B.A.LL.B.

(HONS) /
B.A.LL.B. (HONS) / LL.B / B
BA

Submitted to : Ms. Chetn Submitted by:

a sharma Name _Niyati karnawat _
Date _______________ Semester _BBA.LL.B.(H.)
Marks Obtained ______ 7TH SEM
 ACKNOWLEDGEMENT

I have put in efforts in this assignment. However, it would not h

ave been possible without the kind support and help of many in
dividuals and organizations. I would like extent my sincere thank
s to all of them.

I thank my God for providing me with everything that I required

in completing this assignment.

I am highly indebted to the Teacher in Charge MS. Chetna shar

ma for guidance and constant supervision as well as for providi
ng necessary information regarding the assignment and also for
her support in completing the assignment.

I would like to express my gratitude towards my parents for thei

r kind co-operation and encouragement which helped me in the
completion of this assignment.

My hearty thanks and appreciations go to my classmates in dev

eloping the assignment and to the people who have willingly hel
ped me out with their abilities.

Student Name: NIYATI KARNAWAT

 CERTIFICATE OF AUTHENTICITY

This is to certify that NIYATI KARNAWAT… student of BBA.LL.

B. (H.) 7 SEM has successfully completed the assessment and
reassessment of urban areas
assignment under the guidance of MS. Chetna sharma durin
g he year 2020-2021.

Student Name- NIYATI KARNAWAT

 DECLARATION

I Niyati Karnawat student of B.B.A.LL.B. (HONS.) 7th SEM

at Indore Institute Of Law declare that project work entitl
ed was carried by me on my own research .
The project was undertaken as a part of academic curricul
um according to the university rules and regulations and i
t has no commercial motive and interest. It is my original
work . it is not submitted to any other organization for an
y other purpose.

Signature of the Student: Niyati karnawat

Place: Indore Institute of Law
Date : 05/01/2021
INDEX

1. INTRODUCTIONS
2. APPLICABILITY AND SCOPE:
3. ASSESSMENT AND RE-ASSESSMENT OF LAND IN URBAN
AREAS
4. EFFECT OF ORDER OF RE-ASSESSMENT:
5. ALTERATION OF ASSESSMENT
6. IMPOSITION OF PREMIUM
7. STANDARDISATION OF LAND REVENUE ASSESSMENT
8. CONCLUSION
9. BIBLIOGRAPHY
INTRODUCTION

GENERAL INTERPRETATION–

The section says that the assessment of land revenue of any land shall be made with reference
to the use to which such is put. It has therefore divided the use of land in five kinds as under:
(1) Agricultural; (2) Dwelling houses; (3) Industrial or commercial; (4) Mining under a mining
lease; (5) Anything other than the above.

The purpose of ‘mining under a mining lease’ has been added for the first time in 1987.

Sub-section (2) provides for alteration of assessment in a case where the use of land is diverted
from one purpose to another, irrespective of the fact that the term for which assessment was
made, has not expired.

Sub-section (2-a) authorises the Sub-Divisional Officer to make assessment or alteration of

assessment.

Sub-section (3) makes provision for assessment of land revenue which is held free for a certain
purpose, in the event of the use being changed to another purpose.

Sub-section (4) directs that the assessment to be made under sub-section (2) and (3) shall be
made in accordance with the rules made by the State Government in this respect. It has further
directed that the rules to be made by the State Government shall be made in accordance with
the principles contained in Chapter VII or VIII of the Code, as the case may be. Chapter VII of
the Code deals with Revenue Survey and Settlement in Non-urban areas while Chapter VIII
deals with assessment and re-assessment of land in urban areas.

Sub-section (5) authorises the Sub-Divisional Officer to impose premium also on land diverted
from one use to another in accordance with the rules, apart from the land revenue assessed
under this section. But no such premium shall be charged for the diversion of any land for
charitable purpose.

