SOUTH EASTERN COALFIELDS Vs. STATE OF CHHATTISGARH

JUDGEMENT

(1.) The petitioner-South Eastern Coalfields Limited is a subsidiary of Coal India Limited and is Government company in terms of Section 625 of the Indian Companies Act and dealing with extraction and marketing of coal. One of the units of the petitioner company is situated at Bishrampur, District Surajpur, which is known as Bishrampur Area. The State Government in exercise of powers conferred under Section 5(1) of the Chhattisgarh Municipalities Act, 1961 (hereinafter called as "the Act of 1961") has constituted Nagar Panchayat, Bishrampur by notification dated 20.1/2.2003 (Annexure P/3) and thereafter by notification dated 14th July, 2004 (Annexure P/4) the State Government in exercise of the powers conferred under Section 29 (1) of the Act of 1961 determined the extent of wards of Nagar Panchayat Bishrampur. The said Nagar Panchayat levied the property tax on the petitioner company in exercise of powers conferred under Section 127-A of the Act of 1961 vide Annexures P/5, P/6 and P/7. Questioning that notification determining the extent of wards and also questioning levy of property tax, this writ petition has been filed by the petitioner mainly on the ground that the land on which township of Bishrampur colliery is established is belonging to the Government of India acquired under the Coal Bearing Areas (Acquisition and Development) Act, 1957 for the purpose of coal mining and the State Government has no competency to include the area which is belonging to the Government of India and consequently, Nagar Panchayat Bishrampur cannot issue a direction to furnish return under the Act of 1961 for realization of property tax. It has also been stated that the area, which is reserved for mining, cannot be included in Nagar Panchayat, Bishrampur.

(2.) Returns have been filed by the State Government and Nagar Panchayat, Bishrampur.

(3.) Dr.N.K.Shukla, learned Senior Counsel appearing for the petitioner with Mr.Vikram Shrama, learned counsel, would submit that the State Government has no power and jurisdiction to include the area, which is belonging to the Government of India and used for mining purpose in Nagar Panchayat, Bishrampur and consequently, Nagar Panchayat, Bishrampur cannot issue a direction to furnish return under the Act of 1961 to recover the property tax.