Bombay High Court Quashes MHADA Order Refusing Commencement Certificate Based on Ministerial Assurance. Ministerial Assurance Cannot Override Statutory Provisions Under Maharashtra Housing and Area Development Act, 1976.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
  • 47
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Rustomjee Realty Private Limited, a company incorporated under the Companies Act, 1956, filed a writ petition under Article 226 of the Constitution of India before the Bombay High Court. The petitioner challenged an order dated 18 September 2019 passed by the Executing Engineer, Building Permission Department, B.M., MHADA (Maharashtra Housing and Area Development Authority). The order refused to grant a subsequent commencement certificate for construction, citing an assurance given by the Minister of Housing that building permission for the project was suspended. The petitioner had previously obtained various permissions from MHADA for constructing buildings, some of which were already constructed. The petitioner applied for a further commencement certificate, which was refused based on the ministerial assurance. The respondents included MHADA, the Mumbai Housing and Area Development Board, and New D.N.Nagar Co-operative Housing Societies Union Limited. The court considered whether the refusal was legally valid. The petitioner argued that the order was without authority of law, as the Minister's assurance could not override statutory provisions. The respondents did not seriously contest the matter. The court held that the impugned order was not sustainable and quashed it, directing MHADA to consider the petitioner's application for a subsequent commencement certificate afresh in accordance with law, without being influenced by the ministerial assurance. The court also directed that the application be decided within two weeks from the date of the order. The petition was disposed of accordingly.

Headnote

A) Constitutional Law - Writ Jurisdiction - Article 226 of the Constitution of India - Refusal of Commencement Certificate - The petitioner challenged the order of the Executing Engineer refusing subsequent sanction for commencement certificate based on a ministerial assurance. The court held that the order was without any authority of law and could not be sustained. (Paras 3-5)

B) Housing Law - Statutory Permissions - Maharashtra Housing and Area Development Act, 1976 - Suspension of Building Permission - The Executing Engineer refused the certificate on the ground that the Minister of Housing had assured suspension of building permission. The court held that such an assurance cannot override statutory provisions and the order was quashed. (Paras 4-5)

C) Administrative Law - Executive Orders - Binding Nature - Ministerial Assurance - The court held that an assurance given by a Minister cannot be a valid ground to refuse a statutory permission unless backed by law. The impugned order was set aside. (Para 5)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Executing Engineer of MHADA could refuse to grant a subsequent commencement certificate based on an assurance given by the Minister of Housing, and whether such refusal was legally sustainable under the Maharashtra Housing and Area Development Act, 1976.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The impugned order dated 18 September 2019 is quashed and set aside. The respondents are directed to consider the petitioner's application for a subsequent commencement certificate afresh in accordance with law, without being influenced by the assurance given by the Minister of Housing. The application shall be decided within two weeks from the date of the order. Rule is made absolute accordingly. No order as to costs.

Law Points

  • Article 226 of the Constitution of India
  • Maharashtra Housing and Area Development Act
  • 1976
  • Executive authority cannot override statutory provisions
  • Ministerial assurance cannot suspend statutory permissions
  • Right to carry on construction under valid permissions
Subscribe to unlock Law Points Subscribe Now

Case Details

2019:BHC-OS:18064

Writ Petition (L) No. 2760 of 2019

2019-10-11

R.D. Dhanuka, J.

2019:BHC-OS:18064

Mr.Virag Tulzapurkar, Senior Advocate, a/w. Ms.Sowmya Srikrishna, Mr.Denzil Arambhan, Ms.Apeksha Munot, i/b. M/s.Wadia Ghandy & Co. for the Petitioner; Mr.P.G.Lad, a/w. Ms.Aparna Kalathil for the Respondent nos. 1 and 2, MHADA; Mr.Chirag Kamdar, a/w. Mr.R.S.Ghadge for the Respondent no.3.

Rustomjee Realty Private Limited

Maharashtra Housing and Area Development Authority, Mumbai Housing and Area Development Board, New D.N.Nagar Co-operative Housing Societies Union Limited

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging an order of the Executing Engineer, MHADA refusing subsequent commencement certificate.

Remedy Sought

Quashing of the order dated 18 September 2019 and direction to MHADA to grant the subsequent commencement certificate.

Filing Reason

The Executing Engineer refused to grant a subsequent commencement certificate based on an assurance given by the Minister of Housing that building permission was suspended.

Issues

Whether the impugned order refusing subsequent commencement certificate based on a ministerial assurance is legally sustainable. Whether the Executing Engineer had authority to refuse the certificate on the ground of a ministerial assurance.

Submissions/Arguments

The petitioner submitted that the impugned order was without any authority of law and that the Minister's assurance could not override statutory provisions. The respondents did not seriously contest the petition; the counsel for MHADA and the third respondent waived service and consented to final hearing.

Ratio Decidendi

An assurance given by a Minister cannot override statutory provisions and cannot be a valid ground to refuse a statutory permission. The Executing Engineer's order based on such assurance was without authority of law and unsustainable.

Judgment Excerpts

The impugned order is based on the assurance given by the learned Minister, Housing. In my view, such an assurance cannot override the statutory provisions. The impugned order thus cannot be sustained. The impugned order dated 18th September, 2019 is quashed and set aside. The respondents are directed to consider the petitioner's application for subsequent commencement certificate afresh in accordance with law.

Procedural History

The petitioner filed a writ petition under Article 226 of the Constitution of India challenging the order dated 18 September 2019 of the Executing Engineer, MHADA. The petition was heard finally by consent of parties. Rule was issued and waived by respondents. The court disposed of the petition on 11 October 2019.

Acts & Sections

  • Constitution of India: Article 226
  • Maharashtra Housing and Area Development Act, 1976:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Quashes MHADA Order Refusing Commencement Certificate Based on Ministerial Assurance. Ministerial Assurance Cannot Override Statutory Provisions Under Maharashtra Housing and Area Development Act, 1976.
Related Judgement
Supreme Court Supreme Court Dismisses State Appeal in Gujarat Control of Terrorism and Organised Crime Act Case — Continuing Unlawful Activity Requires Post-Promulgation Offence. The Court held that the prosecution must prove that the accused committed an organi...