Listen to this articleShridhar C. Shetty (deceased) v. The Additional Collector & Competent
Authority& Ors.
CIVIL APPEAL NO(s). 2019 of 2010 decided on
September 2, 2020.
https://main.sci.gov.in/supremecourt/2007/22893/22893_2007_33_1502_23716_Judgement_02-Sep-2020.pdf
BENCH– Rohinton Fali Nariman, Navin
Sinha, JJ.
FACTS
A and Bwere the original
owners of the lands, whose land were
declared surplus under the Urban Land (Ceiling and Regulation) Act (hereinafter
referred as ‘Act’). The agreement for sale was executed by the owners in favour
of the appellant who himself agreed to pursue matters before the competent
authority under the Act and to obtain all necessary permissions, exemptions
etc. for development on the land. The appellant then applied for exemption
which was subsequently granted on by the State Government under the guidelines
issued under Section 20 of the Act. The exemption mandated 20% (14 tenements)
to be handed over for allotment to government nominees. Subsequently, appellant
failed to handover seven tenements are per condition prescribed for exemption. The
demand for Rs. 51,97,196/plus interest, penalty and recovery expenses as
arrears of land revenue was raised by competent authority consequent to the
default by appellant under Sections 20 and 21 of the Act.
ISSUE
Whether the competent
authority under the Act possesses the power to recover the market value of
seven tenements for failure to hand over possession in terms of the order of
exemption?
HELD
The Supreme Court in its
judgement declared that the impugned demand of government for market value of
seven tenements is unsustainable and arbitrary. The Hon’ble Court held that ‘competent
authority’ being a creature of the statute under Section 2(d) of the Act,
cannot act beyond its statutory jurisdiction and the exercise of its powers
shall remain circumscribed by the provisions of the Act.Furthermore, theCompetent
Authority under the Act could have certainly withdrawn the exemption in the
event of breach along with all its attended consequences as power prescribed
under section 20 and 21 of the Act. Both the sections contain provisions that
if the government or competent authority is satisfied that any of the
conditions subject to which exemption was granted is not complied with, it
shall be competent to withdraw the order of exemption or to declare such land
to be excess. Hence, the demand for the market value of the remaining seven
tenements falls outside the purview of the Act and it cannot be construed as
money due to the government.
[See Following Sections
“2(d) “competent
authority” means any
person or authority authorised
by the State Government, by notification in
the Official Gazette,
to perform the functions of the competent authority
under this Act for such area as may be specified in the notification
and different
persons or authorities
may be authorised to perform
different functions.
20. Power to exempt.
—(1) Notwithstanding anything contained in any of the foregoing provisions of
this Chapter—
(a) where any person
holds vacant land in excess of the ceiling limit and the State Government is
satisfied, either on its own motion or otherwise, that, having regard to the
location of such land, the purpose for which such land is being or is proposed to
be used and
such other relevant factors as
the circumstances of
the case may require, it is necessary or expedient in
the public interest so to
do, that Government
may, by order, exempt, subject
to such conditions, if any, as may be specified in the order, such vacant land
from the provisions of this Chapter;
(b) where any person
holds vacant land in excess of the ceiling limit and the State Government,
either on its own motion or otherwise, is satisfied that the
application of the
provisions of this Chapter would cause undue hardship to
such person, that Government may by order, exempt, subject to such conditions,
if any, as may be specified in the order, such vacant land from the provisions of
this Chapter:
Provided that
no order under this clause shall be made unless the reasons for doing so
are recorded in writing. Provided that no order under this clause shall be made
unless the reasons for doing so are recorded in writing.
(2) If at any time the
State Government is satisfied that
any of the
conditions subject to
which any exemption under
clause (a) or
clause (b) of subsection (1) is granted is not
complied with by any person, it shall
be competent for
the State Government to
withdraw, by order, such exemption after giving a reasonable opportunity to
such person for making a
representation against the
proposed withdrawal and thereupon
the provisions of
this Chapter shall apply accordingly.
21. Excess vacant land
not to be treated as excess in certain cases.— (1) Notwithstanding anything
contained in any of the foregoing provisions of this Chapter, where a person holds
any vacant land in excess of the ceiling limit and such person declares within
such time, in such form and in
such manner as
may be prescribed before the competent authority
that such land is to be utilised for
the construction of
dwelling units (each such
dwelling unit having a plinth area not exceeding eighty
square metres) for
the accommodation of the weaker sections of the society, in accordance
with any scheme approved by such authority
as the State
Government may, by notification in
the Official Gazette,
specify in this behalf, then,
the competent authority
may, after making such inquiry
as it deems fit, declare such land not to be excess land for the purposes of
this Chapter and permit such person to continue to hold such land for the
aforesaid purpose, subject to such terms and conditions as may be prescribed,
including a condition as to the time limit within which such building are to be
constructed.
(2) Where any
person contravenes any
of the conditions subject to
which the permission has been granted
under subsection (1),
the competent authority shall,
by order, and
after giving such person an opportunity of being heard,
declare such land to be
excess land and
thereupon all the provisions of this Chapter shall apply accordingly.”]