Sub-section (6) abolishes exemption from payment of premium in respect of certain lands held
in malik makbuza right immediately before the coming into force of the Madhya Pradesh Land
Revenue Code, 1954 but also provides for giving them certain rebate.
APPLICABILITY AND SCOPE:

Land being used for non- agricultural purposes even before the date Code came into force. It
shall be deemed to have been diverted. Re-assessment may be made. Taran-taran Pathshala v.
State of M.P., 1994 RN 398(Revenue).

Where proceedings started and order also was passed under section 172 (7), there is no need of
any action or enquiry under this section. 13rybfrushan Moth v. State of M.P., 1994 RN 192
(Revenue).

Construction of house for agricultural implements and cattle is not diversion but it is
improvement. 1986 RN 131.

Passing of an order by adopting summary procedure is wrong. 1986.

ASSESSMENT AND RE-ASSESSMENT OF LAND IN URBAN AREAS

92. Provisions of Chapter to apply to land in urban areas. — (1) The provisions of this
Chapter shall apply to land held in urban area, whether for agricultural or non-agricultural
purposes. —

(1) by a bhumiswami;

(2) by a Government lessee under a lease granting a right of renewal; and

(3) by a holder of service land.

(2) Whenever the land revenue or rent assessed on a plot number falls due

for revision the Collector shall assess the plot in accordance with the provisions of this Chapter.

Explanation.— For the purposes of this section, the land revenue or rent payable for a plot shall
be deemed due for revision —

(i) if the plot is held on a lease when the lease becomes due for renewal; and

(ii) in the case of a plot held by a bhumiswami on the expiry of the original term of settlement.

93. Powers of Collector to divide lands into plot numbers. — Subject to

rules made under this Code, the Collector may —

(a) divide the lands in an urban area into plot numbers; and

(b) recognize existing survey numbers as plot numbers, reconstitute plot

numbers or form new plot numbers.

94. Powers of Collector to re-number or sub-divide plot numbers. — (1)

The Collector may either re-number or sub-divide plot numbers into as many subdivisions as
may be required in view of the acquisition of rights in land or for any

other reason.

(2) The division of plot numbers into sub-divisions and the apportion- ment of the assessment
of the plot number amongst the sub-divisions shall be carried out in accordance with rules made
under this Code and such rules may provide limits either of area or of land revenue or rent, as
the case may be, or both in any local area, below which no sub-division shall be recognised

Provided that the total amount of assessment of any plot number shall not be enhanced during
the term of settlement unless such assessment is liable to alteration under the provisions of this
Code.

95. Area and assessment of plot numbers and sub-divisions to be entered in records. —
The area and assessment of plot number and sub-divisions of plot numbers shall be entered in
such records as may be prescribed.

96. Area in town formed into blocks for assessment.— For the purposes of assessment, the
area in a town shall be formed into blocks and in forming such blocks regard shall be had to
use of land for industrial, commercial, residential or such other special purposes as may be
prescribed.

97. Omitted.

98. Fair assessment.—The fair assessment of lands used for agricultural purpose shall be
calculated and fixed in accordance with the principles and restrictions set forth in Section 81
and lands used for non-agricultural purpose shall be fixed in accordance with the rules made
under Section 59.1

(2) The average annual letting value of lands in each block in respect of land held for purposes
mentioned in sub-section (1) of section 59 shall be determined separately in the prescribed
manner on the basis of transactions of sales and leases in respect of the land held for each of
the aforesaid purposes in such block during the period of five years immediately preceding the
year in which the letting value is being determined, so far as the information about such
transactions is available:

Provided that if the transactions which have taken place in any block in respect of any land
held for any of the aforesaid purpose are not sufficiently representative transactions in respect
of the land held for the corresponding purpose during the same period in adjacent block may
be taken as basis for determining the letting value.

(3) The standard rate of assessment for lands held for purposes mentioned in clause (b) or (c)
of sub-section (1) of Section 59 shall be equal to one-third of the average annual letting value
determined or the block in respect of such land 59 under sub-section (2) and for purposes
mentioned in clause (b) of sub-section (1) of Section 59 shall be one-half of the average annual
letting value determined for the block in respect of such land.

