Bombay High Court Allows Landowners' Petition for Deemed Lapse of Reservation Under MRTP Act — Failure to Acquire Within Twelve Months of Notice Under Section 127 Results in Reservation Lapsing and Land Becoming Available for Development. The court held that the mere passing of a resolution or delegation of powers does not constitute taking steps for acquisition; actual steps such as issuance of notification under Section 126(4) are required.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioners, Mohammed Shaffi Usmansaheb Kokani and others, owned land in Nashik that was reserved for a garden under Reservation No.358C in the Development Plan sanctioned on 28 May 1993 under the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act). Since the Nashik Municipal Corporation, the planning authority, took no steps to acquire the land, the petitioners served a notice under Section 127(1) of the MRTP Act on 16 August 2011, calling upon the Corporation to acquire the land within twelve months. The Corporation replied on 29 August 2011, requesting documents. On 24 November 2011, the Standing Committee passed a resolution approving a proposal for acquisition, and on 15 May 2012, the Collector delegated powers to the Deputy Collector. However, no acquisition notification under Section 126(4) was issued within twelve months of the notice. The petitioners filed a writ petition seeking a declaration that the reservation had lapsed and the land was available for building purposes. The respondents argued that steps had been taken within the twelve-month period. The court held that the mere passing of a resolution or delegation of powers does not constitute taking steps for acquisition; actual steps such as issuance of a notification under Section 126(4) are required. Since no such steps were taken within twelve months, the reservation lapsed automatically under Section 127(2), and the land became available for building purposes. The court allowed the petition, declaring that the reservation had lapsed and the land was free from reservation.

Headnote

A) Town Planning - Deemed Lapse of Reservation - Section 127 of Maharashtra Regional and Town Planning Act, 1966 - Failure to acquire land within twelve months of notice under Section 127(1) results in reservation lapsing and land becoming available for building purposes - The court held that the mere passing of a resolution or delegation of powers does not constitute taking steps for acquisition; actual steps such as issuance of notification under Section 126(4) are required. The land became available for building purposes on expiry of twelve months from the notice. (Paras 2-10)

B) Town Planning - Interpretation of Section 127 - No need for separate declaration under Section 127(2) - The court held that once the period of twelve months expires without acquisition, the reservation lapses automatically and the land becomes available for building purposes; no separate declaration by the State Government is required. (Paras 11-14)

C) Town Planning - Planning Authority's Obligation - Section 127 of MRTP Act - The planning authority cannot extend the period of twelve months unilaterally; the period is statutory and cannot be extended by any resolution or internal communication. (Paras 15-18)

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Issue of Consideration

Whether the reservation on the petitioners' land under the Development Plan lapsed due to the failure of the planning authority to acquire the land within twelve months of the notice under Section 127(1) of the MRTP Act, 1966, and whether the petitioners are entitled to a declaration that the land is available for building purposes.

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Final Decision

The court allowed the writ petition, declaring that the reservation on the petitioners' land had lapsed and the land was available for building purposes. The respondents were directed to treat the land as free from reservation.

Law Points

  • Deemed lapse of reservation under Section 127 of MRTP Act
  • 1966
  • Failure to acquire within twelve months of notice
  • Land becomes available for building purposes
  • No need for separate declaration under Section 127(2)
  • Planning authority cannot extend period unilaterally
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Case Details

2014 LawText (BOM) (04) 61

Writ Petition No.11131 of 2012

2014-04-30

A.S. Oka, M.S. Sonak

Mr. R.D. Soni i/by M/s. Ram & Co., for Petitioners; Mr. M.L. Patil, for Respondent Nos.1 and 2; Mr. V.S. Gokhale, AGP, for Respondent Nos.3 and 4

Mohammed Shaffi Usmansaheb Kokani, Mohammed Sajid Usmansaheb Kokani, Usman Fakirsaheb Kokani (since deceased, through his HLRs petitioners Nos.1 and 2)

Nashik Municipal Corporation, The Commissioner, Nashik Municipal Corporation, The Collector, Nashik, The State of Maharashtra

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Nature of Litigation

Writ petition under Article 226 of the Constitution seeking declaration that reservation on land has lapsed due to failure to acquire within twelve months of notice under Section 127(1) of MRTP Act.

Remedy Sought

Petitioners sought a declaration that the reservation on their land had lapsed and the land was available for building purposes.

Filing Reason

The planning authority failed to acquire the land within twelve months of the notice served under Section 127(1) of the MRTP Act.

Issues

Whether the reservation on the petitioners' land lapsed due to failure to acquire within twelve months of the notice under Section 127(1) of the MRTP Act. Whether the petitioners are entitled to a declaration that the land is available for building purposes.

Submissions/Arguments

Petitioners argued that no steps for acquisition were taken within twelve months of the notice, and therefore the reservation lapsed under Section 127(2). Respondents argued that steps such as passing a resolution and delegating powers constituted taking steps for acquisition within the twelve-month period.

Ratio Decidendi

Under Section 127 of the MRTP Act, if no steps for acquisition are taken within twelve months of the notice under Section 127(1), the reservation lapses automatically and the land becomes available for building purposes. Mere internal resolutions or delegation of powers do not constitute steps for acquisition; actual steps such as issuance of notification under Section 126(4) are required.

Judgment Excerpts

The mere passing of a resolution by the Standing Committee or delegation of powers by the Collector does not constitute taking steps for acquisition of the land. The period of twelve months is statutory and cannot be extended by any resolution or internal communication. Once the period of twelve months expires without acquisition, the reservation lapses automatically and the land becomes available for building purposes.

Procedural History

Petitioners served notice under Section 127(1) on 16 August 2011. Respondents replied on 29 August 2011. Standing Committee passed resolution on 24 November 2011. Collector delegated powers on 15 May 2012. No acquisition notification issued within twelve months. Petitioners filed writ petition on 20 September 2012. Judgment reserved on 25 February 2014 and pronounced on 30 April 2014.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: Section 2(19), Section 31, Section 126(4), Section 127(1), Section 127(2)
  • Maharashtra Municipal Corporations Act, 1949:
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