MAHILA VIKAS MANDAL COLABA Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Leave granted.

(2.) Appellants call in question legality of the judgment rendered by a Division Bench of the Bombay High Court upholding the demand made by the Collector, Mumbai City from the appellant No. 1. The writ petition filed by the appellants questioning the demand was dismissed by the impugned order of the High Court. The demand was made for commercial use of the land leased out to the appellant No. 1.

(3.) Factual position is almost undisputed and needs to be noted in brief. The Maharashtra State Government in the Revenue at Forest Department, leased out 2250 square meters of land (plot No. 1 Queens Barrack Area) to the appellant No. 1 for construction of a womens hostel for working women and its allied activities. The grant was made for 30 years from the date of handing over possession and the memorandum dated 18th May, 1984. It was clearly stipulated in Condition No. (iii) that if lessee utilizes any areas specifically set up for non-remunerative activities for any remunerative purposes, it has to take prior approval of the Collector of Bombay and if granted the same will be subject to payment of 50% of the "net profit". Alleging that the appellant No. 1 was letting out the premises for commercial purposes and using the premises for commercial purposes, a demand was made for an amount of Rs. 19,03,103/- stated to be 50% of the net income. It was alleged that there was violation of the land grant terms and conditions. In the Notice dated 15.2.2003 the appellants were notified that since there was violation of the terms and conditions of the land grant, action was to be taken and in addition the defaulted amount i.e. Rs. 19,03,103/- was to be recovered. It was also indicate that coercive action shall be taken if payment is not made within three days of the receipt of the notice. Reply was submitted by the appellants on 20.2.2003 stating that there was no violation as alleged, and further the demand as raised was without any basis. After receipt of the reply notice of recovery as land revenue as per Section 267 of the Maharashtra Land Revenue Code, 1966 (in short the Code) was issued granting 20 days time for making payment. Writ petition was filed before the Bombay High Court questioning legality of the demand. After notice the respondents filed counter affidavit justifying the action and demand raised. Essentially, two stands were taken by the writ petitioner before the High Court. Firstly, it was contented that due and proper opportunity was not given to the writ petitioners to present their case. Secondly, it was submitted that the quantum as demanded has no basis of computation. The High Court by the impugned judgment held after taking note of the counter affidavit chat the demand was in order. High Court noted that an amount of Rs. 73,82,055/- was received in respect of 690 programmes as rental. Aforesaid amount of Rs. 73,82,055/- included a sum of Rs. 35,75,850/- as security deposit and the balance of Rs. 38,06,205/- was earned as income, and 50% thereof came to Rs. 19,03,103/- which was demanded. It was held that adequate opportunity was granted to the appellant to have their say. The writ petition was accordingly dismissed.