Important Point
Where Schedule was based on reasonable differentia taking into account relevant factors for the purpose it could not be called arbitrary or discriminatory.

Judgment

Dalveer Bhandari, J. —

1.The appellants aggrieved by the Order of the High Court of Judicature at Jabalpur dated 26.8.2003 in Writ Petition Nos.6269 and 27171 of 2003 have preferred this appeal with the prayer that the respondent State of Madhya Pradesh be restrained from imposing and collecting any premium under the impugned rule 14 of the Notification dated 24.1.2002.

2.Brief facts giving rise to the present appeal are recapitulated as under :

The respondent State of Madhya Pradesh has imposed premium at flat rate irrespective of use and purpose of the diverted land or any relation whatsoever with the land revenue imposed on the land. According to the appellants, the impugned rule 14 of the Madhya Pradesh Land Revenue Code,1959 (for short “the Code”) is arbitrary, unreasonable and as such violative of Article 14 of the Constitution of India. The imposition of premium under rule 14 has been assailed, therefore, it would be imperative to refer to the relevant provisions regarding imposition of premium as under :

“IMPOSITION OF PREMIUM

13.When the land assessed for any non-agricultural purpose is diverted to any agricultural purpose no premium shall be imposed under Sub-section (5) of Section 59 of the Code.

14. (1) For the purpose of levy of premium on agricultural land other than the land specified in the proviso to Sub-section (5) of Section 59 of the Code diverted to non-agricultural purposes, in any towns and villages in the State of Madhya Pradesh shall be divided into the following classes as specified in Column (1) of the Schedule appended to these rules and the premium shall be imposed according to the rates specified in Column (2) and (3) of the said Schedule as the case may be:

Provided that with the sanction of the State Government the Sub-Divisional Officer may include any particular village in higher or lower class than that prescribed in this rule:

Provided further that no premium shall be payable on agricultural land diverted into residential purposes if the area of diverted land is not exceeding one hundred square metre and “Kachha” construction is built on such land.

Explanation I.- When the ‘abadi’ of two or more villages adjoins, the population shall be taken as the population of the combined villages.

Explanation II.- ‘Kachha’ construction means such construction in which only clay and wood (excluding timber wood) are used.

The Schedule framed under rule 14 reads as under :

SCHEDULE

Classes For residential and other purpose For Commercial and Industrial (excluding Commercial and Purpose Industrial Purpose)

(1) (2) (3)

Class-I In Upto 4 kms. From 4 Kms. In Upto 4 Kms. From 4 Kms. Municipal From to 8 Kms. Municipal From To 8 Kms. Corporation Municipal From the Corporation Municipal From the Area Corporation area of Area Corporation area of Area Municipal Area Municipal Corporation Corporation

1 2 3 1 2 3

3.The appellants submitted that reading of section 59 with rules 1 to 12 and sections 77, 78, 79, 81, 82 and 98 of the Code shows that the land revenue is imposed on the land on the basis of use, purpose, location, area, size of plot, rental value, assessment rates, advantages and disadvantages etc. In this view of the matter, it would be appropriate to set out section 59 of the Code as under :

“Section 59. Variation of land revenue according to purpose for which land is used.- (1) The assessment of l