Bombay High Court Quashes Communication Rejecting Purchase Notice for Want of Hearing and Directs Fresh Decision Under Maharashtra Regional Town Planning Act, 1966. Natural Justice Mandates Grant of Hearing to Sender of Purchase Notice When Third-Party Objections Regarding Ownership Are Raised, Even If Section 127 MRTP Act Is Silent.

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

The dispute arose from the failure to implement a reservation for a children’s park in the Khamgaon city Development Plan, which was revised and came into force in 1993 under the Maharashtra Regional Town Planning Act, 1966. The petitioners claimed ownership of 0.35 R out of Survey No. 123 based on a purchase deed and entries in the 7/12 extract. After the reservation remained unimplemented for more than ten years, the petitioners served a purchase notice dated February 9, 2018 on the Municipal Council, invoking Section 127 of the MRTP Act and demanding acquisition of their land. In response, the Town Planning Authority and Chief Officer, Municipal Council, Khamgaon, issued a communication dated December 24, 2018 refusing to entertain the notice, citing an objection from private respondents who claimed ownership over a different portion of the same survey number and a prior High Court order declaring the lapse of reservation over their larger parcel. The petitioners challenged this communication through writ petitions, contending that the rejection without granting them a hearing violated natural justice and that the 7/12 extract was sufficient proof of their interest as held in Abdul Gani N. Wadwan v. State of Maharashtra. The Municipal Council supported the rejection, arguing that the private respondents had already obtained a favourable order from a coordinate Bench in Writ Petition No. 3533/2017 and that no hearing was mandated under Section 127. The Court noted that the private respondents, despite service, did not appear, and observed that the lands in dispute might be distinct, so verification was needed. After examining the record, the Court held that even though Section 127 does not expressly provide for a hearing, the principles of natural justice must be read into the unoccupied interstices of the statute unless excluded. It found that the impugned communication prejudiced the petitioners’ rights without affording them an opportunity to contest the objections, which amounted to a denial of fair procedure. Consequently, the Court quashed the communication dated December 24, 2018, and directed the Chief Officer to give an opportunity of hearing to the petitioners and the private respondents and take a fresh decision on the entertainment of the purchase notice within three months by a reasoned order. Both writ petitions were disposed of with no order as to costs.

Headnote

A) Property Law - Town Planning - Purchase Notice under Section 127, MRTP Act - Maharashtra Regional Town Planning Act, 1966, Section 127 - Sufficiency of Documents to Show Interest - The petitioners relied on a 7/12 extract to claim ownership over 0.35 R of Survey No. 123. The Court reaffirmed the decision in Abdul Gani N. Wadwan v. State of Maharashtra that for a purchase notice under Section 127, it is not mandatory to produce title documents; documents showing title, such as 7/12 extracts, are sufficient to demonstrate the sender's interest in the land. Held: Entries in the 7/12 extract constituted sufficient material to establish the petitioners' interest for the purpose of entertaining the purchase notice (Para 3).

B) Constitutional Law - Natural Justice - Opportunity of Hearing under Silence of Statute - Maharashtra Regional Town Planning Act, 1966, Section 127 - Principles of Natural Justice - The impugned communication rejected a purchase notice solely on the basis of third-party objections without affording the petitioners any hearing. The Court held that even if a statute is silent about an opportunity of hearing, principles of natural justice must be read into the unoccupied interstices of the statute unless expressly or impliedly excluded. Consequently, the rejection without a fair hearing was improper. Held: Adherence to natural justice by granting a hearing was necessary to ensure a fair procedure, and the impugned communication was quashed with a direction to the authority to give an opportunity of hearing to the petitioners and the objectors and decide afresh (Paras 6-8).

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Issue of Consideration

Whether the Town Planning Authority and Chief Officer, Municipal Council, Khamgaon could reject a purchase notice under Section 127 of the Maharashtra Regional Town Planning Act, 1966 without granting an opportunity of hearing to the senders of the notice when objections regarding ownership and boundaries were raised by third parties.

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Final Decision

The impugned communication dated December 24, 2018 was quashed and set aside. The Chief Officer, Municipal Council, Khamgaon was directed to give an opportunity of hearing to the petitioners and private respondents and take a fresh decision regarding entertainment of the purchase notice within three months by a reasoned order. No order as to costs.

