SONIK INDUSTRIES, RAJKOT versus MUNICIPAL CORPORATION OF THE CITY OF RAJKOT

Citation: [1986] 2 S.C.R. 59 · Decided: 02-04-1986 · Supreme Court of India · Bench: R.S. PATHAK · Disposal: Dismissed

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Judgment (excerpt)

59 
SONIK INDUSTRIES, RAJKOT 
v. 
MIJNICIPAL IDRPORATION OF THE CITY OF RAJKOT 
APRIL 2, 1986 
[R.S. PATHAK, O. CHINNAPPA REDDY AND R.B. MISRA, JJ.] 
Bombay Municipal Boroughs Act, 1925, section 77, scope 
of - Whether the rules for the levy of a rate on buildings and 
_., 
lands can be said to be published under section 77 of the Act, 
.... 
if the notice published in a newspaper reciting the sanction 
·,.l of the State Government to the rules mentions that the rules 
themselves are open to inspection in the Municipal office and 
J- that copies of the rules can also be purchased there. 
The Rajkot llllnicipality framed Draft rules for the levy 
of rates on buildings and lands in Rajkot. The Draft Rules 
were published and objections were invited and, thereafter the 
State Government accorded its sanction to the rules. The issue 
dated November 28, 1964 of "Jai Hind", a Gujarati newspaper 
published from Rajkot carried a Notice purporting to be under 
section 77 of the Bombay Municipal Boroughs Act, 1925 as 
adopted and applied for the information of persons holding 
buildings and i111DOvable property within the Municipal limits 
of Rajkot that the Municipality had resolved to enforce the 
"Rules to the Rajkot Borough Municipality for the levy of Rate 
(Tax) · on buildings and 
lands" sanctioned by 
the State 
Government of Gujarat, with effect from January 1, 1965. 
Thereafter an assessment list was prepared and steps were 
taken to demand the tax. 
The appellants, a registered partnership firm instituted 
a suit in the Court of the Civil Judge, Senior Division Rajkot 
for a declaration that the aforesaid Rules were invalid. The 
Trial Court decreed the suit. An Appeal against the decree of 
the Trial Court was dismissed by the Extra Assistant Judge, 
Rajkot. A Second Appeal preferred by the Municipality was 
referred to a larger Bench of the High Court consisting of 
learned Judges who held that the conditions of section 77 had 
been complied with. In accordance with the said opinion, the 
learned Single Judge allowed the Second Appeal. Hence the 
appeal by Special Leave. 
A 
B 
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D 
E 
F 
G 
H 
A 
B 
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F 
60 
SUPRE.'1E COURT REPORTS 
[19861 2 s.c.R. 
Dismissing the appeal, the Court, 
HELD : 1,1 The general principle is that if the llklde of 
publication adopted is sufficient for persons affected by the 
rules with reasonable diligence to be acquainted with them, 
publication of the Rules has taken place in contemplation of 
the law. (65 D-E] 
1.2 In the case of Municipal taxation, the conventional 
procedure enacted in most statutes requires publication of the 
proposed rules providing for the levy and inviting objections 
thereto from the inhabitants of the Municipality. Thereafter 
when the tules are finalised and sanctioned by the State ~ 
Government, it is mandatory that they be published so that the 
inhabitants of the Municipality should know how the levy A 
affects them in its final form. The rules, and consequently 
the levy, take effect only upon publication in accordance with 
the statute. The object of the requirement is that a person 
affected by the levy 111.1st know precisely the provisions of the 
levy and its consequences for him. [64 D-F] 
r 
1.3 The requirement of section 77 was complied with 
inas1111ch as information was 
thereby given to all persons 
holding buildings and immovable property within the Municipal 
limits of Rajkot that the rules mentioned therein had been 
sanctioned by the State Government and that the rules could be 
inspected in the Municipal office. The mandatory requirement 
of section 77 was that the rules should be published, which 
requirement the notice satisfies. The mode of publishing the 
rules is a matter for directory or substantial compliance. It 
is sufficient if it is reasonably possible for persons 
affected by the rules to obtain, with fair diligence, 
knowledge of those rules through the mode specified in the 
notice. Had the Act itself specified the mode in which the 
rules were to be published, that mode would have to be adopted 
for publishing the rules. In the opinion of the Legislature, 
that would have been the mode through which the inhabitants of 
the Municipality could best be informed of the rules. (64 H; 
65 A-D] 
.. 
_r· 
1.4 Section 77 provides the final stage of the procedure 
enacted in sections 75 to 77 for imposing a levy •. The period 
referred to in section 77, after which alone the tax can be 
imposed, is intended to enable persons a

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