{"id":68624,"date":"2010-02-08T00:00:00","date_gmt":"2010-02-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/whether-vs-dwarka-on-8-february-2010"},"modified":"2016-07-23T02:39:02","modified_gmt":"2016-07-22T21:09:02","slug":"whether-vs-dwarka-on-8-february-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/whether-vs-dwarka-on-8-february-2010","title":{"rendered":"Whether vs Dwarka on 8 February, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Whether vs Dwarka on 8 February, 2010<\/div>\n<div class=\"doc_author\">Author: K.A.Puj,&amp;Nbsp;Honourable Mr.Justice H.Shukla,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nSCA\/8820\/1989\t 1\/ 11\tJUDGMENT \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 8820 of 1989\n \n\nWITH\n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 2735 of 1990\n \n\nWith\n\n\n \n\nCIVIL\nAPPLICATION No. 12320 of 2005\n \n\nIn\n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 2735 of 1990\n \n\nWith\n\n\n \n\nCIVIL\nAPPLICATION No. 10364 of 2007\n \n\nIn\n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 2735 of 1990\n \n\nWith\n\n\n \n\nCIVIL\nAPPLICATION No. 1727 of 2008\n \n\nIn\n\n\n \n\nCIVIL\nAPPLICATION No. 10364 of 2007\n \n\n \n \nFor\nApproval and Signature:  \n \nHONOURABLE\nMR.JUSTICE K.A.PUJ  \n \n\n\n \n\nHONOURABLE\nMR.JUSTICE RAJESH H.SHUKLA\n \n======================================\n \n\t  \n\t \n\t \n\t \n\t\t \n\t\t\t \n\t\t\t\t \n\n1.\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nWhether\n\t\t\t\tReporters of Local Papers may be allowed to see the judgment ?\n\t\t\t\n\t\t\t \n\t\t\t\t \n\n \n\n\t\t\t\t\n\t\t\t\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\t\t\t\t \n\n2.\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nTo\n\t\t\t\tbe referred to the Reporter or not ?\n\t\t\t\n\t\t\t \n\t\t\t\t \n\n \n\n\t\t\t\t\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\t\t\t\t \n\n3.\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nWhether\n\t\t\t\ttheir Lordships wish to see the fair copy of the judgment ?\n\t\t\t\n\t\t\t \n\t\t\t\t \n\n \n\n\t\t\t\t\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\t\t\t\t \n\n4.\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nWhether\n\t\t\t\tthis case involves a substantial question of law as to the\n\t\t\t\tinterpretation of the constitution of India, 1950 or any order\n\t\t\t\tmade thereunder ?\n\t\t\t\n\t\t\t \n\t\t\t\t \n\n \n\n\t\t\t\t\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\t\t\t\t \n\n5.\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nWhether\n\t\t\t\tit is to be circulated to the civil judge ?\n\t\t\t\n\t\t\t \n\t\t\t\t \n\n \n\n\t\t\t\t\n\t\t\t\n\t\t\n\t\n\n \n\n======================================\n \n\nDWARKA\nNAGAR PANCHAYAT - Petitioner\n \n\nVersus\n \n\nDWARKA\nCEMENT WORKS LIMITED &amp; 5 - Respondents\n \n\n====================================== \nAppearance\n: \nMR\nDILIP B RANA for Petitioner. \nMR BHASKAR P TANNA, Senior Advocate\nwith Mr. Nandish Chudgar for NANAVATI ASSOCIATES for Respondent No.\n1.  \nMR PS GOGIA for Respondent No. 3.  \nMR PRANAV DAVE, AGP for\nRespondent No. 4.  \nNone for Respondent No. 5. \nMS KHYATI P HATHI\nfor Respondent No. 6.\n======================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE K.A.PUJ\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE RAJESH H.SHUKLA\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 08\/02\/2010 \nCOMMON ORAL JUDGMENT<\/pre>\n<p>(Per<br \/>\n: HONOURABLE MR.JUSTICE K.A.PUJ)<\/p>\n<p>\tSpecial<br \/>\n\tCivil Application No.8820 of 1989 is filed by Dwarka Nagar Panchayat<br \/>\n\tchallenging the interim order dated 15.12.1989 passed by the<br \/>\n\tDevelopment Commissioner calling upon the petitioner to return goods<br \/>\n\tand articles. This Court has passed an order on 6.2.1990 staying the<br \/>\n\torder dated 15.12.1989 and directing the Development Commissioner to<br \/>\n\tdecide the matter pending before him within four weeks of the<br \/>\n\treceipt of writ of the order dated 6.2.1990. The Court further<br \/>\n\tclarified that the attached property would remain attached but would<br \/>\n\tnot be auctioned till further order.