Judgement

WANCHOO, CJI. (also on behalf of Shelat, J.) :- These two appeals on certificates granted by the High Court of Delhi raise common questions relating to the constitutionality of delegation of taxing powers to municipal corporations and the effect of the Validation Act, passed by Parliament, in connection with tax on the consumption or sale of electricity levied by the Municipal Corporation of Delhi (hereinafter referred to as the Corporation) from July 1, 1959 to March 31, 1966. The facts are not in dispute and may be briefly narrated. On February 9, 1959, the Corporation passed a resolution purporting to be under sub-s. (1) of Section 150 of the Delhi Municipal Corporation Act, No. 66 of 1957 (hereinafter referred to as the Act) for levy of three taxes, including a tax on the consumption or sale of electricity. Section 113 of the Act which confers powers on the Corporation to impose taxes has divided them into two kinds, namely, obligatory taxes, which the Corporation must impose [S. 113 (1)], and optional taxes which the Corporation may impose [Section 113 (2)]. Further S. 150 (1) of the Act provides that maximum rate of tax to be levied in the case of optional taxes will