Bombay High Court Allows Writ Petition Challenging AGRC Order — Restores Termination of Developer for Non-Compliance with Mandatory Consents and No-Objection Certificate. Failure to Obtain Consent of 70% Municipal Tenants and Annexure-II from MCGM Justifies Termination Under Section 13(2) of Maharashtra Slums Areas Act, 1971.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The Bombay High Court allowed a writ petition challenging the order of the Apex Grievance Redressal Committee (AGRC) which had set aside the termination of Respondent No.7 as Developer and cancelled permissions granted to the Petitioner. The dispute pertained to a municipal land parcel in Byculla, Mumbai, occupied by municipal tenants and slum dwellers, requiring combined redevelopment under DCR 33(7) and 33(10) of DCPR-2034. Respondent No.7 was initially appointed as Developer by Respondent No.4 Society in 2006. However, Respondent No.7 failed to obtain mandatory consents of 70% municipal tenants and No-Objection Certificate from MCGM, leading to termination by SRA under Section 13(2) of the Maharashtra Slums Areas Act, 1971 on 19.04.2018. The SRA directed the Societies to appoint a new Developer, and the Petitioner was subsequently appointed. Respondent No.7 challenged the termination before AGRC, which allowed the application and cancelled the Petitioner's permissions. The High Court found that the AGRC ignored the fact that Respondent No.7 had not complied with mandatory requirements for over a decade, including obtaining consent of tenants and Annexure-II from MCGM. The Court held that the termination was justified and that the Petitioner's appointment was valid. The impugned order of AGRC was quashed, and the SRA's termination order was restored.

Headnote

A) Slum Rehabilitation - Termination of Developer - Section 13(2) Maharashtra Slums Areas (Improvement, Clearance and Redevelopment) Act, 1971 - The SRA terminated the appointment of Respondent No.7 as Developer for failure to comply with mandatory requirements including obtaining consent of 70% municipal tenants and No-Objection Certificate from MCGM. The AGRC set aside the termination and cancelled permissions granted to the Petitioner. The High Court held that the AGRC failed to appreciate that the termination was justified due to non-compliance with statutory requirements and that the Petitioner had been validly appointed by the Societies. (Paras 1-10)

B) Slum Rehabilitation - Combined Redevelopment - DCR 33(7) and 33(10) - The redevelopment of the property required combined redevelopment under both regulations as per clause 7.1 of DCR 33(10) of DCPR-2034. The Developer was required to obtain consent of municipal tenants and Annexure-II from MCGM. The Court held that failure to obtain these mandatory approvals justified termination. (Paras 2.2-2.5)

C) Writ Jurisdiction - Interference with AGRC Order - The High Court exercised its writ jurisdiction to quash the AGRC order as it was passed without considering material facts and in violation of principles of natural justice. The Court restored the SRA's termination order and upheld the appointment of the Petitioner as new Developer. (Paras 1, 10)

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Issue of Consideration

Whether the Apex Grievance Redressal Committee (AGRC) erred in setting aside the termination of Respondent No.7 as Developer and in cancelling permissions granted to the Petitioner, without considering the mandatory requirements of obtaining consents of municipal tenants and No-Objection Certificate from MCGM.

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Final Decision

The Bombay High Court allowed the writ petition, quashed the impugned order of AGRC dated 23.03.2020, and restored the termination order of SRA dated 19.04.2018. The Court upheld the appointment of Petitioner as new Developer.

Law Points

  • Slum Rehabilitation Authority
  • Termination of Developer
  • Section 13(2) Maharashtra Slums Areas Act
  • 1971
  • Apex Grievance Redressal Committee
  • Combined Redevelopment under DCR 33(7) and 33(10)
  • Consent of Tenants
  • Annexure-II
  • No-Objection Certificate
  • Writ Jurisdiction
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Case Details

2024 Lawtext (BOM) (6) 108

Writ Petition (L) No. 10000 of 2020

2024-06-10

MILIND N. JADHAV, J.

Mr. Ravi Kadam, Senior Advocate with Mr. S. G. Surana i./by Madhur Surana, Advocates for Petitioner in Writ Petition No.2246 of 2023.  Mr. Ashish Kamat, Senior Advocate with Mr. C. N. Gole, Advocate for Petitioner in Writ Petition No.2247 of 2023.  Mr. Jagdish G. Aradwad a/w. Ms. Aswini Jadhav, Advocates for Respondent No.1 – SRA.  Mr. Hemant Ghadigaonkar, Advocate for Respondent No.5.  Mr. Firoz Bharucha a/w. Ziyad Madon, Ravi Gandhi, Rashmin Jain and Mr. Prathmesh Jadhav i./by Kanga & Co., Advocates for Respondent No.7.  Mr. Vijay Patil, Advocate for Respondent No.8 – AGRC.  Mr. Anil Sakhare, Senior Advocate a/w. Mr. Sagar Patil and Ms. Shilpa Puranik, Advocate for Respondent No.2 – MCGM.

Renaissance Buildcon

The Chief Executive Officer SRA & Ors.

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Nature of Litigation

Writ Petition challenging the order of Apex Grievance Redressal Committee (AGRC) which set aside termination of a developer and cancelled permissions granted to a new developer.

Remedy Sought

Petitioner sought quashing of AGRC order dated 23.03.2020 and restoration of SRA's termination order dated 19.04.2018.

Filing Reason

The AGRC allowed Respondent No.7's application challenging termination by SRA, thereby cancelling permissions obtained by Petitioner as new developer.

Previous Decisions

SRA terminated Respondent No.7 as Developer on 19.04.2018 under Section 13(2) of the Maharashtra Slums Areas Act, 1971. AGRC set aside this termination on 23.03.2020.

Issues

Whether the AGRC erred in setting aside the termination of Respondent No.7 as Developer despite non-compliance with mandatory requirements. Whether the Petitioner's appointment as new Developer was valid and should be upheld.

Submissions/Arguments

Petitioner argued that Respondent No.7 failed to obtain consent of 70% municipal tenants and No-Objection Certificate from MCGM, justifying termination. Respondent No.7 contended that termination was arbitrary and that they had made substantial progress.

Ratio Decidendi

The termination of a developer under Section 13(2) of the Maharashtra Slums Areas Act, 1971 is justified if the developer fails to comply with mandatory requirements such as obtaining consent of 70% of municipal tenants and No-Objection Certificate from the municipal corporation. The AGRC cannot set aside such termination without considering these material facts.

Judgment Excerpts

This Writ Petition challenges the legality and validity of the judgment and order dated 23.03.2020 passed by the Apex Grievance Redressal Committee (for short ‘AGRC’) – Respondent No.8. By virtue of the impugned judgment dated 23.03.2020, Respondent No.8 cancelled all permissions and NoObjection Certificate obtained by Petitioner from Respondent No.1 who was appointed by the concerned Societies as the New Developer.

Procedural History

The SRA terminated Respondent No.7 as Developer on 19.04.2018. Respondent No.7 challenged this termination before AGRC, which allowed the application on 23.03.2020 and cancelled permissions of Petitioner. Petitioner then filed the present writ petition before Bombay High Court.

Acts & Sections

  • Maharashtra Slums Areas (Improvement, Clearance and Redevelopment) Act, 1971: Section 13(2)
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