\n<\/p>\n<p>\t Pursuant<br \/>\n\tto the order of this Court dated 6.2.1990 passed in Special Civil<br \/>\n\tApplication No.8820 of 1989 the Development Commissioner has passed<br \/>\n\tan order on 12.3.1990 determining the amount of tax payable by the<br \/>\n\trespondent No.1 Company on account of octroi as well as house tax at<br \/>\n\tRs.3,74,888\/- and deducting therefrom an amount of Rs.3,28,659\/-<br \/>\n\tbeing the amount spent by the Company, net lumpsum amount of<br \/>\n\tRs.46,229\/- was determined to be payable by the respondent No.1.<br \/>\n\tCompany.\n<\/p>\n<p>\t Instead<br \/>\n\tof making an amendment in the pending petition i.e. Special Civil<br \/>\n\tApplication No.8820 of 1989, the petitioner filed separate petition<br \/>\n\tbeing Special Civil Application No.2735 of 1990 challenging the<br \/>\n\torder dated 12.3.1990 passed by the Development Commissioner.\n<\/p>\n<p>\tThis<br \/>\n\tCourt has passed a detailed order on 11.04.1990. Certain directions<br \/>\n\twere issued by this Court in the said order. The Court has observed<br \/>\n\tthat the total claim of the Panchayat, so far as house tax and<br \/>\n\toctroi are concerned, was Rs.27,85,339.87 which covered an amount of<br \/>\n\tRs.2,30,000\/- by way of maintenance charges. The Court has initially<br \/>\n\tdirected the petitioner to furnish a bank guarantee of a<br \/>\n\tNationalized Bank to the tune of Rs.26 Lacs.  Subsequently, by an<br \/>\n\torder dated 20.10.1992 passed in Civil Application No.1955 of 1992,<br \/>\n\tthis Court has permitted the petitioner to replace the Bank<br \/>\n\tGuarantee with an undertaking and on the basis of the purshish the<br \/>\n\tamount of Rs.26 Lacs was deposited in a Fixed Deposit Receipt in<br \/>\n\tfavour of Registrar of this Court.  Thereafter, vide order dated<br \/>\n\t23.09.2008 passed in Civil Application No.10912 of 2008, Fixed<br \/>\n\tDeposit Receipts were transferred in the name of M\/s. Chandra<br \/>\n\tTrading Company.  However, the Court has directed the Registrar to<br \/>\n\tkeep the said fixed deposit receipts with him till the petition was<br \/>\n\tfinally heard and disposed of.\n<\/p>\n<p>\tCivil<br \/>\n\tApplication No.12320 of 2005 is filed by the Dwarka Cement Works<br \/>\n\tLimited, the respondent No.1 Company in the main petition seeking<br \/>\n\tdirection to State Bank of India, Dhangadhra Branch to transfer the<br \/>\n\tpresent Fixed Deposit Receipts in the name of the said applicant in<br \/>\n\tplace of Chandra Trading Company.\n<\/p>\n<p>\tCivil<br \/>\n\tApplication No.10364 of 2007 is filed by Suku Premises Development<br \/>\n\tPrivate Limited seeking clarification from this Court that the<br \/>\n\tdispute with regard to lumpsum contribution fixed by the learned<br \/>\n\tDevelopment Commissioner vide his order dated 12.03.1990 which is<br \/>\n\tthe subject matter of Special Civil Application No.2735 of 1990 does<br \/>\n\tnot pertain to the land admeasuring Acres 06.27 Gunthas situated at<br \/>\n\tSurvey No.3843 of village Dwarka, Tal. Okha, Kalyanpur, Dist.<br \/>\n\tJamnagar, but it pertains to the land and building situated at<br \/>\n\tSurvey Numbers which are the subject property of the Deed of Lease<br \/>\n\tbetween Associated Cement Company and Dwarka Cement Company.\n<\/p>\n<p>\tCivil<br \/>\n\tApplication No.1727 of 2008 is filed by Suku Premises Development<br \/>\n\tPrivate Limited seeking permission of this Court to delete the<br \/>\n\trespondent No.3   Associated Cement Company Limited as a party<br \/>\n\trespondent in Civil Application No.10364 of 2007.\n<\/p>\n<p>\tAt<br \/>\n\tthe outset, Mr. Nandish Chudgar, learned advocate appearing for<br \/>\n\tNanavati Associates for the applicant in Civil Application No.10364<br \/>\n\tof 2007 states that this application has become infructuous and he<br \/>\n\tdoes not press this application.  