1 pps IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION Writ Petition No. 5843 of 2004 . and Writ Petition No.1126 of 2008. Konkan Railway Corporation Ltd. .. Petitioner v/s. The State of Maharashtra & Others ..Respondents Ms.Kiran Bhagalia with Ms.Asha Bhambwani for the Petitioner. Mr.V.S.Masurkar, Govt. Pleader with Mr.S.N.Bhosale AGP for the State CORAM : B.H. MARLAPALLE & R.Y.GANOO, JJ. DATED : 9th December, 2009 ORAL JUDGMENT (PER B.H.MARLAPALLE, J) : 1. These petitions have been filed by Konkan Railway Corporation Ltd., which was established as autonomous body for the purpose of providing funds needed for laying railway tracks and construction of railway stations in four different states i.e. Maharashtra, Karnataka, Goa and Kerala, pursuant to the agreement dated 19.6.1998 between the Government of India as party of the first party and four different states as 2 the party of the second part i.e. Maharashtra, Goa, Karnataka and Kerala. The said agreement was in connection of the West Coast Railway Line by the Petitioner Corporation. 2. In the first petition, the petitioner Corporation questioned the legality and justifiability of the orders of the Government of Maharashtra for payment of revenue assessment on the lands held by the petitioner Corporation. The said petition was admitted and by way of interim relief, the respondents were restrained by an order of injunction from recovery of the revenue assessment on the lands of the petitioner during the pendency of the petition. In the second writ petition the Corporation prays for declaration that it is exempted from payment of non agricultural assessment for the lands held by it for the purpose of railway and to quash and set aside the demand notice dated 20.11.2007 and 22.11.2007 issued by the respondent nos.5 and 6 respectively. While admitting the said petition prayer for interim relief was rejected. The petitioner, therefore, approached the Apex Court in SLP (Civil) No.6202 of 2008 which was dismissed on 28.3.2008. 3. Mr.Masurkar, learned Government Pleader has invited out attention 3 to Clause XIII and Clause XV of the agreement dated 19.6.1998 referred to herein above and the said clauses are reproduced herein under for ready reference : “xiii) Notwithstanding what is contained hereinabove, in the public and national interest and in the interest of keeping the cost of the project to the minimum, the parties of the second, third, fourth and fifth parts agree to extend to this project concessions like exemption from levy of property tax, subject, however, to the levy of service charges where applicable, by the local authorities concerned, as are extended to the Railways. xv) In case of any dispute arising out of this agreement between the parties to the agreement the matter shall at the request of any of the parties to the agreement, be placed before the Chief Justice of India to appoint an Arbitrator from among the sitting judges of the Supreme Court, to arbitrate upon such dispute.” 4. The agreement dated 19.6.1998 thus provides for arbitration on the demand for exemption from levy of property taxes or levy of service charges wherever applicable so far as the local authority is concerned on the 4 land that are extended to the railways. When such a remedy for appointment of Arbitrator has been provided for in the agreement itself, it would be appropriate that the Corporation is relegated to the said remedy provided in Clause XV of the agreement. 5. Our attention was also invited to the order dated 9.10.2006 passed in Writ Petition No.1997 of 2002 by the petitioner Corporation for similar reliefs. The Government of Maharashtra was directed to take a decision with regard to the levy of non agricultural taxes, within 6 months. Affidavit in reply filed in the second petition on behalf of the State by Shri Anil Kale, Addl, Commissioner of Konkan Division, CBD, specifically states that the representation submitted by the petitioner Corporation to the State Government were considered and the Government came to the categorical conclusion that the land held by Konkan Railway Corporation could not be exempted from the levy of taxes by the State Government. It has been further stated that the exemption available to the Government of India either under Article 285 of the Constitution of India or any any other exemption clauses are not available to the Petitioner Corporation as it is a distinct entity in the eyes of law and it is not the department of the Government of India. 5 6. Hence, we delegate the petitioner Corporation to the remedy of applying for the appointment of an Arbitrator as per the agreement dated 19.6.1998 between the Government of India and four state Government including the Government of Maharashtra, If such an application is moved before the Honourable Chief Justice of India within the period of four weeks from today, the interim relief granted in Writ Petition No.5843 of 2004 shall continue to operate till 22.1.2010. 7. The petitions are disposed accordingly. Rule stands discharged. [R.Y.GANOO, J.] [B.H. MARLAPALLE, J.]