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2013 Supreme(SC) 24

SUPREME COURT OF INDIA
K. S. RADHAKRISHNAN AND DIPAK MISRA, JJ.
MUNICIPAL CORPORATION RAJASTHAN - Appellant
VERSUS
SANJEEV SACHDEVA AND OTHERS - Respondents
Civil Appeal No. 240 of 2013 (Arising out of SLP(C) No.11907 of 2009) with Civil Appeal Nos.242 & 241 of 2013 (Arising out of SLP(C) Nos.34347 & 14304 of 2009)
Decided on : 8-1-2013.

Headnote:Rajasthan Municipalities Act 1959-Section 173-A as amended by Rajasthan Municipalities Amendment Act 1999-Interpretation of-Power of State Government to allow change in use of land on payment of conversion charges-Division Bench of High Court, following the judgment of Apex Court in State of Rajasthan and others v. Pareshar Soni held that Municipal Corporation was not empowered to demand any amount for change of use of the land-If justified-Held Amendment was necessitated since State Legislature thought the provision of Section 173-A (un-amended) stood as an impediment for proper planning of urban areas- Respondents filed an application for change of land use from residential to commercial- Corporation issued public notice inviting objections- Later, Land Use Committee met and approved the conversion for which a demand notice of Rs.5,70,300/- was raised by Corporation - Held demand was legal and valid and in accordance with the provisions of Section 173-A, as inserted by Amendment Act 19 of 1999 - High Court erred in applying the Judgment of this Court in Pareshar Sonis case which was dealing with the un-amended provision of Section 173-A- Impugned judgments of High Court set aside-Appeals allowed (Paras 15 to 17)

       Facts of the Case :

        Issue in consideration in present appeals was regarding interpretation of Section 173-A of the Rajasthan Municipalities Act 1959, as amended by Rajasthan Municipalities Amendment Act 1999 which deals with the power of the State Government to allow change in use of land on payment of conversion charges.

       Findings of the Court :

        Held Amended Section 173-A not only restricted the change of use of land, as the same had been allotted by the municipality or the State Government, but also put restrictions if the land had been allotted by any other local authority. Section 173-A(2) covers the cases which are not even covered by Section 173-A(1) and brings in its fold even the change of use of land which is not in consonance with the Master Plan. Further Section 173-A(1) (2) and (3) also contemplated a situation wherein State Government was entitled to levy conversion charges if the change in use from one purpose to other purpose. Amendment was necessitated since the State Legislature thought the provision of Section 173-A (un-amended) stood as an impediment for proper planning of urban areas. Respondents filed an application for change of land use from residential to commercial. Corporation issued public notice inviting objections. Later, Land Use Committee met and approved the conversion for which a demand notice of Rs.5,70,300/- was raised by Corporation .The Supreme Court Held that demand was legal and valid and in accordance with the provisions of Section 173-A, as inserted by Amendment Act 19 of 1999 -. High Court erred in applying the Judgment of this Court in Pareshar Sonis case which was dealing with the un-amended provision of Section 173-A. Impugned judgments of High Court were set aside.

       Result : Appeals allowed

ORDER

1. Delay condoned.

2. Leave granted.

3. Heard learned counsel on either side.

4. We are in these cases concerned with the interpretation of Section 173-A of the Rajasthan Municipalities Act 1959, as amended by the Rajasthan Municipalities Amendment Act 1999 (Act No.19 of 1999), which deals with the power of the State Government to allow change in use of land on payment of conversion charges.

5. The Division Bench of the Rajasthan High Court, following the judgment of this Court in State of Rajasthan and others v. Pareshar Soni (2007) 14 SCC 144, disposed of all the appeals, holding that the Municipal Corporation is not empowered to demand any amount for change of use of the land. We may refer to the facts in Civil Appeal No.240 of 2013 @ SLP(C) 11907 of 2009 for disposal of all these appeals, since common questions arise for consideration in all these appeals.

6. Respondents herein purchased a plot of land, with a house, on 9.9.2002, situated in a residential area by way of a registered sale deed. Later, an application under the Rajasthan Municipalities (Change of Land Use) Rules, 2000 (for short ‘2000 Rules”) was preferred for conversion of land use from residential to commercial. They also deposited self- assessment amount of Rs.10,500/- for the said purpose. Municipal Corporation, while considering the said application gave a public notice on 22.7.2003 inviting objections, if any, under Rule 4(1) of the 2000 Rules. The Land Use Change Committee of the Corporation, on 23.2.2004, approved the request for conversion of land use. Municipal Corporation then demanded an amount of Rs.5,70,300/- as land use conversion charges in accordance with the 2000 Rules read with Section 173-A, as amended.

7. Respondents herein filed a Writ Petition No.1844 of 2004 challenging the vires of amended Section 173-A of the Act and to quash the demand notice dated 2.4.2004. In the meanwhile another Writ Petition No.879 of 2003 was also filed by one Mewa Ram challenging the vires of the amended Section 173-A.

The Division Bench of the Rajasthan High Court vide its judgment in Mewa Ram v. State of Rajasthan reported in 2007 (1) WLC (Raj) 1, was pleased to upheld the vires of Section 173-A as inserted by Act No. 19 of 1999. Following that judgment, the Division Bench of the Rajasthan High Court, on 28.11.2007, remanded the matter to the learned single Judge to decide whether the writ petition be entertained or not. The case was later registered as D.B.C. Writ Petition No.430 of 2008.

8. The learned Single Judge, however, placing reliance on the judgment in Pareshar Soni’s case (supra) allowed the writ petition and the notice dated 2.4.2004 was quashed, though it was contended by the Corporation that the applicability of Section 173-A (evidently as amended) was neither argued nor considered by this Court in Pareshar Soni case. The Municipal Corporation then took the matter in appeal before the Division Bench in DB Civil Special Appeal No.159 of 2009. The court dismissed the appeal holding that the issue raised stood covered by the judgment in Pareshar Soni’s case (supra).

9. Dr. Manish Singhvi, learned Additional Advocate General, appearing for the State of Rajasthan submitted that the High court has committed an error in taking the view that the issue raised stood covered by the judgment of this Court in Pareshar Soni’s case (supra). Learned counsel pointed out that this Court was dealing with the un-amended Section 173-A of the Act in that case, but, so far as the present appeals are concerned, applications have to be considered by the amended Section 173-A read with 2000 Rules.

10. Mr. Sushil Kumar Jain, learned counsel appearing for the respondents, on the other hand, submitted that there is no illegality in the judgment of the Division Bench of the High Court of Rajasthan warranting interference by this Court. Learned counsel submitted, in any view of the matter, the land in question falls in a commercial area as per the latest approve





























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