Bombay High Court Decides Challenge to SRA Order Approving Termination of Development Agreement and Appointment of New Developer. The Court examined the legality of the order under Section 13 of the Maharashtra Slum Areas Act, 1971, and the requirement of fair hearing.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioner, Shivkupa Builders & Developers, a partnership firm, filed a writ petition challenging the order dated 14 October 2009 passed by the Chief Executive Officer of the Slum Rehabilitation Authority under Section 13 of the Maharashtra Slum Areas (Improvements, Clearance and Redevelopment) Act, 1971. The order approved the termination of the petitioner's development agreement and permitted the appointment of a new developer, Respondent No. 8, to continue a slum rehabilitation scheme. The background involved a slum area at Worli, Mumbai, on land owned by the Municipal Corporation of Greater Mumbai. Slum dwellers, numbering 2,270, formed Indira SRA Cooperative Housing Society Ltd. (Respondent No. 4) and appointed the petitioner as the developer in 1994. The petitioner obtained necessary approvals, including a Letter of Intent and Commencement Certificate in 1999-2000. However, a trust (Respondent No. 7) filed a writ petition in 2000, obtaining an interim order restraining construction on certain plots, which remained in force. Due to delays and litigation, the society terminated the petitioner's development agreement in 2005, and sought approval from the Slum Rehabilitation Authority for a new developer. The petitioner objected to the termination. Meanwhile, in 2007, a Full Bench of the Bombay High Court in Tulsiwadi Navnirmal Coop. Housing Society Ltd. v. State of Maharashtra directed the constitution of a High Power Committee to resolve disputes in slum rehabilitation schemes, and such committee was constituted. Applications were pending before that committee. The impugned order was passed by the CEO in 2009. The petitioner contended that the termination was invalid, lacking proper hearing, and that the CEO exceeded jurisdiction. The court heard arguments and reserved judgment on 1 April 2011. The judgment was pronounced on 15 April 2011. The provided text does not include the court's reasoning or final decision.

Issue of Consideration

Whether the CEO of SRA had the authority under Section 13 of the Slum Areas Act to approve termination of a development agreement and appoint a new developer, and whether the termination was valid

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Law Points

  • Section 13 of Maharashtra Slum Areas (Improvements
  • Clearance and Redevelopment) Act
  • 1971
  • natural justice
  • High Power Committee jurisdiction
  • slum rehabilitation scheme
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Case Details

2011 LawText (BOM) (04) 47

Writ Petition No. 2371 of 2009

2011-04-15

Anoop V. Mohta, J.

2011:BHC-OS:6556

Anand Grover, Firdaus Moosa, Prakash Mahadik, Milind More, G.D. Utangale, S.U. Kamdar, Zubin Behram Kamdin, T.H. Puranik, Samir A. Vaidya, Bhalchandra Palav, P.K. Dhakephalkar, Naira Variava

Shivkupa Builders & Developers

State of Maharashtra, Slum Rehabilitation Authority, The Chief Executive Officer of SRA, Indira SRA Cooperative Housing Society Ltd., The Municipal Corporation of Greater Mumbai, Prem Siddha Cooperative Housing Society, Birla Industries Group Charity Trust, M/s. OM Omega Investment & Properties

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Nature of Litigation

Writ petition challenging the order of the Chief Executive Officer, Slum Rehabilitation Authority, approving termination of the petitioner's development agreement and appointing a new developer for a slum rehabilitation scheme

Remedy Sought

Petitioner sought quashing of the order dated 14/10/2009 and restoration as the developer

Filing Reason

The petitioner contended that the termination was improper, without hearing, and the CEO exceeded jurisdiction under Section 13

Previous Decisions

Prior to the impugned order, the High Court in Tulsiwadi Navnirmal Coop. Housing Society Ltd. vs. State of Maharashtra directed constitution of a High Power Committee for disputes in Slum Rehabilitation Schemes; the Trust had filed a writ petition challenging the NOC and LOI, and an interim order was in force restraining construction on some plots; the High Power Committee had pending applications

Issues

Whether the CEO of SRA had jurisdiction under Section 13 of the Slum Areas Act to approve termination of the development agreement Whether the termination was valid without notice or hearing to the petitioner Whether the High Power Committee should have been approached instead

Judgment Excerpts

The Petitioners have challenged the order dated 14/10/2009 passed by Respondent No.3 (The Chief Executive Officer (CEO), Slum Rehabilitation Authority) under Section 13 of the Maharashtra Slum Areas (Improvements, Clearance and Redevelopment) Act, 1971 thereby has approved the termination of the Petitioners development agreement and simultaneously permitted to appoint new developer,/Respondent No.8, to continue to develop the slum rehabilitation scheme as announced 10 years back. On 15.05.2006, an objection to the above termination as unauthorised, was raised and requested not to take any action, by the Vice President and the Joint Secretary of Respondent no.4/society. On 01/11/2007, a Full Bench of this Court in Tulsiwadi Navnirmal Coop. Housing Society Ltd. & anr. vs. State of Maharahstra & ors. [ 2007 (6) Mh. L.J. 851 ] , directed the Government of Maharashtra to constitute a High Power Committee for deciding the dispute arising out of or in respect of Slum Rehabilitation Scheme.

Procedural History

The writ petition was filed in 2009 challenging the CEO's order dated 14/10/2009. The High Court heard arguments and reserved judgment on 01/04/2011, and pronounced judgment on 15/04/2011.

Acts & Sections

  • Maharashtra Slum Areas (Improvements, Clearance and Redevelopment) Act, 1971: Section 13
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