Bombay High Court Dismisses Executor's Petition for Enhanced Compensation in Town Planning Scheme — Claim Barred by Limitation and Res Judicata. Compensation for garden reservation under TPS V Santacruz was determined by arbitrator and Tribunal of Appeal; subsequent claim under Section 84 of MRTP Act, 1966 held time-barred and not maintainable.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The petitioner, Lakhmichand Ramchand Asrani, as executor of the will of his father Ramchand Daulatram Asrani, filed a writ petition seeking a direction to the Municipal Corporation of Greater Mumbai to pay compensation under Section 84 of the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act) for Plot No.41 admeasuring 569.40 sq.mtrs. in Santacruz, Mumbai, which was reserved for a garden under Town Planning Scheme V (First Variation). The land owner died on 9th June 1983, and probate was granted to the petitioner on 21st November 1992. The town planning scheme was published on 30th August 1973, and an arbitrator appointed under Section 72 of the MRTP Act made an award on the same date granting compensation of Rs.68,328/- for Final Plot 41. Appeals were filed for enhancement, and on 13th August 1975, the Tribunal of Appeal increased the compensation to Rs.77,723/-. Possession of the plot was taken on 1st February 1982. The petitioner claimed that no compensation was paid upon vesting and sought additional compensation under Section 84. The court examined the provisions of Sections 71, 72, 84, and 88 of the MRTP Act. The court held that the compensation was already determined by the arbitrator and the appellate tribunal, and the petitioner's claim under Section 84 was barred by limitation as the right to compensation accrued on the date of vesting or at least when possession was taken in 1982, and the application was filed in 2002, more than 20 years later. The court also held that the claim was barred by res judicata as the compensation had been finally determined. The petition was dismissed with no order as to costs.

Headnote

A) Town Planning - Compensation - Limitation - Section 84, Maharashtra Regional and Town Planning Act, 1966 - Claim for compensation for land reserved for garden under TPS V Santacruz - Arbitrator awarded compensation on 30th August 1973, enhanced by Tribunal of Appeal on 13th August 1975 - Possession taken on 1st February 1982 - Petitioner filed application under Section 84 in 2002 - Held that the claim is barred by limitation as the right to compensation accrued on the date of vesting or at least when possession was taken, and the application was filed after more than 20 years (Paras 1-4).

B) Town Planning - Res Judicata - Finality of Award - Sections 71, 72, 84, Maharashtra Regional and Town Planning Act, 1966 - The arbitrator's award under Section 71 and the appellate tribunal's decision under Section 72 are final and binding - Petitioner cannot reagitate the quantum of compensation under Section 84 which is meant for cases where no compensation has been determined - Held that the claim is barred by res judicata as the compensation was already determined (Paras 2-5).

C) Town Planning - Vesting of Land - Section 88, Maharashtra Regional and Town Planning Act, 1966 - Upon the final scheme coming into force, all lands required by the Planning Authority vest absolutely free from encumbrances - The petitioner's land vested in the Municipal Corporation and compensation was already paid - Held that no further compensation is payable (Paras 2-3).

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Issue of Consideration

Whether the petitioner is entitled to compensation under Section 84 of the Maharashtra Regional and Town Planning Act, 1966 for the land vested in the Municipal Corporation, and whether the claim is barred by limitation and res judicata.

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Final Decision

The writ petition is dismissed. No order as to costs.

Law Points

  • Limitation for claiming compensation under Section 84 of MRTP Act
  • 1966
  • Res judicata
  • Finality of arbitration award and appellate tribunal decision
  • Vesting of land under Section 88 of MRTP Act
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Case Details

2005 LawText (BOM) (03) 196

WRIT PETITION NO.700 OF 2002

2005-03-17

Dr. D.Y. Chandrachud, J.

Mr. Pankaj Kawale i/b Shantilal & Co. for the Petitioner, Mrs. A.R. Joshi for the BMC, Mr. Milind More, AGP for the State

Lakhmichand Ramchand Asrani

Municipal Corporation of Greater Mumbai & Ors.

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Nature of Litigation

Writ petition seeking direction to pay compensation under Section 84 of MRTP Act for land reserved for garden under town planning scheme.

Remedy Sought

Petitioner sought a writ of mandamus directing the Municipal Corporation to pay compensation under Section 84 of the MRTP Act for the land that vested in the Corporation.

Filing Reason

Petitioner claimed that no compensation was paid upon vesting of the land in the Municipal Corporation and sought additional compensation under Section 84.

Previous Decisions

Arbitrator awarded compensation of Rs.68,328/- on 30th August 1973; Tribunal of Appeal enhanced it to Rs.77,723/- on 13th August 1975. Possession taken on 1st February 1982.

Issues

Whether the claim for compensation under Section 84 of the MRTP Act is barred by limitation? Whether the claim is barred by res judicata in view of the earlier determination of compensation by the arbitrator and the Tribunal of Appeal?

Submissions/Arguments

Petitioner argued that no compensation was paid upon vesting and that he is entitled to compensation under Section 84. Respondents argued that compensation was already determined and paid, and the claim is barred by limitation and res judicata.

Ratio Decidendi

The right to compensation under Section 84 of the MRTP Act accrues on the date of vesting or when possession is taken. The claim must be made within a reasonable time. In this case, the claim was made after more than 20 years and is barred by limitation. Additionally, the compensation was already determined by the arbitrator and the Tribunal of Appeal, and the claim is barred by res judicata.

Judgment Excerpts

The claim for compensation under Section 84 of the Act is clearly barred by limitation. The compensation having been determined by the arbitrator and the Tribunal of Appeal, the claim is also barred by res judicata.

Procedural History

The land owner died on 9th June 1983. Probate granted to petitioner on 21st November 1992. Arbitrator awarded compensation on 30th August 1973. Tribunal of Appeal enhanced compensation on 13th August 1975. Possession taken on 1st February 1982. Petitioner filed writ petition in 2002 seeking compensation under Section 84.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: Section 71, Section 72, Section 84, Section 88
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