Bombay High Court Holds Land Owner's Consent Essential for Mode of Acquisition Under Section 126(1) MRTP Act — TDR Grant Requires Agreement, Not Unilateral Authority Action. The Court ruled that the option between monetary compensation and TDR under Section 126(1) of the Maharashtra Regional and Town Planning Act, 1966 is not solely with the acquiring authority but requires the consent of the land owner.

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

This judgment arises from a reference made by a Division Bench of the Bombay High Court at Nagpur, which disagreed with the view taken in Asha Sunil Zawar v. State of Maharashtra & Ors. (W.P. No.5938 of 2020). The Division Bench referred three questions to a Larger Bench concerning the interpretation of Section 126(1) of the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act). The first question was whether the modes of acquisition under Section 126(1)(a) (by agreement paying an amount) and (b) (grant of TDR/FSI in lieu of compensation) are at the choice of either party or only of the acquiring authority. The second question was whether, after the planning authority has approved the land owner's request for monetary compensation or TDR, the land owner can withdraw that request and refuse to surrender the land. The third question was whether the grant of approval or passing of a resolution for TDR can be treated as a step for acquisition of land, thereby commencing acquisition proceedings. The Larger Bench, comprising Justices Sunil B. Shukre, Anuja Prabhudessai, and Anil L. Pansare, held that the modes of acquisition under Section 126(1) depend on the agreement between the parties, and the consent of the land owner is equally important and a pre-condition. The option is not solely with the acquiring authority. The Court further held that if the planning authority has approved the land owner's request for compensation or TDR, the land owner can withdraw that request before the acquisition is finalized, and such withdrawal would prevent the surrender of the land. Additionally, the Court ruled that the grant of approval or resolution for TDR does not constitute a step for acquisition of land; it is merely a preliminary step and does not commence acquisition proceedings. The judgment clarifies that the land owner's consent is essential for the mode of acquisition, and the land owner retains the right to withdraw consent until the acquisition is complete.

Headnote

A) Town Planning - Acquisition of Land - Section 126(1)(a) and (b) MRTP Act, 1966 - Consent of Land Owner - The modes of acquisition under Section 126(1) viz. by agreement paying an amount or by grant of TDR/FSI depend on agreement between parties where consent of land owner is equally important and a pre-condition. The option is not solely with the acquiring authority. (Paras 1-3)

B) Town Planning - Withdrawal of Request - Section 126 MRTP Act, 1966 - Land Owner's Right - If the planning authority has approved the request of the land owner for monetary compensation or TDR, the land owner can withdraw his request and refuse to surrender the land, as the acquisition process is not complete until final steps are taken. (Paras 2-3)

C) Town Planning - Commencement of Acquisition - Section 126 MRTP Act, 1966 - Approval of TDR - Grant of approval or passing of resolution by authorities for grant of TDR in lieu of monetary compensation cannot be treated as a step for acquisition of land and thereby commencing proceedings for acquisition. (Paras 2-3)

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Issue of Consideration

Whether the modes of acquisition under Section 126(1)(a) and (b) of the Maharashtra Regional and Town Planning Act, 1966 are at the choice of either party or only of the acquiring authority; whether land owner can withdraw request for TDR after approval; whether grant of approval for TDR can be treated as a step for acquisition.

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Final Decision

The Larger Bench answered the referred questions: (i) The modes of acquisition under Section 126(1)(a) and (b) are at the choice of both parties, requiring consent of land owner. (ii) The land owner can withdraw his request for TDR after approval and refuse to surrender the land. (iii) Grant of approval for TDR does not constitute a step for acquisition of land.

Law Points

  • Consent of land owner is a pre-condition for mode of acquisition under Section 126(1)(a) and (b) of MRTP Act
  • 1966
  • land owner can withdraw request for TDR before final acquisition
  • approval of TDR by authority does not commence acquisition proceedings.
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Case Details

2022 LawText (BOM) (07) 111

Writ Petition No. 2231 of 2019

2022-07-25

Sunil B. Shukre, Anuja Prabhudessai, Anil L. Pansare

V.G. & N.A. Palshikar for the Petitioner, Smt. Ketki Joshi, GP for respondent no.1, Shri S.M. Puranik for the Respondent Nos.2 and 3, Shri A.R. Syed, Advocate to assist the Court

Shree Vinayak Builders & Developers

The State of Maharashtra, The Nagpur Municipal Corporation, Assistant Director, Urban Town Planning Department

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Nature of Litigation

Reference to Larger Bench on interpretation of Section 126(1) of MRTP Act, 1966 regarding modes of acquisition and consent of land owner.

Remedy Sought

Opinion of Larger Bench on three questions referred by Division Bench.

Filing Reason

Division Bench disagreed with earlier view in Asha Sunil Zawar and referred questions to Larger Bench.

Previous Decisions

Division Bench in referring order observed that modes of acquisition under Section 126(1) depend on agreement between parties where consent of land owner is equally important, disagreeing with Asha Sunil Zawar.

Issues

Whether the modes of acquisition under Section 126(1)(a) and (b) of MRTP Act, 1966 are at the choice of either party or only of the acquiring authority. Whether land owner can withdraw request for TDR after approval by planning authority. Whether grant of approval for TDR can be treated as a step for acquisition of land.

Submissions/Arguments

Petitioner argued that consent of land owner is necessary for mode of acquisition. Respondents argued that option is with acquiring authority.

Ratio Decidendi

The consent of the land owner is a pre-condition for the mode of acquisition under Section 126(1) of the MRTP Act, 1966. The land owner retains the right to withdraw consent until acquisition is complete. Approval of TDR by the authority is not a step that commences acquisition proceedings.

Judgment Excerpts

The Division Bench expressed disagreement with view taken by another Division Bench of this Court in the case of Asha Sunil Zawar vs. State of Maharashtra & Ors. The modes of acquisition under Section 126(1) viz. (a) By agreement by paying an amount agreed to (b) Grant of TDR/FSI in lieu of compensation, depend on the agreement between the parties where consent of the land owner is equally important, rather is a pre-condition.

Procedural History

The petition was filed before a Division Bench which, on 27th January 2022, referred three questions to a Larger Bench due to disagreement with the view in Asha Sunil Zawar. The Larger Bench heard the matter and pronounced judgment on 25th July 2022.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 126, 127
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