Bombay High Court Allows Lapsing of Land Reservation for Primary School Under Section 127 MRTP Act Due to Non-Compliance with Time Limit. The Court held that failure of Nagpur Municipal Corporation to acquire reserved land within ten years results in automatic lapsing of reservation, entitling landowner to declaration and notification under Section 127(2) of MRTP Act.

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

The petitioner, Urban Township Pvt. Ltd., a company incorporated under the Companies Act, 1956, owned two parcels of land admeasuring 4907 sq.mtrs. and 11037 sq.mtrs. out of Survey Nos.2-3/1 and 2-3/4 of Mouza Chikhli, Nagpur. These lands were reserved for a Primary School in the revised Development Plan for Nagpur City under Reservation Nos.MN 92 and N 139. The petitioner filed a writ petition seeking a declaration that the reservation had lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act) and for issuance of a notification under Section 127(2) to that effect. The factual background is that the revised Development Plan came into force on a date not specified in the judgment, but the petitioner contended that more than ten years had elapsed since the reservation was imposed, and the Nagpur Municipal Corporation (respondent nos.1 and 2) had not taken any steps for acquisition of the land. The legal issue was whether the reservation had lapsed due to non-compliance with the time limit under Section 127 of the MRTP Act. The petitioner argued that the Corporation failed to acquire the land within the statutory period, and therefore the reservation stood lapsed. The respondents contended that steps were taken, but the Court found no evidence of any purchase, acquisition, or initiation of proceedings under the Land Acquisition Act within the prescribed period. The Court analyzed Section 127 of the MRTP Act, which provides that if land reserved for a public purpose is not acquired within ten years from the date of the publication of the draft Development Plan, the reservation lapses, and the landowner is entitled to a declaration to that effect. The Court held that the Corporation had not taken any steps for acquisition, and the mere inclusion of the land in the Development Plan did not constitute a step for acquisition. Consequently, the Court allowed the petition, declared that the reservation had lapsed, and directed the respondents to issue a notification under Section 127(2) of the MRTP Act within a specified period. The decision was in favor of the petitioner, who was the landowner.

Headnote

A) Town Planning - Reservation Lapsing - Section 127 MRTP Act - Time Limit for Acquisition - The petitioner sought declaration that reservation of its land for Primary School had lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966, as the Nagpur Municipal Corporation failed to acquire the land within ten years from the date of the revised Development Plan. The Court held that since no steps for acquisition were taken within the statutory period, the reservation stood lapsed, and the petitioner was entitled to a declaration and notification under Section 127(2). (Paras 1-10)

B) Town Planning - Section 127 MRTP Act - Failure to Take Steps - The Court examined whether the Corporation had taken any steps for acquisition of the reserved land. It found that no purchase, acquisition, or proceedings under the Land Acquisition Act were initiated within the prescribed period. The Court held that mere inclusion in the Development Plan does not constitute a step for acquisition, and the reservation lapses automatically after the expiry of the period. (Paras 5-9)

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Issue of Consideration

Whether the reservation of the petitioner's land for Primary School under the Development Plan has lapsed under Section 127 of the MRTP Act due to the failure of the Nagpur Municipal Corporation to take steps for acquisition within the prescribed period.

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Final Decision

The Court allowed the petition, declared that the reservation of the petitioner's land for Primary School under Reservation Nos.MN 92 and N 139 had lapsed under Section 127 of the MRTP Act, and directed the respondents to issue a notification under Section 127(2) of the MRTP Act within a specified period.

Law Points

  • Reservation lapsing under Section 127 MRTP Act
  • Time limit for acquisition
  • Failure to take steps for acquisition
  • Declaration of lapsing
  • Notification under Section 127(2)
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Case Details

2022 LawText (BOM) (12) 131

WRIT PETITION NO.3354 OF 2020

2022-12-09

SUNIL B. SHUKRE, G.A. SANAP

Shri Anand Jaiswal, Senior Advocate assisted by Shri Bharat B. Mehadia for Petitioner; Shri G.A. Kunte for Respondent Nos.1 and 2; Shri K.L. Dharmadhikari, Additional Government Pleader for Respondent No.3

Urban Township Pvt. Ltd.

Nagpur Municipal Corporation, Assistant Director of Town Planning, State of Maharashtra

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Nature of Litigation

Writ petition seeking declaration that reservation of land for Primary School has lapsed under Section 127 of MRTP Act and for issuance of notification under Section 127(2).

Remedy Sought

Petitioner sought declaration that reservation of its land for Primary School has lapsed and direction to respondents to issue notification under Section 127(2) of MRTP Act.

Filing Reason

Petitioner claimed that the Nagpur Municipal Corporation failed to acquire the reserved land within the statutory period of ten years, resulting in lapsing of reservation.

Issues

Whether the reservation of the petitioner's land for Primary School under the Development Plan has lapsed under Section 127 of the MRTP Act due to failure of the Nagpur Municipal Corporation to take steps for acquisition within the prescribed period.

Submissions/Arguments

Petitioner argued that more than ten years had elapsed since the reservation was imposed and no steps for acquisition were taken by the Corporation, hence the reservation lapsed under Section 127. Respondents contended that steps were taken for acquisition, but the Court found no evidence of any purchase, acquisition, or initiation of proceedings under the Land Acquisition Act within the prescribed period.

Ratio Decidendi

Under Section 127 of the MRTP Act, if land reserved for a public purpose is not acquired within ten years from the date of publication of the draft Development Plan, the reservation lapses automatically. The failure of the planning authority to take any steps for acquisition within the prescribed period entitles the landowner to a declaration of lapsing and a notification under Section 127(2).

Judgment Excerpts

The petitioner claims to be the owner of two parcels of land... which have been subjected to reservation for Primary School in the revised Development Plan framed for the City of Nagpur. The petitioner... has filed this petition seeking declaration that the reservation... has lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966.

Procedural History

The petitioner filed Writ Petition No.3354 of 2020 before the Bombay High Court, Nagpur Bench, seeking declaration of lapsing of reservation under Section 127 of MRTP Act. The petition was heard finally by consent of parties and judgment reserved on 19th September 2022 and pronounced on 9th December 2022.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 127, 127(2)
  • Companies Act, 1956:
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