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Civil · Reportable judgment

The Municipal Council, Raghogarh & Anr. vs National Fertilizer Ltd. & Ors.

Court
Supreme Court of India
Date
30 January 2018
Case No.
Civil Appeal No. 2511 of 2011
Result
Dismissed
Bench
N.V. Ramana, S. Abdul Nazeer
Citation
[2018] 1 S.C.R. 603 : 2018 INSC 69
Supreme Court Reports [2018] 1 S.C.R. 603 : 2018 INSC 69
Headnote

Municipal Council – External development charges – Liability of National Fertilizers Limited and Gas Authority of India Limited to pay external development charges to the appellant-Municipal Council – Held: If any colonizer, house construction society or individual person constructs a colony under the supervision of Municipal committee or Municipal corporation, as the case may be, charges towards external development are applicable – In the instant case, the respondents are neither colonizers nor house construction societies or individuals – The dwelling units are developed by contesting respondents i.e. Government entities being PSUs with the investment of Central Government and are for their employees only and not meant for sale or for letting out on rent therefore, the contesting respondents are not liable to pay any amount in the form of external development fee as demanded by the appellants.

Dismissing the appeals, the Court

HELD: Whether the contesting respondents herein, i.e. National Fertilizers Limited and Gas Authority of India Limited, are liable to pay external development charges to the appellant— Municipal Council as per its demand?

If any colonizer, house construction society or individual person constructs a colony under the supervision of Municipal Committee or Municipal Corporation, as the case may be, Rs.5/per sq. mtr. towards external development charges are applicable. While so, in the case on hand, the contesting respondents are neither colonizers nor house construction societies or individuals. The dwelling units developed by them are for their employees only and not meant for sale or for letting out on rent. Apparently, the construction of dwelling units and the residential areas developed by the contesting respondents are done by the contesting respondents i.e. Government entities being Public Sector Undertakings with the investment of Central Government. The contesting respondents are not liable to pay any amount in the form of external development fee as demanded by the appellants. [Paras 2, 12 and 13] [604-FG; 607-F-H; 608-B]

As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

The Judgment of the Court was delivered by N. V. RAMANA, J. 1. These two Appeals arise out of a common Judgment passed on 3rd August, 2007 in First Appeal Nos.1 of 1996 and 175 of 1995, respectively, by the High Court of Madhya Pradesh, Bench at Gwalior. 2. The short question that arises for our consideration in these appeals is whether the contesting respondents herein, i.e. National Fertilizers Limited and Gas Authority of India Limited, are liable to pay external development charges to the appellant—Municipal Council as per its demand? 3. Both the contesting respondents in these appeals
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