(4) The standard rates for lands held for agricultural purposes shall be fixed with due regard to
soil and position of land and to the profits of agriculture to the consideration paid for leases
and to the sale prices of such lands.

99. Omitted.

100. Fixation of fair assessment at the time of revision.—In the case of lands which are
being assessed for a purpose with reference to which they were assessed immediately before
the revision, the assessment so arrived at exceeds, in the case of agricultural land one and a
half times the land revenue or rent and in the case of other lands six times the land revenue or
rent payable immediately before the revision the assessment shall be fixed at one and a half
times such land revenue or rent in the case of agricultural land and at six times such land
revenue or rent in the case of other lands :

Provided that where an improvement has been effected at any time in any holding held for the
purpose of agriculture by or at the expense of the holder thereof, the assessment of such holding
shall be fixed as if the improvement had not been made.

101. Term of settlement. —The assessment fixed under Section 10 shall remain in force for a
period of thirty years or for such longer period as may elapse before re-assessment after that
period and such period shall be deemed to be the term of settlement for all purposes.
102. Assessment fixed shall be land revenue or rent. —The assessment fixed under Section
100 shall be the land revenue or rent payable annually on such plot number unless it is modified
in accordance with the provisions of this Code or any other law.

103. Land revenue or rent fixed under previous settlement or leases to continue. The land
revenue or rent fixed for any land in an urban area under a settlement or a lease from
Government with rights of renewal made before the coming into force of this Code shall,
notwithstanding the expiry of the term of 60 such settlement or lease, continue in force until
the assessment on such land is Fixed in accordance with the provisions of this Chapter.

EFFECT OF ORDER OF RE-ASSESSMENT:

Where the original order of the Sub-Divisional Officer making re-assessment was passed on
11-1-1965, the order of revised assessment will come into force with effect from the first day
of October next, the date of commencement of the next revenue year. Although assessment
could be made under section 59(2) of the Code for diversion made prior to the Code, the order
could not be made to act retrospectively and the same would be effective from the date it is
passed.

When the purpose of the land is diverted and re-assessment is made, it cannot take effect
retrospectively from the date of the diversion. Assessment or reassessment when made can
only be effective from the end of the agricultural year in which the assessment has been made.

The two cases cited above relate to a period when the provisions of S.59-A were not made. The
legislature vide M.P. Act 15 of 1975, has inserted Ss.59-A and 59-B in respect of payment of
land revenue re-assessed under the provisions of S.59. Section 59-A now makes it clear that
the land revenue as re-assessed shall be payable from the date of diversion not from the
beginning of the next agricultural year in which such re- assessment was made. The provision
of Section 59-A has been given retrospective effect from the beginning of the Code, i.e.
2.10.1959.

Is diverted:

The expression is diverted used in sub section (2) of section 59 of the M.P. Land Revenue
Code, is used without reference to time and indicate a hypothesis. When proceedings are
initiated under section 59 (2), what must be seen is whether on that date land stood actually
diverted or not, irrespective of the fact that the diversion took place before or after the Code
came into force.

ALTERATION OF ASSESSMENT

Diversion from a non-agricultural purpose to an agricultural purpose in non urban and urban
areas.

When land already diverted to a non-agricultural purpose and re-assessed on that basis is re-
diverted to an agricultural purpose the assessment as refixed shall be equal to the agricultural
assessment on the land as fixed at the last settlement.

When land already diverted to a non-agricultural purpose and assessed on that basis is re-
diverted to an agricultural purpose and there is no agricultural assessment to fall back upon,
the assessment on re-diversion shall be fixed at the rate adopted for similar soil in the same
village or in a neighbouring village at the last settlement.

The assessment fixed under rules 2 and 3 shall remain in force till the next succeeding
settlement of the village.

(ii) Diversion from an agricultural purpose to a non-agricultural purpose.

