Case Note & Summary
The petitioner, Lashkaria Construction Pvt. Ltd. and its director, challenged an order dated 24 April 2012 passed by the State Government of Maharashtra. The impugned order cancelled a Circular dated 12 November 2010 issued by the Slum Rehabilitation Authority (SRA), a State Government letter dated 5 October 2010 (a direction under Section 3K(i) of the Maharashtra Slum Areas (Improvement, Clearance and Development) Act, 1971), and a Letter of Intent (LOI) dated 23 November 2010 issued by the CEO of SRA in favour of the petitioner. The petitioner had submitted a proposal for cluster development/special township development under Section 3K of the Slum Act on 6 February 2010. The State Government approved the proposal on 5 October 2010 and issued directions to SRA under Section 3K. Subsequently, on 16 October 2010, SRA sought clarification from the Government regarding whether consent of 70% of slum dwellers should be obtained sectorwise. The Government responded on 11 November 2010. Thereafter, on 12 November 2010, SRA issued a Circular regarding the project. On 23 November 2010, SRA issued a Letter of Intent to the petitioner. However, on 24 April 2012, the State Government passed the impugned order cancelling all these approvals. The petitioner contended that the impugned order was passed without giving them any opportunity of hearing, in violation of principles of natural justice. The respondents argued that the cancellation was based on policy considerations and that no hearing was required. The court held that the impugned order adversely affected the petitioner's rights and was passed without affording any opportunity of hearing, thus violating natural justice. The court set aside the impugned order and remitted the matter to the State Government to decide afresh after giving the petitioner a reasonable opportunity of hearing. The court also directed that the petitioner be heard within eight weeks from the date of the judgment.
Headnote
A) Administrative Law - Natural Justice - Cancellation of Approvals - Right to be Heard - The State Government cancelled a Letter of Intent and earlier approvals for a slum rehabilitation project without giving the petitioner an opportunity of hearing - Held that the impugned order is in violation of principles of natural justice and is set aside - The matter is remitted to the State Government to decide afresh after hearing the petitioner (Paras 1-17).
Issue of Consideration
Whether the State Government's order dated 24 April 2012 cancelling the earlier approvals and Letter of Intent issued in favour of the petitioner for a cluster development project under the Maharashtra Slum Areas Act, 1971 is valid, particularly when the petitioner was not afforded an opportunity of hearing before the cancellation.
Final Decision
The impugned order dated 24 April 2012 is quashed and set aside. The matter is remitted to the State Government to decide afresh after giving the petitioner a reasonable opportunity of hearing. The State Government shall hear the petitioner within eight weeks from the date of the judgment.
Law Points
- Natural justice
- Right to be heard
- Cancellation of administrative orders
- Section 3K Maharashtra Slum Areas Act
- 1971
- Article 226 Constitution of India
