Bombay High Court Allows Petitioners in MRTP Act Reservation Lapsing Case — Failure to Acquire Land Within 12 Months of Purchase Notice. Reservation on Land Reserved for School and Public Amenities Lapsed Under Section 127(2) of Maharashtra Regional and Town Planning Act, 1966 Despite Fresh Development Plan Reservations.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
  • 7
Judgement Image
Font size:
Print

Case Note & Summary

This writ petition under Article 226 of the Constitution of India arose from a dispute over reservation of land in the Nashik Municipal Corporation area. The petitioners, owners of agricultural land bearing Survey No.7A (part) Hissa No.4A at village Chehedi Budruk, challenged the continued reservation of their land in the final development plan for Nashik City. The land, measuring about 16,000 sq. mtrs., was originally reserved for 'High School and Primary School' under Reservation No.143 in the development plan published in parts between 1993 and 1996. The petitioners served a purchase notice under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 on 3 March 2014, alleging that the Nashik Municipal Corporation had failed to acquire the land for over two decades. The Assistant Director of Town Planning acknowledged the notice and sought ownership documents, while offering TDR compensation, which the petitioners declined on 11 April 2014. The statutory period of 12 months expired on 3 March 2015 without acquisition steps, and the petitioners intimated lapsing of reservation. The NMC wrote to the Collector on 22 December 2014, but the Collector returned the proposal on 17 April 2015, and on 27 May 2015 the ADTP informed the petitioners that the proposal was rejected. Petitioners sent reminders in 2015 and 2023, but no notification of lapsing was issued, leading to filing of the writ petition on 19 June 2023. The core legal issues were whether the reservation lapsed under Section 127(2) of the MRTP Act due to non-acquisition within 12 months; whether the purchase notice was invalid for not enclosing documents; and whether fresh reservations in a revised development plan could revive the reservation. Petitioners argued that no steps were taken for acquisition, relying on Girnar Traders v. State of Maharashtra, (2007) 7 SCC 555, which requires declaration under Section 6 of the Land Acquisition Act, 1894 within the statutory period. They also contended that fresh reservations Nos. 473 and 474 in the revised plan notified on 9 January 2017 could not continue the reservation. The NMC responded by citing measurement efforts from 2016 onwards, but its counsel conceded that the facts were identical to those in Damu Vaman Mogal v. Hon'ble Minister for Urban Development, where the court had declared lapsing and the Supreme Court had rejected the SLP. The court found that no steps were taken to acquire the land until filing of the petition in 2023, and the 12-month period expired without action. It rejected the defect-in-notice argument, following Popat Kisan Maske, and held that non-submission of documents does not invalidate the purchase notice. It further held that fresh reservation cannot defeat accrued statutory rights, applying Godrej and Boyce and Santu Sukhdeo Jaibhave. Accordingly, the High Court allowed the writ petition, declared that the reservation on the writ land lapsed under Section 127(2) of the MRTP Act, and directed the State Government to issue a notification declaring lapsing within three months, permitting the petitioners to develop the land in accordance with law.

Headnote

A) Town Planning - Lapsing of Reservation - Failure to Acquire within Statutory Period - Maharashtra Regional and Town Planning Act, 1966, Section 127(2) - Petitioners served purchase notice on 3 March 2014; no steps for acquisition were taken within 12 months as required; court found respondents failed to take necessary steps as per Girnar Traders; reservation on the writ land lapsed. Held that failure to publish declaration under Section 6 of Land Acquisition Act, 1894 within 12 months resulted in lapsing of reservation (Paras 9-10).

B) Town Planning - Purchase Notice Validity - Non-Submission of Documents - Maharashtra Regional and Town Planning Act, 1966, Section 127 - Respondents contended purchase notice defective for not submitting ownership documents; court rejected this as afterthought; following Popat Kisan Maske, not submitting documents does not invalidate notice; also respondents did not seek documents during subsequent correspondence (Paras 10-11).

C) Town Planning - Fresh Reservation in Revised Development Plan - Cannot Defeat Accrued Rights - Maharashtra Regional and Town Planning Act, 1966, Section 127(2) - Fresh reservation Nos. 473 and 474 in revised plan sanctioned on 9 February 2017 could not continue reservation after statutory lapsing; following Godrej and Boyce and Santu Sukhdeo Jaibhave, accrued statutory right cannot be taken away by fresh reservation (Para 12).

D) Constitutional Law - Writ Remedy - Directions for Lapsing Notification - Constitution of India, Article 226, Maharashtra Regional and Town Planning Act, 1966, Section 127(2) - Court granted writ petition and directed State Government to issue notification declaring lapsing of reservation within 3 months and permitted development in accordance with law (Paras 3, 12-13).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether reservation on the writ land lapsed under Section 127(2) of MRTP Act due to failure of NMC to take acquisition steps within 12 months of purchase notice; whether purchase notice was invalid for non-submission of documents; whether fresh reservation in revised development plan could continue the reservation after lapsing

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Writ Petition allowed. The court held that reservation on the writ land lapsed under Section 127(2) of MRTP Act upon failure to take acquisition steps within 12 months of purchase notice; the purchase notice was valid despite non-submission of documents; fresh reservation cannot defeat accrued rights; and directed State Government to issue notification declaring lapsing of reservation within 3 months and permitted development in accordance with law.

