Case Note & Summary
The appellants, original plaintiffs, owned plot nos. 71/72, 70/2 and 70/3 on Sheet No. 67-D at Amravati. They filed Regular Civil Suit No. 193 of 1988 on 18th March, 1988 against the Municipal Corporation, Amravati, seeking a declaration that they had received sanction for construction and a permanent injunction restraining the Corporation from demolishing the construction. The plaintiffs alleged that on 20.1.1987 they submitted an application for sanction to dismantle existing structures and construct a commercial complex, depositing Rs.250/-. On 16.2.1987, they were asked to comply with deficiencies, which they did. On 21.5.1987, a proposal was put up stating that the matter was discussed and no objection for grant of sanction as proposed. The plaintiffs believed this was an assurance and were told to go ahead with construction, and that a formal sanction order would follow. Acting on this, they spent Rs.5,00,000/- on construction, completing the basement and further construction as per the sanction map. The Corporation denied granting any sanction and threatened demolition. The trial court dismissed the suit, and the first appellate court confirmed the dismissal. The plaintiffs filed a second appeal. The legal issues were whether the plaintiffs had obtained valid sanction under Section 264 of the Maharashtra Municipal Corporations Act, 1949, and whether the Corporation was estopped from denying sanction. The plaintiffs argued that the internal note dated 21.5.1987 and the alleged assurance constituted deemed sanction, and that the Corporation was estopped due to their expenditure. The Corporation contended that no formal sanction was ever granted, and the internal note was not a sanction order. The court analyzed the evidence and found that the plaintiffs failed to prove that the Commissioner granted sanction or that the period for deemed sanction had expired without revocation. The court held that mere internal note or oral assurance does not constitute sanction; a formal order is required. The court also held that there can be no estoppel against a municipal corporation acting in exercise of statutory powers. The appeal was dismissed, confirming the dismissal of the suit.
Headnote
A) Municipal Law - Deemed Sanction - Section 264 of Maharashtra Municipal Corporations Act, 1949 - The plaintiffs claimed deemed sanction based on internal departmental note and alleged assurance, but no formal order was passed. The court held that mere internal note or alleged oral assurance does not constitute sanction; a formal order is required. The plaintiffs failed to prove that the Commissioner granted sanction or that the period for deemed sanction had expired without revocation. (Paras 1-10) B) Estoppel - Against Statutory Authority - Section 264 of Maharashtra Municipal Corporations Act, 1949 - The plaintiffs argued estoppel based on alleged assurance and expenditure of Rs.5,00,000/-. The court held that there can be no estoppel against a municipal corporation acting in exercise of statutory powers; the plaintiffs acted at their own risk without obtaining formal sanction. (Paras 11-12) C) Burden of Proof - Sanction - Section 264 of Maharashtra Municipal Corporations Act, 1949 - The burden lies on the plaintiff to prove that sanction was granted. The plaintiffs failed to produce any order of sanction or prove that the Commissioner granted sanction. The internal note dated 21.5.1987 was not a sanction order. (Paras 5-10)
Issue of Consideration
Whether the plaintiffs can claim a declaration that they have received sanction for construction from the Municipal Corporation and seek permanent injunction against demolition, in the absence of a formal order of sanction and despite the Corporation's denial.
Final Decision
Second Appeal dismissed. Judgment and order of the first appellate court confirming dismissal of suit upheld. No order as to costs.
Law Points
- Deemed sanction under Section 264 of Maharashtra Municipal Corporations Act
- 1949
- Estoppel against statutory authority
- Burden of proof on plaintiff to show sanction
- Requirement of formal order of sanction
- No estoppel against municipal corporation in absence of statutory sanction
