Bombay High Court Examines Lapsing of Land Reservation Under Section 127 of MRTP Act in Four Writ Petitions. Writ Petitions Seek Declaration That Reservations on Agricultural and Non-Agricultural Lands Lapsed as Municipal Corporation Failed to Acquire Within Statutory Period Despite Purchase Notices.

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

The judgment concerns four writ petitions filed before the Bombay High Court under Article 226 of the Constitution of India. Petitioners were owners of agricultural and non-agricultural lands situated within Nashik Municipal Corporation limits, bearing Survey Nos. 898/1, 898/2, 898/3 and 33/2+3. They challenged continued reservation of these lands under the Maharashtra Regional Town Planning Act, 1966, seeking a declaration that the reservations had lapsed and permission to develop the lands. The lead petition concerned Survey No.898/1, while the other petitions involved adjacent survey numbers with similar facts. The development plan for Nashik city was prepared under Section 26 of the MRTP Act and sanctioned under Section 31 on 20 June 1993, coming into effect on 16 November 1993. The writ land in the lead petition was reserved for 'Housing for Dishoused' under Reservation No.390, published in the Government Gazette on 30 September 1993. The petitioners could not develop the land for over ten years. After the statutory period for acquisition expired, petitioners issued a purchase notice dated 14 July 2015 under Section 127 of the MRTP Act, duly received by the Municipal Corporation on 15 July 2015, calling upon it to acquire the land within the statutory period failing which the reservation would lapse. By an Ordinance dated 29 August 2015, the State extended the purchase notice period from 12 to 24 months. In response, the Municipal Corporation offered Transferable Development Rights certificate by letter dated 3 September 2015, instead of monetary compensation, provided the petitioners handed over possession. The petitioners refused the TDR offer. They filed the writ petitions on 18 January 2018. Respondents filed a reply through an officer on 20 November 2021, contending that the Corporation had submitted a proposal dated 30 July 2016 to the Collector, Nashik to initiate acquisition proceedings and provided documents, and that a draft revised development plan notified on 9 January 2017 showed the land under Reservation No.205 for Public Housing. The Corporation rejected the petitioners' development proposal on 16 August 2017 due to the pending land acquisition proposal. The core legal issues were whether the reservation lapsed under Section 127 of the MRTP Act due to the Corporation's failure to acquire within the extended 24-month period; whether offering TDR within that period amounted to commencement of acquisition; and whether subsequent communications and proposals satisfied the statutory requirements. Petitioners argued that the TDR offer did not amount to steps towards acquisition and that the Corporation's proposal had procedural defects such as missing signatures, seal and dates. Respondents relied on a Bombay High Court Aurangabad Bench judgment in Writ Petition No.5938 of 2020, asserting that once TDR is offered, the planning authority need not follow Section 126(2) procedure and the offer within 24 months would be deemed commencement of acquisition. The Court heard arguments and reserved judgment on 21 September 2022, pronouncing on 18 November 2022. The extracted text ends before the final analysis and operative order. Therefore, the final decision on lapsing of reservation is not available in the provided excerpt.

Headnote

A) Constitutional Law - Writ Jurisdiction - Article 226 of Constitution of India - Invocation of Extraordinary Jurisdiction - The petitioners filed four writ petitions under Article 226 seeking a writ of mandamus to declare that reservations on their lands under Section 127 of the Maharashtra Regional Town Planning Act, 1966 had lapsed and to permit development. The Court issued Rule and made it returnable forthwith, with learned counsel for respondents waiving service. Held that Rule be issued and made returnable forthwith (Paras 1-2).

B) Town Planning - Lapsing of Reservation - Section 127 of Maharashtra Regional Town Planning Act, 1966 - Purchase Notice and Statutory Period - The development plan for Nashik city was sanctioned on 20 June 1993 and came into effect on 16 November 1993, reserving the writ land under Reservation No.390 for Housing for Dishoused. Petitioners issued purchase notice on 14 July 2015, received by respondent No.1 on 15 July 2015, and the purchase notice period was extended from 12 to 24 months by Ordinance dated 29 August 2015. Petitioners contended that because no acquisition steps were taken within the extended 24 months, the reservation lapsed; respondents contended that they offered Transferable Development Rights within that period and initiated acquisition proceedings. The court examined the factual and legal prerequisites for lapsing under Section 127 (Paras 3-10).

C) Town Planning - Acquisition and Compensation - Transferable Development Rights - Sections 126 and 127 of Maharashtra Regional Town Planning Act, 1966 - Sufficiency of TDR Offer - In response to the purchase notice, respondent No.1 offered Transferable Development Rights certificate by letter dated 3 September 2015, but petitioners refused to accept it. Respondents relied on an Aurangabad Bench judgment in Writ Petition No.5938 of 2020 that offering TDR within 24 months of purchase notice amounts to commencement of acquisition under Section 126(2) and Section 127. Petitioners argued that TDR offer did not constitute acquisition steps and that the Corporation's proposal lacked procedural formalities such as signatures, seal and dates. The court considered whether the TDR offer and subsequent communications with the Collector satisfied the statutory mandate under Section 127 (Paras 6-13).

