TaxTMI 
TaxTMI 
2010 (7) TMI 1012
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....order of the High Court, the respondent- Company alleging that though the Nazul Officer passed an order, has not granted NOC and disposed of the same not in accordance with the Circular of the State Government, filed a Contempt Petition (C) 173 of 2009 before the High Court. By order dated 13.10.2009, the High Court after finding that the Nazul Officer has dealt with the matter beyond the Circular dated 14.02.1966 of the State Government and not followed its earlier order, directed him to personally present before the Court on 27.10.2009 to explain his "misconduct" in passing such order. Questioning the said order, the State of Madhya Pradesh has also filed SLP (C) 35732 of 2009. Since both the orders of the High Court relate to the same issue, these appeals are being disposed of by this judgment. 3) Heard Mr. Ravindra Shrivastav, learned senior counsel for the appellant and Mr. S. Gopakumaran Nair, learned senior counsel for the respondent. 4) The issues which arise for consideration in these appeals are:- (i) Whether the High Court has exceeded its jurisdiction under Article 226 of the Constitution of India while setting aside the order dated 15.04.2008 passed by the Nazul Off....
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....er dated 04.05.1999, permitted the respondent-Company to change the use of leased land from industrial purpose to commercial or residential purpose on payment of lease rent, as payable on the land used or changed for commercial or residential purpose, as per the commercial rate assessed according to the rules and regulations and also directed the Collector, District Bhopal, to recover the said rent as per the rules and regulations. 6) The appellant-State again renewed the lease deed for 3.13 acres of land for 30 years from 14.03.1999 to 13.03.2029 in favour of the respondent-Company. Vide letter dated 16.01.2004, the appellant-State permitted the respondent-Company to change the use of leased land from industrial purpose to commercial and residential purpose on payment of lease rent as assessed as per the rules and regulations. The Joint Director, Town & Country Planning, Bhopal sanctioned the plan for 3 years for residential, commercial development on the leased land presented by the respondent. The Government of Madhya Pradesh, vide its letter dated 19.01.2007, directed the Collector, Bhopal that where the use of leased land is changed, then the rent on such leased land shall be....
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.... same order, the High Court directed the Nazul Officer to consider only the circular dated 14.02.1966 and the Arbitration Award while deciding the application for NOC. Again, the Nazul Officer asked certain documents and sought for information from the respondent-Company and after hearing the respondent the Nazul Officer, by order dated 02.02.2009, rejected the application for grant of NOC. Questioning the said order, the respondent preferred Contempt Petition (C) No. 173 of 2009 before the High Court. The High Court, on 13.10.2009, while issuing notice in the Contempt Petition, observed that the Nazul Officer is trying to frustrate and circumvent the directions issued by the High Court directing him to explain his "misconduct". 9) Mr. Ravindra Shrivastav, learned senior counsel appearing for the State objected to the order of the High Court by pointing out that under Section 18 of the Revenue Book Circular, against the order of the Nazul Officer, an effective remedy by way of appeal would lie before the Collector. According to him, when such remedy is available, the High Court is not justified in exercising its extraordinary jurisdiction under Article 226. He also pointed out tha....
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....(a) the amount paid to Government by the local body less depreciation on buildings, if any, calculated in accordance with Paragraph 3.036 of Chapter III-"Buildings" for the period during which the property was in charge of the local body or the present value of the property, whichever is less; (b) the cost or present value, whichever is less, of any buildings or other works constructed on the property by the local body." 12) A perusal of the order of the Nazul Officer shows that grant of NOC depends upon various factors and fulfillment of certain conditions. It is also not in dispute that the said officer is better equipped with to decide the application for grant of NOC. Undoubtedly, while deciding such an application, Nazul Officer has to consider not only the circulars but also rules and regulations framed by the State Government. Even otherwise, when the ultimate order of Nazul Officer can be canvassed before Collector, the High Court ought not to have exercised its extraordinary jurisdiction under Art. 226 as an appellate court over the finding of fact arrived at by the Nazul Officer. In this context, it is useful to refer the following decisions: In Punjab National Bank v....
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....principle that one organ of the State should not ordinarily encroach into the domain of another. Even if the order of the first authority, in the case on hand, Nazul Officer, requires interference, it is for the appellate authority to look into it and take a decision one way or the other and it is not an extraordinary case which warrants direct interference by the High Court under Art. 226. It is relevant to note that the Nazul Officer has adverted to a relevant fact that the Government, while renewing the lease of 3.13 acres of land from 14.03.1999 to 13.03.2029 in favour of the respondent-Company, permitted it to change the use of leased land from industrial purpose to commercial or residential purpose on payment of the lease rent, as payable on the land used or changed for commercial or residential purpose. In such circumstances, if the said direction is applicable, it is but proper on the part of the respondent to comply with it. Even if the stand of the respondent-Company is acceptable and if they are aggrieved of the order of the Nazul Officer, they are free to challenge the same before the Collector as pointed above. In our opinion, interference by the High Court against the....