Hence, the said Civil Application<br \/>\n\tstands disposed of as having become infructuous.\n<\/p>\n<p>\tIn<br \/>\n\tview of the order passed in Civil Application No.10364 of 2007,<br \/>\n\tdisposing off the same, Civil Application No.1727 of 2008 does not<br \/>\n\tsurvive and it is accordingly disposed of.\n<\/p>\n<p>\tSo<br \/>\n\tfar as main petitions i.e. Special Civil Application Nos.8820 of<br \/>\n\t1989 and 2735 of 1990 are concerned, learned Counsels appearing for<br \/>\n\tthe parties were heard and their submissions are considered.\n<\/p>\n<p>\t  Mr.\n<\/p>\n<p>\tRana, learned Counsel appearing for the petitioner Dwarka<br \/>\n\tNagarpalika which is successor of Dwarka Nagar Panchayat contended<br \/>\n\tthat the order of the Development Commissioner impugned in this<br \/>\n\tpetition is liable to be quashed and set aside. Mr.Tanna, the<br \/>\n\tlearned Senior Counsel appearing for the respondent No.1 Company and<br \/>\n\tother private respondents, on the other hand, submitted that in view<br \/>\n\tof the provisions of Section 179 of Gujarat Panchayats Act, 1961,<br \/>\n\tthe order of the Development Commissioner becomes final and it is<br \/>\n\tnot open for the Nagar Panchayat to challenge the order of the<br \/>\n\tDevelopment Commissioner.  Even on merits, he submitted that the<br \/>\n\torder of the Development Commissioner does not call for any<br \/>\n\tinterference by this Court as while determining the amount of tax<br \/>\n\tpayable by the respondent No.1 Company, the Development Commissioner<br \/>\n\thad taken into consideration all details and all relevant facts of<br \/>\n\tthe case.\n<\/p>\n<p>\t Mr.Rana<br \/>\n\tfurther submitted that there were later bills for subsequent years<br \/>\n\twhich are to be paid by the respondent Company. Against this,<br \/>\n\tMr.Tanna raised an objection that the same is not the subject matter<br \/>\n\tof these petitions. He has further submitted that the demands and<br \/>\n\tcalculations were based on the same error which Nagar Panchayat had<br \/>\n\tcommitted in demanding the amount and hence such demands should also<br \/>\n\tconsequently fail. He has further submitted that for several years<br \/>\n\tbills were not sent and in 2001 and 2008 respectively consolidated<br \/>\n\tbills were sent. He has submitted that it is settled principle of<br \/>\n\tlaw that demand should have been made in every financial year and<br \/>\n\tsuch demand cannot be made at the fag end of the decade.\n<\/p>\n<p>\t In<br \/>\n\tview of above rival submissions and looking to nature and complexity<br \/>\n\tof the issues, we suggested the learned counsels appearing for the<br \/>\n\tparties to sit across and put an end to all disputes in an amicable<br \/>\n\tmanner. While resolving the disputes, the relevant considerations<br \/>\n\tand fact situations which are to be kept in mind are that the<br \/>\n\tDevelopment Commissioner had determined the amount of tax to be<br \/>\n\tpayable for the relevant period is Rs.46,229\/-.  This court, in its<br \/>\n\tinterim order dated 11.4.1990, made detailed discussion and found<br \/>\n\tsufficient merits in the petition.  Accordingly, respondent No.1<br \/>\n\tCompany or intending purchasers of its assets were asked to deposit<br \/>\n\tan amount of Rs.26 lacs so as to safeguard the interest of the Nagar<br \/>\n\tPanchayat.  This amount was, in fact, deposited and invested in the<br \/>\n\tfixed deposit receipts which had gone upto about Rs.1 crore at<br \/>\n\tpresent. It is true that the petitioner Nagar Panchayat had raised<br \/>\n\tcomposite bills for number of years, which may not be enforceable,<br \/>\n\tif challenged before the competent forum.  However, parties are<br \/>\n\tdesirous of putting an end to this litigation once and for all. The<br \/>\n\tCourt shows some indulgence to resolve these disputes only because<br \/>\n\tDwarka as a holy city requires fast development and for betterment<br \/>\n\tof this city, some formulas are required to be worked out which will<br \/>\n\tultimately prove to be beneficial to all.