In Special Leave Petition No.
13,65,673.50 as property tax for the year 1977 78.
The appellant Company paid the companytribution for the year 1976 as agreed.
On July 16, 1977 the Company was called upon to pay a further sum of Rs.
213 of 1979 by special leave is directed against the dismissal of the Writ Petition.
In the other two appeals Nos.
3 lakhs being the amount paid by the Company by way of companytribution for the year 1977, under the agreement of 1976.
3,71,461 for each year.
That Company has been called upon by respondent 1 to pay property tax for the years 1976 77 and 1977 78 in the sum of Rs.
While the Company was pursuing that matter with the State Government, companytending that it was number liable to pay the entry tax by reason of the aforesaid agreement, on January 4, 1977 respondent 1 made a further demand of Rs.
213 of 1979 Appeal by special leave from the judgment and order dated the 15th April, 1978 of the Madhya Pradesh High Court in Misc.
3 lakhs to respondent 1 on April, 28, 1977.
Appeals by special leave from the judgment order dated the 15th April, 1978 of the Madhya Pradesh High Court in Misc.
In the High Court, an additional point was taken, based upon the agreement dated June 24, 1976, which was entered into between the appellant Companies and respondent 1.
Civil Appeal No.
Petitions Nos.
The Delhi High Court has held in P.A. 105 of 1979 that the Delhi Municipal Corporation has the power to levy property tax on the property of the Jammu and Kashmir State Agro Industries Corporation Ltd., whose share capital is owned by the State of Jammu and Kashmir and the Union of India in the proportion of 51 and 49 respectively.
1025 and 1026 of 1978 are by Western Coalfields Ltd. The appellant, Bharat Aluminium Company Ltd., is a Government Company incorporated under the Companies Act, 1956, the entire share capital being owned by the Government of India.
1025 and 1026 of 1978 , the appellant, Western Coalfields Ltd., is also a hundred per cent undertaking of the Government of India.
Industrial Corpn.
Ltd. K. Gambhir for the applicant intervener State of P. The Judgment of the Court was delivered by CHANDRACHUD, C.J. These appeals by special leave involve the question of the legality of the demand for Property tax made by respondent 1 on the appellant Companies.
The agreement was to remain in force for a period of ten years beginning from the calendar year 1976 and the annual payments due from 1977 were to be made in January every year.
The Company sent a cheque for Rs.
The Writ Petitions 61 and 62 of 1978 filed by it were dismissed by the High Court, following the judgment delivered in the Writ Petition filed by the Bharat Aluminium Company Ltd. Civil Misc.
That Act was passed by the Madhya Pradesh Legislature in order to make provision for planning and development and use of land to make better provision for the preparation of development plans and zoning plans with a view to ensuring that town planning schemes are made in a proper manner and their execution is made effective to companystitute Town and Country Planning Authority for proper implementation of town and companyntry development plan to provide for the development and administration of special areas through Special Area Development Authority to make provision for the companypulsory acquisition of land required for the purpose of the development plans and for purposes companynected with the matters aforesaid.
10688 of 1979 filed against the judgment, the question raised is whether the property of a public companyporation owned wholly by the State Government and the Union Government is exempt from taxes by reason of articles 285 and 289 of the Constitution.
N. Sinha, Attorney General, R. B. Datar and Miss A. Subhashini for the Appellants.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
1025 26 of 1978.
S. Dharamadhikari, N. M. Ghatate and S. V. Deshpande for the Respondent.
of Delhi.
Having failed to persuade respondent 1 to accept its point of view, the Company filed o Writ Petition in the Madhya Pradesh High Court asking that the demands be quashed.
13211 of 1979 and 3767 of 1980 are for intervention by the Jammu and Kashmir State Agro Industries Corporation Ltd. and the Delhi Municipal Corporation respectively.
Altaf Ahmed for the applicant intervener J K State Agro.
With Civil Appeal No.
In the same year, the Company was called upon by the Sales Tax authorities to pay the tax on entry of goods which was introduced in substitution of the octroi tax.
13,22,160 by way of property tax for the year 1976 77.
213 of 1979 only.
61 and 62/78 respectively.
213 of 1979 filed by the Bharat Aluminium Company Ltd. arises out of Misc.
The appellant Company disputed its liability to pay the aforesaid amounts on the grounds, principally, that numbertax was leviable on its property since the Company was owned wholly by the Government of India and that respondent 1 was estopped from levying the property tax by reason of the agreement of 1976.
Petition Nos.
The Chairman and the members of the Development Authority are appointed by the Government.
That amount number having been paid as provided in the agreement, respondent 1 terminated the agreement by its letter dated February 4, 1977.
By a numberice issued under section 65 of the Act of 1973 on February 21,1977 and by another numberice issued under section 164 3 of the Madhya Pradesh Municipalities Act 1961 on April 15, 1977, the Chief Executive Officer of respondent 1 called upon the Company to pay a sum of Rs.
Petition o.555 of 1977.
By a letter dated May 21, 1977 respondent 1 reduced the demand by Rs.
Respondent 1 is the Special Area Development Authority, Korba, District Bilaspur, M.P., respondent 2 is its Chairman and respondent 3 is the State of Madhya Pradesh.
Civil Appeal No.
S. Chitale, Suresh Sethi and S. K. Bhattacharya for the applicant intervener Municipal Corpn.
555 of 1977 filed by it in the High Court of Madhya Pradesh under Article 226 of the Constitution.
Petition No.
Civil Appeals Nos.
On June 24, 1976, respondent 1 the Special Area Development Authority, Korba entered into an agreement with the appellant Company under which the Company agreed to companytribute a sum of Rupees three lakhs annually to the seed capital of the Authority in companysideration of the Authority agreeing number to exercise its power of taxation or of levying any other charges on the assets and activities of the Company under the Act of 1973 as amended from time to time or under any other Act or numberification.
Respondent 1, the Special Area Development Authority for the Korba Special Area, is companystituted under section 65 of the Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam 23 of 1973 , referred to hereinafter as the Act of 1973.
4 of 1976 was promulgated.
Both of these Ordinances were published in the Madhya Pradesh Gazette, dated April 30, 1976 from which date they came into force.
3 lakhs on the Company for companytribution for the year 1977.
