Bombay High Court Dismisses Petition of Cooperative Housing Society Seeking Regularization of Land Acquisition Under Urban Land Ceiling Act — Land Already Vested in State Government Under Section 10(3) of ULC Act, 1976.

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

The petitioner, Estate Cooperative Housing Society Limited, a cooperative society registered under the Maharashtra Cooperative Societies Act, 1960, filed a writ petition challenging the acquisition of land by the State Government under the Urban Land (Ceiling and Regulation) Act, 1976. The lands in question originally belonged to the Khatib family and were subject to proceedings under the ULC Act. The Collector allowed transfer of 14 H 64 R from Survey No. 750 to the petitioner by order dated 31 December 1993 on payment of Nazrana. The petitioner claimed to have purchased various portions of land from Survey Nos. 750, 751, and 755 from the original owners through registered sale deeds between 1992 and 1998, paying total consideration of Rs. 6,63,18,741.98. However, the land had already been declared excess vacant land under Section 8(4) of the ULC Act, and notifications under Section 10(1) and 10(3) had been published, resulting in automatic vesting of the land in the State Government. The petitioner sought regularization of the acquisition or compensation. The court held that once the land vests in the State under Section 10(3), the original owner loses all rights, and any subsequent sale is void. The petitioner, having purchased after vesting, acquired no title and was not entitled to any relief. The petition was dismissed.

Headnote

A) Urban Land Ceiling - Vesting of Excess Vacant Land - Section 10(3) of Urban Land (Ceiling and Regulation) Act, 1976 - Automatic Vesting - Once a notification under Section 10(1) is published in the Official Gazette, the excess vacant land vests absolutely in the State Government free from all encumbrances. Any subsequent transfer by the original owner is void and confers no title on the purchaser. The petitioner society purchased land after such vesting and hence has no right to claim compensation or regularization. (Paras 1-3)

B) Cooperative Housing Society - Purchase of Land After Vesting - No Right to Relief - The petitioner society purchased portions of land from the original owners between 1992 and 1998, but the land had already vested in the State Government under Section 10(3) of the ULC Act. The society's claim for compensation or regularization was rejected as the vesting had already taken place. (Paras 2-3)

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Issue of Consideration

Whether the petitioner cooperative housing society, which purchased land after it had already vested in the State Government under Section 10(3) of the Urban Land (Ceiling and Regulation) Act, 1976, is entitled to any relief or regularization of the acquisition.

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Final Decision

The petition was dismissed. The court held that the land had vested in the State Government under Section 10(3) of the Urban Land (Ceiling and Regulation) Act, 1976, and the petitioner's subsequent purchase conferred no title. No relief was granted.

Law Points

  • Vesting of excess vacant land under Section 10(3) of Urban Land (Ceiling and Regulation) Act
  • 1976 is automatic upon publication of notification under Section 10(1)
  • subsequent sale by original owner after vesting is void
  • no right to compensation for purchaser after vesting.
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Case Details

2010 LawText (BOM) (06) 110

WRIT PETITION NO. 5151 OF 2005

2010-06-18

P B Majmudar, R M Savant

Mr. G S Godbole for the Petitioner, Mr. C R Sonawane AGP for the Respondent/State

Estate Cooperative Housing Society Limited

The State of Maharashtra

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Nature of Litigation

Writ petition challenging acquisition of land under Urban Land (Ceiling and Regulation) Act, 1976.

Remedy Sought

Petitioner sought regularization of acquisition or compensation for land purchased after vesting.

Filing Reason

Petitioner claimed to have purchased land from original owners after it had already vested in the State Government under Section 10(3) of the ULC Act.

Previous Decisions

Orders under Section 8(4) of ULC Act were passed for various branches of Khatib family; notifications under Section 10(1) and 10(3) were published.

Issues

Whether the petitioner society acquired any title to the land purchased after vesting under Section 10(3) of the ULC Act. Whether the petitioner is entitled to any relief or compensation for the land that vested in the State.

Submissions/Arguments

Petitioner argued that they purchased land in good faith and paid consideration, and sought regularization or compensation. State argued that the land had already vested in the State under Section 10(3) of the ULC Act, and the petitioner acquired no rights.

Ratio Decidendi

Under Section 10(3) of the Urban Land (Ceiling and Regulation) Act, 1976, once a notification is published in the Official Gazette, the excess vacant land vests absolutely in the State Government free from all encumbrances. Any transfer by the original owner after such vesting is void and confers no title on the purchaser. The purchaser cannot claim compensation or regularization.

Judgment Excerpts

The lands in question in the instant Petition were of the ownership of one Khatib family. It is the case of the Petitioners that they purchased various portions of the lands from out of the said Survey Nos.750, 751 and 755 from the original owners by the registered sale deeds pursuant to which the Petitioners were put in possession.

Procedural History

The petitioner filed a writ petition in the High Court of Bombay challenging the acquisition of land under the Urban Land (Ceiling and Regulation) Act, 1976. The court heard the matter and dismissed the petition on 18 June 2010.

Acts & Sections

  • Urban Land (Ceiling and Regulation) Act, 1976: Section 6(1), Section 8(4), Section 10(1), Section 10(3)
  • Maharashtra Cooperative Societies Act, 1960:
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