Case Note & Summary
This writ petition was filed in the Bombay High Court challenging the declaration of certain property as a Slum Rehabilitation Area under Section 3C(1) of the Maharashtra Slum Areas (Improvement and Redevelopment) Act, 1971. The petitioners claimed to be lessees under a 999-year registered lease deed executed in 1975 by one Hari Fakira Kharvi, who had been cultivating the land. The respondent company Hindustan Construction Company Ltd. owned the property and had litigation history with Hari Fakira Kharvi, including a 1969 suit where consent terms acknowledged the lessee's rights. In 1979, the property had been declared a slum area under Section 4, but that declaration was set aside by the Slum Tribunal in 1982. The petitioners had filed a suit in the High Court in 2008 seeking declarations regarding their lease rights, while the respondent company filed a suit in the Small Causes Court for possession. In March 2010, the respondent company submitted a redevelopment proposal to the Slum Rehabilitation Authority (SRA) claiming the property was a slum area despite the earlier quashing. The petitioners objected, leading to a halt in the process. Subsequently, in January 2011, Panchkutir Developers Ltd., a subsidiary with development rights from the respondent company, applied to the SRA to declare the area as a Slum Rehabilitation Area under Section 3C(1). On April 11, 2011 (corrected to May 4, 2011), the Chief Executive Officer of the SRA declared the property as a Slum Rehabilitation Area. The petitioners were not given any show cause notice or hearing before this declaration. They appealed to the Special Tribunal under Section 3C(2), but the Tribunal dismissed the appeal on December 7, 2011, prompting this writ petition. The primary contention was violation of natural justice due to lack of notice and hearing. The respondent company argued that the petitioners had no locus standi because the lease deed did not confer valid rights and that the tenancy had been terminated. The court’s decision on the merits is not contained in the provided text.
Issue of Consideration
Whether the declaration of the subject property as a Slum Rehabilitation Area under Section 3C(1) of the Maharashtra Slum Areas (Improvement and Redevelopment) Act, 1971, without issuing a show cause notice and granting an opportunity of hearing to the petitioners, is valid?
Law Points
- principles of natural justice
- requirement of show cause notice before declaration under Section 3C(1)
Case Details
2012 LawText (BOM) (05) 20
Writ Petition No. 2488 of 2011
Pravin Samdhani, S.G. Surana, Madhur S. Surana, Ravi Kadam, G.D. Utangale, B.V. Phadnis, Sekhar Naphade, Anirudh Joshi, Pratiti Naphade, Chetan Yadav, Satyan Vora, Y.V. Divekar, G.V. Bhagat
Jagnnath Hanumant Sonawane, Prabhakar Hanumant Sonawane, Kishan T. Jadhav
Slum Rehabilitation Authority, The Chief Executive Officer Slum Rehabilitation Authority, Hindustan Construction Company Ltd., The State of Maharashtra, The President Maharashtra Slum Areas (I.C. & R.) Special Tribunal
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Nature of Litigation
Writ Petition challenging the declaration of property as Slum Rehabilitation Area under Section 3C(1) of the Slum Act without following principles of natural justice.
Remedy Sought
To set aside the order dated 7th December 2011 of the Special Tribunal and the order dated 11th April 2011 corrected to 4th May 2011 of the CEO, SRA, declaring the property as Slum Rehabilitation Area.
Filing Reason
The declaration was made without issuing show cause notice or granting hearing, violating natural justice.
Previous Decisions
CEO declared the property as Slum Rehabilitation Area on 11th April 2011; appeal to Special Tribunal dismissed on 7th December 2011.
Issues
Whether the declaration of the subject property as a Slum Rehabilitation Area under Section 3C(1) of the Maharashtra Slum Areas (Improvement and Redevelopment) Act, 1971, without issuing a show cause notice and granting an opportunity of hearing to the petitioners, is valid?
Whether the petitioners have locus standi to challenge the declaration?
Submissions/Arguments
Petitioners contended that the declaration of the property as a Slum Rehabilitation Area under Section 3C(1) of the Slum Act was passed without issuing a show cause notice and granting an opportunity of hearing, thereby violating the principles of natural justice.
Respondent No.3 argued that the Lease Deed dated 23rd May 1975 did not create any right in favour of the petitioners, who therefore had no locus standi to file the petition. They also contended that Hari Fakira Kharvi was not authorized to put up structures without consent and that the tenancy had been terminated.
Judgment Excerpts
the order dated 11th April 2011 corrected to 4th May, 2011 (by corrigendum) declaring the subject property as 'Slum Rehabilitation Area' under section 3C(1) of the Slum Act is passed without issuing a Show Cause Notice and granting an opportunity of hearing to the Petitioners thereby violating the principles of natural justice.
The consent terms spells out that the property was given on lease to Hari Fakira Kharvi for cultivating it i.e. for agricultural operations only. The lease was not given to Hari Fakira Kharvi for putting up structures and therefore under the provisions of Section 108(o) of the Transfer of Property Act, 1982, Hari Fakira Kharvi was not authorized to put up any structure on the property without consent of Respondent No.3.
Procedural History
On 8th February 1979, the Deputy Collector declared the subject property as a slum area under Section 4 of the Slum Act. This was challenged by the petitioners' predecessor in Appeal No. 84 of 1980, and the declaration was set aside on 12th March 1982. Petitioners filed S.C. Suit No. 2688 of 2008 in the Bombay High Court for declaration of their lease rights. Respondent No.3 filed T.E. & R. Suit No. 248/297 of 2008 in the Small Causes Court for possession. On 13th January 2011, Panchkutir Developers Ltd. applied to declare the property as a Slum Rehabilitation Area under Section 3C(1). The CEO, SRA, passed the declaration order on 11th April 2011 (corrected 4th May 2011). Petitioners' Appeal No. 14 of 2011 to the Special Tribunal was dismissed on 7th December 2011, leading to this writ petition.
Acts & Sections
- Maharashtra Slum Areas (Improvement and Redevelopment) Act, 1971: 3C(1), 3C(2), 4
- Transfer of Property Act, 1982: 108(o)
