Case Note & Summary
The petitioners challenged 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) for an area of 4849 sq mts at Chandivali, Mumbai. The demand was purportedly based on a Government Resolution dated 1st August 2019. The court noted that the matter was covered by its earlier decisions in Salim Alimohomed Porbanderwalla, Voltas Ltd, and RR Realtors, which held that under the repealed ULC Act, demands could only be raised for the built-up area, not the entire land including vacant land. The undisputed record showed the total area was 4854 sq mts, with vacant land of 1606.14 sq mts as per the Schedule of the Exemption Order under Section 20. The court found that the demand for the entire area was unsustainable and quashed it, allowing the petition.
Headnote
A) Urban Land Ceiling - Demand for Payment - Scope of Demand - Urban Land (Ceiling and Regulation) Act, 1976, Section 20 - The court considered whether a demand under the ULC Act could be raised for the entire land area including vacant land. Held that the demand must be limited to the built-up area only, as per the Schedule of the Exemption Order which separately showed vacant land. (Paras 3-5)
Issue of Consideration
Whether under the repealed Urban Land (Ceiling and Regulation) Act, 1976, a demand for payment can be raised for the entire area that was subject to ULC proceedings, including vacant land, or only for the built-up area.
Final Decision
The petition is allowed. The demand of Rs 6,09,66,477 is quashed. Rule is made absolute. No order as to costs.
Law Points
- ULC Act demand limited to built-up area
- not vacant land
- Section 20 exemption order
- Government Resolution 1st August 2019
- repeal of ULC Act
Case Details
2023 LawText (BOM) (08) 175
Writ Petition (L) No. 20587 of 2023
G.S. Patel, Neela Gokhale
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 & Ors
State of Maharashtra & Anr
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition challenging a demand raised under the Urban Land (Ceiling and Regulation) Act, 1976.
Remedy Sought
Quashing of demand of Rs 6,09,66,477 raised by the District Collector and Competent Authority.
Filing Reason
The demand was for the entire area of 4849 sq mts including vacant land, which the petitioners contended was unsustainable under the ULC Act.
Previous Decisions
The court had earlier decided similar issues in Salim Alimohomed Porbanderwalla, Voltas Ltd, and RR Realtors, holding that demands under the ULC Act are limited to built-up area only.
Issues
Whether a demand under the ULC Act can be raised for the entire land area including vacant land, or only for the built-up area.
Submissions/Arguments
The petitioners argued that the demand for the entire area including vacant land was contrary to the Schedule of the Exemption Order under Section 20, which separately showed vacant land. The respondent-state did not contest the legal position as settled in earlier decisions.
Ratio Decidendi
Under the repealed Urban Land (Ceiling and Regulation) Act, 1976, a demand for payment can only be raised for the built-up area, not for the entire land including vacant land, as per the Schedule of the Exemption Order under Section 20.
Judgment Excerpts
We believe the matter is fully covered by our recent decisions in Salim Alimohomed Porbanderwalla & Anr vs State of Maharashtra & Anr, read with the later decisions in Voltas Ltd & Anr v Municipal Commissioner of Thane Municipal Corporation & Ors and RR Realtors v State of Maharashtra & Ors.
In the present case, as the undisputed record at pages 53 and 54 shows, being the Schedule of the Exemption Order under Section 20 of the ULC Act, the total area was 4854 sq mts. That very Schedule shows the vacant land to be 1606.14 sq mts.
Procedural History
The petition was filed challenging a demand dated pursuant to a Government Resolution dated 1st August 2019. Rule was issued and the petition was taken up for final disposal.
Acts & Sections
- Urban Land (Ceiling and Regulation) Act, 1976: Section 20
