Case Note & Summary
The petitioners, a cooperative housing society formed by employees of Air India, sought a writ of mandamus directing CIDCO to grant a lease in their favour for a plot of land originally allotted to Air India for staff quarters. Air India had entered into an agreement to lease with CIDCO in 1992, which stipulated that the land could not be transferred without CIDCO's prior permission. The petitioners claimed that CIDCO had initially agreed to the transfer but later refused. The court examined the terms of the agreement and the applicable regulations, including the New Bombay Disposal of Lands Regulations 1975 and Section 118 of the Maharashtra Regional and Town Planning Act, 1966. The court found that CIDCO's refusal was based on valid policy considerations and that the petitioners had no enforceable right to the lease. The writ petition was dismissed, and the rule was discharged.
Headnote
A) Land Law - Transfer of Leasehold Land - Prior Permission of Lessor - CIDCO's refusal to grant lease in favour of cooperative housing society of Air India employees was upheld as the transfer required prior permission under the New Bombay Disposal of Lands Regulations 1975 and Section 118 of the Maharashtra Regional and Town Planning Act, 1966 - The court held that the petitioners had no vested right to the lease and CIDCO's decision was not arbitrary (Paras 1-19).
Issue of Consideration
Whether CIDCO was justified in refusing to grant a lease in favour of the petitioners (a cooperative housing society of Air India employees) for the transfer of land originally allotted to Air India for staff quarters, and whether the petitioners have a vested right to the lease.
Final Decision
The writ petition was dismissed. The rule was discharged. No order as to costs.
Law Points
- Transfer of leasehold land requires prior permission of lessor
- CIDCO's refusal to grant lease is not arbitrary
- New Bombay Disposal of Lands Regulations 1975 govern transfer
- Section 118 of MRTP Act 1966 applies
Case Details
2012 LawText (BOM) (07) 42
WRIT PETITION NO.874 OF 2012
DR.D.Y.CHANDRACHUD, R.D.DHANUKA
Mr. J.P. Cama, Senior Advocate with Mr. Sanjay Udeshi, Ms. Pallavi Deshia and Mr. Mahesh Londhe i/b M/s. Sanjay Udeshi & Co. for the Petitioners, Mr. D.A. Nalavade, GP for Respondent No.1, Mr. C.J. Joy with Mr. G. Hariharan i/b Dr. T.C. Kaushik for Respondent No.2, Ms. Kavita Anchan i/b M/s. M.V. Kini & Co. for Respondents 3 and 4, Mr. Ashutosh M. Kulkarni with Mr. Vaibhav Gaikwad for Respondent No.5
State of Maharashtra and others
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India seeking a writ of mandamus directing CIDCO to grant a lease in favour of the petitioners.
Remedy Sought
The petitioners sought a direction to CIDCO to execute a lease in their favour for the land originally allotted to Air India.
Filing Reason
CIDCO refused to grant a lease to the petitioners (a cooperative housing society of Air India employees) for the transfer of land allotted to Air India for staff quarters.
Issues
Whether CIDCO's refusal to grant a lease in favour of the petitioners was arbitrary and violative of Article 14 of the Constitution?
Whether the petitioners have a vested right to the lease based on the agreement between Air India and CIDCO?
Submissions/Arguments
The petitioners argued that CIDCO had initially agreed to the transfer and that the refusal was arbitrary.
CIDCO contended that the transfer required prior permission under the Regulations and that the policy did not permit such transfer.
Ratio Decidendi
The transfer of leasehold land allotted by CIDCO requires prior permission under the New Bombay Disposal of Lands Regulations 1975 and Section 118 of the Maharashtra Regional and Town Planning Act, 1966. The petitioners had no vested right to the lease, and CIDCO's refusal was not arbitrary.
Judgment Excerpts
Clause 7A of the agreement stipulated that the terms under which CIDCO had agreed to execute a lease in favour of Air India were governed inter alia by the New Bombay Disposal of Lands Regulations 1975 for the time being in force.
The buildings which were to be constructed on the plot of land were to be used by Air India only for accommodating the members of its staff and could not be sold either individually or to a co-operative housing society of the employees without the prior permission of CIDCO.
Procedural History
The writ petition was filed in 2012. Rule was issued and by consent, the petition was taken up for final disposal. The court heard the arguments and dismissed the petition on 24 July 2012.
Acts & Sections
- Maharashtra Regional and Town Planning Act, 1966: Section 118
- New Bombay Disposal of Lands Regulations 1975:
