MUNCIPAL COUNCIL Vs. NATIONAL FEETILIZER LTD.OTHER

JUDGEMENT

(1.) These two Appeals arise out of a common Judgment passed on 3rd August, 2007 in First Appeal Nos.1 of 1996 and 175 of 1995, respectively, by the High Court of Madhya Pradesh, Bench at Gwalior.

(2.) The short question that arises for our consideration in these appeals is whether the contesting respondents herein, i.e. National Fertilizers Limited and Gas Authority of India Limited, are liable to pay external development charges to the appellant-- Municipal Council as per its demand?

(3.) Both the contesting respondents in these appeals were allotted forest lands within the municipal limits of the appellant Council. Subsequently, the respondents were served with a notice calling upon them to deposit external development charges @ Rs.5/- per sq. meter in consonance with Government of Madhya Pradesh, Housing and Environment Department, Notification No. F.3-39/32/85, dated 28-11-1985. Raising objections, respondents challenged the notices by filing Civil Suits before the District Judge, Guna, Madhya Pradesh contending that they are Central Government entities and would not come under the purview of the said Notification and hence sought declaration and permanent injunction restraining the appellant from demanding external development fee from them.