Case Note & Summary
The case involves a dispute between the State of Goa and Dr. Alvaro Alberto Mousinho de Noronha Ferreira regarding the calculation of conversion charges for converting agricultural land to non-agricultural use. The respondent and his family members applied for conversion of 16014 sq. mtrs. of land on 08.03.2013. The application was acknowledged on 29.04.2013, and inspections and reports were carried out. On 22.05.2013, the Goa Land Revenue Code (Amendment) Act, 2013 came into force, substantially increasing conversion rates. On 19.07.2013, the respondent submitted an affidavit agreeing to pay conversion charges as demanded and undertaking not to sue for refund. On 19.09.2013, the State demanded payment at the enhanced rates, which the respondent paid under protest on 09.10.2013. The Sanad granting permission was issued on 19.11.2013. The respondent then filed a writ petition seeking refund of the excess amount, arguing that conversion charges should be based on rates as of the application date (08.03.2013). The High Court partly allowed the petition, quashing the demand and directing recalculation at pre-amendment rates for the 16014 sq. mtrs., but applying revised rates for additional land added after the amendment. The State appealed to the Supreme Court. The Supreme Court framed the issue: whether conversion charges are payable as per rates on the date of application or on the date of the order allowing conversion. The Court analyzed Section 32 of the Goa, Daman & Diu Land Revenue Code, 1968, which prescribes a procedure for conversion. Sub-section (6) states that a Sanad shall be granted on payment of fees. The Court held that the relevant date for fixing conversion charges is the date of decision to grant the Sanad, not the date of application. The Court distinguished earlier judgments relied upon by the High Court (Union of India vs. Mahajan Industries Ltd., Union of India vs. Dev Raj Gupta, and Ansal & Saigal Properties (P) Ltd. vs. L. & D.O.) as either based on concessions or lacking a similar statutory provision. The Court also noted that Section 32(3) provides a timeline of 60 days for the Collector to decide, and if delayed, the applicant has a right to appeal. The respondent did not exercise this right despite the delay. The Court allowed the appeal, set aside the High Court's order, and dismissed the writ petition, holding that conversion charges are payable as per rates on the date of the Sanad (19.09.2013).
Headnote
A) Land Law - Conversion Charges - Date for Calculation - Section 32, Goa Land Revenue Code, 1968 - The question was whether conversion charges for change of land use should be calculated as per rates on the date of application or on the date of grant of Sanad. The Supreme Court held that under Section 32(6), the Sanad is granted on payment of fees, and the relevant date for fixing conversion charges is the date of decision to grant the Sanad, not the date of application. The Court distinguished earlier judgments as they were based on concessions or lacked a similar statutory provision. (Paras 2, 12-14) B) Land Law - Statutory Timelines - Effect of Delay - Section 32(3), Goa Land Revenue Code, 1968 - Section 32(3) requires the Collector to decide within 60 days of receipt of application, failing which the applicant may appeal to the Secretary (Revenue) who must decide within 30 days. In this case, the application was made on 08.03.2013, the 60-day period expired on 07.05.2013, and the amendment increasing rates came on 22.05.2013. The applicant did not file an appeal despite the delay. The Court held that the applicant cannot take advantage of the department's delay when a statutory remedy was available. (Paras 12, 17) C) Land Law - Affidavit and Undertaking - Estoppel - The respondent submitted an affidavit on 19.07.2013 agreeing to pay conversion charges as demanded and undertaking not to sue for refund. The Court noted this as a relevant factor, though the main decision rested on statutory interpretation. (Para 15)
Issue of Consideration
Whether conversion charges payable for conversion of land from agricultural to non-agricultural should be calculated on the basis of the rates applicable at the time of making of the application or on the date when the order allowing conversion of land was issued?
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's order, and dismissed the writ petition. The Court held that conversion charges are payable as per rates on the date of the Sanad (19.09.2013), not the date of application.
Law Points
- Conversion charges payable on date of grant of Sanad
- Section 32 of Goa Land Revenue Code
- 1968
- Timelines under Section 32
- Right to appeal for delay
