Bombay High Court Hears Writ Petition Challenging Slum Land Acquisition Notification Under Slums Act on Grounds of Collusive Consent Decree and Natural Justice Violation. Petitioner challenged acquisition of CTS Nos. 29 and 32 under Section 14 of Slums Act for Slum Rehabilitation Area without hearing and relying on collusive consent decree between developer and slum society.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, Bharat J. Patel, filed a writ petition under Article 226 of the Constitution of India before the High Court of Judicature at Bombay, Ordinary Original Civil Jurisdiction, challenging the acquisition of his land for a slum rehabilitation scheme. He claimed ownership of plots CTS No.29 admeasuring 7154.30 sq. meters and CTS No.32 (Part) admeasuring 515 sq. meters at Village Dindoshi, Borivali, Mumbai. The adjoining plots were declared as slum, and respondent No.4 was the proposed society of slum dwellers. The State of Maharashtra issued a notification dated 17 November 2016 under Section 14 of the Slums Act acquiring the writ property. The petitioner also challenged the public notice dated 29 April 2017 and consequent proceedings including an order fixing compensation. The factual background involved a development agreement dated 7 August 2006 between the proposed society and a developer, respondent No.6, followed by an irrevocable power of attorney dated 2 October 2006. The developer filed Short Cause Suit No.1124/2007 against the society seeking a declaration of exclusive development rights and an injunction. The petitioner was not impleaded in that suit. On 21 January 2009, the parties to the suit executed consent terms and obtained a consent decree. On 19 December 2012, the society consented to an execution application filed by the developer, and all reliefs were granted, including appointment of a court commissioner and directions to society members to vacate and execute individual development agreements. The Slum Rehabilitation Authority issued a show cause notice under Section 14 of the Slums Act on 16 November 2013. The petitioner filed objections on 23 November 2013, 26 February 2014, 1 March 2014, and 15 October 2016, stating that he was ready and willing to develop the land himself and that there was an R.G. Reservation on the land which needed removal before any scheme could be filed. Hearings were held on 3 February 2014, 10 March 2014, and 11 April 2014. Despite his objections, the State Government issued the impugned notification on 17 November 2016, after 23 months. The petitioner alleged that no hearing was granted before the notification and that the SRA report falsely stated that land owners did not object. The SRA also allegedly admitted that no scrutiny of eligible slum dwellers was carried out. The petitioner filed a representation on 8 April 2017 offering redevelopment subject to modification of reservation. A compensation hearing was initially fixed for 27 June 2017 but was preponed to 20 June 2017 without proper notice, and a final order fixing compensation was passed on the preponed date. This Court had earlier passed a status quo order on 14 July 2017 and directed SRA not to conduct further proceedings pursuant to the impugned notification by order dated 23 June 2017. Respondent No.5 was deleted as per order dated 20 February 2023. The legal issues raised were whether the acquisition was vitiated by violation of natural justice, non-consideration of objections, reliance on a collusive consent decree, and failure to remove R.G. Reservation. The petitioner argued that the consent decree was collusive and could not form the basis of acquisition. The respondents opposed the petition by filing affidavits. The court heard arguments and reserved judgment on 20 February 2023, pronouncing it on 13 April 2023. The final decision is not available in the provided text.

Headnote

A) Constitutional Law - Writ Jurisdiction - Article 226 Constitution of India - Maintainability of writ petition for quashing land acquisition for slum rehabilitation - Petitioner sought writ of certiorari to quash notification dated 17 November 2016 issued under Section 14 of Slums Act, public notice dated 29 April 2017, and subsequent order fixing compensation on grounds of violation of natural justice, non-consideration of objections, and reliance on collusive consent decree; court heard arguments and reserved judgment, final decision not available in provided text (Paras 2-17).

B) Property Law - Slum Rehabilitation - Section 14 Slums Act - Acquisition of land for Slum Rehabilitation Area - Petitioner alleged that lands CTS No.29 and CTS No.32 were acquired without hearing and without considering his objections, and that no scheme could be filed until R.G. Reservation was removed; SRA issued show cause notice under Section 14 on 16 November 2013, petitioner filed multiple objections, but no response was given (Paras 10-14).

