TMI Blog1973 (2) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1951, 1953,. 1954 and 1955. Some applications were made at a time when the last date fixed for the submission of such draft schemes and as notified by the Government had expired. Some applications, however, were made in time. The Government acting on such applications extended the time for the preparation, publication and submission of the draft scheme by the Municipality and the last order in which the final extension was made by the Government was on 13th June, 1956 under which the Municipality was to prepare and submit the draft town planning scheme by 31st December, 1956. This time the Municipality submitted such a scheme and after due observance of the formalities required Under Section 13, the State Government after considering the objections and suggestions in and over the draft scheme so submitted by the Municipality and after making such enquiry as they deemed fit, sanctioned, what is known as, Pattamangalam Extension Towns Planning Scheme, Mayuram . Such a sanction was made Under Section 14 (3) of the Act on 23th January, 1961. Under the provisions of the scheme, which provided for the laying of roads and providing various amenities in the area comprised in the town p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the properties inside the scheme area were liable for betterment contribution and, therefore, dismissed the claims. As against this the Municipality appealed Under Section 29 (1) of the Act. 2. The learned District Judge found that it is not open to the landowners inside the scheme area to question the validity of the scheme or the due process adopted for its making, as it is conclusive in law. He also held that the date on which the market value of the properties should be fixed Under Section 12 of the Act was 2nd May, 1944 and not 13th June, 1956. After finding that the properties inside the scheme area did have a benefit by reason of the making of the scheme, the appellate authoritity set aside the award of the arbitrator ; but on the ground that there was no sufficient materials before him to estimate the market value of the properties as on the date of notification Under Section 12 of the Act he caused a remand of the subject-matter to the file of the arbitrator and made an observation that the Municipality should be directed to move the appropriate authority for the appointment of a fresh arbitrator for the purpose. It is as against this award of the appellate authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t shall contain particulars prescribed in Section 13 of the Act. The draft scheme is duly published as provided for in that section and it is open to the public who is affected by any of the term or terms of the draft scheme to object to its final approval by the State Government. This is provided for in Section 14 (1) of the Act. Ultimately, Under Section 14 (3), the State Government may sanction the scheme with or without modifications or refuse to sanction the scheme as the case may be. On certain occasions the State Government may send back the scheme for re-consideration to the respective Municipalities, if in their opinion, such a reconsideration was necessary. Ultimately, the State Government sanctions the scheme Under Section 14, clause (5) and such a sanction shall be published by notification in the gazette and the scheme thereafter is open to inspection by the public. Sub-Section 6 of Section 14 of the Act says that a notification published under Sub-section (5) shall be conclusive evidence that the scheme has been duly made and sanctioned. After the sanctioning of the scheme, the State Government has the right at any time to vary the same or revoke it by a subsequent sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose. It is intended to achieve economic and social planning and further orderly conjoint and coordinated development of an ill-developed or under-developed or a developing township or area. The purpose of the Act is to project a mini-master-plan for the prescribed areas in a municipality or a Corporation and involuntarily develop the properties within the boundaries of a sanctioned scheme partly with the help of the owners and residents inside the scheme area. The expenses to develop the scheme area are estimated and the estimate is budgeted for. One such budgeted item of income as per the scheme itself is the amount realisable from private persons by way of betterment contribution. The betterment contribution therefore, is a contribution or a levy made on the owners of the properties in the scheme for the common purpose of economic and social development of the inside and outside area. By reason of such a making of the scheme, the market value of the property within the scheme is bound to increase or in any event, there is a likelihood of its increase. It is from this unearned increment in the market value of the properties, a claim is raised by the Municipality for betterment co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property owners. It is not a tax because all the citizens are not called upon to suffer the charge. It is a peculiar demand veiled in social economy and characterised by practical development. It is a contribution for a common purpose demanded by a statutory agency created under the Act. I have already justified the demand on the ground that it is in any event a demand arising from legislative mandate and which legislation has to be sustained at any rate under the concurrent list - item 20 therein. The Supreme Court in Maneklal Chottalal v. M. G. Makwana , had occasion to consider the vires of a similar enactment of the State of Bombay. The Supreme Court sustained the Bombay Town Planning Act, 1954 on the ground that it is an enactment which the State Government could undertake under entry 20 of list 3. Again the Supreme Court, while discountenancing the contention that the betterment contribution is neither a tax nor a fee, said: The amount that the petitioners have been asked to contribute is only towards the cost of the Scheme, which has to be incurred by the local authority. As to how exactly the contribution is to be worked out and the proportion in which the plots are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n my judgment they have a power to alter that date. The theory that when once a date had been fixed, their power becomes exhausted does not appeal to me as sound. In Chengalvaroya Chetty v. State of Madras , a Bench of our High Court took a similar view and held that it is no doubt true that the State Government has the power to extend by notification the time originally fixed Under Section 12 of the Madras Town Planning Act for purposes of land acquisition as this is only a simpler form of issuing fresh notification which power they undoubtedly possess and if the Government resorts to any extension of the time originally fixed, then the market value of the property sought to be acquired has to be decided for purposes of ascertaining the compensation as on the date of the last order of extension and not the date originally fixed. The decision of the Division Bench is an answer to the contention of the learned Government Pleader and the counsel for the Municipality as to what ought to be the date which has to be adopted for the purpose of evaluation of the market value of the properties for reckoning the betterment contribution payable. That the date which has to be adopted in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, it is invariably due to the scheme. In may be due to the scheme and other surrounding circumstances such as inflation, general rise in prices etc. So, it is contended that no part of the increase in the price, is relatable to the making of a town planning scheme; it may be that the general influence of the economic factors set out above might have an impact on the market value of the properties. But by the making of the scheme by providing several amenities inside the scheme area such as roads providing easy access to the neighbourhood, play grounds, parks etc., the market value is likely to increase, if not, bound to increase by reason thereof. It is this phenomenon, which was borne in mind, by the Legislature, when it provided for a claim for betterment contribution and fix a definite percentage of such unearned increment as the contribution to be paid by all the property owners inside the scheme area benefited by such amenities provided under the scheme. As a matter of fact our High Court in Balakrishna Mehta v. Corporation of Madras (F.B.) observed.. The underlying implication of the provision in this regard found in Section 24 is that any increase in value subsequent to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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