Case Note & Summary
The dispute arose between a Government Company, Hindustan Salts Ltd, and the Kharaghoda Gram Panchayat regarding the demand for non-agricultural assessment and royalty on land owned by the Government of India. The petitioner challenged notices issued by the State of Gujarat demanding payment of arrears and levies on the grounds that the land belonged to the Central Government and that the orders were not applicable. The petitioner contended that the State Government had not followed proper procedures and had failed to resolve the issue amicably. The court noted that litigation between the State and Union Government should not directly come to court and should be resolved through a high level committee. The court emphasized the need for the parties to engage in discussions to resolve their grievances before seeking judicial intervention. The court ultimately directed both parties to sit together to resolve the controversy and stated that the petitioner could approach the court again only after clearance from the high level committee. The court made the rule absolute in these terms and did not impose any costs.
Headnote
A) Administrative Law - Jurisdiction of Courts - Litigation between State and Union Government - Court held that disputes between a Government Company and State Government should be resolved through a high level committee rather than direct court intervention - High Court directed parties to sit together to resolve the issue before approaching the court again - Held that such matters should not come directly to the court (Paras 5-6).
Issue of Consideration
Whether the petitioner, a Government Company, was justified in approaching the court regarding the demand for non-agricultural assessment and royalty by the State Government.
Final Decision
The court directed the petitioner and respondents to engage in discussions to resolve the dispute and established that the petitioner could approach the court again only after clearance from a high level committee. The rule was made absolute in these terms with no order as to costs.
Law Points
- Government Undertaking
- Land Revenue
- High Level Committee
- Non-Agricultural Assessment
- Royalty
