Bombay High Court Dismisses PIL Challenging Construction of Commercial Complex Under PPP Due to Abuse of Process and Local Body Exemption. Construction by Municipal Corporation on Its Own Land Under PPP Exempt from Planning Permission Under Section 44 MRTP Act, and Delegation of Powers by Commissioner Under Section 72B Maharashtra Municipal Corporations Act Valid.

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

The petitioner, a social worker, filed a Public Interest Litigation challenging the construction of a commercial complex named Ranjeet Singh Market and Bindu Mangal Karyalaya on Survey No.1803 at Nanded by respondent nos.6 and 7 under a Public-Private Partnership with the Nanded Waghala City Municipal Corporation. The Corporation owned the land and had demolished an old structure to develop the complex. Tenders were invited, and the concessionaires were selected after being the highest bidders. A concession agreement was executed on 30th November 2012. The petitioner contended that the construction was illegal as it was undertaken without permission from the Town Planner, violating Section 43 of the Maharashtra Regional and Town Planning Act, 1966, and that the 48-month construction period had expired on 29th November 2014. He also challenged the authority of respondent no.4, Deputy Commissioner, to sign the agreement, alleging lack of prior approval of the Standing Committee under Section 68(2) of the Bombay Provincial Municipal Corporation Act. The petitioner had earlier filed a civil suit for injunction, being R.C.S. No.72 of 2015, which he withdrew unconditionally on 25th August 2015 before filing the PIL. The respondent Corporation and concessionaires defended the construction on grounds that under Section 44 of the MRTP Act, a local body is exempted from obtaining planning permission; the construction plans had been approved by the Municipal Commissioner; the delegation of powers to the Deputy Commissioner was valid under Section 72B of the Maharashtra Municipal Corporations Act, 1949; and the construction period commenced from the date of handing over possession, which was delayed until June 2014 due to litigation by tenants of the old market, thus the period had not expired. The court held that the PIL was not maintainable as it amounted to an abuse of process after the unconditional withdrawal of the earlier civil suit on the same cause. On merits, it found that the Corporation, being a local body, was exempted from planning permission under Section 44 of the MRTP Act, and the delegation of powers was in order under Section 72B. The construction period had not expired as it commenced from the later date of possession. Consequently, the PIL was dismissed with costs of Rs. 25,000 each to be paid to respondent nos.2 and 6-7.

Headnote

A) Public Interest Litigation - Maintainability - Abuse of Process - Code of Civil Procedure, 1908 - Petitioner earlier filed suit for injunction and withdrew unconditionally; filing PIL on same cause is abuse of process; petition not maintainable. (Paras 4(E), 6(A))

B) Town and Country Planning - Exemption for Local Body - Section 44 Maharashtra Regional and Town Planning Act, 1966 - Municipal Corporation is local body; construction on its own land under PPP exempt from planning permission; plans approved by Commissioner suffice. (Paras 5(C))

C) Municipal Law - Delegation of Powers - Section 72B Maharashtra Municipal Corporations Act, 1949 - Municipal Commissioner may delegate powers to subordinate officers without Standing Committee approval; delegation to Deputy Commissioner valid. (Paras 5(B))

D) Contract - Construction Period - Concession Agreement - Period of 48 months commences from later of signing, handover, or work order; delayed possession due to litigation extended start; no violation. (Paras 5(D), 5(E))

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Issue of Consideration

Whether the construction of the commercial complex under PPP basis is illegal and unauthorized for lack of planning permission and expiry of construction period; whether the PIL is maintainable after withdrawal of earlier civil suit

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Final Decision

The High Court dismissed the Public Interest Litigation with costs of Rs. 25,000 each to be paid to Respondent Nos.2 and 6-7, holding that the PIL was an abuse of process as the petitioner had earlier withdrawn a civil suit on the same cause, and that the construction was not illegal as the local body was exempted from planning permission under Section 44 of the MRTP Act, 1966, and the construction period had not expired.

