Validating legislation cannot cure mandatory municipal defects by deeming consequences; octroi based on the invalid inclusion failed.

A validating enactment is effective only if the legislature has competence and the statutory defect identified in the earlier decision is actually cured; merely deeming the legal consequence without satisfying the mandatory municipal inclusion requirements is insufficient. Because the prescribed steps for including Raipura and Ummedganj within the Kota municipal limits had not been followed, the validating Act did not remove the foundational illegality. The earlier defect therefore remained, the octroi levy based on that inclusion could not be sustained, and refund of octroi paid after the exempted period with interest was directed.

---

---

Issues: Whether the Kota Municipal Limits (Continued Existence) Validating Act, 1975 validly cured the defect in the inclusion of Raipura and Ummedganj within the Kota municipal limits, and consequently whether the levy and collection of octroi from the appellants could be sustained.

Analysis: A validating enactment is effective only if the legislature has competence over the subject and the defect identified in the earlier judicial decision is actually removed. The mandatory steps prescribed for inclusion or exclusion of municipal areas under the governing municipal law had not been followed in respect of either village. The validating enactment did not retrospectively amend or cure those mandatory procedural requirements; instead, it sought to deem the legal consequence that the villages always formed part of the municipality. A legal consequence cannot be deemed in place of the foundational facts and statutory steps that must precede it. Since the defect remained unremoved, the earlier illegality was not neutralised.

Conclusion: The validating Act was invalid and the octroi collections made on its basis could not be sustained. The appellants were entitled to refund of the octroi duty paid after the exempted period with interest.

Ratio Decidendi: A validating law is effective only when it removes the defect that rendered the earlier action unlawful and cannot merely deem the legal consequence without curing the mandatory statutory foundation on which that consequence depends.

---