C) Civil Procedure - Consent Decree - Collusive consent terms in suit and execution - Developer and slum society obtained consent decree on 21 January 2009 in Short Cause Suit No.1124/2007 without impleading petitioner; execution application was allowed on 19 December 2012 by consent; petitioner contended that acquisition proposal relied upon this collusive decree to exclude his rights (Paras 6-9, 18).

D) Natural Justice - Audi Alteram Partem - Hearing before acquisition and compensation - Petitioner contended that no hearing was granted before issue of notification dated 17 November 2016 under Section 14 of Slums Act; compensation hearing fixed for 27 June 2017 was preponed to 20 June 2017 without proper notice and final order passed on preponed date (Paras 11-16).

E) Administrative Law - Non-application of Mind - Consideration of objections and scrutiny of slum dwellers - SRA report allegedly submitted after eight months without reference to objections regarding CTS No.29; SRA admitted no scrutiny of eligible slum dwellers; State Government and SRA relied upon collusive City Civil Court proceedings (Paras 12-13).

F) Slum Rehabilitation - Development Rights - Dispute between developer and society - Development Agreement dated 7 August 2006 and Irrevocable Power of Attorney dated 2 October 2006; developer filed suit for declaration of exclusive development rights; execution application sought appointment of Court Commissioner and directions to society members; petitioner contended he was not impleaded and developer could not dispossess him (Paras 4-9, 18).

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Issue of Consideration

Whether notification dated 17 November 2016 under Section 14 of the Slums Act and consequent proceedings were vitiated by failure to grant hearing, non-consideration of land owner's objections, reliance on a collusive consent decree, and failure to remove R.G. Reservation before submission of scheme.

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Final Decision

Not mentioned in provided text; court pronounced judgment on 13 April 2023, but final operative order is not available.

Law Points

  • Writ of Certiorari under Article 226 Constitution of India
  • Section 14 Slums Act acquisition
  • natural justice hearing before acquisition
  • consideration of objections
  • collusive consent decree
  • removal of R.G. Reservation before scheme
  • compensation determination without proper notice
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Case Details

2023 LawText (BOM) (04) 87

Writ Petition No. 2283 of 2017

2023-04-13

R. D. Dhanuka, M. M. Sathaye

2023:BHC-OS:2863-DB

Mr. Shardul Singh, Ms. Swapnila Rane, Ms. Vanita Kakar for Petitioner; Mr. Abhay L. Patki, Additional Government Pleader, Mr. Laxmikant Satelkar, AGP for State; Mr. Abhijeet Desai, Mr. Karan Gajra, Mr. Dilip Jadeja for Respondent Nos. 2 and 3 – SRA; Mr. Cherag Balsara, Mr. Pranesh Gada for Respondent No.4; Ms. Mansi Marlewar, Naib Tahasildar SRA present in Court

Bharat J. Patel

1. The State of Maharashtra, 2. The Chief Executive Officer, Slum Rehabilitation Authority, 3. Slum Rehabilitation Authority, 4. Shivneri Navgruh Nirman Vith Bhatti S.R.A. Co-operative Housing Society, 5. Vishwas Patil (Deleted), 6. Atlantic Construction Company

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging acquisition of land under Section 14 of the Slums Act for slum rehabilitation scheme.

Remedy Sought

Petitioner sought quashing and setting aside of Notification dated 17 November 2016 issued by Respondent No.1, Public Notice dated 29 April 2017 issued by Respondent No.2, and all consequent proceedings including order dated 20 June 2018 passed by Respondent Nos. 2 and 3.

Filing Reason

Petitioner claimed ownership of CTS Nos. 29 and 32 and alleged that the acquisition proceedings were vitiated by absence of hearing, non-consideration of objections, reliance on collusive consent decree between developer and slum society, and failure to remove R.G. Reservation before filing any scheme.

