Law: City of Karachi Municipal Act (Bombay Act X V11 of 1933)

Section: 96

Law: Municipal Administration Ordinance, (X of 1960)

Section: 4

Law: Contract Act (IX of 1872)

Section: 72

Law: Civil Procedure Code (V of 1908)

Section: 11, 115(c), 144

Law: Specific Relief Act (I of 1877)

Section: 43

(a) Karachi Municipal Act (Bombay Act XVII of 1933) S. 96, Karachi Terminal Tax Rules, 1957, r. 5-B read with Municipal Administration Ordinance (X of 1960), S. 4-Terminal tax, levy of Karachi Municipal Corporation not empowered to levy any terminal tax after enforcement of Ordinance X of 1960-Levy on goods imported after enforcement of such Ordinance-Illegal-Tax paid on such account and in such circumstances--Prima facie liable to be refunded as paid under coercion-Contract Act (IX of 1872), S. 72. The Supreme Court has held in P L D 1967 S C 241 that the Karachi Municipal Corporation had no power to levy any terminal tax after the coming into force of the Municipal Administration Ordinance, 1960 on 15-4-1960. As the terminal tax was levied and paid by the plaintiff after the coming into force of the said Ordinance, the levy on each of the consignments imported by the plaintiff, was therefore illegal. The effect of the finding is that prima facie tax paid under a demand which is illegal, is liable to be refunded under section 72 of the Contract Act, 1872, as money paid under coercion. Pakistan Tobacco Co. Ltd. v. Karachi Municipal Corporation P L D 1967 S C 241 and Pakistan Textile Mill Owners' Association, Karachi and others v. Administrator of Karachi and others P L D 19E 3 S C 137 rel. Secretary, Municipal Committee, Karanja v. The New East India Press Co. Ltd., Bombay A I R 1949 Nag. 215 ref. (b) Civil Procedure Code (V of 1908) S. 11, Contract Act (IX of 1872), S. 72 and Specific Relief Act (I of 1877), S. 43-Decree, binding force of-Estoppel by res judicata Erroneous decree becoming final-Conclusive between parties-Tax recovered under decree passed by civil Court but subsequently levy of such tax declared by Supreme Court to be no longer permissible Supreme Court judgment-Cannot affect operation of decree of civil Court-Judgment of superior Court-Cannot by its own force render void or inoperative erroneous decrees to opposite effect-Tax paid pursuant to decree operative and not set aside--Not refundable. The short question was whether on the facts and in the circumstances of this case, the plaintiff was entitled to obtain a refund of the amount in…