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TMI Blog1970 (2) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... ipality from enforcing the provisions of the Maharashtra Municipalities Act 40 of 1965 relating to the levy, assessment, collection recovery of octroi and in particular s. 105 and Ss. 136 to 144 thereof, and from enforcing the Maharashtra Municipalities (Octroi) Rules, 1967, and from acting upon resolutions passed by the Municipal Council dated September 9, 1968 and' September 13, 1968, and from levying, assessing, collecting, recovering or taking any other step under the Act, rules or the resolutions and for -an order restraining the Municipality of Ulhasnagar from levying, assessing, collecting any octroi on the goods imported by the Company within the limits of the Municipal Council for a period of 7 years from the date of its first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harashtra that the proclamation dated April 27, 1962, be withdrawn by the Government. The Municipality agreed to exempt the existing factories viz., the Company and other manufacturers whose factories were then existing in the Industrial Area from payment of octroi for a period of seven years from the date of levy of octroi and for exempting new industrial units from payment of octroi for a similar period from the date of establishment. The Government of Maharashtra acceded to the request of the Municipality to retain the Industrial Area within the local limits of the Municipality. On August 24, 1963, the District Municipality passed a resolution to implement the agreement. It was resolved that the Municipality agrees to give a concessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated September 13, 1968, the Municipality 'adopted with effect from January 1, 1969, the rates for the imposition of octroi duty on the goods imported for use, sale and consumption within the Municipal Council limits. At a special meeting held on December 24, 1968, the Municipal Council considered the letters written by the Government of Maharashtra dated November 22, 1968 and December 10, 1968, drawing the attention of the Municipality to the circumstances in which the Industrial Area was included and retained in the local limits of the Ulhasnagar District Municipality and continued to reman within the local limits of the Municipality, and advised the Municipality to pass a resolution confirming such exemption and honour the commitm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the claim could not be characterised as frivolous, vexatious or unjust. The High Court has given no reasons for dismissing the petition in limine, and on a consideration of the averments in the petition and the materials placed before the Court we are satisfied that the Company was ,entitled to have its grievance against the action of the Municipality, which was prima facie unjust, tried. The Company pleaded that the, Ulhasnagar Municipality had entered into a solemn arrangement not to levy octroi duty for aperiod of seven years from the date of its imposition. The evidence relating to the undertaking was contained in public records. The Government of Maharashtra advised the Municipality that it was acting in violation of the terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re as much bound as private individuals to carry out representations of -facts and promises made by them, relying on which other persons have -altered their position to their prejudice. The obligation arising against an individual out of his representation amounting to a promise may be enforced ex contractu by a person who acts upon the promise : when the law requires that a contract enforceable at law against a public body shall be in certain form or be executed in the manner prescribed by statute, the obligation may be if the contract be not in that form be enforced against it in appropriate cases in equity. 'In Union of India Ors. v. Mls. Indo Afghan Agencies Ltd.([1968] 2 S.C.R. 366.)) this Court held that the Government is not ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art of a government officer however high or low in the hierarchy........... The question is whether the character of an act done in force of a statutory prohibition is affected by the fact that it had been induced by a misleading assumption of authority. In my opinion the answer is clearly : No. If our nascent democracy is to thrive different standards of conduct for the people and the public bodies cannot ordinarily be permitted. A public body is, in our judgment, not exempt from liability to carry out its obligation arising out of representations made by it relying upon which a citizen has altered his position to his prejudice. Mr. Gokhale appearing on behalf of the Municipality urged that the petition filed by the Company apparently ..... X X X X Extracts X X X X X X X X Extracts X X X X
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