Law Points

  • Principles of natural justice must be read into the unoccupied interstices of a statute unless expressly excluded
  • Section 127 of the MRTP Act does not require production of title deeds
  • documents showing title like 7/12 extracts are sufficient
  • Rejection of a purchase notice without granting an opportunity of hearing when third-party objections are raised violates natural justice.
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Case Details

2021 LawText (BOM) (12) 139

Writ Petition No. 916 of 2019 and Writ Petition No. 2093 of 2020

2021-12-09

Dipankar Datta CJ. and Vinay Joshi J.

Shri C.R. Sharma (petitioners), Ms. T.H. Khan, AGP (State), Shri D.M. Kale (respondent no. 4)

Prakash S/o Ramchandra Rathi, Anil S/o Puranmal Khandelwal, Amit S/o Kamalkishor Sharma

State of Maharashtra (Secretary, Urban Development Department), Director of Town Planning Maharashtra State, Assistant Director of Town Planning Buldhana, Khamgaon Municipal Council (Chief Officer), Shashimohan Tapadia & Ors.

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Nature of Litigation

Writ petition challenging communication rejecting purchase notice under Section 127 of Maharashtra Regional Town Planning Act, 1966.

Remedy Sought

Petitioners sought to quash the communication dated December 24, 2018 and direct the Municipal Council to entertain the purchase notice.

Filing Reason

The purchase notice was rejected due to third-party objections without giving the petitioners a hearing.

Previous Decisions

A coordinate Bench of the High Court had earlier declared lapsing of reservation in respect of 1.80 R in the same survey number in favour of the private respondents in Writ Petition No. 3533/2017.

Issues

Whether the rejection of the purchase notice without granting an opportunity of hearing violated principles of natural justice? Whether the 7/12 extract suffices as proof of interest under Section 127 of the MRTP Act?

Submissions/Arguments

Petitioners argued: Section 127 does not require title documents; 7/12 extracts are sufficient; Chief Officer should have given hearing; reliance on Abdul Gani N. Wadwan v. State of Maharashtra. Respondents argued: Private respondents had already obtained an order declaring lapsing of reservation over a larger plot; thus rejection was justified; no hearing required under Section 127.

Ratio Decidendi

Principles of natural justice must be read into the unoccupied interstices of a statute unless expressly or impliedly excluded; even if Section 127 of the Maharashtra Regional Town Planning Act, 1966 is silent, an opportunity of hearing must be granted to parties likely to be affected by an order rejecting a purchase notice when third-party objections are raised, to ensure a fair procedure. Documents showing title such as 7/12 extracts are sufficient to establish interest in the land for purpose of a purchase notice under Section 127.

Judgment Excerpts

section 127 of the MRTP Act does not require the sender of the notice to produce documents of title but documents showing title would be sufficient and that entries in the 7/12 extract would constitute sufficient material to come to the conclusion that such notice sender is the person interested in the land, even if he is not the owner thereof. even if a statute is silent and there are no positive words in the relevant legislation, there could be nothing wrong in spelling out the need to hear the parties whose rights and interest are likely to be affected by the orders that may be passed thereunder, and making it a requirement to follow a fair procedure before taking a decision, unless the statute provides otherwise. The principles of natural justice must be read into unoccupied interstices of the statute, unless there is a clear mandate to the contrary, and no form or procedure should ever be permitted to exclude the presentation of a litigant’s defence or stand.

Procedural History

The petitioners served a purchase notice dated February 9, 2018 on the Municipal Council under Section 127 of the MRTP Act. By communication dated December 24, 2018, the Town Planning Authority/Chief Officer rejected the notice citing a third-party objection and a prior High Court order in favour of the objectors. The petitioners filed Writ Petition No. 916 of 2019 and 2093 of 2020 before the High Court. During pendency, it was noted that private respondents had obtained an order dated February 16, 2018 in Writ Petition No. 3533/2017 declaring lapsing of reservation over a larger portion of the same survey number.

Acts & Sections

  • Maharashtra Regional Town Planning Act, 1966: Section 127
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