\n<\/p>\n<p>\t A<br \/>\n\tbroad consensus was prevailed amongst the parties and hence, it is<br \/>\n\tnot necessary for the Court to minutely go into all these<br \/>\n\tsubmissions and to pass a detailed order on merits on the issues<br \/>\n\tinvolved in these two petitions.\n<\/p>\n<p>\t Considering<br \/>\n\tthe broad consensus arrived at between the parties, following order<br \/>\n\tis passed by the Court.\n<\/p>\n<p>\t(i)<br \/>\n\t Technically, order passed by the Development Commissioner on<br \/>\n\t12.3.1990 is confirmed. However, the respondent No.1 Company shall<br \/>\n\tnot claim back the amount of Rs.26 lacs alongwith interest earned<br \/>\n\tthereon during all these years.\n<\/p>\n<p>\t(ii)<br \/>\n\t The amount lying in fixed deposits with State Bank of India,<br \/>\n\tDhangadhra Branch, Dhangadhra be transferred with interest to State<br \/>\n\tBank of India, Dwarka Branch, Dwarka  and be kept in a newly opened<br \/>\n\tjoint account to be jointly operated by the Chief Officer of Dwarka<br \/>\n\tNagar Palika as well as either by Mr.Jiten P. Mody or Mr.Ashok P.<br \/>\n\tMody, Directors of the respondent No.1 Company i.e. Dwarka Cement<br \/>\n\tWorks Limited.\n<\/p>\n<p>\t(iii)<br \/>\n\t After the amount being transferred to the newly opened joint<br \/>\n\taccount, the entire amount except Rs.10 lacs which are to be<br \/>\n\tretained in the said account to meet with the initial expenditure<br \/>\n\tthat may be incurred for development work, be invested in the fixed<br \/>\n\tdeposits of Rs.10 lacs each in the joint-names as indicated above<br \/>\n\tinitially for the period of one year and thereafter, to be renewed<br \/>\n\tfor the further period of one year, from time to time, till the<br \/>\n\tentire amount is spent for the development work.\n<\/p>\n<p>\t(iv)<br \/>\n\t The amount so retained in the joint account or so invested in the<br \/>\n\tfixed deposits are required to be utilised for the development of<br \/>\n\tthe area at which the property in question is situated and the<br \/>\n\tdevelopmental purpose for which such amount will be utilised are<br \/>\n\twater, electricity, sewage, road and other such basic and primary<br \/>\n\trequirements. As and when such development work is undertaken, it is<br \/>\n\twith joint consent of the parties and in case of any dispute or<br \/>\n\tdifficulty, appropriate direction from this Court be sought for.\n<\/p>\n<p>\t(v)<br \/>\n\t Considering the above arrangement, there will not be any<br \/>\n\toutstanding tax liability of the respondent No.1 Company on account<br \/>\n\tof house rent or octroi qua the property in question for the period<br \/>\n\tupto March, 2010.\n<\/p>\n<p>\t(vi)<br \/>\n\t Registrar to see that this order be carried out in its true letter<br \/>\n\tand spirit.\n<\/p>\n<p>\t With<br \/>\n\tthese directions and observations, all these petitions and<br \/>\n\tapplications are accordingly disposed off without any order as to<br \/>\n\tcosts.\n<\/p>\n<p>\t\t\t\t\t\t (K.\n<\/p>\n<pre>\t\t\t\t\t\tA. PUJ, J.)      (RAJESH H. SHUKLA, J.)\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\n\t\t\n\t\n\n \n\n\nsavariya\n\n    \n\n \n\t   \n      \n      \n\t    \n\t\t   \u00a0\u00a0\u00a0\n\t   \n      \n\t  \t    \n\t\t   Top\n\t   \n      \n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Whether vs Dwarka on 8 February, 2010 Author: K.A.Puj,&amp;Nbsp;Honourable Mr.Justice H.Shukla,&amp;Nbsp; Gujarat High Court Case Information System Print SCA\/8820\/1989 1\/ 11 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 8820 of 1989 WITH SPECIAL CIVIL APPLICATION No. 2735 of 1990 With CIVIL APPLICATION No. 12320 of 2005 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-68624","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Whether vs Dwarka on 8 February, 2010 - Free Judgements of Supreme Court &amp; 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