CASE DETAILS
| Bench S.K. Kaul J. Veena Birbal J. | Case no. (2010) SCC Online Del 1334 | Acts/law DLR Act 1954 DMC Act 1957 |
INTRODUCTION:
INDU KHORANA V/S GRAM SABHA AND OTHERS is a landmark judgment in revenue law wherein the division bench of Delhi High Court looked into the applicability of the DLR Act, after passing notification under section 507 of DMC,1997 Act.
FACTS:
Petitioner is owner/bhumidhar of agricultural land and was granted permission to use a portion of land for storage of agricultural implements and gas cylinders. However, a complaint was filed against the petitioner for use of agricultural land other than the agricultural land. The said complaint was dismissed by the revenue assistant reason being time bared. An appeal was filed assailing the said order of dismissal under section 185 of Delhi Land Reforms Act. The said appeal was allowed by deputy commissioner the said order was challenged by the petitioner herein before the financial commissioner via a revision petition, however ld. Financial Commissioner was pleased to dismiss the same. Aggrieved by the same petitioner filed the present petition before the High court, which is referred to division bench by Ld. Single judge.
ISSUES
- Whether DLR Act will ceases to apply after passing notification under section 507 of DMC Act?
- Whether tax could be levied by MCD after urbanization of agricultural land?
CONTENTION:
It was contended by the petitioner before Ld. Single judge that the land has been urbanized by passing notification under section 507 of Delhi Municipal Corporation Act, 1957. Therefore, DLR Act no longer applicable eventually impugned order passed by the revenue authorities is liable to be set aside.
SINGLE JUDGE:
It was observed that the issue of urbanization has no concern with the use of land, furthermore irrespective of the fact whether land is rural or urban but same is agricultural land, the provision of DLR Act will apply.
Court also observed that if DLR, Act ceases to apply then Delhi Municipal corporation will be permitted to levy tax on agricultural land.
CASES REFERED:
Trikha Ram vs. Sahib Ram & ANR. (1997): Single judge gave finding that if the notification under section 507 passed and land urbanized DLR Act ceases to apply same was upheld in Madho Prasad vs. Ram Kishan & Ors.
Sis Ram & ors. vs. Sh. Lallu Singh & Ors. (2006): A suit for partition was filed for the agricultural land same was urbanized by notification under 507 DMC Act, therefore court held DLR Act ceases to apply.
JUDGMENT:
Court held that the question concerning the levying of tax by the MCD was already decided by the division bench in Naresh Kumar vs. Union of India & Ors. (1994) court observed as under:
“When the legislature exempts ‘agricultural lands’ and buildings used substantially for agricultural purposes from the purview of the property tax as stated by us and makes only ‘dwelling houses’ located therein subject to tax, it will not, in our opinion, be permissible for the assessing authority to take the entirety of the agricultural land - whatever be its extent - on which the building or farm house is located, for purposes of levying property tax. We are of the view that only such land around the dwelling house which can be said to be reasonably required for the beneficial enjoyment of the dwelling house or farm house, must alone be the subject matter of the tax.
In present petition division bench find no reason to over rule or set aside the aforesaid finding of division bench to levy tax by the MCD in a situation where the land has been urbanized.
Further in para 11 court gave a finding for the applicability of DLR act after passing of notification under section 507 of DMC Act, as under:
11. We thus hold that once rural area is urbanized by issuance of notification under section 507(a) of the Delhi Municipal Corporation Act, 1957, provisions of Delhi Reforms Act will cease to apply.