Bombay High Court Considers Challenge to Land Designation for Timber Industry Under Maharashtra Regional Town Planning Act, 1966. Petitioners, Landowners, Served Purchase Notices and Contended That No Acquisition Steps Were Taken Within Six Months, While Pune Municipal Corporation Asserted Proposal Was Submitted Before Notices.

Challenge to designation of land for timber industry in the revised development plan of Pune City and invocation of lapsing under Section 127 of the Maharashtra Regional Town Planning Act, 1966.

Petitioners sought declaration that the designation of their land for timber industry has lapsed under Section 127 of the MRTP Act, 1966, and/or that the designation is not for a public purpose.

Petitioners, as landowners, alleged that despite serving purchase notices, no steps were taken by the Pune Municipal Corporation within six months to acquire the land, thus the reservation lapsed. They also contested that designation for timber industry did not constitute a public purpose.

The State Government, through the Minister for Urban Development Department, issued directions under Section 37(1) of the MRTP Act on 6.2.2004 to initiate deletion of the designation. The City Improvements Committee and General Body of Pune Municipal Corporation passed resolutions on 29.3.2004 and 20.5.2004 to cancel the acquisition and delete the zoning. However, the State Government stayed its earlier directions on 19.6.1994 (likely 2004).

Whether the designation of the land bearing survey Nos.577 Hissa No.1, 577 Hissa No.2, 577 Hissa No.3 and 578 Hissa No.1 (part) in the revised development plan of Pune City for the ‘timber industry’ is for a public purpose. Whether the designation of the aforesaid land for the ‘timber industry’ in the revised development plan of Pune City notified on 5.1.1987 has lapsed under section 127 of the Maharashtra Regional Town Planning Act, 1966 for want of any steps for acquisition of the said land within six months of the service of the purchase notice.

Petitioners argued that no steps for acquisition were taken within six months of service of purchase notice, so the designation lapsed under Section 127 of the MRTP Act, 1966. Pune Municipal Corporation contended that the requisite proposal for acquisition was submitted on 31.5.1989, much before the receipt of purchase notice, thus satisfying the requirement of Section 127.

The arguments advanced before us in this batch of three writ petitions have crystalised two issues for our determination. These issues are: (i) Whether the designation of the land bearing survey Nos.577 Hissa No.1, 577 Hissa No.2, 577 Hissa No.3 and 578 Hissa No.1 (part) in the revised development of Pune City for the ‘timber industry’ is for the public purpose. (ii) Whether the designation of the aforesaid land for the ‘timber industry’ in the revised development plan of Pune City notified on 5.1.1987 has lapsed under section 127 of the Maharashtra Regional Town Planning Act, 1966 for want of any steps for acquisition of the said land within six months of the service of the purchase notice. Note 15 (wrongly shown as note 25) provides: "Steel Yard/Timber Industries Reservation to be converted into zoning for very purpose. Pune Municipal Corporation to acquire land if the Association of Steel and Scrap Merchants/Timber Merchants come forward for payment of acquisition costs."

Revised development plan of Pune City notified on 5.1.1987 designating the subject land for 'Timber Industries'. Landowners in Writ Petition No.7846 of 2004 served purchase notice under Section 127 on 15.11.2000; in Writ Petition No.9644 of 2004, notice served on 14.6.2001. Pune Municipal Corporation rejected the notice on 4.1.2001, stating acquisition process already in progress. Disputes regarding cost arose between the Corporation and Timber Merchants Associations. On 6.2.2004, State Government directed Pune Municipal Corporation under Section 37(1) to initiate deletion of designation. On 29.3.2004, City Improvements Committee resolved to forward proposal for deletion; General Body passed similar resolution on 20.5.2004. On 19.6.1994 (presumably 2004), State Government stayed its earlier direction. The three writ petitions were thereafter filed.

• Maharashtra Regional Town Planning Act, 1966: 22, 37(1), 127
• Land Acquisition Act, 1894:
• Code of Civil Procedure, 1908: Order XXVII, Rule 4