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2023 Supreme(SC) 426

SUPREME COURT OF INDIA
M.R. SHAH, C.T. RAVIKUMAR, JJ.
Mathura Vrindavan Development Authority & Another - Appellants
Versus
Rajesh Sharma and Others - Respondents
Civil appeal no. 5645 of 2015, Civil appeal no. 1976 of 2023, Civil appeal no. 1979 of 2023, Civil appeal no. 1984 of 2023, Civil appeal no. 5647 of 2015, Civil appeal no. 5646 of 2015, Civil appeal no. 6536 of 2015, Civil appeal no. 658 of 2016, Civil appeal no. 4438 of 2014, Civil appeal no. 4198 of 2014, Civil appeal no. 4489 of 2014, Civil appeal no. 3636 of 2018, Civil appeal no. 1977 of 2023, Civil appeal no. 1988 of 2023, Civil appeal no. 1983 OF 2023, Civil Appeal Nos.5912-5915 OF 2014, Civil Appeal No. 4492 OF 2014, Civil Appeal No. 5645/2015 Etc., Civil appeal no. 5910 of 2014, Civil appeal no. 2041 of 2023, Civil appeal no. 6247 of 2014, Civil appeal no. 6249 of 2014, Civil appeal no. 6250 of 2014, Civil appeal no. 6248 of 2014, Civil appeal no. 3176 of 2015, Civil appeal no. 3242 of 2015, Civil appeal no. 6537 of 2015, Civil appeal no. 6540 of 2015, Civil appeal no. 6541 of 2015, Civil appeal no. 6538 of 2015, Civil appeal no. 6539 of 2015, Civil appeal no. 1982 of 2023
Civil appeal no. 1978 of 2023, Civil appeal nos. 1980-1981 of 2023, Civil appeal no. 5918 of 2014, Civil appeal no. 5919 of 2014
Decided on : 28-04-2023

Advocates appeared:
For the Parties : Mr. Pardeep Gupta, Adv. Mr. Parinav Gupta, Adv. Mrs. Mansi Gupta, Adv. Mr. Rahul Kumar Choudhary, Adv. Dr. (mrs. ) Vipin Gupta, AOR Mr. Abhisth Kumar, AOR Mr. Kamlendra Mishra, AOR Mr. Shashibhushan P. Adgaonkar, AOR Mr. Omkar Jayant Deshpande, Adv. Mrs. Pradnya Shashibhushan Adgaonkar, Adv. Mr. Ajesh K Chawla, Adv. Ms. Saket Gautam, Adv. Ms. Shivangi Singh, Adv. Mr. Satish Kumar, AOR Mr. Sudhir Kulshreshtha, AOR Mr. S. R. Singh, Sr. Adv. Mr. Prithvi Yadav, Adv. Mr. Gaurav Lomes, Adv. Mr. Ankur Yadav, AOR Mr. Himanshu Tyagi, AOR Mr. Rajeev Mishra, Adv. Mr. Ayush Negi, Adv. Ms. Shashi Kiran, AOR Mr. Satish Chandra, Adv. Mr. Arjun Sain, Adv. Ms. Sangeeta Bhalla, Adv. Mr. V.K. Shukla, Sr. Adv. Ms. Parul Shukla, AOR Ms. Shreya Bhojnagarwala, Adv. Mr. Udayaditya Banerjee, Adv. Mr. Prashant Shukla, Adv. Mr. Abhishek Chaudhary, AOR Mrs. Anchal Sharma, Adv. Mr. Abhishek Sharma, AOR Mr. Vivek Bansal, Adv. Mr. Vineet Bhagat, AOR Mr. Ajay Kumar Singh, Adv. Ms. Manju Bhagat, Adv. Mr. Mohit Gulati, Adv. Ms. Preetika Dwivedi, AOR Mr. Abhisek Mohanty, Adv. Mr. Ravi Prakash Mehrotra, Sr. Adv. Mrs. Anil Katiyar, AOR Mr. Praveen Chaturvedi, AOR Mr. Tejaswi Kumar Pradhan, AOR Mr. Manoranjan Paikaray, Adv. Mr. Aniruddha Purushotham, Adv. Mr. Mohan Prasad Gupta, Adv. Mr. A. N. Arora, AOR Mr. Jatin Zaveri, AOR Mr. Ritesh Agrawal, AOR Mr. Tripurari Ray, Adv. Mr. Balwant Singh Billowria, Adv. Mr. Vivekanand Singh, Adv. Mr. Anirudh Ray, Adv. Mr. Nithyananda Murthy P, Adv. Ms. Bhanu Prabha, Adv. Ms. Shilpa Singh, AOR Mr. S. S. Kulshrestha, Sr. Adv. Mr. Ajeet Pandey, Adv. Mr. Naresh Kumar, AOR Mr. Abhinav Agrawal, AOR Mr. Rakesh Garg, Adv. Mr. A. G. Garg, Adv. Ms. Shweta Garg, AOR Mr. Kishan Chand Jain, Adv. Mr. E. C. Agrawala, AOR Mr. Sanchit Garga, Adv. Mrs. Mithu Jain, Adv. Mr. Madhav Anand, Adv. Mr. Nikunj Jain, Adv. Mr. Ashutosh Garga, Adv. Mr. Ankur Yadav, AOR Mr. Rajeev Kumar Dubey, Adv. Mr. Kamlendra Mishra, AOR Mr. T. Mahipal, AOR Mr. Rameshwar Prasad Goyal, AOR Mr. Sanjay Kumar Tyagi, AOR Ms. Aishwarya Bhati, ASG M/S. V. Maheshwari & Co., AOR Ms. Harshita Raghuvansi, Adv. Ms. Sangeeta Singh, AOR Ms. Priyanka Swami, Adv. Mr. Abhisth Kumar, AOR Mr. Himanshu Shekhar Tripathi, AOR Mr. T. N. Singh, AOR Mr. Vikas Kumar Singh, Adv. Ms. Rajshree Singh, Adv. Dr. Sham Chand, Adv. Mr. Vikram Singh, Adv. Mr. Kunal Verma, AOR Mr. Shantanu Sagar, AOR

