Bombay High Court Allows Redevelopment of Acquired Property Under MHADA Based on Settlement Between Owners, Tenants, and Builder. Court Holds That Once Acquisition Notification Lapses, Property Can Be Redeveloped by Private Parties with Consent of All Stakeholders.

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

The petitioners, comprising owners (Petitioners 1 & 2), tenants (Petitioners 3 to 10), and a builder (Petitioner 11), filed a writ petition challenging a notification dated 4 November 1993 issued under Chapter VIII-A of the Maharashtra Housing and Area Development Act (MHADA) for acquisition of the property at Plot No. 167/B, Dadar-Matunga Estate, Mumbai. The property had a building known as Datey Bhavan. The petitioners sought permission to redevelop the property based on a settlement arrived at between them. The respondents included state authorities (Respondents 1 to 5) and two other tenants (Respondents 6 and 7). The court noted that the acquisition proceedings had not been acted upon and that all parties, including the tenants, had consented to the redevelopment. The learned senior counsel for the petitioners informed the court that Petitioner No.5 had expired and his legal representatives would abide by the agreement. The court, after considering the affidavit of Mr. Ganesh Rathod, Under Secretary, Housing Department, which narrated the acquisition proceedings, disposed of the petition with directions to the authorities to consider the redevelopment proposal in light of the settlement. The court held that since the acquisition notification had lapsed and all stakeholders agreed, the redevelopment could proceed.

Headnote

A) Property Law - Acquisition under MHADA - Lapse of Notification - Chapter VIII-A of Maharashtra Housing and Area Development Act, 1976 - The property was acquired under Chapter VIII-A for redevelopment, but the acquisition notification dated 4-11-1993 was not acted upon. The court considered whether the petitioners could redevelop the property based on a settlement between owners, tenants, and builder. Held that since the acquisition had lapsed and all parties consented, the redevelopment could proceed. (Paras 1-3)

B) Constitutional Law - Writ Jurisdiction - Settlement between parties - Article 226 of Constitution of India - The petitioners sought a writ to allow redevelopment based on a settlement. The court held that in view of the settlement and the lapse of acquisition, the writ petition could be disposed of with directions to the authorities to consider the redevelopment proposal. (Paras 1-3)

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Issue of Consideration

Whether the property acquired under Chapter VIII-A of the Maharashtra Housing and Area Development Act can be redeveloped by the owners, tenants, and builder based on a settlement, despite the acquisition notification.

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Final Decision

The court disposed of the writ petition with directions to the authorities to consider the redevelopment proposal in light of the settlement between the parties.

Law Points

  • Acquisition under Chapter VIII-A of MHADA Act
  • Lapse of acquisition notification
  • Consent of all parties for redevelopment
  • Writ petition maintainability
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Case Details

2011 LawText (BOM) (11) 26

WRIT PETITION NO.2806 OF 2005

2011-11-28

D.K.Deshmukh, Anoop V. Mohta

Mr.Y.S.Jahagirdar, Sr.Advocate with Mr.V.V.Joglekar i/b Nitin Mulye for the Petitioners, Mr.G.W.Mattos, AGP for Respondents Nos. 1 to 5, Mr.Kamal Bulchandani with Mr.Arun Mehta and Ms.Payal i/b M/s.Akshar Law for Respondent No.6, Mr.P.G.Sawant for Respondent No.7

Bhalchandra Datey & Ors.

State of Maharashtra & Ors.

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Nature of Litigation

Writ petition challenging acquisition notification under Chapter VIII-A of MHADA Act and seeking permission for redevelopment based on settlement.

Remedy Sought

Petitioners sought a writ to allow redevelopment of the property in view of settlement between owners, tenants, and builder.

Filing Reason

The property was acquired under Chapter VIII-A of MHADA Act for redevelopment, but the acquisition notification was not acted upon, and the petitioners wanted to redevelop the property themselves.

Issues

Whether the property acquired under Chapter VIII-A of MHADA can be redeveloped by private parties based on a settlement. Whether the writ petition is maintainable in view of the acquisition notification.

Submissions/Arguments

Petitioners argued that the acquisition notification had lapsed and all parties had consented to redevelopment. Respondents did not oppose the petition as the acquisition was not acted upon.

Ratio Decidendi

Once an acquisition notification under Chapter VIII-A of MHADA Act lapses and all stakeholders (owners, tenants, builder) consent, the property can be redeveloped by private parties, and the court can direct authorities to consider the redevelopment proposal.

Judgment Excerpts

This petition has been filed basically challenging the Notification dated 4-11-1993 issued by the Government under Chapter VIII-A of the Maharashtra Housing and Area Development Act. The present petition was filed basically for allowing the Petitioners to redevelop the property in view of the settlement arrived at between them, though the property was acquired under Chapter VIII-A of the MH& AD Act for the purpose of its redevelopment.

Procedural History

The petition was filed in 2005 challenging a 1993 notification. Affidavit by Mr. Ganesh Rathod dated 7 July 2005 narrated acquisition proceedings. The court heard the matter and disposed it on 28 November 2011.

Acts & Sections

  • Maharashtra Housing and Area Development Act, 1976: Chapter VIII-A
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