Bombay High Court Quashes Condition Imposing 90% Backward Class Membership in Redevelopment of PWR 219 Scheme Land — Condition Held Unreasonable and Without Legal Basis Under Article 226. The court struck down the condition as violative of Article 14 of the Constitution, finding it arbitrary and lacking statutory foundation, thereby allowing redevelopment without membership composition restrictions.

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

The petitioners, members of Sangam Cooperative Housing Society Ltd., challenged a condition imposed by the Social Justice and Special Assistance Department of Maharashtra for redevelopment of land allotted under the PWR 219 Scheme, a special scheme for backward classes. The society's building, constructed in 1979-1980, was declared dilapidated and demolished in 2017. The department sanctioned redevelopment on condition that after redevelopment, 90% of society members must belong to backward classes and only 10% could be from the open category. The petitioners argued this condition had no legal basis, would make the free sale component unmarketable, render redevelopment unviable, and leave members homeless, violating Article 14. The court, exercising Article 226 jurisdiction, found the condition unreasonable, arbitrary, and without statutory support. It noted that the original scheme did not impose such a restriction and that the condition would defeat the purpose of redevelopment. The court quashed the condition and directed the respondents to reconsider the redevelopment proposal without the impugned condition, allowing the society to proceed with redevelopment in accordance with law.

Headnote

A) Constitutional Law - Article 226 - Judicial Review of Administrative Action - Condition Imposed by State Department - The court examined whether a condition requiring 90% backward class membership in a redeveloped housing society was arbitrary and without legal foundation. Held that the condition was unreasonable, lacked statutory backing, and violated Article 14 of the Constitution as it rendered redevelopment unviable and left members homeless (Paras 2-10).

B) Housing and Redevelopment - PWR 219 Scheme - Redevelopment of Dilapidated Building - The land was allotted under a special scheme for backward classes, but the building was demolished in 2017. The society sought redevelopment permission. The court held that the condition restricting membership composition was not part of the original scheme and could not be imposed at the redevelopment stage (Paras 2-8).

C) Constitutional Law - Article 14 - Reasonableness of State Action - The court found that the condition was discriminatory and arbitrary as it treated the society differently from other similar societies without justification. Held that the condition was violative of Article 14 and struck it down (Paras 9-10).

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Issue of Consideration

Whether the condition imposed by the Social Justice and Special Assistance Department requiring that after redevelopment of land allotted under the PWR 219 Scheme, 90% of the society members must belong to backward classes and only 10% can be from the open category, is legally valid and reasonable.

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Final Decision

The court allowed the writ petition, quashed the impugned condition, and directed the respondents to reconsider the redevelopment proposal without the condition requiring 90% backward class membership.

Law Points

  • Article 226 of the Constitution of India
  • Article 14 of the Constitution of India
  • PWR 219 Scheme
  • Maharashtra Cooperative Societies Act
  • 1960
  • Maharashtra Slum Areas (Improvement
  • Clearance and Redevelopment) Act
  • 1971
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Case Details

2021 LawText (BOM) (08) 63

WRIT PETITION (L) NO.6325 OF 2021

2021-08-25

S.J. KATHAWALLA, MILIND N. JADHAV

Mr. Karl Tamboly i/by Mr. Abhishek P. Deshmukh for the Petitioners, Mr. Abhay L. Patki, Addl. Government Pleader for the State

Babaji Sonu Kadam, Ramesh G. Kadam, Shri Kunal Pradeep Kedare, M/s. Nakoda Infrastructures

The Collector, Mumbai Suburban District; The Assistant Secretary, Social Justice and Special Assistance Department; The Commissioner, Social Welfare Department; State of Maharashtra

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Nature of Litigation

Writ Petition under Article 226 of the Constitution of India challenging a condition imposed by the State for redevelopment of land allotted under a special scheme for backward classes.

Remedy Sought

Petitioners sought quashing of the condition requiring 90% backward class membership after redevelopment and a direction to the respondents to permit redevelopment without such condition.

Filing Reason

The condition imposed by the Social Justice and Special Assistance Department would render redevelopment unviable and leave society members homeless.

Issues

Whether the condition requiring 90% backward class membership in redeveloped society is legally valid. Whether the condition violates Article 14 of the Constitution.

Submissions/Arguments

Petitioners argued that the condition has no legal foundation and is arbitrary, making redevelopment unviable. Petitioners argued that the condition violates Article 14 as the State has not imposed similar conditions on other societies.

Ratio Decidendi

A condition imposed by the State for redevelopment of land allotted under a special scheme for backward classes, requiring that after redevelopment 90% of society members belong to backward classes, is unreasonable, arbitrary, and without legal basis, violating Article 14 of the Constitution.

Judgment Excerpts

The Petitioners have challenged the decision of the Social Justice and Special Assistance Department of the State, sanctioning the proposed redevelopment by the Society on the condition that even after redevelopment, ninety percent of the members of the Society must belong to the backward class community, and only ten percent can be from the open category. According to the Petitioners, such a restriction would affect the marketability of the free sale component of the project and would render the redevelopment effectively unviable, leaving the members of the Society homeless.

Procedural History

The writ petition was filed on an unspecified date, rule was issued, and respondents waived service. By consent, the rule was made returnable forthwith. Order reserved on 20th August 2021 and pronounced on 25th August 2021.

Acts & Sections

  • Constitution of India: Article 14, Article 226
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