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Bombay High Court
LENTIN
Popatlal Gokuldas - Appellant
Versus
State of Maharashtra - Respondent
Decided On : 04/02/1979
LAND REVENUE - Assessment - Enhanced assessment - Levy of - Collector's power to levy enhanced assessment under R.81(3) of the Land Revenue Rules, 1921 - Conditions precedent - Interpretation of the phraseology "in an exceptionally favourable position" - Retrospective effect of assessment.
Fact of the Case:
The petitioners, owners of certain lands in Kurla, Greater Bombay, challenged the orders of the Collector levying enhanced non-agricultural assessment on their lands under R.81(3) of the Land Revenue Rules, 1921. The petitioners contended that the Collector was not entitled to invoke R.81(3) and that even if he could, his order levying enhanced assessment was not in compliance with the requirements of that rule. They also contended that assessment could not be levied retrospectively.
Finding of the Court:
The Court held that the Collector was not entitled to invoke R.81(3) of the Land Revenue Rules, 1921, to levy enhanced assessment on the petitioners' lands. The Court held that the Collector had misinterpreted the true scope and meaning of the words "exceptionally favourable position" and had equated the phraseology "exceptionally favourable position" either with "favourable position" or "very favourable position" or a "highly favourable position". The Court held that the words "exceptionally favourable" denote something that is unusually or extraordinarily favourable or favourable to an unusual or outstanding degree. The Court also held that the Collector had failed to indicate the basis on which he had arrived at the increased figure of assessment of Rs. 25/- per 100 square yards. The Court further held that the assessment could not be levied retrospectively from 1st August 1952.
Issues: 1. Whether the Collector was entitled to invoke R.81(3) of the Land Revenue Rules, 1921, to levy enhanced assessment on the petitioners' lands? 2. Whether the Collector's order levying enhanced assessment was in compliance with the requirements of R.81(3) of the Land Revenue Rules, 1921? 3. Whether assessment could be levied retrospectively?
Ratio Decidendi: 1. The Court held that the Collector was not entitled to invoke R.81(3) of the Land Revenue Rules, 1921, to levy enhanced assessment on the petitioners' lands because: a. The Collector had misinterpreted the true scope and meaning of the words "exceptionally favourable position" and had equated the phraseology "exceptionally favourable position" either with "favourable position" or "very favourable position" or a "highly favourable position". b. The Collector had failed to show that the petitioners' land was in an "exceptionally favourable position" in comparison with other lands in the same village. c. The Collector had failed to indicate the basis on which he had arrived at the increased figure of assessment of Rs. 25/- per 100 square yards. 2. The Court held that the assessment could not be levied retrospectively from 1st August 1952.
Final Decision: The Court allowed the petition and set aside the impugned orders and notices.
2. The 1st respondent is the State of Maharashtra, the 2nd respondent is the Additional District Deputy Collector and 3rd respondent is the
Mamlatdar, Taluka Kurla.
3. The main question that arises in this petition is whether the Collector was entitled to invoke R.81(3) of the Land Revenue Rules, 1921 and, if
so, whether his order levying enhanced assessment is in compliance with the requirements of that rule.
4. The petitioners carry on, and at all material times carried on, business in the name and style of M/s. Eastern Aluminum Works. The Petitioners are the owners of certain lands admeasuring 6832 square yards situate at old Agra Road, Kurla, Greater Bombay since 5th July 1950. At that time, the village of Kurla was a proprietary village owned by the successors in title of Hormusji Bomanjee. Prior to 1931, a portion of these lands was put to building use. Out of the total area of 6832 square yards, the built-up area is about 2045 square yards, whereon the petitioners have their factory known as Eastern Smelting and Rolling Mills.
5. By the Salsette Estate (Land Revenue Exemption Abolition) Act, 1951, which came into force from 1st March 1952, the proprietary rights of the Khot of Kurla were abolished and the lands belonging to private owners became, for the first time, liable to payment of land revenue to Government. Until then, a fixed land revenue was payable to the Khot of Kurla, and there was no restriction on the user of the land within the Khoti village of Kurla.
6. By an order dated 20th November 1957 passed by the then Additional District Deputy Collector, the petitioners were informed that their lands were made liable to payment of non-agricultural assessment with effect from 8th January 1957 to 31st July 1959 at Rs. 25/- per 100 square yards and were called upon to pay the amount of Rs. 1708/- between the 1st and 10th January every year. Being aggrieved by that order, the petitioners exhausted the remedies available to them including the revisional application which was heard by the Revenue Minister on 21st October 1966 and decided by him by his order dated 12th November 1966 upholding the assessment levied. The petitioners were served with a further levy and collection order dated 4th October 1960 issued by the Additional District Deputy Collector, B.S.D. Andheri, calling upon the petitioners to pay the
non-agricultural assessment at the annual rate of Rs. 1708/- for a further period from 1st August 1959 to 31st July 1960. The petitioners thereafter exhausted the remedies available to them by way of appeal and provision to the appropriate authorities, out in vain. The 2nd respondent called a collection order for recovery of non-agricultural assessment in the sum of Rs. 1708/- for one year ending 31st July 1951. By his order dated 21st April 1952, the 2nd respondent called upon the petitioners to pay N.A. assessment at Rs. 1708 per year from 1st August 1981 till 31st July 1964. The Additional District Deputy Collector, B.S.D. Andheri, issued another levy and collection order dated 18th February 1965 retrospectively levying a sum of Rs. 8,288.53 as N.A. assessment for the earlier period from 1st March 1962 till 7th January 1957 (erroneously mentioned as 31st July 1957 in the petition) at the annual rate of Rs. 25/- per 100 square yards. Against that order also, the petitioners preferred the requisite appeal which was heard by the Additional Collector, B.S.D. Bombay, on 11th December 1965 who reserved his orders but, according to the petitioners, the same have not been communicated to them. This is not denied in the affidavit-in-reply. By his letter dated 28th April 1967, the
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