HINDUSTAN AERONAUTICS LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) RULE. This matter was heard forthwith for final disposal by consent of both the sides on 17th September, 2003, having regard to the fact that short question is involved.

(2.) THIS writ petition under Article 227 of the Constitution of India takes exception to the judgment and order passed by the Principal Secretary, Revenue and Forests Department, Government of Maharashtra, dated 21st April, 2003, holding that the petitioner is liable to pay non-agricultural assessment in respect of lands situated at villages Ojhar, Konkangaon and Sakore, taluka Niphad, District Nasik. It is common ground that the said lands were acquired by the State Government and the acquisition proceedings concluded some time in 1968. As the lands thereafter vested in the State Government, the same were made over to the President of India for establishing MIG factory and related purposes by a registered document dated 19/11/1971. It is also not in dispute that the President of India thereafter allowed the petitioner to occupy the subject lands for constructing MIG factory and that the petitioner is in possession of those lands since then. An indenture was executed between the petitioner and the President of India on 2 2/06/1978, whereby the parties agreed for transfer of the subject lands to the petitioner. However, this purported transfer deed has not been registered. It appears that the Accountant General, Maharashtra II, Nagpur, raised an audit objection regarding non-charging of non-agricultural assessment in respect of the subject lands, which were in possession of the petitioner company. In view of the said objection, taken some time in 1993, correspondence ensued between the officers of the Government of Maharashtra and the petitioner company, including the Ministry of defence, Government of India. According to the stand taken by the officers of the State of maharashtra, the lands were amenable to non-agricultural assessment, as the petitioner was a separate entity and occupant in respect of the subject lands. Besides, they proceeded on the premise that the subject lands have been transferred in favour of the petitioner and the Union of India had no concern with the same. On the other hand, the petitioner company asserted hat the lands continued to belong to the Union of India. Besides, the petitioner company was 100 per cent, owned and controlled by the Union of india, for which reason also the petitioner company was exempted from paying non-agricultural assessment in respect of the subject lands. The stand taken on behalf of the petitioner company was not acceptable to the officers of the State Government. In the circumstances, demand notice in Form-I was issued to the petitioner by respondent No. 4 on 5/07/2001, demanding sum of Rs. 10,98,11,575/-, being the non-agricultural assessment in respect of the subject lands. That demand notice was followed by another demand notice dated 23/08/2001. Once again, the Secretary to the government of India, Ministry of Defence took up the matter with the Chief secretary of the State of Maharashtra contending that the subject lands belonged to the Union of India and were exempted under Article 285 (1) of the Constitution of India from payment of non-agricultural assessment. It is the petitioner's case that the said representation was pending with the higher authority and, yet, the officers of the State Government persisted with the demand against the petitioner company. In this backdrop, the petitioner filed writ petition before this Court, being Writ Petition No. 6209 of 2001. That writ petition came to be disposed of by order dated 16th January, 2002, directing the respondent No. 2 to decide the representation dated 27th August, 2001 made by the Secretary to Government of India, Department of defence, preferably within three months from the date of receipt of the order of this Court. Thereafter, Civil Application No. 247 of 2002 was filed by the petitioner for further relief in the above numbered disposed of writ petition. That Civil Application was disposed of on 6th February, 2002 by directing the respondent No. 2 to consider the representation dated 27/08/2001, as well as dated 31 st January, 2002. When the proceedings were pending before respondent No. 2 in terms of directions passed by this Court, the petitioner company deposited 25 per cent, of the demanded amount, i. e. Rs. 2,74,52,894/- with respondent No. 4. The proceedings before respondent no. 2 were kept for hearing on 27th March, 2002 when the representative of the petitioner as well as the officers of the State of Maharashtra participated; whereafter respondent No. 2, by his judgment and order dated 1st June, 2002, affirmed the opinion and conclusion recorded by the Revenue Officers that the petitioner company was obliged to pay non-agricultural assessment in respect of the subject lands. On the basis of the decision of the respondent No. 2, the Revenue Officers once again demanded the amount from the petitioner company, which was outstanding. The petitioner company, in turn, questioned the correctness of the decision of the respondent No. 2 and the demand regarding non-agricultural assessment to be paid by the petitioner company in respect of the subject lands, by way of Writ Petition No. 4006 of 2002, (Hindustan Aeronautics Ltd. v. State of Maharashtra), reported in 2003 (2)Bom. C. R. 652. That writ petition was allowed by judgment and order dated 4th October, 2002, and the matter was remanded to the respondent No. 2 to consider the same afresh in accordance with law, keeping all the questions open. Once again, after remand, respondent No. 2 has finally decided the matter by judgment and order, which is impugned in this writ petition, thereby affirming the demand set up against the petitioner company for payment of non-agricultural assessment in respect of the subject lands. It is relevant to note that the assessment order has excluded certain portion of the lands, which have been utilised by the petitioner company for public purpose and that aspect is not subject matter of challenge in this petition.

(3.) MR. Tulzapurkar, for the petitioner, contends that the impugned judgment has answered the issue against the petitioner company on the following reasons: (i) By an agreement dated 22/06/1978, the Government of India has transferred the said properly to the petitioner. The said document is not required to be registered under section 17 of the Registration Act, inasmuch as the notional value of the property was shown in the said document as Re. 1/ -. (ii) The petitioner had transferred certain lands to Defence Research and Development organisation on 10/10/1981, admeasuring 2328 sq. yds. and that, therefore, the petitioner was the owner of the property. (iii) The petitioner is a separate legal entity and that it is a commercial organisation and, therefore, exemption available to the Central Government under Article 285 (1) of the Constitution of India cannot be claimed by the petitioner. (iv) The Accountant General, Maharashtra II, Nagpur had raised an audit objection stating that the petitioner was a public sector company and, therefore, it was liable to pay non-agricultural assessment; and that, it was not exempted under section 117 of Maharashtra Land Revenue Code. (v) The VII x XII extracts show that the name of the petitioner has been entered into the occupant's column and, that, therefore, the right, title and interest vested in the petitioner and not in the Central Government; and that, even if the petitioner is to be treated as an occupant under section 168 (1) of the Land Revenue Code, the revenue charoes can be recovered from the occupant. Since the petitioner is an occupant, it is liable to pay non-agricultural assessment.