Case Note & Summary
The dispute arose from the reservation of the petitioners' land in Solapur under the Development Plan 1997-2017 for a Children's Play Ground. The Development Plan came into force on 15th December 2004 after approval on 28th October 2004. The petitioners, as owners, were unable to sell the land at market value due to the reservation. They initially served a purchase notice under Section 49 of the Maharashtra Regional and Town Planning Act, 1966 on 24th November 2009. The Solapur Municipal Corporation passed a resolution on 18th June 2010 to purchase the land or release the reservation, but no further action was taken. Consequently, the petitioners served a notice under Section 127 of the MRTP Act on 26th June 2015, calling upon the Planning Authority to acquire the land. The Planning Authority replied in July 2017 asking the petitioners to remove encumbrances and later contended that it had offered TDR or FSI in lieu of acquisition, which the petitioners did not accept. No acquisition proceedings were commenced, and no declaration under Section 126(2) or (4) was published within ten years from the date the plan came into force, nor within twelve months after the Section 127 notice. The core legal issue was whether the reservation lapsed by operation of Section 127 due to non-acquisition within the statutory periods, and whether the offer of TDR/FSI could defeat the lapsing. The petitioners argued that the statutory conditions were met and the reservation automatically lapsed. The respondents argued that they had shown intention to acquire by offering TDR/FSI, thus the petition should be dismissed. The High Court analyzed Section 127, observing that it requires either acquisition by agreement or commencement of acquisition by publishing a declaration within ten years, failing which the owner may serve a notice; if within twelve months thereafter the land is not acquired or steps are not commenced, the reservation lapses. The Court relied on the Supreme Court decision in Girnar Traders vs. State of Maharashtra, (2007) 7 SCC 555, which affirmed this interpretation. The Court held that the offer of TDR/FSI does not constitute acquisition or steps for acquisition, and therefore the statutory right to lapsing could not be defeated. The Court thus allowed the writ petition, declaring that the reservation on the petitioners' land had lapsed and directing the respondents to notify the lapsing in the Official Gazette as required under Section 127(2).
Headnote
A) Town and Country Planning - Lapsing of Reservation - Statutory Conditions for Deemed Lapse - Maharashtra Regional and Town Planning Act, 1966, Section 127 - Section 127 provides that if land reserved under a development plan is not acquired by agreement or no declaration under Section 126(2) or (4) is published within ten years of the plan coming into force, the owner may serve a purchase notice; if the land is not acquired or steps for acquisition are not commenced within twelve months of such notice, the reservation shall be deemed to have lapsed and the land released for development as permissible for adjacent land. The Supreme Court in Girnar Traders vs. State of Maharashtra, (2007) 7 SCC 555, confirmed this interpretation. Held that non-acquisition within the statutory period leads to automatic lapsing (Paras 9-11). B) Town and Country Planning - Lapsing of Reservation - Offer of TDR/FSI Does Not Constitute Acquisition - Maharashtra Regional and Town Planning Act, 1966, Section 127 - The mere offer of TDR or FSI in reply to a purchase notice does not amount to acquisition or commencement of steps for acquisition as required under Section 127. The statutory right to lapsing cannot be defeated by such an offer if actual acquisition is not carried out within the prescribed period. Held that the respondents' contention based on TDR/FSI offer was unsustainable to prevent the reservation from lapsing (Paras 8, 10-11).
Issue of Consideration
Whether the reservation on the petitioners' land under the Solapur Development Plan lapsed by operation of Section 127 of the Maharashtra Regional and Town Planning Act, 1966, given that no acquisition took place within ten years from the date the plan came into force and a purchase notice was served but the land was not acquired within twelve months thereafter, despite the planning authority's offer of TDR/FSI in lieu of acquisition.
Final Decision
Decision not clearly stated
Law Points
- Legal points not extracted
- Section 127 of MRTP Act provides for lapsing of reservation if land not acquired within ten years and further twelve months after notice
- offer of TDR/FSI does not constitute acquisition
- lapsing is automatic upon failure to acquire within statutory period
- interpretation confirmed by Supreme Court in Girnar Traders v. State of Maharashtra
