- (1.) PALOK Basu, J. This Bunch of 73 cases, raises important question of law which may be having far-reaching consequences, therefore, more than sufficient time was provided to the learned counsel for the parties to ventilate their grievances and respective arguments which all of them have done with great ability.
(2.) ON 24th February 1997, "shaktinagar Special Area Development Authority (Cess on Mineral Rights) Rules, 1997" (hereinafter referred to as the Cess Rules) having been promulgated through publication in the U. P. Gazette, all the petitioners seem to have been asked to pay Cess in accordance with the Cess Rules and it appears that by the notice of demand the amount so calculated was demanded and the petitioners having not paid the Cess, the recovery proceedings as arrears of land revenue have commenced and each one of the petitioners has rushed to this Court challenging those recovery proceedings and the citations issued by the recovering authorities for attempting to collect the said Cess from each of the petitioners. In all the writ petitions, the petitioners are firm, company individuals as the case may be. When these petitions were filed, notice was issued to the respondents to show cause as to why the writ petitions be not allowed while calling for counter-affidavits from them and recovery proceedings against each of the petitioners had been stayed which was extended from time to time. Four opposite parties, Collector Sonbhadra, Tahsildar, Tahsil Robertsganj, district Sonbhadra, State of U. P. through Principal Secretary Avas Anubhag-1, Government of Uttar Pradesh, and Secretary, Shakti Nagar, Special Area Development Authority, Turra (Pipari) district Sonbhadra, have put in appearance and have filed counter-affidavits to which the rejoinder affidavits have also been filed. Sarvashri Satya Prakash Singh (S. P. Singh) Amresh Singh and M. L. Srivastava, learned counsels have been heard on behalf of the petitioners at great length, Shri Ashok Mehta, Chief Standing Counsel assisted by Shri Vishnu Pratap Singh and Sri R. K. Saxena, Standing Counsel have espoused the cause of the State of U. P. and its officials and Shri R. B. Pradhan advocate has represented the Secretary Shakti Nagar, Special Area Development Authority, Turra (Pipari), district Sonbhadra. Entire record of all the cases have been examined and as prayed by the learned counsel for the respective parties, all the petitions are being heard finally at the admission stage and this judgment shall decide all the writ petitions.
(3.) IN order to appreciate the respective contentions, some factual happenings have to be taken note of. The State of Uttar Pradesh (hereinafter referred to as the State) has passed the Uttar Pradesh Special Area Development Authorities Act, 1986 (U. P. Act No. 9 of 1986), hereinafter referred to as the Act, which received the assent of the President of INdia on 19th March 1986 and has been published in the U. P. Gazette on that very day. The preamble says the Special Area Development Authorities Act has been enacted to provide for the establishment of Special Area Development Authorities for the planned development of certain areas of Uttar Pradesh and for matters ancillary thereto. The words "authority", "amenity", "building", "development", "regulation", "rule", "special development area" have been defined under Section 2 of the aforesaid Act. Section 3 of the Act permits the State Government when it is of the opinion that any area of special importance in the State needs to be developed in a planned manner, it may, by notification, declare such area to be a special development area. Section 4 defines the Development Authority. Section 5 enumerates the Staff of the Authority, Section 6 delineates functions of the Special Area Development Authority and Section 7 is about the Powers of the Authority. Sections 6 and 7 are quoted below for ready reference: "6. Functions of the Authority:- The functions of the Special Area Development Authority shall be - (i) to promote and secure development in a planned manner of the Special development area for which it has been constituted; (ii) to prepare development plan for the special development area; (iii) to implement the development plan after its approval by the State Government; (iv) for the purpose of implementation of the plan, to acquire, hold, develop, manage and dispose of land and other property; (v) to carry out building, engineering, mining operations and other construction activity; (vi) to execute works in connection with the supply of water and electricity and to provide such utilities and amenities as water, electricity, drainage and the like; (vii) to dispose of sewage and to provide and maintain other services and amenities; (viii) to provide for the municipal management of the special development area in the same manner as is done by Nagar Mahapalika under the Uttar Pradesh Nagar Mahapalika Adhiniyam, 1959; (ix) to otherwise perform all such functions as are necessary or expedient for the purpose of the planned development of the special development area and for purposes incidental thereto; Provided that the functions specified in Clauses (viii) and (ix) shall not be performed unless so required by the State Government. "7. Powers of the Authority.- The Special Area Development Authority shall.- (a) for the purpose of municipal administration have the powers which a Nagar Mahapalika has under the Uttar Pradesh Nagar, Mahapalika Adhiniyam, 1959; (b) for the purpose of taxation have the powers which a Nagar Mahapalika has in relation to a city under the Uttar Pradesh Nagar Mahapalika Adhiniyam, 1959". The above function, thus, noted is in the contents of Chapters I and II. It would be mentioned here that Chapter III permits the preparation of master plan for Special Development Area, Chapter IV provides the development of lands in Special Development Area, Chapter V makes permissible compulsory acquisition of land, Chapter VI deals with the Finance, Accounts and Audit. Section 18 of the said Chapter reads as under: 18. Fund of the Authority.- (1) The authority shall have and maintain its own fund to which shall be credited- (a) all money received by the Authority from the State Government or the Central Government by way of grant, loans, advances or otherwise; (b) all moneys borrowed by the Authority from sources other than the State Government or the Central Government by way of loans or debentures; (c) all fees, tolls, Cess and charges received by the Authority under this Act: (d) all moneys received by the Authority from the disposal of lands buildings and other properties movable and immovable. and (e) all moneys received by the Authority by way of rents and profits or in any other manner or from any other source. 2. The fund shall be applied towards meeting the expenses to be incurred by the Authority in the administration of this Act and for no other purpose. (3) The Authority may borrow money by way of loans or debentures from the Central Government or State Government or such other sources and on such terms and conditions as may be approved by the State Government. 4. The Authority shall maintain a sinking fund for the repayment of moneys borrowed under sub-section (3), and shall pay ever year to the sinking fund such sum as may be sufficient for repayment within the period fixed of all moneys so borrowed. 5. The sinking fund or any part thereof shall be applied in, or towards the discharge of the loans for which such fund was created, and until such loans are wholly discharged it shall not be applied for any other purpose. ";