WESTERN COALFIELDS LIMITED Vs. MUNICIPAL COUNCIL BIRSINGHPUR PALI

JUDGEMENT

(1.) The appeal relates to the Birsinghpur Colliery. It was nationalised by reason of the Coal Mines (Nationalization) Act, 1973 and by reason of a direction issued by the Central Government under Section 5 thereof, it vested in the appellant. The first respondent sought to levy property tax on the Colliery. The levy was challenged by the appellant by way of a writ petition before the High Court of Madhya Pradesh. The writ petition was summarily dismissed, relying upon the judgment of this Court in the case of the appellant itself Western Coalfields Ltd. v. Special Area Development Authority. This appeal against the order of summary dismissal is filed by special leave.

(2.) The first respondent sought to tax the property of the Colliery in exercise of the power contained in Section 127-A of the M. P. Municipalities Act, 1961. Section 127-A contains sub-section (2) which states that property tax shall not be leviable on "buildings and lands owned by or vesting in (i) the UNION Government. . ".

(3.) S. 3, 5 and 11 of the Coal Mines (nationalization) Act, 1973, so far as they are relevant to this appeal, read thus: