High CourtDivision BenchAppeals allowed; remitted to High Court for fre...

Allahabad Development Authority v. Sabia Khan

Case / Petition Number:Civil Appeal No. 4351/2004
Neutral Citation:2006 SUPP. 3 S.C.R.

Case Details & Bench

Court
High Court
Hon'ble Judges
  • S.B. Sinha
  • Dalveer Bhandari
Judgment Date
2006-07-11
Court Decision / Holding
Appeals allowed. The impugned High Court judgment is set aside. The matters are remitted to the Allahabad High Court for fresh consideration in light of the well‑settled principles of judicial review, with State of Uttar Pradesh and UP Jal Sansthan to be impleaded as parties. The High Court should dispose of the writ petitions expeditiously, preferably within four months, while keeping all rival contentions open.
Final Disposition
Appeals allowed; remitted to High Court for fresh consideration with proper parties and adherence to judicial‑review principles.

Parties to the Case

Appellants / Petitioners

  • Allahabad Development Authority
  • Anr.

Respondents

  • Sabia Khan
  • Anr.

Legal Representation & Advocates

Counsels for Petitioners

  • • M.N. Krishnamani
  • • S. Markandey
  • • Rakesh Uttamchandra Upadhyay
  • • A.K. Misra
  • • K.K. Tyagi
  • • Sarada
  • • Afteehar Ahmad
  • • P. Narasimhan
  • • Madhu Tewatia
  • • Chander Shekhar Ashri
  • • Pramod Swamp
  • • Kamlendra Misra
  • • Anuvrat Sharma
  • • Rajeev Dubey
  • • Mukesh Verma
  • • K.C. Jain
  • • E.C. Agrawala
  • • Mahesh Agarwal
  • • Rishi Agrawal
  • • Manu Krishnan
  • • Jayant Kumar
  • • H.K. Puri
  • • R.P. Wadhwani
  • • S.K. Verma
  • • Ajay K. Agarwal
  • • Prashant F Kumar

Counsels for Respondents

  • • M.N. Krishnamani
  • • S. Markandey
  • • Rakesh Uttamchandra Upadhyay
  • • A.K. Misra
  • • K.K. Tyagi
  • • Sarada
  • • Afteehar Ahmad
  • • P. Narasimhan
  • • Madhu Tewatia
  • • Chander Shekhar Ashri
  • • Pramod Swamp
  • • Kamlendra Misra
  • • Anuvrat Sharma
  • • Rajeev Dubey
  • • Mukesh Verma
  • • K.C. Jain
  • • E.C. Agrawala
  • • Mahesh Agarwal
  • • Rishi Agrawal
  • • Manu Krishnan
  • • Jayant Kumar
  • • H.K. Puri
  • • R.P. Wadhwani
  • • S.K. Verma
  • • Ajay K. Agarwal
  • • Prashant F Kumar
  • • E Gopal Balwant Sathe

Case Synopsis & Summary

This appeal concerns the validity of several levies/charges imposed by the Allahabad Development Authority under the UP Water Supply & Sewage Act, 1975, namely Water Charges, Malwa Charges, Sub-Division Charges, Development Charges, and Open Space Charges. The Allahabad High Court had struck down these charges, holding them impermissible in law without a reasoned finding of fact and without considering all facets of applicability and administration of the levies. The High Court’s approach, according to the Supreme Court, lacked a proper factual basis and failed to join essential parties, notably the State of Uttar Pradesh and UP Jal Sansthan, a statutory body under the Act. The Supreme Court allowed the appeals and held that judicial review in such statutory matters is limited; it directed a fresh examination by the High Court after impleading the State and the Jal Sansthan and applying the well‑settled principles of judicial review. It criticized the High Court for relying on sweeping statements rather than arriving at a factual finding, and for inviting dialogue on broader political or systemic issues rather than determining the legality of the levies. The Court emphasized adherence to procedural prerequisites and directed expeditious disposal, preferably within four months, while keeping all rival contentions open before the High Court. The judgments of the High Court were set aside and the matters remitted for fresh consideration.

Provisions of Law Cited

UP. Water Supply & Sewage Act, 1975

Legal Doctrines & Maxims

  • Power of judicial review is limited in matters relating to constitutionality/applicability of statutory levies.
  • High Court must apply mind to relevant principles and material facts; cannot rely on open-ended assumptions or extraneous considerations.

Submissions & Arguments

Contentions of Appellants / Petitioners

The Authority contends that the levies (Water, Malwa, Sub‑Division, Development, and Open Space charges) are authorized under the UP Water Supply & Sewage Act, 1975 and connected regulations; that the Authority collects these charges and transfers the funds to UP Jal Sansthan; that judicial review is necessarily limited and a reasoned factual basis is required; the High Court’s decision was premature for lacking a proper factual finding and for omitting essential parties; the State and Jal Sansthan must be impleaded and the matter re‑considered under settled principles of judicial review.

Contentions of Respondents

Sabia Khan and Anr. challenge the levies as impermissible; they argue that the High Court’s impugned decision rested on flawed premises and lacked proper factual support; they emphasize that the levies must be tested against statutory authorization and the practicalities of service delivery; the remedy lies in bringing all stakeholders, including the State and Jal Sansthan, before the Court for a holistic adjudication.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# ALLAHABAD DEVELOPMENT AUTHORITY AND ANR. _v._ SABIA KHAN AND ANR. JULY 11, 2006 [S.B. SINHA AND DAL VEER BHANDARI, JJ.) ## _UP. Water Supply & Sewage Act, 1975:_ _Levy of various charges/fee by the Authority-Validity of-Held: High Court without applying its mind and without arriving at a finding of fact_ C _proceeded to hold that levy of such charges/fee was impermissible in lawPcwer of judicial review is limited in such matters-Under the circumstances, all the matters are remitted to High Court for disposal afresh applying the relevant principles of law therefor, also by impleading the State of Uttar Pradesh and UP. Jal Sansthan as parties-Judicial Review._ D D The question which arose for determination before this Court in these appeals was as to whether the charges/fee levied by the Allahabad Development Authority were valid in la.w. Allowing the appeals, the Court E HELD:l.I. Without applying its mind to all aspects of the matter relating to applicability of the charges/fee, High Court proceeded to hold the same as impermissible in law without arriving at any finding to that effect. [453-F[ 1.2. The High Court could have struck down the levy on arriving at a _p_ finding of fact that levy~ng of such fee was not justified but the High Court should not have proceecled on the basis that all the applicants would be keeping the building materials on their own lands or on private lands. The High Court, furthermore, applied a wrong test in giving its opinion. [453-G] 2. While dealing with the constitutionality and/or applicability/legality G of a Statute and/or the rules and regulations framed thereunder, the power of judicial review is limited. The High Court ought to have applied its mind having regard to the well settled principles in regard thereto and as laid down by this Court in various decisions. In any view of the matter, the said finding 451 H 452 SUPREME COURT REPORT', [2006] SUPP. 3 S.C.R. A could not have been arrived at by the High Court in absence of the State as a party in the writ petition.1454-C-DI 3.1. The High Court should consider the writ petitions filed by the respondents and other connected matters, if any, applying the relevant principles applicable therefor. The matters are remitted to the High Court B for consideration afresh by impleading the State of Uttar Pradesh and U.P. Jal Sansthan as parties. 1454-E, F, G, HI 3.2. It is clarified that this Court has not applied its mind to the rival contentions of the parties and all the contentions of the parties shall remain C open before the High Court 1455-AI CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4351 of2004. From the Judgment and Order dated I. 7 .2003 of the High Court of Allahabad, in Civil Misc. Writ Petition No. 232381/2001. .. • D ## WITH C.A. Nos. 4352,4389,4391,4392,4393,4394,4397,4399,4401,4402-4403/ 2004,5151,5455/05,7511,7512 and 7513/2004. M.N. Krishnamani, S. Markandey, Rakesh Uttamchandra Upadhyay (for E Gopal Balwant Sathe,) A.K. Misra, K.K. Tyagi, Sarada, Afteehar Ahmad, P. Narasimhan, Madhu Tewatia, Chander Shekhar Ashri, Pramod Swamp, Kamlendra Misra, Anuvrat Sharma, Rajeev Dubey, Mukesh Verma, K.C. Jain, E.C. Agrawala, Mahesh Agarwal, Rishi Agrawal, Manu Krishnan, Jayant Kumar, H.K. Puri, R.P. Wadhwani, S.K. Verma, Ajay K. Agarwal and Prashant F Kumar for the appearing parties. The Judgment of the Court was delivered by S.B. SINHA, J. C.A.Nos. 4351/2004, 4352/2004, 4402-4403/2004, 4389/ 2004, 4391/2004, 4392/2004, 4394/2004, 4397/2004, 4393/2004. G H These appeals are directed against the common judgment and order dated I. 7 .2003 passed by the Division Bench of the Allahabad High Court in the writ petitions filed by the respondents herein questioning the legality/ validity of the following rates/charges levied by the first appellant herein namely: (I) Water Charges ALLAHABAD DEVELOPMENT AUTHORITY v. SABIA KHAN [SINHA, J.] 453 A (2) Malwa Charges (3) Sub-Division Charges (4) Development Charges - (5) Open space charges In the writ petitions filed before the High Court only the first appellant B herein and its Zonal officers were impleaded as parties. The State of Uttar Pradesh and even the U. P. Jal Sansthan, another statutory body constituted under the provisions of _UP. Water_ Supply & Sewage Act, 1975 were not impleaded therein as parties. The Division Bench of the High Court allowed the writ petitions µrimiarily on the premises that the Court can take 'judical Cognizance' of certain facts, stating "we may notice that in relation to the water charges it was opined that as water is supplied by the U.P. Jal Sansthan, constiuted under the U.P. Water Supply & Sewage Act, 1975, the first appellant herein has no water works of its own." c D It was pointed out before us that the water charges are collected by the first appellant herein and the sums so collected are handed over to the Jal Sansthan, the details whereof are stated in Annexure A- I to the rejoinder affidavit filed by the appellant to the counter affidavit of the respondents. The High Court did not apply its mind to this aspect of the matter at all. E Similarly without applying its mind to all aspects of the matter relating to applicability of the charge/fee, the High Court proceeded to hold that the same was impermissible in Jaw without arriving at a finding that the petitioners therein have not been keeping the building materails on the land of the F authority or on a public street or public place. In a given case, therefore, the High Court could have struck down the levy on arriving at a finding of fact that levying of such fee was not jusitified but the High Court should not have proceeded on the basis that all the applicants would be keeping the building materials on their own lands or on G private lands. The High Court, furthermore, applied a wrong test in opining: "It is well known that in U.P., and perhaps in many other States, whenever a person applies for sanction of a map for constructing a building or room the authorities demand bribe, otherwise the map wiil not be sanctioned and all kinds of hyper technical objections are H 454 SUPREME COURT REPORTS [2006] SUPP. 3 S.C.R. ## A ## B ## c raised. It is common knowledge that almost every Municipality or local authority in the country has fixed a rate of this bribe for sanctioning a map. One has to pay a hefty sum of money to the Municipality or Development authority officials if one wishes to get a map sanctioned for constructing a building or room, and if one does not pay this amount the map will not be sanctioned come that may. How long the citizens of this country will tolerate this scandalous state of affairs is anyone guess. The times has now come when it has become the duty of the Court to intervene in this disgraceful state of affairs and voice its protest. The judiciary has to speak out of behalf of the people in such matters and bring them out to the notice of the people at the helm of the affairs." While dealing with constitutionality and/or applicability/legality of a Statute and/or the rules and regulations framed thereunder, the power of judicial review is limited. D The High Court in our poinion ought to have applied its mind having regard to the well settled principle in regard thereto and as laid down by this Court in various decisions. In any view of the matter, the said finding could not have been arrived at by the High Court in absence of the State of Uttar Pradesh as a party in the writ petition. E We are, therefore, of the opinion that the impugned judgment cannot be sustained. In our opinion the High Court should consider the writ petitions filed by the respondents and other connected matters, if any, applying the relevant principles applicable therefor. The impugned judgments are, therefore, set aside. The appeals are F allowed and the matters are remitted to the High Court for consideration of the matters afresh. Keeping in view the peculiar facts and cirucmstances of this case and having regard to the contentions raised at the Bar that the levies imposed by G the appellant No. I are illegal, we would request the High Court to consider the desirability of disposing of the matters as expeditiously as possible and preferably within a period of four months from the date of communications of this order. It goes without saying that the State of Uttar Pradesh and the _UP. Jal_ H Sansthan shall be impleaded as parties. Mr. Markandaya, learned senior counsel "' ALLAHABAD DEVELOPMENT AUTHORITY _v._ SABIA KHAN [SINHA, J.] 455 appearing on behalf of the State of Uttar Pradesh states before us that the A State ofU.P. shall appear before the High Court. A notice be sent by the High Court to Jal Sansthan. We may furthermore observe that this court has not applied its mind to the rival contentions of the parties and all the contentions of the parties shall remain open before the High Court. C.A. Nos. 4399/2004, 440112004, 7511/2004, 7512/2004, 7513/2004, _54551_ B 2005, 5151/2005. In view of our judgment in _Allahabad Development Authority and Anr._ v. _Sabia Khan and Anr.,_ Civil Appeal No. 4351/2004, the interim orders passed in these appeals cannot be sustained and are set aside accordingly. The appeals are allowed. However, it would be open to the High Court to consider C the matter afresh. S.K.S. Appeals allowed.