Case Note & Summary
The appeal arose from a civil suit filed by Sharifa Begum Lalmohammed Shaikh seeking declaration and mandatory injunction against Khot Dongari Co-op. Housing Society and M/s. Shah Housecn Pvt. Ltd. The plaintiff claimed to be the tenant of the land and owner of a chawl constructed on it, alleging that the defendants illegally demolished rooms 5 and 6. She sought a temporary injunction to restrain interference with her possession and further demolition. The defendants contended that the property had been declared a slum area and acquired under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. The Additional Collector had issued a notice under Section 14 of the Act in 1995, and the property was acquired by publication in the Official Gazette on 14 March 1999, vesting it in the Government free from encumbrances. An award of compensation was passed on 5 March 2009, and a lease deed was executed on 15 May 2009 between the Government and the defendant society, which represents the tenants in actual occupation. The developer was appointed for redevelopment. The plaintiff was not residing in the chawl. The trial court rejected the plaintiff’s notice of motion for interim relief, leading to the present appeal. The High Court analyzed the provisions of the Slum Act, noting that under Section 14(2), upon publication of the acquisition notice, the land vests absolutely in the State Government free from all encumbrances, and under Section 15, the Collector can take possession. The person having an interest in the acquired property is entitled only to compensation under Sections 16-18. The Court found that the plaintiff, having claimed ownership of the chawl, had only a right to compensation and no subsisting right to possession or to seek an injunction against the society and developer who were lawfully put in possession by the Government. The plaintiff had not challenged the acquisition or the declaration of slum area in the suit. Consequently, no prima facie case was made out, and the appeal was dismissed, with the related civil application disposed of accordingly.
Headnote
A) Property Law - Slum Redevelopment - Acquisition under Slum Act - Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, Sections 14, 15, 16-18 - Upon publication of acquisition notice in Official Gazette, land vests in the State Government free from all encumbrances, extinguishing all pre-existing rights except the right to claim compensation; the plaintiff, who claimed ownership of a chawl on leased land, lost all proprietary rights after acquisition, and thus could not maintain a suit for injunction against the society of occupants to whom the Government granted a lease (Paras 5-8). Held that the plaintiff had only a right to compensation and no prima facie case for interim relief. B) Injunction - Interim Relief - Conditions for Grant - Civil Procedure Code, 1908, Order 39 Rules 1 and 2 - To obtain a temporary injunction, the plaintiff must establish a prima facie case; where the property had been validly acquired by the Government and leased to the defendant society, and the plaintiff was not in actual possession, no prima facie case existed, and the trial court’s rejection of the notice of motion was not illegal or irregular (Paras 8-9). Held that appeal dismissed as no error found.
Issue of Consideration
Whether the plaintiff is entitled to interim injunction restraining defendants from interfering with possession and demolishing chawl rooms, given that the property has been acquired under the Maharashtra Slum Areas Act, 1971?
Final Decision
Appeal dismissed; the court found no prima facie case for interim relief as the property had already vested in the Government free from encumbrances, and the plaintiff only had a right to compensation.
Law Points
- Acquisition under Section 14 of the Maharashtra Slum Areas (Improvement
- Clearance and Redevelopment) Act
- 1971 vests property in the Government free from all encumbrances
- persons having interest only entitled to compensation
- possession with tenants' society after lease by Government
- injunction not maintainable against lawful possessors.



