MUNICIPAL CORPORATION RAJASTHAN versus SANJEEV SACHDEVA AND OTHERS

Citation: [2013] 1 S.C.R. 220 · Decided: 08-01-2013 · Supreme Court of India · Bench: K.S. RADHAKRISHNAN, DIPAK MISRA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

A 
B 
[2013] 1 S.C.R. 220 
MUNICIPAL CORPORATION RAJASTHAN 
v. 
SANJEEV SACHDEVA AND OTHERS 
(Civil Appeal No.240 of 2013) 
JANUARY 8, 2013 
[K.S. RADHAKRISHNAN AND DIPAK MISRA, JJ.] 
Rajasthan Municipalities Act 1959 [as amended by the 
Rajasthan Municipalities Amendment Act 1999 (Act No. 19 of 
C 1999)) - s.173-A - Interpretation of - Power of the State 
Government to allow change in use of land on payment of 
conversion charges - Respondents filed application on 
16.7. 2003 for change of land use from residential to 
commercial - Corporation issued public notice inviting 
D objections - Later, the Land Use Committee met and 
approved the conversion for which a demand notice was 
raised by the Corporation on 2.4.2004 -
Validity of the 
demand - Challenge to - High Court following the judgment 
of Supreme Court in Pareshar Soni's case held that the 
E Municipal Corporation was not empowered to demand any 
amount for change of use of the land - Whether the judgment 
in Pareshar Soni's case would apply to the demand notices 
issued by the Municipal Corporation on the basis of s.173-A, 
as amended by Act No. 19of1999 - Held: High Court erred 
F in applying the judgment in Pareshar Soni's case which was 
dealing with the un-amended provision of s. 173-A - In terms 
of the un-amended s. 173-A(1 ), conversion for change of Land 
Use charges could only be realized if the land was allotted 
by the Municipality or the State Government and there was a 
G condition for restraining use for a particular purpose only -
Therefore, in the absence of land being allotted by the State 
Government/ Municipality and in absence of any specific 
stipulation regarding use of land, the conversion charges 
could not be claimed -
This was the ratio laid down in 
H 
220 
MUNICIPAL CORPORATION RAJASTHAN v. 
221 
SANJEEV SACHDEVA AND ORS. 
Pareshar Soni's case interpreting the un-amended s. 173-A -
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The Legislature, with a view to ensure planned and regulated 
development of the urban area felt it necessary to charge for 
the change of use in certain circumstances of those lands 
which were not sold or allotted by municipality or by the State 
Government - Further it also felt that such a change of user 
B 
be permitted only "in public interest" -Amendment was 
necessitated since the State Legislature thought the provision 
of s.173-A (un-amended) stood as an impediment for proper 
planning of urban areas - With a view to ensure planned and 
regulated development of urban areas, it was felt that some c 
restrictions have to be imposed and it was for that purpose 
that s. 173-A was amended - In the case at hand, the demand 
was legal and valid and in accordance with the provisions of 
s. 173-A, as inserted by Amendment Act 19 of 1999 read with 
the 2000 Rules - Rajasthan Municipalities (Change of Land 0 
Use) Rules, 2000 - Rule 4(1). 
State of Rajasthan and others v. Pareshar Soni (2007) 
14 sec 144 - held inapplicable. 
Mewa Ram v. State of Rajasthan 2007 (1) WLC (Raj) 1 
E 
- referred to. 
Case Law Reference 
c2001) 14 sec 144 
held inapplicable Para 5,8,9,1 
1,12,13,15 
F 
2007 (1) WLC (Raj) 1 
referred to 
Para 7 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 240 
of 2013. 
From the Judgment & Order dated 02.02.2009 of the High 
Court of Rajasthan at Jodhpur in D.B. Civil Special Appeal No. 
159 of 2009. 
G 
H 
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B 
c 
222 
SUPREME COURT REPORTS 
[2013) 1 S.C.R. 
WITH 
C.A. Nos. 242 & 241 of 2013. 
Dr. Manish Singhvi, AAG, Dharrnendra Kumar Sinha, Amit 
Lubhaya, Milind Kumar for the Appellant. 
Sushil Kumar Jain, Sachdeva, Pratibha Jain, Vikas Mehta 
for the Respondents. 
The following Order of the Court was delivered 
ORDER 
1. Delay condoned. 
2. Leave granted. 
D 
3. Heard learned counsel on either side. 
4. We are in these cases concerned with the interpretation 
of Section 173-A of the Rajasthan Municipalities Act 1959, as 
amended by the Rajasthan Municipalities Amendment Act 1999 
E (Act No.19 of 1999), which deals with the power of the State 
Government to allow change in use of land on payment of 
conversion charges. 
5. The Division Bench of the Rajasthan High Court, 
F following the judgment of this Court in State of Rajasthan and 
others v. Pareshar Soni (2007) 14 SCC 144, disposed of all 
the appeals, holding that the Municipal Corporation is not 
empowered to demand any amount for change of use of the 
Ian~. We may refer to the facts in Civil Appeal No.240 of 2013 
@ ~SLP(C) 11907 of 2009 for disposal of all these appeals,
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