Previous Decisions

Short Cause Suit No.1124/2007 resulted in consent decree dated 21 January 2009; Execution Application was allowed by consent on 19 December 2012; High Court order dated 10 February 2011 directed SRA to apply the judgment in Amit Gulabdas Shah v. State of Maharashtra; this Court passed order dated 23 June 2017 directing SRA not to conduct further proceedings pursuant to impugned notification; status quo order dated 14 July 2017 in this petition; Respondent No.5 deleted as per order dated 20 February 2023.

Issues

Whether the acquisition notification under Section 14 of the Slums Act was vitiated by failure to grant hearing to the land owner before issuance. Whether the objections raised by the land owner were considered by SRA and State Government before issuing the notification. Whether the consent decree obtained by the developer and slum society was collusive and could not form the basis for the acquisition proposal. Whether the failure to remove R.G. Reservation and non-scrutiny of eligible slum dwellers vitiated the acquisition proceedings. Whether the compensation determination order passed on preponed date without adequate notice was valid.

Submissions/Arguments

Petitioner contended he was owner of CTS Nos. 29 and 32 and had repeatedly objected to acquisition, offering to develop the land himself, but no hearing was granted before the notification under Section 14 of the Slums Act. Petitioner alleged that SRA submitted a report after eight months without reference to his objections and falsely stated that land owners did not object; SRA admitted no scrutiny of eligible slum dwellers was carried out. Petitioner argued that the consent decree in Short Cause Suit No.1124/2007 was collusive, obtained without impleading him, and that the acquisition relied upon this collusive decree. Petitioner contended that unless R.G. Reservation was removed, no scheme could be submitted; he made detailed representation on 8 April 2017 offering redevelopment subject to modification of reservation. Petitioner claimed that the compensation hearing fixed for 27 June 2017 was preponed to 20 June 2017 without proper notice and final order passed on preponed date. Respondent Nos. 2, 3, 4 and 6 opposed the writ petition by filing affidavits; Petitioner also filed additional affidavit on 17 November 2022.

Ratio Decidendi

Not mentioned in provided text; final reasoning and holding not available.

Judgment Excerpts

The Petitioner filed this Writ Petition under Article 226 of the Constitution of India praying for a Writ of Certiorari for quashing and setting aside Notification dated 17 November, 2016, issued by the Respondent No.1 in respect of the property bearing CTS No. 29 and 32, admeasuring about 7154.3 and 500 sq.mtrs respectively. On 16 November, 2013 the SRA issued a public notice under Section 14 of the Slums Act in respect of the writ lands and called upon the owners to show cause as to why the lands must not be acquired. On 17/11/2016, after 23 months, State Government issued notification under Section 14 of the Slums Act, thereby aquiring the writ property. It is the case of Petitioner that no hearing was granted to the Petitioner before passing the said impugned notification dated 17 November,2016 under Section 14 of the Slums Act. On 20 June, 2017 Respondent No.5 preponed the date of hearing from 27 June,2017 to 20 June, 2017 and passed final order fixing the compensation on the preponed date.

Procedural History

Petitioner filed writ petition under Article 226 challenging notification dated 17 November 2016 and public notice dated 29 April 2017. Rule was issued and petition taken up for final disposal on consent. Earlier, Short Cause Suit No.1124/2007 was filed by developer against society; consent decree passed on 21 January 2009; execution application allowed on 19 December 2012. High Court on 10 February 2011 directed SRA to apply Amit Gulabdas Shah case. SRA issued notice under Section 14 on 16 November 2013; petitioner filed objections on 23 November 2013, 26 February 2014, 1 March 2014, 15 October 2016, and 8 April 2017; hearings held on 3 February, 10 March, and 11 April 2014. Notification under Section 14 issued on 17 November 2016. Compensation hearing initially fixed for 27 June 2017 was preponed to 20 June 2017 and final order passed. This Court passed order dated 23 June 2017 directing SRA not to conduct further proceedings and status quo order dated 14 July 2017. Respondent No.5 deleted on 20 February 2023. Judgment reserved on 20 February 2023 and pronounced on 13 April 2023.

Acts & Sections

  • Constitution of India: Article 226
  • Slums Act: Section 14
  • Right to Information Act:
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