Case Note & Summary
The petitioners, Sheth Developers Pvt Ltd and Ashwin Natwarlal Sheth, acquired development rights over land from Voltas Ltd in 2003. In 2016, the Maharashtra Government notified an Accommodation Reservation Policy, allowing private developers to develop reserved plots in exchange for incentives. The Thane Municipal Corporation (TMC) introduced a Buy-Back Policy (BBP) for lands acquired under Development Control Regulations and reserved plots. The petitioners acted on the BBP, altering their position to their detriment. However, the TMC later decided to keep the BBP in abeyance. The petitioners filed a writ petition under Article 226 of the Constitution, challenging this decision and seeking enforcement of the BBP. The court examined whether the TMC could resile from its policy after the petitioners had acted on it. Applying principles of promissory estoppel and legitimate expectation, the court held that the TMC was bound by its policy and could not keep it in abeyance to the prejudice of the petitioners. The court allowed the petition, directing the TMC to honour the BBP terms.
Headnote
A) Constitutional Law - Promissory Estoppel - Legitimate Expectation - Article 226 of Constitution of India - The court considered whether the Thane Municipal Corporation could keep its Buy-Back Policy in abeyance after the petitioners had acted on it to their detriment. Held that the Corporation was bound by its policy and could not resile from it after the petitioners altered their position based on the policy's assurances (Paras 3-4, 30-35). B) Town Planning - Accommodation Reservation - Buy-Back Policy - Maharashtra Regional and Town Planning Act, 1966 - The dispute pertained to the Corporation's decision to keep in abeyance its policy for buy-back of lands acquired under Development Control Regulations and reserved plots. The court held that the Corporation must honour the policy terms as the petitioners had already acted on them (Paras 5-10, 40-45).
Issue of Consideration
Whether the Thane Municipal Corporation can keep its Buy-Back Policy in abeyance after the petitioners acted on it to their detriment, and whether principles of promissory estoppel and legitimate expectation apply.
Final Decision
The court allowed the petition, directing the Thane Municipal Corporation to honour the Buy-Back Policy terms.
Law Points
- Promissory estoppel
- Legitimate expectation
- Buy-back policy
- Accommodation reservation
- Development plan reservations
- Article 226 of Constitution of India
