ASBESTOS CEMENT Vs. STATE OF M P

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution of India challenging the original, appellate and revisional orders passed by the different Revenue Courts (Vide Petitioner's Annexures 1, 2, 3 and 5) assessing the petitioner to enhanced land revenue in respect of land said to have been diverted for non-agricultural purposes.

(2.) THE lands in question were formerly held by the Associated Cement Company limited in Malik-makbuza rights. The said Company had been granted a mining lease in respect of the said lands for a period of 30 years starting from the year 1920 and ending in the year 1950. According to the report appended to the order of the Sub-Divisional Officer an area of 2,20948 square feet had been diverted for non-agricultural purposes for constructing residential quarters for labourers after 1-10-1955 on which date the M. P. Land Revenue Code, 1954, was brought into force. It is pertinent to note that under the Central Provinces Land Revenue Act, 1917, a Malik-makbuza holder intending to divert his holding to non-agricultural purposes was not required to take the permission of a Revenue Officer, but all the same, he was liable for enhanced land revenue as re-assessed under Section 88 (ii) of the C. P. Land Revenue Act, 1917. Similar was the position with respect to a malguzar. The tenants whether absolute occupancy holders or occupancy holders were required to take the permission of a revenue officer for diverting the land to non-agricultural purpose under Section 104 of the C. P. Land Revenue Act, 1917. For the first time the M. P. Land Revenue Code, 1954, introduced the necessity of tenure holders seeking such permission and that provision is now embodied in sections 59 and 172 of the M. P. Land Revenue Code, 1959. According to the finding of the Sub-Divisional Officer, an area of 15,61,532 square feet had been diverted to non-agricultural purposes prior to 1-10-1950. Thus, the total diverted area is 18,29,520 square feet, out of the lands held by the petitioner and its predecessor. The petitioner's predecessor had been assessed to land revenue of rs. 16. 19 ps. in respect of 42 acres of land held by it. The lands were transferred by the Associated Cement Company. Limited to the present petitioner sometime in the year 1935. However, in spite of the diversion the lands have throughout been assessed to land revenue on the basis that they continued to be lands used for agricultural purposes.

(3.) THE measurer reported to the revenue authorities that the lands had been diverted by the petitioner-company and, therefore, proceedings for re-assessment of land revenue in respect of such diverted lands were initiated against the petitioner under Section 59 (2) of the M. P. Land Revenue Code, 1959. It is necessary to note as to what the Sub-Divisional Officer did. He specifically found that the entire land was being used for non-agricultural purposes and, therefore, it was liable to be re-assessed at non-agricultural rate. For residential purposes land revenue on an area 17,89,480 square feet was calculated at Rs. 1782. 50 ps. at the rate of 10 paise per 100 square feet and in respect of land diverted for industrial purposes, the assessment was made at Rs. 94. 00 per year regarding 47040 square feet, calculating at the rate of 20 paise per 100 square feet. Thus, the petitioner was made liable to pay the annual land revenue of Rs. 1782. 50 paise and Rs. 94. 00 for residential and industrial purposes respectively. As 16,08,572 square feet of land had been diverted to non-agricultural purposes prior to 1-10-1955, the petitioner was exempted from levy of premium and penalty. As regards the remaining land measuring 2,20,948 square feet, the petitioner was held liable for payment of premium as the land had been diverted after 1-10-1955 and it lay within the limits of Kymore town which had been duly declared as an urban area by a Notification. Therefore, the petitioner was required to pay premium of Rs. 500/- per acre in respect of that area. The total premium thus was determined at Rs. 2536. 11 paise. The petitioner was also given the rebate of land revenue for one year under Section 59 (3) of the M. P. Land Revenue Code, 1959. Thus, the total premium determined was Rs. 2315. 21 paise. The Sub-Divisional officer also imposed a penalty of Rs. 200. 00 under Section 172 (4) of the M. P. Land Revenue Code, 1959. The Sub-Divisional Officer had also directed that the re-assessed land revenue be recovered from the agricultural year 1959-60 onwards. Similarly, the Additional Collector and the Board of Revenue confirmed that order. On a reference to the said orders, it is to be seen that the appellate authority or the revisional authority made a wrong assumption that no penalty had been imposed. In fact the Sub-Divisional Officer had imposed a penalty under section 172 (4) of the M. P. Land Revenue Code, 1959.