(a) Non-Urban areas

If any land assessed at agricultural rates is diverted to a non-agricultural purpose, the

assessment thereon shall be revised in accordance with any of the methods specified below
according to the circumstances of the case, Viz.:—

If the area in which the land is situate has an assessment rate as approved by the State
Government under Sub-section (2) of Section 77 of the Code, then in accordance with the
assessment rate so prevailing.

If there be no assessment rate in force as aforesaid, then the Sub-Divisional Officer shall
calculate the estimated rental value of the land to be assessed in accordance with rules 33,34,35
and 36 of the rules framed under Clauses (viii), (ix) (x)&(xii) of Sub-section (2) of section 258
of the Code, as far as they may apply and fix the assessment of the land up to the maximum of
33 percent of the estimated, rental value of the land, taking into account the advantages or
disadvantages and other circumstances peculiar to the survey number to be assessed.
In fixing the actual assessment, the area of a survey number or Sub-division measuring less
than 5 sq. metres shall be taken to be 5 sq. metres. In other cases areas up to 5 sq. metres shall
be ignored and areas exceeding 5 sq. metres but below 10sq. metres shall be taken as 10 square
metres. The assessment shall be correct to the nearest naye Paise.

The assessment fixed under rule 5 shall remain in force till the next succeeding settlement of
the village.

(b) Urban Areas

If any land in an urban area assessed at agricultural rate is diverted to a non-agricultural

purpose, its assessment shall be altered by fixing the actual assessment on the basis of the
standard rate prevailing for the area in which the land is situated, if, in such area, a standard
rate as approved by the State Government under rule 30 of the rules framed under clauses (x,,i),
(xvii) and (x-viii) of Sub-section (2) of Section 258 of the Code, is in force.

If no such standard rate is in force, the average letting value of the land shall be calculated, as
far as may be, in accordance with rules 25, 26, 27 and 28 of the rules made under the clauses
specified in rule 8 above and a standard rate determined in accordance with the provisions of
rule 30 of the said rules.

On such standard rate being calculated, the Sub-Divisional Officer shall fix., the actual
assessment on the land diverted to a non-agricultural purpose up to one-third of the estimated
annual rental value of the land, if the land is held for the purposes mentioned in clause (b) or
(c) of Sub-section (1) of Section 59 of the Code and up to one-half of the estimated annual
rental value, if the land is held for purposes mentioned in clause (d) of the said Sub-section.

In fixing the actual assessment, the area of a plot measuring less than 5 sq. metres shall be taken
to be 5 sq. metres. In other cases areas up to 5 sq. metres shall be ignored, and areas exceeding
5 sq. metres but below 10 sq. metres shall be taken as 10 sq. metres. The assessment shall be
correct to the nearest naye paise.

The assessment fixed under rule 10 shall remain in force till the next succeeding settlement of
the village.

IMPOSITION OF PREMIUM

When the land assessed for any non-agricultural purpose is diverted to any agricultural purpose
no premium shall be imposed under Sub-section (5) of Section 59 of the Code.
For the purpose of levy of premium on agricultural land other than the land specified in the
proviso to Sub-section (5) of Section 59 of the Code diverted to non-agricultural purposes, in
any towns and villages in the State of Madhya Pradesh shall be divided into the following
classes as specified in Column (1) of the Schedule appended to these rules and the premium
shall be imposed according to the rates specified in Column (2) and (3) of the said Schedule as
the case may be:

Provided that with the sanction of the State Government the Sub-Divisional Officer may
include any particular village in higher or lower class than that prescribed in this rule:

Provided further that no premium shall be payable on agricultural land diverted into residential
purposes if the area of diverted land is not exceeding one hundred square metre and “Kachha”
construction is built on such land.

Explanation- I. When the ‘abadi’ of two or more villages adjoins, the population shall be taken
as the population of the combined villages.

Explanation- II. ‘Kachha’ construction means such construction in which only clay and wood
(excluding timber wood) are used.]

