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1996(7) Supreme 46
SUPREME COURT OF INDIA
K. Ramaswamy and G.B. Pattanaik, JJ.
State of U.P. & Ors. etc. -Appellants
versus
Smt. Malti Kaul & Anr. etc. -Respondents
Civil Appeal No. 9281 of 1995
with
C.A. No. 11539 of 1996 @ SLP (C) No. 27591 and C.A. Nos. 9534-35 of 1995 and 9729-47 of 1995
Decided on 21-8-1996
Counsel for the Parties :
For the Appearing Parties : A.B. Rohtagi, Sr. Advocate, Ashok K. Srivastava, M.P. Midha, Bharat Sangal, H.M. Singh, Praveen Swarup Pramod Swarup, Prashant Kumar and Joseph Pokkatt, Advocates.
Held : It is settled law that levy of fee is a compulsory exaction for services rendered as quid pro quo. It is seen that the Development Authority is enjoined under the Act to undertake planned development of the development area in accordance with the provisions of the Act. When it undertakes such a development it carries out the development as per the plan either itself or through any person or body which undertakes to develop the land in accordance with the sanction plan in which case necessary conditions to safeguard providing the amenities are required to be secured. (Para 12)
Further held that the Act specifically gives such a power. It is true that under Article 265 of the Constitution no tax can be levied without any authority of law. There is no quarrel on the proposition of law. In this case, from a reading of the aforesaid provisions it is clear that the statute, instead of prescribing the rate of developmental charges itself, has given power to the rule-making authority to regulate the collection of and payment for development fee. It is seen that under the direction which is not inconsistent with the provisions of the Act, it indicate the method and the manner in which the collection is to be secured so as to see that the area is developed in a planned manner as per the sanctions given by the competent authority. The High Court, therefore, was clearly in error in holding that there is no provision under the Act or the Rules to levy the development fee. (Para 13)
ORDER
Application for intervention is dis- missed. Leave granted in the Special Leave Petition.
2. These appeals arise from the judgment of the Allahabad High Court dated April 21, 1995 declaring that the appellants are devoid of power to levy the development fee under the U.P. Urban Planning and Development Act, 1973 [11 of 1973] as amended from time to time [for short, the "Act"].
3. The undisputed facts are that the appellant-authority was constituted under Section 4 of the Act as a development authority. When the respondents filed plans for grant of sanction, a demand was made of them to deposit the development fee. Calling the demands in question, the above appeals came to be filed. Consequently, declaration was made. In addition, the High Court also found that the demands for malva charges (stacking charges) and water charges were violative of principles of natural justice. Accordingly, it directed the appellants to give opportunity of being heard to the respondents and then levy charges. Calling the decision in question, these appeals have come to be filed. The High Court concluded that there is no provision in the Act or the Rules made thereunder, to demand and collect the development fee.
4. With a view to appreciate the contentions of the counsel on either side and the findings recorded by the High Court, it is necessary to consider the relevant provisions of the Act.
5. Section 4 contemplates that the State Government may, by notification in the Gazette, constitute, for the purpose of the Act, an authority called "Development Authority" for any development area. "Development" has been defined in Section 2 (e) with its grammatical variations, to mean the carrying out of building, engineering, mining or other operations in, on, over or under land, or the making of any material change in any building or land, and includes re-development. "Development Area" has been defined in Section 2(f) to mean any area declared to be development area under Section 3. It has been empowered, where the Government in exercise of the power under Section 3 has declared that any area within the State requires to be developed according to the plan, to declare such area to be a development area. Section 7 envisages the objects of the authority and gives power to the developing authority to acquire, hold, manage or dispose of a land and any other property, to carry out building, engineering, mining and other operations, to execute works in connection with the supply of water and electricity, to dispose of sewage and to provide and maintain other services and amenities and generally to do anything necessary or expedient for purposes of such development and for purposes incidental thereto. "Amenity" has been so defined in Section 2 (a) as to include road, water supply, street lighting, drainage, sewerage, public works and such other convenience as the State Government may, by notification in the Gazette specify to be an amenity for the purposes of the Act. The expression "engineering operations" has been defined under Section 2 (h) and includes the formation or laying out means of access to a road or the lying out of means of water supply. "Means of access" has been defined under Section 2(i) and include any means of access, whether private or public, for vehicles or for foot passengers, and includes a road.
6. It would thus be seen that the development authority has been enjoined to undertake the development of the development area including providing amenities or carrying out engineering operations or providing means of access as envisaged under the Act or any other amenities that may be specified by a notification by the State Government as part of development plans undertaken under the Act.
7. Section 14 in Chapter V on "Development of Lands" gives power to the developing authority and provides that after coming into force of the plan in any development area, no development shall be undertaken or carried out or continued
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