Law Points

  • PIL not maintainable after unconditional withdrawal of civil suit on same cause of action
  • construction by local body on PPP basis exempted from planning permission under Section 44 MRTP Act
  • delegation of powers under Section 72B Maharashtra Municipal Corporations Act
  • 1949 valid
  • concession agreement terms on commencement of construction period binding
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Case Details

2016 LawText (BOM) (02) 22

Public Interest Litigation No.84 of 2015

2016-02-12

R.M. Borde, A.I.S. Cheema

Amit A. Mukhedkar for Petitioner; V.M. Kagne, A.G.P. for Respondent Nos. 1, 8 and 9; R.K. Ingole Patil for Respondent Nos. 2 to 5; P.M. Shah, Senior Counsel i/b. G.A. Gadhe for Respondent Nos.6 & 7

Balaji s/o Daulatrao Humbad

The State of Maharashtra and others

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Nature of Litigation

Public Interest Litigation seeking declaration that construction of commercial complex under PPP is illegal and unauthorized.

Remedy Sought

Petitioner seeking declaration, demolition, and inquiry against respondent no.4.

Filing Reason

Petitioner alleged construction without permission and beyond period, and agreement signed without authority.

Previous Decisions

Petitioner had filed R.C.S. No.72/2015 which was withdrawn unconditionally; earlier tenant suits led to status quo orders which were vacated.

Issues

Whether the construction of the commercial complex under PPP basis is illegal and unauthorized for lack of permission under Section 43 of MRTP Act? Whether the PIL is maintainable after the petitioner withdrew an earlier civil suit on the same cause? Whether the concession agreement is void because the Deputy Commissioner lacked authority to sign under Section 68(2) of Bombay Provincial Municipal Corporation Act? Whether the construction period of 48 months had expired, making further construction unauthorized?

Submissions/Arguments

Petitioner argued that construction without Town Planner's permission is illegal under Section 43 MRTP Act; construction period expired; Deputy Commissioner lacked authority; agreement void. Respondents argued that local body is exempted under Section 44 MRTP Act; period commenced from later date due to tenant litigation; delegation of power under Section 72B of Maharashtra Municipal Corporations Act valid; PIL not maintainable after unconditional withdrawal of civil suit.

Ratio Decidendi

1. A Public Interest Litigation is not maintainable when the petitioner had earlier filed a civil suit on the same cause of action and withdrew it unconditionally, as it amounts to abuse of process of court. 2. A local body, such as a Municipal Corporation, undertaking construction on its own land under a Public-Private Partnership is exempted from obtaining permission from the planning authority under Section 44 of the Maharashtra Regional and Town Planning Act, 1966. 3. The period of construction under a concession agreement commences from the later of signing, handover of site, or issue of work order, and not merely from the date of agreement. 4. Delegation of powers by the Municipal Commissioner under Section 72B of the Maharashtra Municipal Corporations Act, 1949 does not require prior approval of the Standing Committee.

Judgment Excerpts

Rule made returnable forthwith. With the consent of learned counsel for the parties, the Petition is taken up for final disposal at admissions stage. Petitioner wants that the Respondent Authorities should demolish the structure and the 'concession agreement' dated 30th November 2012 executed by Respondent No.4 with Concessionaires be held to be illegal and void ab initio. Respondent Corporation is owner and possessor of the land Survey No.1803. As per Section 43 of the M.R.T.P. Act, the construction carried out without permission of planning authority is illegal. It is argued that as per Section 44 of the M.R.T.P. Act, 'local body' is exempted from seeking permission for development from planning authority. Under Section 72B of the Maharashtra Municipal Corporations Act, 1949, the Municipal Commissioner has authority to delegate his powers to subordinate officers.

Procedural History

Petitioner earlier filed R.C.S. No.72/2015 before Civil Judge, Senior Division, Nanded for injunction, which was withdrawn unconditionally on 25-08-2015. Tenants of old market had filed civil suits obtaining status quo orders, which were vacated on 29-01-2015; their writ petition disposed on 19-06-2015. Present PIL filed thereafter.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 43, 44
  • Maharashtra Municipal Corporations Act, 1949: 72B
  • Bombay Provincial Municipal Corporation Act: 68(2)
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