Case Note & Summary
The petitioners, owners of 0.54 hectares of land in Pusad, had their land reserved for a primary school under the final development plan published on 26.07.1998. Since the Municipal Council Pusad (respondent no.2) did not acquire the land within ten years, the petitioners served a purchase notice under Section 127(1) of the Maharashtra Regional and Town Planning Act, 1966 on 06.01.2015. Under the unamended provision, the authority had twelve months from the date of service to take effective steps for acquisition, failing which the reservation would be deemed to have lapsed. Before the expiry of the twelve-month period, the provision was amended to extend the period. The petitioners contended that the amendment should not apply retrospectively to their notice, and that since no effective steps were taken within twelve months, the reservation lapsed. The respondents argued that the amendment applied and the authority had additional time. The Court analyzed the language of Section 127(1) and the amendment, noting that the right to deemed lapse accrues upon expiry of the twelve-month period without effective steps. Applying the principle that a vested right cannot be taken away by a retrospective amendment unless clearly intended, the Court held that the amendment would not apply to notices served before its commencement. Since the authority failed to take any effective steps within twelve months from 06.01.2015, the reservation stood lapsed, and the land was deemed to be released from reservation. The Court directed the respondents to issue a notification to that effect within four weeks, failing which the petitioners could develop the land in accordance with the development plan.
Headnote
A) Town Planning - Deemed Lapse of Reservation - Section 127(1) Maharashtra Regional and Town Planning Act, 1966 - Amendment - Applicability to Pending Notices - The issue was whether the amendment to Section 127(1) enlarging the period for taking effective steps for acquisition applies to purchase notices served before the amendment. The Court held that the amendment would not apply to notices served prior to the amendment, as the right to deemed lapse had already accrued. The authority must take effective steps within the original 12-month period from the date of service of notice, failing which the reservation lapses and the land becomes available to the owner. (Paras 1, 4-6)
Issue of Consideration
Whether the amended provisions of Section 127(1) of the Maharashtra Regional and Town Planning Act, 1966 that enlarge the period within which the planning/development or appropriate authority could take effective steps for the acquisition of the land would apply to the proceedings initiated in pursuance of a purchase notice served on the authority before the amended provisions came into effect.
Final Decision
The Court allowed the petition. It held that the amendment to Section 127(1) of the MRTP Act, 1966 does not apply to purchase notices served before the amendment came into effect. Since the respondent no.2 failed to take effective steps for acquisition within twelve months from 06.01.2015, the reservation of the petitioners' land for primary school is deemed to have lapsed. The respondents are directed to issue a notification to that effect within four weeks. If no notification is issued, the petitioners are entitled to develop the land in accordance with the development plan.
Law Points
- Retrospective application of amendment
- Deemed lapse of reservation
- Purchase notice under Section 127(1)
- Effective steps for acquisition
- Vesting of land in owner




