Bombay High Court Dismisses Petition by Proposed Housing Society Challenging Secretary's Direction to Consider Competing Developer's Proposal in Slum Rehabilitation. The Court held that a proposed society has no vested right to develop slum property and the authority can consider a subsequent proposal if the earlier one is rejected.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioners, a proposed housing society of over 100 slum dwellers and their chosen developer, challenged the decision of the Secretary (Housing) dated 21st April 2005. The Secretary directed the Slum Rehabilitation Authority (SRA) to consider the proposal of Respondent No.3, a developer appointed by Respondent No.5, another proposed cooperative housing society, for developing the same slum land in Andheri/Vile Parle (East), Mumbai. The land belonged to the Municipal Corporation. The court noted that neither the petitioner society nor the respondent society or their builders had any rights in the land; their status was limited to what was granted under the relevant statutes. Under the slum rehabilitation scheme, 70% of slum dwellers could apply for development, but the application of a proposed society was to be examined by the SRA. Only if that application was rejected could another group's proposal be entertained. The court referred to a Division Bench judgment in Writ Petition No.2746 of 2005 decided on 26th April 2006, which explained this position. The court dismissed the petition, holding that the Secretary's direction was valid as the petitioner's proposal had not been rejected and the competing proposal could be considered.

Headnote

A) Slum Rehabilitation - Proposed Society's Right - No Vested Right - Under the slum rehabilitation scheme, a proposed society of slum dwellers has no vested right to develop the slum property; its application is to be examined by the Slum Rehabilitation Authority, and if rejected, only then can another group's proposal be entertained. (Paras 3-4)

B) Slum Rehabilitation - Competing Proposals - Secretary's Power - The Secretary (Housing) can direct the Slum Rehabilitation Authority to consider a competing proposal if the earlier proposal is not viable or rejected. (Para 2)

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Issue of Consideration

Whether the Secretary (Housing) could direct the Slum Rehabilitation Authority to consider the proposal of Respondent No.3 when the petitioner's proposal was pending?

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Final Decision

The petition is dismissed. The Secretary's direction to consider the proposal of Respondent No.3 is upheld.

Law Points

  • Slum rehabilitation scheme
  • proposed society's right to develop
  • consideration of competing proposals
  • Secretary's power to direct consideration of another proposal
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Case Details

2006 LawText (BOM) (06) 74

Writ Petition No. 5068 of 2005

2006-06-30

H.L. Gokhale, J.H. Bhatia

Mr.H.S. Anand with Mr.Vaibhav Sugdare for the Petitioners, Mr.G.D. Utangale for Respondent No.1, Mr.C.R. Sonawane, A.G.P. for Respondents No.2, 6 and 7, Mr.A.Y. Sakhare with Mr.D.S. Sakhalkar for Respondent No.3, Mr.S.G. Surana for Respondent No.5, Mr.A.R. Mishra for interveners to oppose the petition

Shri Sai Bhagwati Co-op. Housing Society (Proposed) & Anr.

The Slum Rehabilitation Authority and Ors.

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Nature of Litigation

Writ petition challenging the decision of the Secretary (Housing) directing the Slum Rehabilitation Authority to consider a competing developer's proposal for slum development.

Remedy Sought

Petitioners sought to quash the Secretary's decision dated 21st April 2005 and to direct the SRA to consider their proposal.

Filing Reason

The Secretary directed the SRA to consider the proposal of Respondent No.3, which the petitioners claimed was in violation of their rights as a proposed society of slum dwellers.

Previous Decisions

The Secretary (Housing) passed an order on 21st April 2005 directing the SRA to consider the proposal of Respondent No.3.

Issues

Whether the Secretary (Housing) could direct the SRA to consider the proposal of Respondent No.3 when the petitioner's proposal was pending? Whether the petitioner had a vested right to develop the slum property?

Submissions/Arguments

Petitioners argued that their proposal was pending and the Secretary could not direct consideration of another proposal. Respondents argued that the petitioner had no vested right and the Secretary's direction was valid.

Ratio Decidendi

Under the slum rehabilitation scheme, a proposed society has no vested right to develop a slum property. The application of a proposed society is to be examined by the SRA, and if rejected, only then can another group's proposal be entertained. The Secretary can direct consideration of a competing proposal if the earlier proposal is not viable or rejected.

Judgment Excerpts

Neither the 1st Petitioner society nor the 5th Respondent society or their respective builders have any rights whatsoever in this parcel of land. Under the Scheme, the relevant Act and the Rules for slum rehabilitation as explained by this Court, the application of a proposed society is to be examined by the Slum Rehabilitation Authority (SRA) on receiving it and if the application of one proposed society is rejected, then only the proposal of another group can be entertained.

Procedural History

The petition was filed in 2005 challenging the Secretary's order dated 21st April 2005. The court heard the matter and dismissed it on 30th June 2006.

Acts & Sections

  • Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971:
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