Only charges specified in Section 15(2-A) can be levied.

Headnote:Development Charges - Urban Planning and Development Act - Section 15(2-A), Section 41, Section 59 The court discussed the legality of various demand notices raised by Development Authorities and the State of U.P., focusing on external/internal development charges, inspection fee/supervision fee, sub-division charges, stacking charges, and impact fee. The High Court upheld the levy of development fees/charges but set aside other charges not provided under Section 15(2-A) of the Act, 1973. The court emphasized that only charges enumerated in Section 15(2-A) could be levied and any other levy would violate Article 265 of the Constitution. The court also clarified that powers under Section 41 were supervisory and did not permit levying charges beyond those specified in the Act.

Fact of the Case:

Dispute over demand notices for various development-related charges.

Finding of the Court:

Upheld levy of development fees/charges; set aside other charges not provided under Section 15(2-A).

Issues:

Legality of different development-related charges; interpretation of relevant provisions.

Ratio Decidendi:

Only charges specified in Section 15(2-A) can be levied; powers under Section 41 are supervisory.

Final Decision:

Confirmed levy of development charges/fees; quashed setting aside of such levy; confirmed setting aside of other demand notices.

JUDGMENT :

M.R. SHAH, J.

1. As common question of law and facts arise in this group of appeals, all these appeals are decided and disposed of together, by this common judgment and order.

2. Feeling aggrieved and dissatisfied with the impugned judgment(s) and order(s) passed by the High Court of Judicature at Allahabad passed in the respective writ petitions, by which the High Court has quashed and set aside the various demand notices raised by the respective Development Authorities and the State of UP, the Development Authorities and the State of U.P. have preferred the present appeals.

2.1 Some of the appeals have been preferred by the original writ petitioners challenging the interim orders passed by the High Court in the respective writ petitions refusing to stay the demand notices, however, subject to the outcome of the proceedings pending before this Court which are being disposed of by this common judgment and order and directing the respective Development Authorities that in case the decision in the present proceedings is against the Development Authorities/State of U.P., they shall refund the amount of various fees collected with 6% interest per annum.

2.2 By the impugned judgment(s) and order(s), the High Court has set aside the various demand notices except the levy of development fees/charges. However, so far as Civil Appeal No. 4489 of 2014 (State of U.P. v. Rekha Rani & Others) is concerned, the High Court has even set aside the levy/demand of development charges/fees also.

3. The dispute before the High Court by way of various writ petitions was with respect to challenge to the various demand notices by way of external/internal development charges, inspection fee/supervision fee while granting of sanction layout plan, development charges, sub-division charges, stacking charges and impact fee etc. Except in one case, namely, Rekha Rani (supra), in all other cases, the Allahabad High Court as such has upheld the levy of development charges/fees. However, the other levies/demands are concerned, i.e., other than development fees/charges, more particularly the subdivision charges etc., the High Court has set aside the said levy and/or demand notices on the ground that U.P. Urban Planning and Development Act, 1973 (hereinafter referred to as the ‘Act, 1973’) does not permit the levy of other charges other than provided under Section 15(2-A) of the Act, 1973. The High Court has also observed and held that such levy on the basis of the orders issued by the State Government, issued in exercise of powers under Section 41 of the Act, 1973, is illegal and bad in law. The levy of other charges, other than development fees/charges is held to be bad in law and in violation of Article 265 of the Constitution of India.

3.1 Quashing and setting aside the levy/demand notices with respect to external/internal development charges, inspection fee/supervision fee while granting of sanction layout plan, sub-division charges, stacking charges and impact fee etc. is the subject matter of present appeals.

The State of U.P. has also preferred appeal being Civil Appeal No. 4489/2014 [Rekha Rani (supra)] challenging the impugned judgment and order passed by the High Court by which the High Court has set aside the levy/demand with respect to development charges/fees also.

4. Shri Rana Mukherjee, learned Senior Advocate appearing on behalf of the State of U.P. has vehemently submitted that the State of U.P. in exercise of powers under Section 41 of the Act, 1973 issued orders permitting the Development Authorities in the State to recover the charges /fees with respect to external/internal development charges, inspection fee/supervision fee while granting of sanction layout plan, development charges, sub-division charges, stacking charges and impact fee etc. It is submitted that the said orders came to be issued in exercise of powers under Section 41 of the Act, 1973, which as such were in the larger public interest and for development of the area includ


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