Case Note & Summary
The appellants, Godrej and Boyce Manufacturing Company Limited and its constituted attorney, owned land bearing CTS No. 2B (part) and 3B in Mumbai, which was reserved for a 'Recreation Ground' in the second Development Plan (DP 1991) for Greater Mumbai, sanctioned between 1991 and 1994. Under the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act), Section 126(1) was amended by Maharashtra Act 10 of 1994 with effect from 25.03.1991, inserting clauses (a), (b), and (c) which conferred power on the Planning Authority to acquire reserved land and provided for grant of Development Rights Certificate (DRC) to the landowner. The appellants claimed a DRC for the entire reserved area of 31,057.30 sq. metres. The Bombay High Court dismissed their writ petition, leading to the present appeal. The Supreme Court, after hearing senior counsel for both sides, held that the High Court erred in dismissing the claim. The Court interpreted Section 126(1)(c) to mean that the landowner is entitled to a DRC for the entire area surrendered for the public purpose, and there was no justification to deny the DRC for the full reserved area. The appeal was allowed, and the respondents were directed to grant the DRC for the entire 31,057.30 sq. metres.
Headnote
A) Town Planning - Development Rights Certificate - Entitlement to DRC for entire reserved area - Section 126(1)(c) Maharashtra Regional and Town Planning Act, 1966 - The appellants owned land reserved for a Recreation Ground in the Development Plan. They sought a DRC for the entire reserved area. The High Court dismissed their claim. The Supreme Court held that under Section 126(1)(c), the landowner is entitled to a DRC for the entire area surrendered for the public purpose, and the High Court's interpretation was erroneous. (Paras 1-3)
Issue of Consideration
Whether the appellants are entitled to a Development Rights Certificate (DRC) for the entire area of 31,057.30 sq. metres reserved for a Recreation Ground under the Development Plan, and whether the Bombay High Court erred in dismissing their claim.
Final Decision
The Supreme Court allowed the appeal, set aside the judgment of the Bombay High Court, and directed the respondents to grant the Development Rights Certificate for the entire area of 31,057.30 sq. metres to the appellants.
Law Points
- Development Rights Certificate
- Land Acquisition
- Reservation
- Recreation Ground
- Section 126 MRTP Act
- 1966
- Entitlement to DRC for entire reserved area
Case Details
Civil Appeal No. 9021 of 2014
Shri P. Chidambaram (for appellants), Shri Atmaram N.S. Nadkarni (for respondents)
Godrej and Boyce Manufacturing Company Limited Through Its Constituted Attorney & Anr.
The Municipal Corporation of Greater Mumbai & Ors.
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Nature of Litigation
Civil appeal against dismissal of writ petition by Bombay High Court seeking grant of Development Rights Certificate for land reserved for Recreation Ground.
Remedy Sought
Appellants sought a Development Rights Certificate for the entire reserved area of 31,057.30 sq. metres.
Filing Reason
The Bombay High Court dismissed the appellants' claim for DRC for the entire reserved area.
Previous Decisions
The Bombay High Court dismissed the writ petition filed by the appellants.
Issues
Whether the appellants are entitled to a Development Rights Certificate for the entire area of 31,057.30 sq. metres reserved for a Recreation Ground under the Development Plan.
Submissions/Arguments
Shri P. Chidambaram, learned senior counsel for the appellants, argued that under Section 126(1)(c) of the MRTP Act, the landowner is entitled to a DRC for the entire area surrendered for the public purpose.
Shri Atmaram N.S. Nadkarni, learned senior counsel for the respondents, opposed the claim.
Ratio Decidendi
Under Section 126(1)(c) of the Maharashtra Regional and Town Planning Act, 1966, a landowner whose land is reserved for a public purpose is entitled to a Development Rights Certificate for the entire area surrendered, and the Planning Authority cannot deny the DRC for part of the reserved area.
Judgment Excerpts
Aggrieved by the dismissal of their claim by the Bombay High Court, for the grant of Development Rights Certificate for a total area of 31,057.30 sq.metres, for the construction and development of the amenity namely 'Recreation Ground', the writ petitioner before the Bombay High Court has come up with this appeal.
We have heard Shri P. Chidambaram, learned senior counsel for the appellants and Shri Atmaram N.S. Nadkarni, learned senior counsel appearing for the respondents.
Procedural History
The appellants filed a writ petition before the Bombay High Court seeking a Development Rights Certificate for the entire reserved area. The High Court dismissed the petition. The appellants then appealed to the Supreme Court by way of Civil Appeal No. 9021 of 2014.
Acts & Sections
- Maharashtra Regional and Town Planning Act, 1966: Section 126(1)(a), Section 126(1)(b), Section 126(1)(c)
