High Court Quashes Stop Work Notice on Fortune Developers' Project in Yerawada. Court Rules in Favor of Property Rights; Cites Lack of Legal Justification in PMC's Actions.


Summary of Judgement

The Bombay High Court has ruled in favor of Fortune Developers and Infrastructure, quashing the Pune Municipal Corporation's (PMC) stop work notice that halted the construction of a residential-cum-commercial project in Yerawada, Pune. The Court found the PMC's actions, based on objections from the Yerawada Central Prison authorities, to be arbitrary and unsupported by applicable laws or regulations. The judgment emphasized that property rights, though no longer fundamental, are constitutionally protected, and any restrictions must be grounded in clear legal provisions.

1. Introduction

The case involved Fortune Developers and Infrastructure's challenge against the Pune Municipal Corporation's (PMC) stop work notice, which was issued based on objections from the Yerawada Central Prison (YCP) authorities. The developers were constructing a residential-cum-commercial project in Yerawada, Pune, when the notice was served.

2. Background

Fortune Developers had obtained all necessary permissions, including commencement certificates from the PMC, for the construction of their project, located at Survey No.154 in Yerawada. However, midway through the construction, the Superintendent of YCP requested the PMC to halt the project, citing the proximity of the proposed modernized prison (YCP-2) to the construction site.

3. Legal Arguments

  • For the Petitioner: Fortune Developers argued that their project was well beyond the 150-meter restriction zone from the YCP’s perimeter wall. They contended that the PMC’s stop work notice was arbitrary, discriminatory, and not based on any applicable law or regulation.
  • For the Respondents: The PMC and YCP authorities defended the notice, claiming that the project violated prison regulations and posed a security threat to the proposed YCP-2.

4. Court's Analysis

The Court critically analyzed Rule 3(a) of the Maharashtra Prisons (Prison Buildings and Sanitary Arrangements) Rules, 1964, which was cited by the respondents. It found that the rule did not apply to constructions outside the prison’s perimeter walls and that the petitioner’s project, being 620 meters away, did not violate any statutory restrictions.

5. Judgment

The Court quashed the stop work notice and the YCP's communication, stating that there was no legal basis for halting the construction. It highlighted that property rights are constitutionally protected under Article 300A, and any interference must be legally justified.

6. Conclusion

The judgment reinforces the importance of adhering to legal principles when imposing restrictions on property rights. The decision is a significant victory for Fortune Developers, allowing them to resume their project in Yerawada.

The Judgement

Case Title: FORTUNE DEVELOPERS AND INFRASTRUCTURE Versus PUNE MUNICIPAL CORPORATION & Anr.

Citation: 2024 LawText (BOM) (8) 271

Case Number: WRIT PETITION NO. 4342 OF 2024

Date of Decision: 2024-08-27