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Issue of Consideration

Whether the reservation on survey numbers lapsed under Section 127 of Maharashtra Regional Town Planning Act, 1966 due to failure of Nashik Municipal Corporation to acquire within statutory period; whether offer of Transferable Development Rights within the extended period constitutes steps towards acquisition

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Law Points

  • Failure to acquire reserved land within 24 months from purchase notice results in lapsing of reservation under Section 127 MRTP Act
  • Offer of Transferable Development Rights within statutory period may amount to commencement of acquisition
  • Writ petition under Article 226 maintainable to declare lapsing of reservation
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Case Details

2022 LawText (BOM) (11) 56

Writ Petition No.8756 of 2018 along with Writ Petition No.8757 of 2018, Writ Petition No.8758 of 2018, Writ Petition No.9000 of 2018

2022-11-18

R.D. Dhanuka, Kamal Khata

2022:BHC-AS:28325-DB

Vivek Vijay Salunke, Ajinkya Jaibhave, Anusha Pradhan, Shubham Budhvant, Prakash J Ahuja, Chaitrali A. Deshmukh, Murlidhar A. Patil, A. A. Alaspurkar

Santu Sukhdeo Jaibhave, Balu Sukhdeo Jaibhave, Pundlik Sukhdeo Jaibhave, Ramdas Sukhdeo Jaibhave, Tanaji Sukhdeo Jaibhave, Dnyaneshwar Sukhdeo Jaibhave, Samadhan Sukhdeo Jaibhave, Smt. Laxmibai Sukhdeo Jaibhave; Dagu Punja Gaikwad (through Power of Attorney Holder Ramesh Dagu Gaikwad); Tukaram Bhau Jaibhave, Dattu Tukaram Jaibhave, Rajendra Tukaram Jaibhave; Smt. Devubai Sakharam Jaibhave, Dagu Sakharam Jaibhave, Ashok Sakharam Jaibhave, Bhima Sakharam Jaibhave, Mrs. Sitabai Ramchandra Sanap, Smt. Shantabai Bhivaji Dhakne, Smt. Muktabai Baban Landge, Smt. Leelabai Baburao Sonawane (No.4 as Power of Attorney Holder for all petitioners in WP/9000/2018)

Nashik Municipal Corporation, The Commissioner Nashik Municipal Corporation, The Assistant Director Town Planning Department Nashik Municipal Corporation, The Collector Nashik, The State of Maharashtra

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Nature of Litigation

Writ petitions under Article 226 of Constitution of India challenging continued reservation of lands under Maharashtra Regional Town Planning Act, 1966

Remedy Sought

Petitioners sought writ of mandamus declaring that reservations on Survey Nos. 898/1, 898/2, 898/3 and 33/2+3 had lapsed and permitting development of lands

Filing Reason

Respondents failed to acquire reserved lands within statutory period after purchase notice dated 14 July 2015 despite extension to 24 months

Previous Decisions

No prior court decisions in these proceedings; Nashik Municipal Corporation's acquisition proposal pending before Collector, Nashik; reliance placed on Aurangabad Bench judgment in Writ Petition No.5938 of 2020 by respondents

Issues

Whether the reservation on survey numbers lapsed under Section 127 of Maharashtra Regional Town Planning Act, 1966 due to failure of Nashik Municipal Corporation to acquire within statutory period Whether offer of Transferable Development Rights within the extended period constitutes steps towards acquisition Whether extension of purchase notice period from 12 to 24 months by Ordinance dated 29 August 2015 applies to pending purchase notice Whether documents and proposal submitted by Corporation to Collector satisfy statutory requirements under Section 127

Submissions/Arguments

Petitioners argued that reservation continued beyond 10 years and purchase notice issued on 14 July 2015 was received on 15 July 2015, but respondents failed to take steps within extended 24 months Petitioners argued that offer of TDR by Municipal Corporation dated 3 September 2015 did not amount to steps towards acquisition Petitioners pointed out procedural defects in Corporation's proposal such as missing signatures, seal and dates, and only one Standing Committee member's signature on Resolution Respondents argued that Municipal Corporation offered TDR within two months of purchase notice, which amounts to commencement of acquisition as per Aurangabad Bench judgment in WP No.5938 of 2020 Respondents argued that proposal dated 30 July 2016 was submitted to Collector, Nashik and documents provided, so acquisition proceedings had commenced Respondents argued that draft revised development plan notified on 9 January 2017 showed land under Reservation No.205 for Public Housing, and petitioner's development proposal was rejected due to pending land acquisition proposal

Judgment Excerpts

Rule. Rule made returnable forthwith. Learned counsel for respondents waive service. The development plan for Nashik city prepared under Section 26 of the MRTP Act was sanctioned as per Section 31 of MRTP Act on 20th June 1993 and came into effect on 16th November 1993. In response to the Purchase Notice, respondent No.1 offered Transferable Development Rights (TDR) certificate instead of compensation, provided the petitioners were willing to handover possession of the writ land. It is the express case of the respondents that in view of the judgment passed by this Court at Aurangabad Bench in Writ Petition No.5938 of 2020 whereby it was held that once compensation of TDR are offered to the land owner, the planning authority need not follow the procedure under sub-section 2 of Section 126 of the MRTP Act and by offering compensation of TDR within 24 months from the date of receipt of the Purchase Notice, the respondents would deemed to have commenced the acquisition of the reserved land.

Procedural History

Development plan for Nashik city sanctioned on 20 June 1993 and came into effect on 16 November 1993; writ land reserved under Reservation No.390 for Housing for Dishoused from 16 November 1993; purchase notice issued by petitioners on 14 July 2015 and received on 15 July 2015; Ordinance dated 29 August 2015 extended purchase notice period from 12 to 24 months; Municipal Corporation offered TDR by letter dated 3 September 2015; petitioners refused TDR and filed writ petitions on 18 January 2018; respondent No.3 filed reply on 20 November 2021; hearing concluded and judgment reserved on 21 September 2022; judgment pronounced on 18 November 2022

Acts & Sections

  • Constitution of India: Article 226
  • Maharashtra Regional Town Planning Act, 1966: Section 26, Section 31, Section 126, Section 127
  • Maharashtra Municipal Corporation Act:
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