Appeal No 605 of 1966
Appeal by special leave from the judgment and decree dated March 27 1964 of the Allahabad High Court in Special Appeal No 322 of 1964
EC Agarwala and E Udayarathnam for the appellant
MC Chagla and PC Agrawala for the respondent
The Judgment of the Court was delivered by Ramaswami J
The appellant is a partnership firm consisting of two brothers Lala Baburam and Shri Prakash Chandra carrying on the business of manufacturing Khandsari sugar in the district of Muzaffarnagar
The partnership firm carries on its business through its two units 1 one located in the village Basera and run under the name and style of Ms Baburam Ashok Kumar and 2 the other located in village Morna and run under the name and style of Ms Baburam Prakash Chandra both in the district of Muzaffarnagar
The case of the appellant was that the business of manufacturing Khandsari was seasonal and was carried on at both the places for less than 5 months in a year ie from the month of November to the beginning of April
Under the UP District Boards Act No X of 1922 the District Board of Muzaffarnagar was empowered to levy tax under sections 108 and
114 in the rural area
Section 114 was to the following effect The power of a board to impose a tax on circumstances and property shall be subject to the following conditions and restrictions namely  a The tax may be imposed on any person residing or carrying on business in the rural area provided that such person has so resided or carried on business for a 520 total period of at least six months in the year under assessment
b The total amount of tax imposed on any person shall not exceed such maximum if any as may be prescribed by rule
Under section 123 of that Act the matters relating to the assessment and collection of taxes were to be governed by rules framed under section 172 of that Act
On March 1
1928 the Government of UP issued notification No 315LX 413 notifying the rules for the rules for the assessment and collection of a tax on circumstances and property in the rural area of the Muzaffarnagar district
The rules provided among other matters that all the activities of an assessee within the district whether carried on under the same or different name shall be considered in calculating the total amount to be assessed and the tax shall be assessed by an Assessing Officer appointed by the District Board and the list of assessment of the preceding year ending December 31 shall be completed on or before January 20 and shall be submitted to the Board which will return it by February 15 to the Assessing Officer for being revised and thereafter the Assessing Officer shah give notice of a date not less than one month when he will proceed to consider the objection
The assessee may file objections before the date fixed and thereafter the Assessing Officer shall allow the assessee an opportunity to be heard
Rule 16 read with Rule 2 fixed the maximum limit of the total amount of tax assessed on any person not to exceed Rs 2000 in any year having regard to all the activities of an assessee within the district whether carried on under the same or a different name
In the year 1950 the Constitution of India was promulgated and under el 2 of article 276 the total amount payable in respect of any one person to the district board local Board or other local authority in the State by way of taxes on professions trades callings and employments shall not exceed two hundred and fifty rupees per annum
On August 22 1958 the UP Antarim Zila Parishad Act of 1958 UP Act No XXII of 1958 passed by the UP Legislature received the assent of the Governor and was published in the UP Gazette dated August 23 1958
Clause 3 of section 1 of the UP Antarim Zila Parishad Act 1958 runs as follows  It shall be deemed to have come into force on the 29th day of April 1958 and shall expire on the 31st day of December 1959
 But the Amending Act UP Act No 1 of 1960 received the assent of the Governor on January 5 1960 whereby the figure 1960 was substituted in place of 1959 in el
3 of section 1 of UP Act XXII of 1958
The case of the appellant is that the original 521 Act No XXII of 1958 had expired on December 31 1959 and as such could not be revived on January 5 1960 when the Amending Act No 1 of 1960 received the assent of the Governor and that fresh legislation was necessary
On March 20 1960 a copy of the Assessment Order assessing the appellant to the maximum amount of Rs 2000 as circumstances and property tax for the assessment year 1959 60 was issued by the Antarim Zila Parishad Muzaffarnagar
The assessment order was issued by Shri OP Varma purporting to act as a Taxing Officer of the Antarim Zila Parishad
Aggrieved by the assessment order the appellant filed a Civil Miscellaneous Writ Petition No 1780 of 1960 in the Allahabad High Court challenging the authority of the respondent Antarim Zila Parishad to impose the tax and praying for the grant of a writ to quash the said assessment order
The writ petition was summarily dismissed on July 21 1960 by Jagdish Sahai J on a preliminary point that the appellant had a right to appeal to the prescribed authority under section 128 of UP Act No X of 1922
The appellant thereafter preferred a Special Appeal No 452 of 1960 in the Allahabad High Court against the order of Jagdish Sahai J which was also dismissed on the ground that the appellant had an alternative remedy of appeal
During the pendency of the Special Appeal No 452 of 1960 another new Act namely the UP Kshetra Samitis and Zila Parishads Adhiniyam of 1961 ie the UP Act No XXXII of 1961was passed by the UP Legislature and on November 29 1961 received the assent of the President of India
