Bombay High Court Quashes ULC Act Demand for Excess Land Due to Repeal and Non-Completion of Proceedings. Demand for Rs 6,09,66,477 raised under Urban Land (Ceiling and Regulation) Act, 1976 set aside as proceedings were not finalized before the Act's repeal and the land was not vested in the State.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioners, nine individuals, filed a writ petition challenging a demand of Rs 6,09,66,477 raised by the District Collector and Competent Authority under the Urban Land (Ceiling and Regulation) Act, 1976 (ULC Act) in respect of 4849 sq mts of land at CS No. 30/A/1/6, Village Chandivali, Taluka Kurla, Mumbai. The demand was purportedly based on a Government Resolution dated 1st August 2019. The petitioners contended that the ULC Act had been repealed by the Urban Land (Ceiling and Regulation) Repeal Act, 1999, which came into force in Maharashtra on 29th November 2007. They argued that no final statement under Section 8(4) of the ULC Act had been issued and no vesting under Section 10(3) had occurred before the repeal, and therefore the proceedings had lapsed. The court agreed, noting that the matter was fully covered by its earlier decisions in Salim Alimohomed Porbanderwalla & Anr vs State of Maharashtra & Anr (2023 SCC OnLine Bom 731) and Voltas Ltd & Anr v Municipal Commissioner of Thane Municipal Corporation & Ors. The court held that since no final statement or vesting had taken place before the repeal, the demand was unsustainable. The petition was allowed, the impugned demand was quashed and set aside, and rule was made absolute. No order as to costs.

Headnote

A) Urban Land Ceiling - Repeal of ULC Act - Demand for Excess Land - The petitioners challenged a demand of Rs 6,09,66,477 raised by the District Collector under the Urban Land (Ceiling and Regulation) Act, 1976 for an area of 4849 sq mts. The court held that since no final statement under Section 8(4) was issued and no vesting under Section 10(3) occurred before the repeal of the Act on 29th November 2007, the proceedings lapsed and the demand was unsustainable. The court relied on its earlier decisions in Salim Alimohomed Porbanderwalla and Voltas Ltd. (Paras 1-5).

B) Urban Land Ceiling - Government Resolution dated 1st August 2019 - Validity - The demand was purportedly based on a Government Resolution dated 1st August 2019. The court held that the GR could not revive proceedings that had already abated due to the repeal of the ULC Act. The demand was quashed and set aside. (Paras 2-5).

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Issue of Consideration

Whether a demand for payment in lieu of excess vacant land under the Urban Land (Ceiling and Regulation) Act, 1976 can be sustained after the repeal of the Act, when no final statement under Section 8(4) or vesting under Section 10(3) had occurred before the repeal date.

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Final Decision

The petition is allowed. The impugned demand of Rs 6,09,66,477 is quashed and set aside. Rule is made absolute. No order as to costs.

Law Points

  • Urban Land (Ceiling and Regulation) Act
  • 1976
  • Repeal Act
  • 1999
  • Section 3
  • Section 4
  • Section 5
  • Section 6
  • Section 8
  • Section 10
  • Section 11
  • Section 20
  • Section 21
  • Section 27
  • Government Resolution dated 1st August 2019
  • Competent Authority
  • District Collector
  • Demand Notice
  • Excess Vacant Land
  • Vesting
  • Final Statement
  • Draft Statement
  • Objections
  • Final Disposal
  • Writ Petition
  • Rule
  • Final Relief
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Case Details

2023 LawText (BOM) (08) 118

Writ Petition (L) No. 20587 of 2023

2023-08-09

G.S. Patel, Neela Gokhale

2023:BHC-OS:8756-DB

Mr Pravin Samdani (Senior Advocate) with Bharat Jain, Apeksha Khetan i/b IC Legal for petitioners; Mr Himanshu Takke (AGP) with Jyoti Chavan for respondent-state

Jemini Pradip Salot, Nilima Harish Salot, Yashomati Jitendra Salot, Harish Ratilal Salot, Pradip Ratilal Salot, Jitendra Ratilal Salot, Ketan Khantilal Salot, Rajesh Khantilal Salot, Miten Khantilal Salot

State of Maharashtra, Additional Collector and Competent Authority (ULC)

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Nature of Litigation

Writ petition challenging a demand notice for payment in lieu of excess vacant land under the Urban Land (Ceiling and Regulation) Act, 1976.

Remedy Sought

Quashing of the demand of Rs 6,09,66,477 raised by the District Collector and Competent Authority.

Filing Reason

The petitioners claimed that the ULC Act had been repealed and no final statement or vesting had occurred before the repeal, making the demand unsustainable.

Previous Decisions

The court noted that the matter was covered by its earlier decisions in Salim Alimohomed Porbanderwalla and Voltas Ltd.

Issues

Whether the demand under the ULC Act can be sustained after the repeal of the Act when no final statement under Section 8(4) or vesting under Section 10(3) had occurred before the repeal date.

Submissions/Arguments

The petitioners argued that the ULC Act was repealed in Maharashtra on 29th November 2007, and no final statement or vesting had taken place before the repeal, so the proceedings lapsed. The respondent-state presumably argued that the demand was valid based on the Government Resolution dated 1st August 2019.

Ratio Decidendi

Under the Urban Land (Ceiling and Regulation) Act, 1976, once the Act is repealed, any proceedings that have not reached the stage of a final statement under Section 8(4) or vesting under Section 10(3) before the repeal date cannot be revived by a subsequent Government Resolution. The demand based on such proceedings is unsustainable.

Judgment Excerpts

The Petition challenges a demand of Rs 6,09,66,477/- raised by the District Collector and Competent Authority under the Urban Land (Ceiling and Regulation) Act, 1976... We believe the matter is fully covered by our recent decisions in Salim Alimohomed Porbanderwalla & Anr vs State of Maharashtra & Anr... Since no final statement under Section 8(4) was issued and no vesting under Section 10(3) occurred before the repeal, the demand is unsustainable.

Procedural History

The petitioners filed Writ Petition (L) No. 20587 of 2023 before the Bombay High Court challenging a demand notice. The court issued rule and took up the petition for final disposal. After hearing arguments, the court allowed the petition on 9th August 2023.

Acts & Sections

  • Urban Land (Ceiling and Regulation) Act, 1976: Section 8(4), Section 10(3)
  • Urban Land (Ceiling and Regulation) Repeal Act, 1999:
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