In the event of the land diverted to non-agricultural purposes being re-diverted to an

agricultural purpose, the holder of the land pr his successor-in-title will not be entitled to get a
refund of the amount of premium already paid for diversion to a non-agricultural purpose.

All changes in assessment on account of diversion shall be brought on the record-of-rights and
other record prescribed under section 114 and necessary corrections shall also be made in
respect of the survey numbers or plot numbers, as the case may be.

STANDARDISATION OF LAND REVENUE ASSESSMENT

The Taxation Enquiry Commission (1953-54) was in favour of undertaking settlement

operations in only those areas where original settlement had not been done so far. In respect of
the areas in which settlement had already been carried out and land revenue had been assessed
on the basis of detailed land survey and soil classification, the Commission did not favour
revision of settlement as it would be an expensive and time-consuming process, particularly
when resettlement was overdue for most of the areas in the country and the technical personnel
were not available in so a large number as to complete the operations in a reasonable time. The
Commission, nevertheless, pointed out large disparities in the assessment of land revenue in
the different States and in the different areas of the same Slate, and greatly emphasised the
desirability of standardising the assessment and raising the receipts from land revenue in this
process.

The Commission attributed the existing disparities in land revenue assessment chiefly to the
differences in price-levels of the different periods in which original or revision settlements
were done. To minimise the disparities, it recommended that the present incidence of land
revenue in the areas last settled during the periods 1880-99, 1900-19 and 1920-39 should be
raised by 25, 12.50 and 6.25 per cent respectively in conformity with the continued rise in
prices since 1873, while no enhancement should be effected in those areas in which revision
or original settlement had been done after 1939. It also recommended revision of standardised
assessments every 10th year according to rise or fall in the average level of the prices of the
decennium over that of the preceding 20 years. For the price-rise of more than 25 per cent and
upto 43.75 per cent and above, it suggested enhancement of 3.25 to 12.50 per cent, and for
similar price-falls, reduction of 6.25 to 25 percent[1].
CONCLUSION

With the imposition of ceiling on land holdings, standardisation of land revenue assessment
will be the final link in the chain of land reforms in this country, the various classes of landed
aristocracy having been eliminated and the land distributed to the actual cultivators in not too
big holdings, the standardisation of land revenue assessment will not only contribute to
equitable distribution of the burden of land tax on them, but they will also be made to contribute
their appropriate share to the national revenue which has to be raised in all possible justified
manner for financing the development projects.

The various land reforms measures have been taken chiefly with a view to benefitting the actual
tillers of land to whom does also accrue the benefits of agricultural developments under the
Plan. The standardisation of land revenue assessment should, therefore, receive the attention
of the policy framers and legislators to achieve the twin objectives of equity in taxation on land
and raising of finances for our development plans.
BIBLIOGRAPHY

Report of the Taxation Enquiry Commission, Vol. III, pp 235-30.

