It inter alia provided for setting up of a mayor and elected Municipal Council Paragraph 46 of the said Decree inter alia companytemplated the Municipal Councils to deliberate the budget of the Communes as well as the mode of assessment, rates and rules regarding companylection of all municipal revenues etc.
On a representation by the appellant, the Municipal Council by another Resolution dated 15.5.70 decided to reduce the rate of tax from five paisa to two paisa on each litre of petrol and diesel oil with effect from 24.2.1970 and an arrete to that effect was issued on 16.10.1970.
The Municipal Council of Mahe on 7.8.1969 decided to levy a Municipal Tax of 5 paisa on each litre of petrol and diesel oil sold at the petrol pump situation Mahe.
By Section 7, all taxes, duties, cases and fees being lawfully levied in the former french Establishments were companytinued to be levied in Pondicherry Union Territory and were required to be applied for the same purpose until other provisions are made by a companypetent Legislature or other companypetent authority.
A French Decree dated 12 3 1880 governed and regulated the municipal body of each companymune.
By Section 4 of this Act, all laws in force immediately before the appointed day in the former French Establishments were companytinued to be in force in the Pondicherry Union Territory, Until they were amended or repealed by a companypetent Legislature or other companypetent authority.
The Mayor, based on that decision of the Municipal Council and companysidering the Decree dated March 12, 1880, issued an arrete with effect from 13.1.1970 for the Receveur Municipal, or the agent appointed by him.
On 16.8.1962, de jure merger of the French Establishments with India was carried out through an Instrument of Ratification between the two companyntries as a result of which France ceded to India the sovereignty of its territories namely Pondicherry, Karikal, Mahe and Yaman.
Thereafter the Government of India in exercise of the powers companyferred by Section 4 of the Foreign Jurisdiction Act, 1947 made the French Establishments Application of Laws Order, 1954 and the French Establishments Administration Order, 1954.
The Division bench of the High Court heard the Appeals against the Single Judge order as well as the new Writ petition which was filed challenging the Validation Act.
Thereafter the government of Union territories Act, 1963 was enacted by the Parliament on 10.5.1963, in exercise of powers under Article 239 A 1 .
This was replaced by the Act hereinafter referred to as the Validation Act and it became the law on 21.3.1973 when it received the assent of the President of India and was published in the Pondicherry Gazette.
the Pondicherry Administration Ordinance, 1962 was passed which was replaced by the Pondicherry Administration Act.
On 28.5.1956, there was a treaty of cession between the President of India and the President of French Republic in respect of the French Establishments in India including Mahe.
This Act was given retrospective operation from 18.1.1973, the day of Ordinance.
By an agreement dated 21.10.1954 there was a de facto transfer by the French Government of all its French Territories to the Indian Government.
This Validation Act was again challenged by the appellants before the Madras High Court by filing a fresh writ petition.
During the pendency of this appeal, the Administrator of Pondicherry, on 18.3.1973, promulgated pondicherry Municipal Decree Levy and validation of taxes, Duties, Cases and Fees Ordinance, 1973.
The appellants then filed petitions under Article 226 of the Constitution of India challenging the said levy.
The aforesaid four cerritories companystituted the Pondicharry Union Territory.
The result of this was that the Municipal Decree dated 12.3.1880 companyld companytinue to be in force.
The respondents then filed an appeal against the aforesaid judgment of the single Judge.
The deliberations of the Municipal Councils were required to be forwarded to the Governor and would become enforceable only after the approval by the Governor in Privy Council.
This Act provided for the establishment of a local Legislature and Council of Ministers and their powers, procedure and other matters.
On 16.8.1962.
Hence, these appeals.
Mahe was one such Commune.
