( 1 ) AHMEDABAD Municipal Corporation - appellant original plaintiff has filed this appeal under Section 96 of the Code of Civil Procedure, against the judgment and decree dated 26th February, 1982, in Civil Suit No. 2680 of 1977 filed by the plaintiff. The learned Judge by his impugned judgment has held that the Union of India - the defendant is exempted from liability of incremental contribution under the provisions of the Bombay Town Planning Act, 1954 (hereinafter referred to as `the said Act ).

( 2 ) THE facts giving rise to this appeal are as under:- 2. 1 the Ahmedabad Municipal Corporation - plaintiff had filed a Civil Suit No. 2680 of 1977 before the City Civil Court, Ahmedabad, and prayed for a decree that defendant Union of India be directed to pay to the plaintiff a sum of Rs. 1,03,139. 25p. 00 with 6% interest from the date of the suit till the payment and costs. The said amount represents "incremental contribution" levied by the plaintiff under the provisions of the said Act. 2. 2 mr. P. G. Desai, learned counsel has referred to plaint and other documents in connection with Town Planning Scheme, Ahmedabad 15 and made following submissions on facts: 2. 2 (A) there was a property namely piece of land originally bearing Survey Nos. 154 and 155 of Dariapur Kazipur Asarwa part of Final Plot No. 4 situated in the area of Dariapur Kazipur ad-measuring 50890 square yards. The plaintiff declared its intention to make the Town Planning Scheme for the area covering part of the revenue village of Asarwa, Dariapur, Kajipur under its Resolution No. 46 dated 1. 5. 1953. 2. 2 (B) it was further submitted that the then Government of Bombay thereafter made further resolution on 9. 11. 1953 and refused to sanction the intention of the plaintiff Corporation - local authority till the area was included within the limits of the local authority. The local authority thereafter declared its intention again to make a scheme by its resolution dated 1. 2. 54. The then Government under its resolution dated 25. 5. 56 sanctioned the intention to make the draft town planning scheme for the area. The area under the scheme was situated on the northern boundary of the Corporation limits. It is bounded on the north by the cantonment area, on the south by Magazine Fort and the area of Town Planning Scheme, Ahmedabad No. VII on the east and west by the area of Town Planning Scheme, Ahmedabad No. 8. The total area comprised in this scheme is 75 Acres approximately. The area being adjacent to the magazine fort was prohibited for building use under Government Military Notification. It, therefore, remained undeveloped though quite ripe for building purposes. With the withdrawal of Government Notification and consequential removal of restriction for the development of this area for building purposes, it became fit for immediate development. But as it had no internal accesses and facilities for public services like water, drainage, lighting etc. , quite essential for promotion of development, it remained barren and undeveloped. In order to extend these services and facilitate the speedy development of the area, the Ahmedabad Municipal Corporation got this area included within its limits. 2. 2 (C) the plaintiff in making this scheme, made departure from its past practice of planning an area under a Town Planning Scheme and prepared a comprehensive development scheme in such a way that the smallest building unit could get direct pucca approach with all public services, after keeping sufficient lands reserved for public purposes. The plaintiff accordingly prepared and published the draft scheme by a Notification in the extra-ordinary issue of Bombay Government Gazette dated 28. 3. 1957 (Part-II ). The draft scheme so prepared and published was ultimately sanctioned by Government under its Notification dated 12. 12. 1957 subject to certain conditions mentioned therein. 2. 2 (D) the learned counsel submitted that in exercise of the powers conferre