 Page 1

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GENERAL Translation
The segment says that the evaluation of land income of any land will be made regarding the utilization to which such is
put. It has along these lines separated the utilization of land in five sorts as under: (1) Agrarian; (2) Abiding houses; (3)
Mechanical or business; (4) Mining under a mining lease; (5) Something besides the abovementioned.
The reason for 'mining under a mining lease' has been added without precedent for 1987.
Sub-segment (2) accommodates modification of appraisal for a situation where the utilization of land is redirected
starting with one reason then onto the next, independent of the way that the term for which evaluation was made, has
not lapsed.
Sub-segment (2-a) approves the Sub-Divisional Official to make evaluation or change of appraisal.
Sub-area (3) makes arrangement for evaluation of land income which is held free for a specific reason, in case of the
utilization being changed to another reason.
Sub-segment (4) guides that the evaluation to be made under sub-area (2) and (3) will be made as per the guidelines
made by the State Government in this regard. It has additionally guided that the standards to be made by the State
Government will be made as per the standards contained in Part VII or VIII of the Code, by and large. Part VII of the
Code manages Income Overview and Settlement in Non-metropolitan regions while Section VIII arrangements with
appraisal and re-evaluation of land in metropolitan zones.
Sub-area (5) approves the Sub-Divisional Official to force premium additionally ashore redirected starting with one
utilize then onto the next as per the standards, aside from the land income surveyed under this segment. However, no
such premium will be charged for the redirection of any land for magnanimous reason.
Sub-segment (6) annuls exception from installment of premium in regard of specific grounds held in malik makbuza
right preceding the coming into power of the Madhya Pradesh Land Income Code, 1954 yet in addition accommodates
giving them certain discount.
Pertinence AND Degree:
Land being utilized for non-agrarian purposes even before the date Code came into power. It will be considered to have
been redirected. Re-evaluation might be made. Taran-taran Pathshala v. Territory of M.P., 1994 RN 398(Revenue).
Where procedures began and request likewise was passed under segment 172 (7), there is no need of any activity or
enquiry under this part. 13rybfrushan Moth v. Province of M.P., 1994 RN 192 (Income).
Development of house for horticultural executes and cows isn't redirection however it is improvement. 1986 RN 131.
Passing of a request by receiving rundown methodology isn't right. 1986.
Evaluation AND RE-Appraisal OF LAND IN Metropolitan Zones
92. Arrangements of Section to apply to land in metropolitan regions. — (1) The arrangements of this Part will apply to
land held in metropolitan territory, regardless of whether for rural or non-rural purposes. —
(1) by a bhumiswami;
(2) by an Administration resident under a rent conceding a privilege of recharging; and
(3) by a holder of administration land.
(2) At whatever point the land income or lease evaluated on a plot number falls due
for modification the Authority will evaluate the plot as per the arrangements of this Part.
Clarification.— For the motivations behind this part, the land income or lease payable for a plot will be considered due
for amendment —
 Page 2
(I) if the plot is hung on a rent when the rent gets due for reestablishment; and
(ii) on account of a plot held by a bhumiswami on the expiry of the first term of settlement.
93. Forces of Authority to isolate lands into plot numbers. — Subject to
rules made under this Code, the Gatherer may —
(a) partition the terrains in a metropolitan territory into plot numbers; and
(b) perceive existing overview numbers as plot numbers, reconstitute plot
numbers or structure new plot numbers
EFFECT OF ORDER OF RE-ASSESSMENT:
Where the original order of the Sub-Divisional Officer making re-assessment was passed on 11-1-1965, the order of
revised assessment will come into force with effect from the first day of October next, the date of commencement of the
next revenue year. Although assessment could be made under section 59(2) of the Code for diversion made prior to the
Code, the order could not be made to act retrospectively and the same would be effective from the date it is passed.
When the purpose of the land is diverted and re-assessment is made, it cannot take effect retrospectively from the date
of the diversion. Assessment or reassessment when made can only be effective from the end of the agricultural year in
which the assessment has been made.
The two cases cited above relate to a period when the provisions of S.59-A were not made. The legislature vide M.P.
Act 15 of 1975, has inserted Ss.59-A and 59-B in respect of payment of land revenue re-assessed under the provisions
of S.59. Section 59-A now makes it clear that the land revenue as re-assessed shall be payable from the date of
diversion not from the beginning of the next agricultural year in which such re- assessment was made. The provision of
Section 59-A has been given retrospective effect from the beginning of the Code, i.e. 2.10.1959.
Is diverted:
The expression is diverted used in sub section (2) of section 59 of the M.P. Land Revenue Code, is used without
reference to time and indicate a hypothesis. When proceedings are initiated under section 59 (2), what must be seen is
whether on that date land stood actually diverted or not, irrespective of the fact that the diversion took place before or
after the Code

Sources Similarity

VARIATION OF LAND REVENUE ACCORDING TO THE ...

May 1, 2015 — The two cases cited above relate to a period when the provisions of S.59-A were not made. The
legislature vide M.P. Act 15 of 1975, has ... 7%
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which-the-land-is-issued/