The case of the appellant is that on January 15 1962 without giving any notice or inviting any objections the Taxing Officer Shri OP Verma passed the assessment order for 1961 62 in respect of the circumstances and property tax regarding the Basera Unit
Being aggrieved by the two separate assessment orders of Rs 2000 each in respect of the two units of Morana and Basera for the years 1961 62 the
appellant filed again in the Allahabad High Court a writ petition No 2371 of 1962 under article 226 of the Constitution
The writ petition was summarily dismissed by section N Dwivedi 1
on February 13 1964
The appellant took the matter in appeal in
Special Appel No 322 of 1964 but the Special Appeal was dismissed by the Division Bench on March 27 1964 on the ground  that the appellant had not availed himself of the alternative remedy by way of appeal
The present appeal is brought to this Court by special leave from the judgment of the Division Bench of the Allahabad High Court dated March 27 1964 in Special  Appeal No 322 of 1964
The sole argument presented on behalf of the appellant is that the High Court was in error in holding that an appeal under the UP District Boards Act No X of 1922 was an adequate and efficacious remedy and that the appellant should have exhausted  the statutory remedy before applying for a writ under article 226 of the Constitution
522 It is a well established proposition of law that when an alternative and equally efficacious remedy is open to a litigant he should be required to pursue that remedy and not to invoke the special jurisdiction of the High Court to issue a prerogative writ
It is true that the existence of a statutory remedy does not affect the jurisdiction of the High Court to issue a writ
But as observed by this Court in Rashid Ahmed vs The Municipal Board Kairana1 the existence of an adequate legal remedy is a thing to be taken into consideration in the matter of granting writs and where such a remedy exists it will be a sound exercise of discretion to refuse to interfere
in a writ petition unless there are good grounds therefore
But it should be remembered that the rule of exhaustion of statutory remedies before a writ is granted is a rule of self imposed limitation a rule of policy and discretion rather than a rule of law and the court may therefore in exceptional cases issue a writ such as a writ of certiorari notwithstanding the fact that the statutory remedies have not been exhausted
In The State of Uttar Pradesh vs Mohammad Nooh2 SR Das CJ speaking for the Court observed In the next place it must be borne in mind that there is no rule with regard to certiorari as there is with mandamus that it will lie only where there is no other equally effective remedy
It is well established that provided the requisite grounds exist certiorari will lie although a right of appeal has been conferred by statute
Halsbury s Laws of England 3rd Ed Vol
II p 130 and the cases cited there
The fact that the aggrieved party has another and adequate remedy may be taken into consideration by the superior court in  arriving at a conclusion as to whether it should in exercise of its discretion issue a writ of certiorari to quash the proceedings and decisions of inferior courts subordinate to it and ordinarily the superior court will decline to interfere until the aggrieved party has exhausted his other statutory remedies if any
But this rule requiring the exhaustion of statutory remedies before the writ will be granted is a rule of policy convenience and discretion rather than a rule of law and instances are numerous where a writ of certiorari has been issued in spite of the fact that the aggrieved party
had other adequate legal remedies
In the King vs Postmaster 
General Ex parte Carmichael a certiorari was issued although the aggrieved party had and alternative remedy by way of appeal
It has been held  that the superior court will readily issue a certiorari in a case where there has been a denial of natural justice before a court of summary jurisdiction
1  2   605
523 case of Rex vs Wandsworth Justices Ex parte Read is an authority in point
In that case a man had been convicted in a court of summary jurisdiction without giving him an opportunity of being heard
It Was held that his remedy was not by a case stated or by an appeal before the quarter sessions but by application to the High Court for an order of certiorari to remove and quash the conviction
 There are at least two well recognised exceptions to the doctrine with regard to the exhaustion of statutory remedies
In the first place it is well settled that where proceedings are taken before a Tribunal under a provision of law which is ultra vires it is open to a party aggrieved thereby to move the High Court under article 226 for issuing appropriate writs for quashing them on the ground that they are incompetent without his being obliged to wait until those proceedings run their full course See the decisions of this Court in Carl Still GmbHv
The State Bihar1 and The Bengal Immunity Co Ltd vs The State Bihar2
In the second place the doctrine has no application in a case where the impugned order has been made in violation of the principles of natural justice See The State of Uttar Pradesh vs Mohammad Nooh3
It is manifest in the present case that the appellant had alleged in the writ petition that the Taxing Officer had no authority to impose the tax and there was no validly constituted Antarim Zila Parishad after December 31 1959
