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~jLIGURI MUNICIP~UTY & OTHERS
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AMALF.NDU DAS & OTHERS
. _Jaouarr_ 6 I 984
(A.P. SEN AND M.P. THAKK,IR, JJ.]
_Comtitlllwn of India_ _/950._ _Articlrs_ _/J(j_ & _) ]6._ [
_High_ _Cmm-Procuding.< wulrr_ _Articlt_ _2215-Vu/idity of tu.t_ _or_ _kr.r_ ~""'
_**tinntd-Stay. u!**_ rccnv~ry _**cf**_ 1~-'C _**o,.**_ /~vy _**c/aimrd-Fi1cturs to**_ b~ _**tol/.fll/<'rfd**_ **bJ** _**H;,;**_
_**Court bt{ure·gro,rt**_ o{Uu~rim sra.v~
Supr~mt Cu~rl-/ntcr/~rtm:e _**wlrh**_ _**lnt,r/ocmory**_ ort!~r _**of Hixh**_ _**Court**_ grtD~:tq
_**stay of**_ _**rf!Cnvtr.Y**_ _**of tax-When**_ arf.r;~r.
Tile appellant Muuic.:ip01lity in it> Appeal by Special U.we impugnoi ll<
**interlocutory order or** **the** **High Courl rcstmtnin.:.** **che** ~lunicipaHiy **from r..;..'()\(!ir.:**
a graduated consohdate<l r.uc on the unnuai value of the holding' in t<nn<uf c'<
amendtd provisions in soctioru .i:!J nnd 04 of the llcngal Munic1pal A<l, 19;:,
amended hy the Bonsai Mumcipal (Amendment) Act, 19SO. '
Allowing the Appeal,
J<OilJr~OLc-.1 and iohtitutional OlllbJrJ»!tlcllt ;,,..,.,.r.,..,cJ. [H6H; H7,\}
~on,td~~H\¥ **the pros and cons** **uf** **tho** **Ol.ttter** **fe,l** l.ug~r **lmblic** **ittttrCS'** **.s**
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HELD : J. The H ish Coun •hould not in ~ro~in~ under Ar1iclc 2:!6,!
**I** **he** **Con)titution** **grnnl** **any "t.ay** **of** **recovery** _**qf**_ **tuX** **s.,t\'C** **unJc..r very .** ''"-c~ul
**circumstttncc:,** **The** **&r:tnt** **uf stay in** ~uch **matlcn, :JlouiJ** _**be**_ **an** cxc..~rnon **and** I»
a rule. P45~1
_**2.**_ Th **e** [1.. ] _..:')'_ **ur** unpO~t · - do·.:~ **not** **bc.'\:o** **mc.;** - **b . .ul** **a'** **'Uun as** **a** - **\\**,. **nl** p zui **c:** oc• **tbc**
**in,lltulc<i to a .. "'il** **tt.c** **\alidi l)' of lhc levy.** **'fher..:** i~ **no** **\\:.trrant** **for** ~rc,umnli **.o(**
levy lu b~ rod at the V<ry thre>huiJ or !he l)rC.:t cthng,, The maul purpol<
**[l.J\):nc an** **int:rim order** _**is**_ **tu evolve u** ~ork;•bl~ **furmuJJ.** **of** **d** **"'or'k:iblc** **ttrr_J"st"**
nt<llt to !he c."cnl t:llie<l lur by tho dcmaq\h 1>f th~ si!u~uuu. Thu on)} co>fil'lcl>"
**!ion at** **that** **jullCturc i,** **to** **CH$Ufc** **that no** **prcjudo,c** **is** octM~ionL"tl **10** **tha:** ~tepa):
zn c""' I he~ ultimat.dy suc-=J. Thi• obie<:l un be :1twio«l hy r«~ [0] ""-' · -.1
Aulhority k't-yi [11] i •he i•nrn'l Ill ~lvo un ~uJcrwkius 111 n:funJ or •~Ju,tthc "'~
**.U•liOunt** U¥--~oin,t **futun:** **doc;,** **in** **the CV\!Ill** **uf** **the** **t:** **lltin:** **h,:vy Of a** **f"UI** the~ **Nitf**
ulhm:ucly h<ld 10 1>.: in\'alid by zhe Court.· ('45 G·H; 3~1> AI
. 3 The . - - - - . ~,·r\•tol:
- **m.un** **purpo...c** **of fM11\IOg un** **Jnlc.c** **11n** IJr\J~r ~~•II) **C:\'ohc** **a** . ('(~
ulhm:ucly h<ld 10 1>.: in\'alid by zhe Court.· ('45 G·H; 3~1> AI
r~mn~JJ or. **a** ~orkaql(; arr~ngclllcnt IO !he 'c.rcnl caJi<J fur hy lhO,~,:IIlii~~ vf ell<
'tt~ [111] '~ [11 ] **kcc:pmg** **IU** **n11Hd** **lht!** **t>n.:.lUITl(ltion** **rcg-..lrJ.in¥** **the** tomiiiUthlll~hiJ **_** **e1t***
