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2022 Supreme(Gau) 50
IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
DEVASHIS BARUAH, J.
Daya Engineering Works Pvt. Ltd. – Petitioner
Versus
The Union of India and Others – Respondents
W.P. (C) No. 3341 of 2018
Decided On : 20-01-2022
Advocate Appeared:
For the Petitioner: Mr. A.K. Sarma.
Point of Law : Petitioner is a land belonging to the respondent Railways which is a State within a meaning of Article 12 of the Constitution of India and under such circumstances when the respondent in their own Circular mandates that licensing agreement are a must before handing over a possession and in absence thereof strict action would be taken against the erring official, it is strange to observe how the respondent Railways have been permitting the petitioner to continue the use and occupation of a plot of land without a licensing agreement.
Headnote:
Constitution of India,1950 – Article 12 and 226 – Contract agreement - Demand notice - Direction to respondent authorities to revise land value for the purpose of the license fee taking into account valuation of land writ petition - Petitioner was allotted a plot of land wherein petitioner could carry out its manufacturing activities of construction of PSC Sleepers for NF Railway construction organization at vide contract agreement - In respect to the said land petitioner has been annually paying a license fee for the use and occupation of said land - It has been brought on record that petitioner have been paying license fee for said plot of land - Whether there exits any licensing agreement with the petitioner.
Finding of the Court:
Taking into consideration that Railway authorities claims to be land value per bigha on the basis of communication issued by Circle officer, and petitioner claims that land value as per certificate issued by the same office i.e. Circle Officer, it would be deemed appropriate that prior to fixing the land value respondent authorities shall give the petitioner an opportunity of hearing and to produce the necessary materials in support of their claims as regards what should be the land value - Consequently in view of observations the impugned notice of demand is interfered with a direction to the respondents Railway authorities to calculate land value and the consequential licensing fee on basis of clause 7 and 9 of the Master Circular till a licensing agreement is not entered into by petitioner along with the respondent Railway authorities - It is also observed that if petitioner does not enter into a licensing agreement, respondent authorities in view of the mandate of Circulars that licensing agreement is a must, shall take appropriate steps as envisaged under the law against the petitioner - Process of entering into the agreement for licensing has to be completed expeditiously and not later than 3 months from date of the order subject to petitioner is willing to enter into a licensing agreement which is a must as per the Circulars for use and occupation of the plot of land in question.
Result: Writ petition stands disposed
JUDGMENT :
DEVASHIS BARUAH, J.
1. Heard Mr. A.K. Sarma, the learned Senior Counsel assisted by Mr. A. Goyal, learned counsel for the petitioner and Mr. B. Sarma, the learned Standing Counsel appearing on behalf of the respondent Nos. 1 to 5 and Mr. P.S. Deka, learned Standing Counsel appearing for the Respondent Nos. 6 to 8.
2. This is an application under Article 226 of the Constitution of India, whereby the petitioner has challenged the demand notice dated 9.5.2017 and also for a direction to the respondent authorities to revise the land value for the purpose of the license fee taking into account the valuation of the land under Palashbari Revenue Circle as per Annexure-6 to the writ petition.
3. The brief facts of the instant case is that the petitioner was allotted a plot of land admeasuring 313 metres x 60 metres wherein the petitioner could carry out its manufacturing activities of construction of PSC Sleepers for the NF Railway construction organization at Mirza vide contract agreement dated 1.3/1991. In respect to the said land the petitioner has been annually paying a license fee for the use and occupation of the said land. It has been brought on record that the petitioner for the years 2010-11 to 2015-16 have been paying the license fee for the said plot of land in the following manner:
| Year 2010-11 | Rs. 1,14,195/- |
| Year 2011-12 | Rs. 1,22,189/- |
| Year 2012-13 | Rs. 1,30,742/- |
| Year 2013-14 | Rs. 1,49,894/- |
| Year 2014-15 | Rs. 1,68,187/- |
| Year 2015-16 | Rs. 1,82,150/- |
4. There is no dispute that the said amount has been paid by the petitioner to the Railway authorities and to which the Railway authorities have duly received the same. Subsequently on 9.5.2017 upon taking the present market value of the land in question at Rs. 16 lakhs per bigha, the respondent railway authorities issued a notice of demand on 9.5.2017 claiming that an amount of Rs. 63,99,715/- as land license fee for the years 2015-16, 2016-17 and 2017-18 is due by the petitioner. It has also been mentioned in the said notice of demand that as per the Railway Board’s guidelines land license fee and agreement must be reviewed every 10 years gap but unfortunately as the land license fee and the agreement was not reviewed w.e.f. 1991-1992 to 2014-2015 and as such the said land license fee was reviewed and accordingly as per the Railway Board’s guidelines the said demand was being made. To the said demand notice a calculation sheet has also been enclosed as to how the said amount of Rs. 63,99,715/- was arrived at. A perusal of the calculation sheet shows that the land value calculation has been done at the rate of Rs. 16 lakhs per bigha. The petitioner’s case is that pursuant to the said notice of demand being issued, the petitioner made enquiries before the Office of the Circle Officer, Palashbari Revenue Circle and the Circle Officer, Palashbari Revenue Circle had given the land valuation vide a certificate dated 9.1.2018 in respect to the said land at Rs. 5 lakhs per bigha on the basis of zonal valuation of the land. It on the basis thereof the petitioner submitted various representations to the concerned Railway authorities to fix the land value as per the certificate given by the Circle Officer, Palashbari Revenue Circle on 9.1.2018 for the purpose of calculating the license fee. The respondent authorities having not done so, for which the petitioner has approached this Court under Article 226 of the Constitution of India. In the said writ petition the petitioner has sought for setting aside and quashing the notice of demand dated 9.5.2017, for a direction upon the respondent authorities to revise the land value as well as the license fee taking into consideration the certificate issued by the Circle Officer, Palashbari Revenue Circle dated 9.1.2018, for setting aside and quashing the letter dated
