Case Note & Summary
The Petitioners, being associations of licence vendors operating in various municipal markets established by the Municipal Corporation of Greater Mumbai (Respondent No.1), filed two writ petitions challenging communications dated 20.08.2011 and 07.09.2011. By these communications, the Corporation rejected the redevelopment proposals submitted by the Petitioners' associations for their respective markets. The rejection was primarily on the ground that a comprehensive redevelopment plan for the markets was under consideration by the State of Maharashtra and was pending reconsideration. The Petitioners argued that the rejection was arbitrary and illegal, and that they had a right to redevelop the markets under the Mumbai Municipal Corporation Act, 1888. The Court, after hearing both sides, examined the statutory provisions and found that the Corporation had the discretion to accept or reject such proposals. The Court noted that the Corporation's decision to await a policy decision from the State was a policy matter and not arbitrary. The Petitioners failed to establish any statutory right or that the decision was mala fide. Consequently, the Court dismissed both petitions, upholding the impugned communications.
Headnote
A) Municipal Law - Redevelopment of Municipal Markets - Rejection of Proposal - Mumbai Municipal Corporation Act, 1888 - The Petitioners, associations of licence vendors, challenged the rejection of their redevelopment proposals by the Municipal Corporation. The Court held that the Corporation's decision to reject the proposals, pending reconsideration of a redevelopment policy by the State, was not arbitrary or illegal. The Court found no statutory right in favour of the Petitioners to compel the Corporation to accept their proposals. (Paras 2-10) B) Administrative Law - Policy Decision - Judicial Review - The Court held that the Corporation's decision to await a policy decision from the State regarding redevelopment of municipal markets was a policy matter and not subject to judicial interference unless shown to be arbitrary or mala fide. The Petitioners failed to demonstrate any such arbitrariness. (Paras 11-15)
Issue of Consideration
Whether the impugned communications dated 20.08.2011 and 07.09.2011 rejecting the redevelopment proposals submitted by the Petitioners are arbitrary, illegal, and violative of the provisions of the Mumbai Municipal Corporation Act, 1888.
Final Decision
Both writ petitions are dismissed. The impugned communications dated 20.08.2011 and 07.09.2011 are upheld.
Law Points
- Statutory interpretation
- Municipal Corporation's power to reject redevelopment proposals
- No fundamental right to redevelopment
- Policy decision not arbitrary




