MARUTHI INDUSTRIES TIMBER MERCHANTS Vs. DIVISIONAL RAILWAY MANAGER

JUDGEMENT

(1.) The petitioner impugnes the proceedings of the first respondent dated 25.3.1998, whereby and where under the petitioner was asked to remit a sum of Rs. 1,52,129/- (Rupees one lakh fifty two thousand one hundred and twenty nine only) towards revised licence fee with effect from 1.4.1986, failing which action would be taken for forfeiture of security deposit and initiate proceedings for evicting the petitioner from railway land. The petitioner also seeks a direction to Respondents 1 and 2 to fix the market value of the land in Survey No.2001 as per valuation report dated 16.1.1998 of the Sub-Registrar, Kavali and redetermine the arrears of licence fee payable by the petitioner.

(2.) The petitioner obtained licence for use of the railway poramboke site admeasuring 1,845 square meters in Survey No.2001 of Kavali Bit II Village with permission to erect a temporary shed for running a sawmill in the name and style of M/s.Maruthi Industries Timber Merchants. As per the terms of licence deed, the petitioner has to pay licence fee at 6 per cent of the market value of the land subject to revision every five years. To start with, the petitioner was required to pay a sum of Rs.616.40 (Rupees six hundred sixteen and paise forty only) in the year 1974-75, which was revised from time to time. By impugned proceedings, the petitioner was informed that revision of licence was conducted basing on the market value of the land as on 1.1.1985 and the value was fixed with effect from 1.4.1986 @ Rs.7 1/2 per cent of the market value. The petitioner contends that Assistant Engineer, South Central Railway, Ongole made enquiries about the valuation of the land from Sub-Registrar, Kavali, who informed the Assistant Engineer that the market value of the land in Survey No.2001 relating to Kavali Bit II Village is Rs.600/- (Rupees six hundred only) per acre in the year 1985, Rs. 1,000/- (Rupees one thousand only) per acre in 1987 and Rs.10,500/- (Rupees ten thousand five hundred only) per acre in 1998. The petitioner made a representation on 27.7.1999 requesting the respondents to calculate licence fee as per the valuation report of the Sub-Registrar, Kavali. Second respondent by a letter dated 19.8.1999 informed the petitioner that the rate of licence fee is increased notionally every year on the first April starting from 1.4.1986 @ 10 per cent over the rate of previous year's value. The petitioner allegedly made another representation to Railway Ministry requesting to direct the Respondents 1 and 2 to reconsider his case, in vain. But respondents initiated proceedings under Public Premises (Eviction of Unauthorized Occupants) Amendment Act, 1980 (the Act, for brevity) and issued show-cause notice under Section 4(1) of the Act on 31.10.1999. Therefore, the petitioner filed the present writ petition.

(3.) Second respondent filed counter-affidavit on behalf of the respondents opposing the writ petition alleging that the petitioner has not come to the Court with clean hands and that he has suppressed the truth and correct facts. It is stated that in response to the impugned demand notice, the petitioner admitted the liability and paid an amount of Rs.5,000/- (Rupees five thousand only) as part payment. He has also addressed a letter on 13.7.1998 requesting for permission to pay the balance amount within six months in instalments basis. The petitioner paid further sum of Rs.10,000/- (Rupees ten thousand only) on 31.10.1998. The petitioner thereafter addressed a letter dated 11.3.1999 agreeing to pay an amount of Rs.50,0007- (Rupees fifty thousand only) before the end of March, 1999 and requested the respondents not to take any legal action.