LexNAGPUR IMPROVEMENT TRUST versus NAGPUR TIMBER MERCHANTS ASSOCIATION AND ANR. ETC.
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.• - NAGPUR IMPROVEMENT TRUST v. NAGPUR TIMBER MERCHANTS ASSOCIATION AND ANR. ETC. MARCH 18, 1997 (S.C. AGRAWAL ANDS. SAGHIR AHMAD, JJ.) Land Laws : Maharashtra Land Revenue Code, 1966-Nagpur Im- provement Tmst (Land Disposal) Rules, 1955-Rule 9 making it obligatmy A B on the Nagpur Improvement Tmst to make payment of land revenue-Lease Deed imposing the duty on the lessee to discharge all rates, taxes, charges and C assessments imposed on the land. Held, Rule 9 which makes the Improvement Tmst liable for payment does not preclude it fro/11 requiring the lessees to pay the amount of non-agricultural assessment. The Nagpur improvement Trust has been constituted for improve- D ment and expansion of the town of Nagpur. The disposal of lands vested in the Trust is Governed by the Nagpur Improvement Trust (Land Dis- posal) Rules, 1955. Land is transferred by lease and in certain circumstan- ces by outright sale or exchange. The Government of Maharashtra initiated proceedings for assessment and recovery of non-agricultural assessment charges under the provisions of the Maharashtra Land E Revenue Code, 1966. It demanded the charges from the Improvement Trust. The Trust asked the lessees to make the payment. The lessees disclaimed their liability for non-agricultural assess- ment. They filed Petitions in the High Court. High Court allowed the F petitions and restrained the Trust from making recovery from the plot- holders. It held that non-agricultural assessment was nothing but land revenue and in view of Rule 9 of the Rules the Trust was liable to pay the same. It further held that Cl. 1 (b) of the Lease Deed did not provide for payment of land revenue by the lessees and that such a construction of the clause was in consonance uith Rule 9. It also emphasized that burden of G payment was statutorily fixed under Rule 9 which could not be shifted to others and that payment was to be made by the Trust and no one else. The Court also observed that the lessees had no notice of the proceedings regarding fixation or assessment and so the liability could not be passed on to them. Aggrieved by the judgment, the appellant Trust had filed the H 21 22 SUPREME COURT REPORTS [1997] 3 S.C.R. A present appeal. Allowing he appeal, this Court HELD : 1.1. Rule 9 of the Nagpur Improvement Trust (Land Dis- posal) Rules, 1955 which governs the relationship between the State B Government and the Improvement Trust imposes liability for the payment of land revenue on the Trust. [25-F-H] 1.2. Rule 9 cannot be construed to mean that the burden which is statutorily fixed on the Trust cannot be shifted to others. There is no warrant for adding the words "no one else" in Rule 9 so as to preclude the C Trust from re11uiring the lessees to make the payment. [26-A-C] 13. In case the Trust is made liable to pay, there is a possibility that it may end up paying more by way non-agricultural assessment than the amount received by it from the lessees as a premium from the land. It D could not be the intention of the rule making authority that the Trust shall finance the lessees in respect of the land disposed by it. [26-D-H, 27-A-B] E F G 1.4. It is permissible for the Improvement Trust to require the respondent-lessees to pay the amount of non-agricultural assessment in respect of the lands leased out to them. [28-A-B] CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 2030· 2035 of 1997 Etc. From the Judgment and Order dated 3.9.91 of the Bombay High Court in W.P. No. 2292, 1898, 2075, 2172, 2251 and 2265 of 1982. V.A. Bobde, G.L. Sangbi, Dr. R.B. Masodkar, S.C. Patel, S.K. Gam- bir, Vivek Gambhir, Diwakar Chaturvedi, (D.M. Nargolkar) (NP), S.V. Deshpande, Pramit Saxena and AK. Sanghi for the appearing parties. The Judgment of the Court was delivered by S.C. AGRAWAL, J. Special leave granted. These appeals raise common questions for consideration. The Nag,, pur Improvement Trust, the appellant herein, has been constitut.ed under the provisions of the Nagpur Improvement Trust Act, 1936 enacted to H , provide for improvement and expansion of the town of Nagpur. The said ... NAGPUR IMPROVEMENT TRUST v. NAGPUR TIMBER MERCHANTI5 ASSN. [S.C. AGRAWAL, l.) 23 Act makes provisions for acquisition of land by the Improvement Trust in A connection with various schemes which are framed by the Improvement Trust. After development the land is disposed of by the· Improvement Trust. The disposal of lands
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