kv~<l~uun and Ill~ vuln.:rahiilly of t~c ch'lll.:nKe, llnly is llfl.kr lhat no zrn:l" ~
"'1°'?' " . O<C"J>~on.."<l. The Court ha• th~.,r,.,.e to mo~e a ddi.:~tc t>J]a•., .. • o>JI
.- ~ :.:_=.:.- .;.....;- -~ - -
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4 [. ] [Th][e ] [Court ] [h][a• ] [to ] [•h][.][ow ] [aware~][~· ] [of ][.][r_he ] [fa][ct ] t~at in the case of a
ftJ11ic•pllitY it cannot f~ncu~n or mc:cr •L, ~~anc~al oblig:lllons if !ls source of
~ l$ blocked by an tntcnm order rcsrr.unmg ot from rcco,·cring the taxes o.s
,.-~nue • the imp. . ugned provr· · soon. • Tl te M . umcopa tty . • 1' h as to marntarn es.cnrial civic scr- - ~r run public institutioi\S, purcha~ supphC$ and poy the salaries of irs cmplo)c..~
'"'"'The grant of an interlocutory order wo uld JY,lr~lne the a c!ministrntion and
~~tc the entire working. Th,-.c seriou• rnmilica1i0n• were lost si~ht of by The
Hish Court' in The in.rant cn<c while makrng the imrrned order. [346 CD]
CIVIL Arrr:tlATE JurHSr>rcnnN : Civi [1 ] Arpcal _No._ _762._ of 1984.
;\pp~:tl by sr ~~i al leave for an interlocutory <>rdcr dated August
J5. !933 of th~ C:~k-u tta High C~urt.
_K._ _K.__ _Venugnpol, N.N._ Gn~p111 and _H K. Puri_ for the Appellants.
_S.L._ _A•rc,ja_ for til ~ Rc~pandc nt.
The O r.!L·r of tli~ Court w.1~ del i vcr~d by ...
SII.IOURT MUNICIPALITY _V._ A. DAS ( _S_ _c'l!,_ _J.)_ 345
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W~ . arc constmin~J •o m~ke the obsct\'ations which follows us
SE-;, J. T;1i\ a pp~a l by sp:cial kavc is directed ag:tinst on
im~rltr.uto ry order dated Aur•~'t ::s. 1983 pas,;eu by the Calcutt<J
Hrgh Court r~straining the Siliguri 1\.Iuni.:ipality, the appellant herein.
_fr~m ~cove ring a gr~tdl!Itl~d ct.•nsol id '! tcd rate on th~ annual valu~ of
th~ holding~ in terms of the amcnd•·d ptovisic-ns in ss. i23 and P4 of
th·: B~~g:1l M u ni•:ipal Act. I?J:!. a~ amcnd~d b~ the Bengal Municipal
{t\ :n ~•t. lrn"n t) Act, I 'J~O. .
~e de, feel d i~ma\'cJ a t the tcndcncv on the part of some of the
fl•gh C'n urt~ to g-rant interlocutory ~rdcrs for the mere usking. Nor~
~ rl!y, th~ lligh Court~ ~h\.luiJ n u l, ;IS u rule. in proceedings under
u ~~- .2:!1) of th~ Constitution gr!lnt any stay of recovery of tax save·
Ill [, ] [~r ] [very ] [c~c~pti,m;][~][ l ] [cin:um,][t][ance~. ] [The ] [gnnlt ][·][of ] [s][t<Jy ] [in ] [such · ]
Jl!cr~ ·h l .
- ~ ou d b~ ;Ill e~ccpllr·n anu not a rult.
It . . .
~ . oftha•~ h.td . soh on~~~ 01:\:dl~\ to strc~s th •• in~tiru t a leV) t cd ' or 1m post docs not become vali~ it
h.td . h 01:\:dl~\ to strc~s th •• t a leV)' or 1m post docs not become
oftha•~ soon~~~ a w6t p:titi,,n is in~tiru t cd in ortkr to assail the vali~ ity
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rJat 4t• d .tl . 1 at •tt lthevy. Jun . • ·• v· ~ ·t •ry urc So .. t alh 1s rc~ltoltl s" to there cnsur~ uf i~ the pwc.:ed1ngs. nn th;tt nn w:m ant pr~Jud1· for · presuming - r.:Th e · 1~ c _on_ occastonc 1 y the con· levy $1 'd d era t - to t'1 the on be;.
oftha•~ soon~~~ a w6t p:titi,,n is in~tiru t cd in ortkr to assail the vali~ ity
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' b4d . levy. So als" there i~ nn w:m ant for presuming the levy to be;.
