NAGPUR TIMBER MERCHANTS' ASSOCIATION Vs. NAGPUR IMPROVEMENT TRUST

JUDGEMENT

(1.) THE petitioners in these petitions are either societies, duly registered under the Societies Registration Act, or individuals or partnership firms or the public trust also registered under the Bombay Public Trusts Act. The societies have filed the petitions on behalf of its members, who like other petitioners, were allotted plots either for the purposes greeting structures for residence, industry, commerce or for other non -agricultural purpose. All of them have filed petitions seeking a direction to prohibit the respondent Nagpur Improvement Trust from recovering the land revenue in the form of non - agricultural assessment in respect of plots held by them.

(2.) THE Nagpur Improvement Trust Act, 1936 was enacted with the sole object of providing planned development of Nagpur City. In order to carry out this object the respondent Nagpur Improvement Trust framed various schemes after acquiring land by following the procedure laid down under Land Acquisition Act. According to the scheme, layouts are prepared and the plots therein are allotted to interested persons for the purpose of non -agricultural use. The respondent Trust in whom the land vests under Section 17 -A of the Land Acquisition Act is the holder of unalienated land and hence an occupant under Section 2(23) of the Maharashtra Land Revenue Code. The plots are allotted by the respondent Trust in accordance with the Nagpur Improvement Trust (Land Disposal) Rules, 1955 (hereinafter referred to as 'the Rules'). Rule 3 provides the method by which allotment of plot has to be made. It could be by direct negotiation or by public auction or by inviting tenders or by concessional rate. Rule 7 provides the manner in which the transfer of plots is to be effected to the allottees. Under Sub -rule (1) of Rule 7 every transfer shall be made by lease and every lease in respect of any piece of land shall either be of thirty years or ninety years with a right of renewal by the lessor. Other modes of transfer like outright sale or exchange is provided in Sub -rule (2) of Rule 7. The only provision in the Nagpur Improvement Trust Act relating to the power for disposal of land is contained in Section 76 which provides that subject to the rules framed by the State Government, the Trust may retain or may let on hire, lease, sell or exchange or otherwise dispose of the land vested in it or acquired by it under this very Act. Obviously, therefore the Land Disposal Rules are framed by the State Government under Section 76 of the Act. It is under these rules that the Nagpur Improvement Trust have allotted plots to members of the petitioner societies and other petitioners on leasehold rights.

(3.) THE petitioners claimed that non -agricultural assessment is nothing but a land revenue which under the Land Disposal Rules is payable only by the Trust and not the allottees. They also claimed that the responsibility for payment of non -agricultural assessment is that of the Nagpur Improvement Trust under Section 168 of the Maharashtra Land Revenue Code.