Law Points

  • Section 127(2) of Maharashtra Regional and Town Planning Act
  • 1966
  • lapsing of reservation
  • purchase notice
  • steps for acquisition include declaration under Section 6 of Land Acquisition Act
  • 1894
  • non-submission of documents does not invalidate purchase notice
  • fresh reservation cannot defeat accrued rights
Subscribe to unlock Law Points Subscribe Now

Case Details

2025 LawText (BOM) (04) 29

Writ Petition No. 9318 of 2023

2025-04-08

A.S. Gadkari, Kamal Khata

2025:BHC-AS:16217-DB

Shrishailya S. Deshmukh, M.L. Patil, M.P. Thakur

Sunil Laxman Dond, Vishnu Ravji Dond, Nitin Laxman Dond, Mandakini Shivram Kunde, Kisan Ravji Dond, Kailas Ramchandra Dond, Alka Bhimrao Tajanpure

The Commissioner, Nashik Municipal Corporation; The Collector, Nashik; The Principal Secretary, Urban Development Department; Assistant Director Town Planning, Nashik Municipal Corporation

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition under Article 226 of Constitution of India seeking declaration that land reservation lapsed under Section 127(2) of MRTP Act and direction to issue notification for lapsing.

Remedy Sought

Petitioners sought declaration that land bearing Survey No.7A (part) Hissa No.4A, village Chehedi Budruk, be released from reservation; declaration that fresh reservations No.473 and 474 notified on 9 January 2017 are illegal; and direction to State Government to issue notification under Section 127(2) within 3 months declaring lapsing of reservation and permitting development.

Filing Reason

Failure of Nashik Municipal Corporation to acquire reserved land within statutory period after purchase notice served on 3 March 2014, and non-issuance of lapsing notification despite reminders.

Previous Decisions

No previous decisions in this case; but a coordinate bench in Writ Petition No.12016 of 2016 (Damu Vaman Mogal & Ors. v. Hon'ble Minister for Urban Development) involving similar lands from same survey number had allowed lapsing of reservation, and SLP against that order was rejected by Supreme Court. The court also referred to precedents like Girnar Traders, Popat Kisan Maske, Godrej and Boyce, and Santu Sukhdeo Jaibhave.

Issues

Whether reservation on writ land lapsed under Section 127(2) of MRTP Act due to failure to take acquisition steps within 12 months of purchase notice dated 3 March 2014. Whether defect, if any, in purchase notice (non-submission of documents) invalidates the notice under Section 127. Whether fresh reservation Nos. 473 and 474 in revised development plan can defeat the statutory right accrued to landowners after lapsing of earlier reservation. Whether NMC took sufficient steps for acquisition to prevent lapsing.

Submissions/Arguments

Petitioners: Purchase notice served; 12 months expired without acquisition steps; no declaration under Section 6 of Land Acquisition Act; letter dated 17 April 2015 showed proposal merely formal; fresh reservation in revised plan cannot continue reservation; land partly acquired already; court should declare lapsing and direct notification. Respondents: Land acquisition proposal sent to Deputy Superintendent of Land Records on 9 February 2016 for joint measurement; fee deposited; reminders sent; measurement obstructed by land owner; 30% award amount not deposited; but counsel conceded facts identical to Damu Vaman Mogal where lapsing was declared; relied on affidavit of Smt. Seema Arjunrao Ahire dated 8 December 2023.

Ratio Decidendi

Under Section 127(2) of MRTP Act, if the planning authority fails to take steps for acquisition within 12 months of service of purchase notice under Section 127, the reservation lapses automatically. Steps for acquisition must include publication of declaration under Section 6 of Land Acquisition Act, 1894. Non-submission of documents with purchase notice does not invalidate notice. Fresh reservation in a revised development plan cannot defeat the statutory right accrued to landowners after lapsing of earlier reservation.

Judgment Excerpts

Rule made returnable forthwith. By consent of parties, the Petition is heard finally. The Petitioners sent the purchase Notice on 3rd March 2014 under Section 127 of the MRTP Act to the Respondents on the failure of NMC to acquire the land for more than two decades (statute mandates 10 years). We find that, the Respondents have failed to take necessary steps to acquire the land as per the settled law in Girnar Traders (supra) as required under Section 127(2) of the MRTP Act. It was held that the statutory right accrued to the owners cannot be taken away by an attempt to impose fresh reservation in a development plan.

Procedural History

Petitioners served purchase notice under Section 127 on 3 March 2014. NMC acknowledged and asked for documents; Petitioners declined TDR on 11 April 2014. After 12 months, on 3 March 2015, Petitioners intimated lapsing. NMC sent land acquisition proposal to Collector on 22 December 2014; Collector returned proposal on 17 April 2015. On 27 May 2015, ADTP informed Petitioners proposal rejected. Petitioners sent reminders on 25 March 2015, 21 April 2023, 23 May 2023. Writ petition filed on 19 June 2023. Court heard on 21 March 2025 and pronounced judgment on 8 April 2025.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 127, 127(2)
  • Land Acquisition Act, 1894: 6
  • Constitution of India: Article 226
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Petitioners in MRTP Act Reservation Lapsing Case — Failure to Acquire Land Within 12 Months of Purchase Notice. Reservation on Land Reserved for School and Public Amenities Lapsed Under Section 127(2) of Maharashtra Regiona...
Related Judgement
High Court Bombay High Court Dismisses State Appeal Against Acquittal in Corruption Case Due to Unreliable Witnesses. Demand and Acceptance of Bribe Not Proved Beyond Reasonable Doubt Under Prevention of Corruption Act, 1988.