Bombay High Court Quashes Demand for Extension Fee Against Co-operative Society in Land Allotment Dispute — Government Resolution Dated 1st March 2019 Held Inapplicable to Allotments Made Prior to Its Issuance.

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

The Petitioner, Bhiwandi Powerloom Co-operative Society Ltd., was allotted land admeasuring approximately 10 acres and 5 gunthas in Village Savande, Taluka Bhiwandi, by order dated 9th September 1977, with a condition to complete construction within three years. Possession was handed over on 18th October 1977. The Society obtained NA permission on 28th October 1983 but faced delays due to obstructions from various state departments. In 1994, the Society sought change of NA permission for power loom sheds, leading to a show-cause notice and eventual resumption of land by the State. The resumption was set aside by the Revenue Minister on 28th February 2002. Subsequently, by letter dated 29th March 2019, the Tahsildar demanded Rs.87,04,480/- as extension fee for building permission, relying on Government Resolution dated 1st March 2019. The Society challenged this demand and the applicability of the GR. The Court framed the issue of whether the GR could be applied retrospectively to an allotment made in 1977. The Petitioner argued that the GR was prospective and could not alter the original allotment conditions. The Respondents contended that the GR applied to all pending cases. The Court analyzed the GR and found no express or implied retrospective operation. It held that imposing a fee based on a subsequent GR would be arbitrary and unreasonable, especially when the Society had already faced delays due to state departments. The Court quashed the demand and declared the GR inapplicable to the Petitioner. The decision was in favor of the Petitioner.

Headnote

A) Land Law - Government Resolution - Retrospective Application - Government Resolution dated 1st March 2019 - The Court held that the GR dated 1st March 2019, which imposes a fee for extension of building permission, cannot be applied retrospectively to allotments made prior to its issuance, as it would be arbitrary and unreasonable. (Paras 7-9)

B) Co-operative Society - Land Allotment - Extension of Time - Conditions of Allotment - The Petitioner, a co-operative society, was allotted land in 1977 with a condition to complete construction within three years. The Court held that the subsequent GR cannot alter the terms of the original allotment, and the demand for extension fee was unsustainable. (Paras 4-6)

C) Administrative Law - Executive Instructions - Binding Nature - The Court observed that executive instructions like GRs cannot override statutory conditions or contractual obligations, and must be applied prospectively unless expressly stated. (Paras 8-9)

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Issue of Consideration

Whether the Government Resolution dated 1st March 2019, requiring payment of extension fees for building permission, applies to a land allotment made in 1977, and whether the demand of Rs.87,04,480/- is valid.

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Final Decision

The Court allowed the petition, quashed the letter/order dated 29th March 2019, and declared that the Government Resolution dated 1st March 2019 is not applicable to the Petitioner.

Law Points

  • Government Resolution cannot be applied retrospectively
  • Extension of time for construction does not attract additional premium or fee under GR dated 1st March 2019
  • Allotment conditions prevail over subsequent executive instructions
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Case Details

2023 LawText (BOM) (08) 133

WRIT PETITION NO. 2229 OF 2022

2023-08-31

K. R. Shriram, Dr. N. K. Gokhale

2023:BHC-AS:25245-DB

Mr. Raju D. Suryawanshi for Petitioner, Ms. S. S. Bhende, AGP for Respondents-State

Bhiwandi Powerloom Co-operative Society Ltd.

The State of Maharashtra, The Collector, Thane, The Tahsildar (Revenue), Thane

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Nature of Litigation

Writ petition challenging demand for extension fee and applicability of Government Resolution.

Remedy Sought

Quashing of letter/order dated 29th March 2019 demanding Rs.87,04,480/- and declaration that GR dated 1st March 2019 is not applicable to the Petitioner.

Filing Reason

The Petitioner was directed to pay extension fee for building permission based on a Government Resolution issued after the original allotment.

Previous Decisions

Land was resumed by State but resumption was set aside by Revenue Minister on 28th February 2002.

Issues

Whether the Government Resolution dated 1st March 2019 applies retrospectively to land allotment made in 1977. Whether the demand of Rs.87,04,480/- as extension fee is valid.

Submissions/Arguments

Petitioner argued that the GR is prospective and cannot be applied to allotments made prior to its issuance. Respondents argued that the GR applies to all pending cases and the demand is valid.

Ratio Decidendi

A Government Resolution imposing a fee for extension of building permission cannot be applied retrospectively to land allotments made prior to its issuance, as it would be arbitrary and unreasonable.

Judgment Excerpts

The Petitioner assails letter/order dated 29th March 2019 issued by the Respondent No.3 directing the Petitioner to pay an amount of Rs.87,04,480/-. The Petitioner also seeks a declaration that the Government Resolution dated 1st March 2019 is not applicable to it.

Procedural History

The Petitioner was allotted land in 1977. After delays, land was resumed but set aside in 2002. In 2019, a demand for extension fee was made based on a GR of 2019. The Petitioner filed the present writ petition in 2022.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960:
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High Court Bombay High Court Quashes Demand for Extension Fee Against Co-operative Society in Land Allotment Dispute — Government Resolution Dated 1st March 2019 Held Inapplicable to Allotments Made Prior to Its Issuance.
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