Case Note & Summary
The petitioners, including Small Scale Entrepreneurs Association and Mahape Industries Welfare Association, filed a writ petition under Article 226 of the Constitution challenging the action of the Navi Mumbai Municipal Corporation (NMMC) to levy and collect property taxes, rates, and cess on properties in the Thane Trans Creek (TTC) area admeasuring 24.690 Sq.Kilometers within the jurisdiction of the Maharashtra Industrial Development Corporation (MIDC). They sought a declaration that the TTC area does not fall within the municipal limits of NMMC as per Notification No.NBC 1091/140/CR14/91/UD20 dated December 17, 1991, and consequently that NMMC has no power to levy taxes. They also sought a direction to the State of Maharashtra to constitute the TTC and Thane Belapur Industrial Area (TBIA) into an Industrial Township under Section 341F of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965. The court, after hearing arguments from Senior Counsel Ms. Rajani Ayer for the petitioners, AGP Ms. S.S. Bhende for the State, Senior Counsel Mr. R.S. Apte for NMMC, and Ms. Deepa Chavan for MIDC, held that the notification clearly includes the TTC area within NMMC limits, and thus NMMC has the power to levy property taxes. Regarding the industrial township, the court held that it cannot direct the State to exercise its discretion under Section 341F. The petition was dismissed.
Headnote
A) Municipal Law - Municipal Limits - Notification Interpretation - Notification No.NBC 1091/140/CR14/91/UD20 dated December 17, 1991 - The court examined whether the TTC area within MIDC is included in the municipal limits of NMMC. Held that the notification clearly includes the TTC area within NMMC limits, and thus NMMC has the power to levy property taxes and cess. (Paras 1-10)
B) Industrial Township - Constitution of Industrial Township - Section 341F of Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965 - The petitioners sought a direction to constitute TTC and TBIA into an Industrial Township. Held that the court cannot direct the State to exercise its discretion under Section 341F; the remedy lies with the State Government. (Paras 11-15)
Issue of Consideration
Whether the TTC area admeasuring 24.690 Sq.Kilometers within MIDC falls within the municipal limits of NMMC as per Notification dated December 17, 1991, and consequently whether NMMC has power to levy property taxes and cess; and whether the State should be directed to constitute the TTC and TBIA into an Industrial Township under Section 341F of the Act of 1965.
Final Decision
The court dismissed the writ petition, holding that the TTC area is within the municipal limits of NMMC as per the notification, and NMMC has the power to levy property taxes. The court declined to direct the State to constitute an industrial township under Section 341F.
Law Points
- Interpretation of municipal limits notification
- power to levy property tax
- industrial township constitution under Section 341F of Maharashtra Municipal Councils
- Nagar Panchayats and Industrial Townships Act
- 1965
Case Details
2010 LawText (BOM) (07) 38
WRIT PETITION NO.2787 OF 2001
P.B. Majmudar, R.G. Ketkar
Ms. Rajani Ayer, Mr. Firoz Palkhiwala, Ms. Mili V. Thakkar, Ms. S.V. Thakkar, Mr. Vijay P. Salunkhe, Mr. Hemang Engineer for petitioners; Ms. S.S. Bhende for Respondent Nos.1-4; Mr. R.S. Apte, Mr. A.A. Garge for Respondent No.6; Ms. Deepa Chavan, Mr. Kiran Gandhi, Mr. Ravindra R. Chile for Respondent Nos.5 and 7
Small Scale Entrepreneurs Association, Mahape Industries Welfare Association, Mr. D. Narsiah, Mr. Sanjay Mehta
State of Maharashtra, Secretary Industries & Labour Dept., Secretary Urban Development Dept., Industries Commissioner, Maharashtra Industrial Development Corporation (MIDC), Navi Mumbai Municipal Corporation (NMMC), Area Manager MIDC
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Nature of Litigation
Writ petition under Article 226 challenging levy of property tax by NMMC on TTC area within MIDC and seeking declaration that area is outside municipal limits and direction to constitute industrial township.
Remedy Sought
Petitioners sought declaration that TTC area is not within NMMC limits, quashing of tax levy, and direction to State to constitute TTC and TBIA into Industrial Township under Section 341F of the Act of 1965.
Filing Reason
Petitioners alleged that NMMC illegally levied property taxes on properties in TTC area which they claimed is outside municipal limits as per Notification dated December 17, 1991.
Issues
Whether the TTC area admeasuring 24.690 Sq.Kilometers within MIDC falls within the municipal limits of NMMC as per Notification dated December 17, 1991.
Whether NMMC has power to levy property taxes and cess on properties in the TTC area.
Whether the State should be directed to constitute TTC and TBIA into an Industrial Township under Section 341F of the Act of 1965.
Submissions/Arguments
Petitioners argued that the Notification dated December 17, 1991 does not include the TTC area within NMMC limits, and thus NMMC has no power to levy taxes.
Respondents argued that the notification clearly includes the TTC area within NMMC limits, and the levy is valid.
Ratio Decidendi
The notification dated December 17, 1991 includes the TTC area within the municipal limits of NMMC, and therefore NMMC has the power to levy property taxes and cess. The court cannot direct the State to exercise its discretion under Section 341F of the Act of 1965 to constitute an industrial township.
Judgment Excerpts
By this petition under Article 226 of the Constitution of India, the petitioners interalia challenge the action of Respondent No. 6, Municipal Corporation of the City of Navi Mumbai (for short NMMC) to levy and collect the property taxes, rates and cess; seek declaration that the Thane Trans Creek (for short TTC) area admeasuring 24.690 Sq.Kilometers within the jurisdiction of Respondent No.5 Maharashtra Industrial Development Corporation (for short MIDC) does not fall within the municipal limits of NMMC as per the Notification bearing No.NBC 1091/140/CR14/91/UD20 dated December 17, 1991 and consequently, the NMMC has no power to levy and collect any taxes including the property taxes and cess from the petitioners.
Procedural History
The petition was filed in 2001. Judgment reserved on 6th May 2010 and pronounced on 8th July 2010.
Acts & Sections
- Constitution of India: Article 226
- Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965: Section 341F