pr~ ~l~:r~ il1 cu.~~ th.:y ultimatdy succeed at the conclusion of the
~ ijlh CqiJ. noe ·, Tl us · oi:ljl'ct c:tn hL' att.:rincu b)' rcqumng · · t h b d e c Y " _r_
lrJ[y lc V>'Jng - the imp.,~ t to give a n undertaking to • re fi un d or
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SUPREJI!B COUR! REPORTS
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SUPREJI!B COUR! REPORTS
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adiust against future dues, the levy of tax or rate or a part tl
SUPREJI!B COUR! REPORTS
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adiust against future dues, the levy of tax or rate or a part tl
as " the case may be; . m the event - f t 1 1e entire levy - or a part th \ereor being ultimately held to be inv111id by the Court withouf obl~or the talt·payers to institute a civil suit in order to claim the a~!:~
already recovered from them. On the other hand, the Coun can
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pe unmindful of the need to protect the authority levying th~ ~~
for, at that stage the Court has to proceed on the hypothesis tha;
Court .to grant interim relief. The main purpose of passing un 11;~;t~
order u to evolve a workable formula or a workable arrange~ ·nJ
- the extent called for by the demands of the situation kcepinll [1] ~ tn~,g
tl 1 e . presumptiOn ' regarding the constitutionality of the J eg 1sloU• · ble
- · and the vulnerability · - of the challenge only · - - 1 ·n 0. rder that . no irrePo~ deli"~ 1 e
InJury u occasioned. The Court hns therefore to st!lke a
the challenge may or may not succeed .. The Court has to show
.awareness of the fact that in a case like the present a municipalitv
cannot function or meet its fiiiancial obligations if its source of re\'111;
is blocked by an interil!l order restraining the_ municipality from
recovering the taxes as per the impugned provision. And that tt~
. municipality has to maintain essential civic services like water supply.
street lighting and public streets etc., apart from running public
institutions like schools, dispensaries, libraries etc. What is more,
supplies have to be purchased and salaries have to be paid. The grant
of an interlocutory order of this nature would paralyze the ac.lmini>tra·
'tion'·and disloJcate the entire working of the municipJlity. ·It ~ms
that these serious ramifications 'of the matter were lost sight of while
making the impugned order.
We will b~ failing in our duty if we do not IHlvert to a fellute
which causes us dismay and distress. On a. pr~vious OCCl>ion, ~
Division Bench had vacated an interim order ·passed by a learned
Single Judge on similar facts in a similar situatio11. Even so wl1c~ [8 ]
similar matter giving rise to the present appeal c~me up anain, tl\CS3me
lear11cd Judge whose order had been reversed earlier, granted a non·
sp!aking interlocutory order of the aforesaid nature.· This orMr
was in turn confirmed by a Division .Bench without a speaking onler
art1cu 'J· at1ng reasoi)S for granting a stay when the earlier ·nh~ld enc .
vacated the stay .. W.:. m~~n no disrespect to the High Court [10 ]
emphasizing the necessity for self-imposed di 6cipline in such mottel'l
in obeisance to such weighty institutiOilJl considerations li~~ the
neeu ·' t - ma1ntam - - decorum nnu comity. So ulso we m~an no d1srt~· h 1
p:ct to the High Court In,;trl!ssing the need for self-discipline [00 ] ~
part of the High Court in ·ras~in" interim orders without enter~n~
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mto t 1e question of arnphtude ond width of the pow~rs <1 [1 ] [1] .' ·a\
Court .to grant interim relief. The main purpose of passing un 11;~;t~
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SlLIGURl MUNICIPALITY _V._ A. DAS ( _Sell,_ _J.)_ 347
: .. · · bai~nce after co~sid;rin~ the p~os and co_ns _?f_ t~e matter lest larger A
;;; ~ ·. public interest ts not JCopardtzcd and msttluttonal cmbarassment
is eschewed.
. . For these reasons, the jippeal must bc~;allowcd. The order passed
### . . by the High. Court dated Augu;t 25, 1983 rcstraning the Siliguri
is eschewed.
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. . For these reasons, the jippeal must bc~;allowcd. The order passed
. by the High. Court dated Augu;t _25,_ 1983 rcstraning the Siliguri
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Municipality from recovering a graduated consolidated rate on the
annual value of the holdings in terms of the amended provisions
contained in ss. 123 and 12~ of the Bcogal Municipal (Amendment)
Act, 1980 is set aside. We wish to pla~:c on record that Shri Venugopal
appearing with Shri Naro Narayan Gooptu has given an undertaking
on behalf of the Siliguri Municipality that the municipality shall
rcrund the dil\crcnce between the revised and the old rates within
three months of tl1e o.rdcr of the High. Court in case the writ petition ·.
is finally allowed by the .High Court... · -
N.V.K. _.Appeal allowed._
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Tltcre shall be no· order .as to costs.'
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