Case Note & Summary
The present appeal arises from a dispute concerning a slum rehabilitation project in Borivali, Mumbai, under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. In 2003, the appellant was appointed as a developer by respondent no. 1, a co-operative housing society of slum dwellers, to redevelop the land declared as a slum area. However, the project was unduly prolonged for over two decades without any construction commencing. Consequently, the Apex Grievance Redressal Committee (AGRC), exercising power under Section 13 of the Act, terminated the development agreement on 04.08.2021. The appellant challenged this order before the Bombay High Court via a writ petition, which was dismissed on 14.10.2022. The High Court framed two issues: whether a developer's non-fulfillment of the basic requirement to commence construction for 18 years is fatal to the statutory intent of the slum rehabilitation scheme, and whether the slum dwellers' right to shelter under Article 21 can be nullified by such delay. The High Court upheld the termination, leading to the present appeal before the Supreme Court. The Supreme Court examined the limited scope of judicial review under Article 226, emphasizing that the court's role is confined to examining the legality and validity of the statutory authority's decision, not to reappreciate facts. The Court analyzed the appellant's submissions, which focused on factual delays attributed to various factors such as obtaining permissions, slum dwellers' non-cooperation, and financial constraints. The Court found that the appellant's delay of over 18 years was unconscionable and defeated the very object of the slum rehabilitation scheme, which aims to provide shelter to slum dwellers. The Court held that the AGRC's order was justified and that the High Court correctly exercised its limited jurisdiction. The appeal was dismissed, affirming the termination of the development agreement.
Headnote
A) Administrative Law - Judicial Review - Scope under Article 226 - Limited to examining legality and validity of statutory authority's decision, not reappreciating facts - The court must confine itself to whether the authority acted within its jurisdiction, followed natural justice, and considered relevant material - Held that the High Court correctly applied this limited scope (Paras 6-7). B) Slum Rehabilitation - Termination of Developer - Section 13 of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 - Power coupled with duty - The Competent Authority/AGRC has the power to terminate a developer for non-performance, especially when delay defeats the object of rehabilitating slum dwellers - Held that the AGRC's order was justified (Paras 6, 11-13). C) Constitutional Law - Right to Shelter - Article 21 of the Constitution of India - Right to livelihood includes right to shelter - Unconscionable delay by developer in commencing construction nullifies slum dwellers' right to shelter - Held that the slum dwellers' right to shelter cannot be held hostage by a developer's inaction (Paras 3, 11-13). D) Contract Law - Delay - Unconscionable delay - A delay of 18 years in commencing construction under a slum rehabilitation agreement is fatal to the object of the scheme - The developer's failure to obtain necessary permissions and financial resources does not justify such prolonged inaction - Held that the termination was valid (Paras 8-10, 11-13).
Issue of Consideration
Whether the termination of the development agreement by the AGRC under Section 13 of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, due to the appellant's delay of over 18 years in commencing construction, was valid and whether the High Court correctly exercised its limited judicial review under Article 226.
Final Decision
The Supreme Court dismissed the appeal, affirming the judgment of the Bombay High Court and upholding the termination of the development agreement by the AGRC.
Law Points
- Limited scope of judicial review under Article 226
- Power coupled with duty under Section 13 of the Maharashtra Slum Areas Act
- 1971
- Right to shelter under Article 21
- Unconscionable delay as a ground for termination of development agreement
