Case Note & Summary
The Supreme Court allowed the appeals against the Bombay High Court's order which had disposed of the writ petition filed by the appellants, purchasers of a plot of land in Amravati, Maharashtra. The plot was originally reserved for a private school under the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act). The original owners had served a purchase notice under Section 49 of the MRTP Act on 04-07-2006, which was acknowledged on 02-01-2007. No acquisition proceedings were initiated within one year, leading to the lapsing of the reservation under Section 49(7). However, the original owners did not develop the land and sold it to the appellants on 30-12-2015. The appellants filed a writ petition seeking a declaration that the reservation had lapsed and for compensation. The High Court held that Section 49 is a personal remedy for the owner who intends to develop the property immediately, and the benefit of the purchase notice does not enure to a subsequent purchaser. The High Court disposed of the petition with liberty to the appellants to take other steps. The Supreme Court reversed this decision, holding that the benefit of a purchase notice under Section 49 is attached to the land and not personal to the owner. Once the reservation lapses under Section 49(7), the land is free from reservation, and the subsequent purchaser is entitled to the benefit. The Court set aside the High Court's order and declared that the reservation in respect of the subject property had lapsed under Section 49(7) of the MRTP Act.
Headnote
A) Town Planning - Reservation Lapse - Section 49 Maharashtra Regional and Town Planning Act, 1966 - Purchase Notice - The benefit of a purchase notice issued under Section 49 by the original owner enures to a subsequent purchaser, as the right to de-reservation is attached to the land and not personal to the owner. The High Court erred in holding that Section 49 is personal and cannot be availed by a purchaser. (Paras 22-30) B) Town Planning - Reservation Lapse - Section 49(7) MRTP Act - Lapse of Reservation - Once a purchase notice under Section 49 is served and no acquisition steps are taken within one year, the reservation lapses automatically. The subsequent purchaser is entitled to the benefit of such lapse. (Paras 22-30) C) Town Planning - Reservation Lapse - Section 127 MRTP Act - Alternative Remedy - Section 127 provides a 10-year period for acquisition, but Section 49 is a separate and immediate remedy. The High Court's view that Section 49 is not meant for selling property is incorrect. (Paras 22-30)
Issue of Consideration
Whether the benefit of a purchase notice issued under Section 49 of the Maharashtra Regional and Town Planning Act, 1966 by the original owner enures to a subsequent purchaser of the property, and whether the reservation lapses under Section 49(7) of the Act.
Final Decision
Appeals allowed. The order of the High Court dated 09-02-2017 and the review order dated 07-04-2017 are set aside. It is declared that the reservation in respect of the subject property has lapsed under Section 49(7) of the Maharashtra Regional and Town Planning Act, 1966. The appellants are entitled to the benefit of the purchase notice issued by the original owners.
Law Points
- Section 49 of MRTP Act is a beneficial provision for immediate de-reservation
- benefit of purchase notice enures to subsequent purchaser
- Section 127 provides alternative 10-year period
- reservation lapses if no acquisition within one year of purchase notice
