IMPORTANT POINT
Rule 9 of the Nagpur Improvement Trust (Land Disposal) Rules does not preclude the Improvement Trust from recovering from the lessees the amount of non-agricultural assessment payable by it to the State Government in respect of lands leased out to lessees.

JUDGMENT

S.C. Agrawal, J.-Special leave granted.

2. These appeals raise common questions for consideration. The Nagpur Improvement Trust, the appellant herein, has been constituted under the provisions of the Nagpur Improvement Trust Act, 1936 enacted to provide for improvement and expansion of the town of Nagpur. The said Act makes provisions for acquisition of land by the Improvement Trust in connection with various schemes which are framed by the Improvement Trust. After development the land is disposed of by the Improvement Trust. The disposal of lands vested in the Improvement Trust is governed by the Nagpur Improvement Trust (Land Disposal) Rules, 1955 (hereinafter referred to as the Rules ) made by the State Government, in exercise of powers conferred by Section 76 read with Section 89 of the Nagpur Improvement Trust Act, 1936. Rule 3 provides for transfer of land of Improvement Trust by (a) direct negotiation with party; (b) public auction; (c) inviting tenders; and (d) concessional rates. Rule 4 prescribes that the land shall be disposed of at a premium to be fixed in accordance with the provisions contained therein. In addition to the amount of premium, the transferee is liable to pay ground rent at 2% of the premium annually. Rule 7 lays down that every transfer of Improvement Trust land shall be made by lease which shall be either for thirty years or ninety nine years as may be determined by the Improvement Trust. If the purchaser by an application in writing requests the Improvement Trust to convert the period of lease from thirty years to ninety nine years, the Improvement Trust may do so after charging in addition to 15% of the premium fixed for thirty years of lease with proportionate increase in annual ground rent. In certain specified circumstances the Improvement Trust can dispose of land by outright sale or exchange. Rule 9 of the Rules, which is relevant for the purpose of this case, reads as under:-

"Rule 9. Where land revenue is payable in respect of any plot so transferred, such land revenue shall be payable by the Trust".

The other provisions of the Rules have no bearing on the matter in issue.

3. The respondents in these appeals are lessees in respect of lands of the Improvement Trust. Under the terms of Lease Deed they are liable to pay the amount prescribed therein as premium and ground rent periodically. Clause 1(b) of the Lease Deed contains the following provisions :-

"(b) The lessee shall from time to time and at all times during the said term pay and discharge all rates, taxes charges and assessments of every description or imposed upon the said land hereby demised or the building erected thereupon or upon the landlord or tenant in respect thereof".

4. In 1978 the Government of Maharashtra initiated proceedings for assessment and recovery of non-agricultural assessment charges under the provisions of the Maharashtra Land Revenue Code, 1966 (hereinafter referred to as the Land Revenue Code ). Non-agricultural assessment charges in respect of the plots which had been allotted by the Improvement Trust to the respondent-lessees were demanded by the State Government from the Improvement Trust. The Improvement Trust, as per clause 1(b) of the Lease Deed, asked the lessees to the make payment of the non-agricultural assessment charges in respect of their lands. The respondents disclaimed their liability for non-agricultural assessment and filed Writ Petitions in the Bombay High Court, Nagpur Bench, challenging the said demand of non-agricultural assessment from them. The Writ Petitions which have given rise to Special Leave Petitions (Civil) Nos. 11018-23 of 1992 were disposed of by the High Court by a common judgment dated September 3, 1991 whereby the High Court has allowed the said Writ Petitions and has quashed the recovery notices issued by the Improvement Trust and has restrained the Improvement Trust from making recovery of non-agricultural assessment from the plot holders, like the respondents of t