Case Note & Summary
The writ petition was filed by a sole proprietor who had entered into an agreement with the Gujarat Industrial Development Corporation (GIDC) to use four industrial sheds in Valsad, Gujarat. The petitioner surrendered the sheds, alleging lack of basic amenities. Subsequently, GIDC raised a demand for Rs. 1,12,432 after adjusting an earlier deposit, claiming interest, penalty, and service charges. The Collector of Mumbai initiated recovery proceedings as arrears of land revenue based on a certificate from GIDC. The petitioner challenged the demand and recovery, contending that the amount was not a governmental due and therefore could not be recovered under the Revenue Recovery Act, 1890. The central legal issue was whether the amount, recoverable as arrears of land revenue under the Gujarat Industrial Development Act, 1962, could be recovered in Maharashtra under the Revenue Recovery Act, 1890, even though it was not a government due. The petitioner argued that the Recovery Act only applied to governmental dues and relied on a Kerala High Court judgment (Dat Pethe v. District Collector). The respondents contended that the Development Act expressly permitted recovery as arrears, and the Recovery Act’s language covered all sums recoverable as arrears, not merely those belonging to the government. The Court examined Sections 3 and 5 of the Recovery Act and noted that they encompass not only land revenue but also all sums recoverable as arrears of land revenue. It rejected the Kerala High Court’s narrow view, holding that the object of the Recovery Act is to provide a public mechanism for recovery of public dues across district boundaries. The Court found that the dues of a statutory corporation, being recoverable as arrears of land revenue under the state law, fell within the Recovery Act’s ambit and could be recovered even outside Gujarat. Consequently, the petition was dismissed, the rule was discharged, and the recovery proceedings were upheld. No order as to costs was made.
Headnote
A) Revenue Recovery - Recovery of Dues as Arrears of Land Revenue - Sums recoverable as arrears of land revenue under any law fall within purview of Recovery Act - Revenue Recovery Act, 1890, Sections 3, 5; Gujarat Industrial Development Act, 1962, Sections 28(b), 41 - The Court considered whether dues of a statutory corporation, recoverable as arrears of land revenue under the Gujarat Industrial Development Act, can be recovered in another state under the Revenue Recovery Act, despite not being governmental dues. The Court disagreed with Dat Pethe v. District Collector, AIR 1976 Ker 37, and held that the Recovery Act applies to "all sums recoverable as arrears of land revenue", not only government dues, and that its objective is to facilitate recovery of public dues across district boundaries, thus the recovery proceedings were valid (Paras 4-5).
Issue of Consideration
Whether amounts due to Gujarat Industrial Development Corporation, recoverable as arrears of land revenue under the Gujarat Industrial Development Act, 1962, can be recovered in the State of Maharashtra under the Revenue Recovery Act, 1890, despite not being governmental dues.
Final Decision
Writ petition dismissed. Rule discharged. No order as to costs. Recovery proceedings upheld.
Law Points
- Recovery of dues as arrears of land revenue under Revenue Recovery Act
- 1890 is permissible even if dues are not government dues but are statutorily recoverable as arrears of land revenue
- Recovery Act covers sums recoverable as arrears of land revenue
- not just governmental dues
- Object of Recovery Act is to enable public mechanism for recovery of public dues across districts.
