INDIAN REGISTER OF SHIPPING Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) PETITIONERS by an order of grant dated 24-1-1985, were allotted government land in village Kopari survey no. 1 pt. , admeasuring 24281 sq. mtr. The grant was subject to amongst others, the following terms and conditions :-

(2.) THE Petitioner paid the sum of rs. 22,74,990/- towards the provisional possession and possession was also been given to the Petitioners on 12-4-1983. It is the case of the Petitioner that they were surprised to receive letter dated 1-1-1997 from the Respondent. Under item 7, of the letter the Respondent claimed interest @ 15% per annum from 1-7-1992 to 7-12-1996 in the sum of Rs. 49,48,976=56. In response to that letter the Petitioners by their letter dated 7-2-1997 addressed to the Respondents pointed out that in the allotment letter issued to the Petitioners and in the agreement signed by them, interest was provided only @ 8% p. a. and consequently, Respondents were not entitled to claim or charge interest @ 15% per annum. There is some dispute with regard to valuation, which need not be adverted to as that issue has not been raised at the time of hearing of the petition. In response to the letter, Petitioners received a reply on 14-3-1997, pointing out that the final price of the land is charged as per the prevailing Government rate and sofar as interest is concerned, it is charged as per the orders issued by the Government from time to time and no concession could be made in favour of the Petitioner. Further correspondence was exchanged. In the meantime, on account of failure by the petitioners to pay the interest, as demanded, the Tahsildar by letter dated 29-7-1998 after setting out various amounts paid by the petitioners set out that balance amount due was in the sum of Rs. 23,09,534/ -. The Petitioners were called upon to pay the amount within 3 days, failing which proceedings for recovery would be initiated under provisions of Land revenue Code. The Petitioners represented against the same. Representation then was also made to the Principal secretary, Revenue. However, no relief was granted in favour of the Petitioner. By letter of 30-9-1998, the Bank of Baroda informed the Petitioners of an order dated 29-9-1998 issued by the office of tahsildar attaching the amount of rs. 23,09,534/ -. The Petitioners were therefore, called upon to make immediate arrangements, or alternatively they would debit Petitioners' current account with the said sum. As the amount was not paid, by letter of 10-10-1998, office of Tahsildar informed the Manager, bank of Baroda that the bank account of the petitioners be frozen. It is not necessary to refer to the other correspondence. Suffice it to say that the Petitioners have thereafter filed the present Petition. Rule was issued on 14-8-2001. The order of status-quo granted on 1-8-2001 was continued till the hearing and final disposal of the matter.

(3.) A Reply has been filed on behalf of the Respondents by Shri. Ashok Ahilu pawar, Additional Chitnis in the office of collector, Mumbai Suburban District. After adverting to the various documents, it is pointed out that the Government of Maharashtra had issued resolution dated 30-6-1992, thereby fixing the rate of interest to be levied for the recovery of arrears of payment of the final occupancy price under the Maharashtra Land revenue Code @ 15% per annum instead of 8% per annum. The demand, therefore, according to the Respondents is based on this resolution of 30-6-1992 and that demand is in conformity with the various documents, wherein the land was given to the Petitioner. Translated copy of the G. R. has been made available.