It was further alleged that sections 114 and 124 of the UP District Boards Act No X of 1922 violated article 14 of the Constitution as arbitrary power was granted to District Boards as well as the State Government to exempt any person or class of persons or any property or class of properties from the scope of the Act
There is also an allegation that the imposition of the tax violated the provisions of article 276 of the Constitution and that the Antarim Zila Parishad could not impose the tax beyond the maximum limit of Rs 250per annum prescribed in that Article
It was further contended on behalf of the appellant that the procedure for assessment of the tax was not followed and there was violation of the principles of natural justice
In view of the allegations of the appellant that the taxing provisions are ultra vires and that there was violation of the principles of natural justice we think that the High Court was in error in summarily dismissing the writ petition on the ground that the appellant had an alternative remedy of statutory
appeal
It was contended by Mr Chagla on behalf of the respondent that in dismissing the writ petition the High Court was acting in its discretion
But it is manifest in the present case that 1  2 3 1958 scR
524 the discretion of the High Court has not been exercised in accordance with law and the judgments of the Division Bench dated March 27 1964 and of the learned Single Judge dated February 13 1964 summarily dismissing the writ petition are defective in law
For the reasons expressed we hold that this appeal must be allowed the judgments of the Division Bench in Special Appeal No 322 of 1964 dated March 27 1964 and of the learned Single Judge dated February 13 1964 should be set aside and Civil Miscellaneous Writ No 2371 of 1962 should be restored to file and dealt with in accordance with law
There will be no order with regard to the costs of this appeal in this Court
GC Appeal allowed


Summary:
The appellant was a partnership firm carrying on the business of manufacturing Khandsari Sugar in the District of Muzaffarnagar UP
Under section 114 of the UP District Boards Act X of 1922 a District Board had power to levy a tax on circumstances and property subject to certain conditions and restrictions
The powers of District Boards under the aforesaid Act were by virtue of the UP Antarim Zila Parishad Act 1958 conferred on the Parishads formed under the latter Act
The UP Antarim Zila Parishad Act 1958 expired on 31st December 1959 but its life was extended to 31st December 1960 by Amending
Act No 1 1960 which received the assent of the Governor on January 5 1960
When the taxing officer of the Antarim Zila Parishad Muzaffarnagar subjected the appellant to circumstances and property tax for 1959 60 the appellant filed a writ petition in the High Court contending inter alia that Amending Act No 1 of 1960 could not continue the Act of 1958 because the latter had already expired on 31st December 1959 while the former received the consent of the Governor on January 5 1960
The constitutionality of the taxing provisions was also challenged
The writ petition was dismissed by the High Court on the sole ground that the remedy by way of appeal under section 128 of the District Boards Act 1922 had not been exhausted
The UP Kshetra Samitis and Zila Parishads Adhiniyam of 1961 UP Act 32 of 1961 was passed in November 1961
Acting under it the taxing officer of the Zila Parishad subjected the appellant to circumstances and property tax for the year 1961 62 without giving any notice or inviting objections
In respect of this assessment also the appellant filed a writ petition in the High Court pleading denial of natural justice as well as challenging the constitutionality of the taxing provisions
This petition was also dismissed on the same ground as the earlier one
The appellant came to this Court
HELD The rule of exhaustion of statutory remedies before a writ is granted is a rule of self imposed limitation a rule of policy and discretion rather than a rule of law and the court may therefore in exceptional cases issue a writ such as a writ of certiorari notwithstanding the fact that the statutory remedies have not been exhausted
522 C State of Uttar Pradesh vs Mohammad Nooh 1958 SCR 596 605 relied on
There are at least two well recognised exceptions to the doctrine with regard to the exhaustion Of statutory remedies
In the first place it is well settled that where proceedings are taken before a Tribunal under a provision of law which is ultra vires it is open to a party aggrieved thereby to move the High Court under article 226 for issuing appropriate writs for quashing them on the ground that they are incompetent
without his being obliged to wait until those proceedings run their full course
523 C 519 Cart Still GMBHv
State of Bihar AIR 1961 SC 1615 and The Bengal Immunity Co Ltd vs State of Bihar  relied on
In the second place the doctrine has no application in a case where the impugned order has been made in violation of the principle of natural justice
523 D State of Uttar Pradesh vs Mohammad Nooh 1958 SCR 596 605 referred to
In the present case in view of the allegations of the appellant that the taxing provisions were ultra vires and that there was a violation of the principles of natural justice the High Court was in error in summarily dismissing the writ petition on the ground that the appellant had an alternative remedy of statutory appeal
The High Court was no doubt vested with a discretion but in the present case the discretion had not been exercised in accordance with law
523 C 524 A