

Municipal Corpora(cid:13)on, Ludhiana and Another . . . . Respondents

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Reserved on: 25.02.2026

Pronounced on: 05.03.2026

Pronounced fully/opera9ve part: Fully

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CORAM: HON’BLE MR JUSTICE DEEPAK GUPTA

Argued by:- Mr. Sunil Chadha, Senior Advocate with

Mr. Raghav Chadha, Advocate for

the appellants.

Mr. Parambir Singh, Advocate and

Ms. Prabhpreet Kaur, Advocate

for the respondents.

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DEEPAK GUPTA, J.

The present Regular Second Appeal has been preferred by the

plain(cid:13)ff against the judgment & decree dated 28.04.1999 passed by the learned

first Appellate Court, whereby, while accep(cid:13)ng the appeal filed by the defen-

dants–Municipal authori(cid:13)es, the judgment & decree dated 01.02.1996 passed

by the trial Court decreeing the suit for permanent injunc(cid:13)on was set aside and

the suit was dismissed.

2. The factual matrix, as borne out from the record, reveals that on

16.10.1990, plain(cid:13)ff No.1, while driving a truck loaded with synthe(cid:13)c yarn and

Nirma washing powder packs, entered the municipal limits of Ludhiana and had

crossed approximately 50 yards beyond the Octroi barrier, when he was stopped

by the Municipal staff. The plain(cid:13)ff expressed willingness to pay the Octroi duty

for the goods brought within municipal limits; however, the truck along with the

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goods was seized and the plain(cid:13)ff was directed to pay Octroi along with a

penalty quan(cid:13)fied at twenty (cid:13)mes, as the alleged evaded duty. The plain(cid:13)ffs

approached the concerned authori(cid:13)es for withdrawal of the demand and

release of the vehicle and goods, but the demand of ₹15,000/- towards penalty

persisted, compelling them to ins(cid:13)tute the civil suit seeking protec(cid:13)on against

the said demand and consequen(cid:13)al relief.

3. The defendants contested the suit primarily on the ground of lack

of jurisdic(cid:13)on of the Civil Court and asserted that the plain(cid:13)ff had a=empted to

evade Octroi duty and was rightly penalized under the provisions of the Punjab

Municipal Corpora(cid:13)on Act, 1976.

4. Upon apprecia(cid:13)on of evidence, the learned trial Court recorded a

categorical finding that although Octroi duty could be assessed and recovered

by the Municipal authori(cid:13)es, the power to impose penalty under Sec(cid:13)on 116 of

the Act did not vest with the Commissioner or officers of the Corpora(cid:13)on and

could be exercised only by a competent Criminal Court. On that basis, the

demand was held to be illegal and the suit was decreed.

5. The first Appellate Court, while concurring with the finding that the

Municipal authori(cid:13)es lacked competence to impose the penalty, nonetheless

allowed the appeal and dismissed the suit on the premise that the plain(cid:13)ffs had

an efficacious statutory remedy of appeal under the Act.

6. Assailing the reversal, learned senior counsel for the appellants

contends that once the ac(cid:13)on of the Municipal authori(cid:13)es was found to be

without jurisdic(cid:13)on, the availability of an alterna(cid:13)ve remedy could not operate

as a bar to the maintainability of the civil suit.

7. Conversely, learned counsel for the respondents supports the

judgment of the first Appellate Court.

8. Having heard the par(cid:13)es and examined the record, this Court finds

that the substan(cid:13)al ques(cid:13)on arising for considera(cid:13)on is whether officers of the

Municipal Corpora(cid:13)on possess the authority to impose penalty under Sec(cid:13)on

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116 of the Punjab Municipal Corpora(cid:13)on Act, 1976 for alleged evasion of Octroi

and, if not, whether the civil suit could be dismissed solely on the ground of

availability of an alterna(cid:13)ve statutory remedy.

9. The issue is no longer res integra. T