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Issues:
- Dismissal of petition by High Court in limine - Allegation of breach of agreement by Ulhasnagar Municipality - Legal obligations of public bodies regarding representations - Justiciability of the matter under Article 226 jurisdiction Dismissal of Petition by High Court: The High Court dismissed a petition filed by the Century Spinning Manufacturing Co. Ltd. seeking a writ to restrain Ulhasnagar Municipality from enforcing octroi provisions. The Supreme Court found that the High Court's dismissal lacked reasons and did not consider the prima facie unjust action of the Municipality, thus directing the case to be readmitted for proper consideration. Allegation of Breach of Agreement: The Company alleged that Ulhasnagar Municipality breached a solemn arrangement not to levy octroi duty for seven years. The Court noted that public bodies are bound by representations and promises, and failing to honor them can lead to legal obligations. The Company's reliance on the Municipality's assurances formed the basis of its expansion and new manufacturing activities. Legal Obligations of Public Bodies: The judgment emphasized that public bodies are not exempt from fulfilling obligations arising from their representations, akin to private individuals. The Court cited precedents to establish that citizens altering their position based on public body representations are entitled to enforce such promises, even if not in a formal contract. Justiciability under Article 226 Jurisdiction: Regarding the justiciability of the matter under Article 226 jurisdiction, the Court clarified that if a party alleges unlawful, high-handed, or arbitrary actions by a public body, they are entitled to a hearing on the merits. The Court highlighted that complex factual questions do not necessarily preclude the exercise of extraordinary jurisdiction under Article 226. In conclusion, the Supreme Court set aside the High Court's order, remanding the case for proper consideration. It extended the stay on octroi duty levy, advised early hearing, and directed the High Court to issue rule to the Municipality and the State for further proceedings. The judgment underscored the legal obligations of public bodies and the justiciability of grievances against them, ensuring citizens' rights to enforce representations made by such bodies.
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