Bombay High Court Allows Landowners' Petition in MRTP Act Purchase Notice Case - Deemed Lapse of Reservation Upheld. Amendment to Section 127(1) Enlarging Period for Acquisition Steps Does Not Apply to Purchase Notices Served Before Amendment, as Right to Lapse Had Already Accrued.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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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)

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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.

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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
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Case Details

2016 LawText (BOM) (12) 99

WRIT PETITION NO. 3904/2016

2016-12-22

Smt. Vasanti A Naik, Mrs. Swapna Joshi

Shri N.S. Deshpande for petitioners; Shri Nikhil Joshi, Assistant Government Pleader for respondent no.1; Shri P.P. Deshmukh for respondent no.2

VishnuVasant Developers; a Partnership Firm, Through its Partners: Santosh S/o Vishnupant Nilawar, Sunil S/o Laxmanrao Mukkawar, Dattatraya S/o Tukaram Banginwar, Nandkumar S/o Natha Bhaskarwar

State of Maharashtra, through Secretary, Urban Development Department, Mantralaya, Mumbai; Municipal Council Pusad, Dist. Yavatmal

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Nature of Litigation

Writ petition challenging the failure of the municipal authority to acquire land reserved for primary school and seeking declaration that reservation has lapsed due to non-compliance with Section 127(1) of the MRTP Act.

Remedy Sought

Petitioners sought a declaration that the reservation of their land for primary school has lapsed and that the land is available to them for development, and a direction to the respondents to issue a notification to that effect.

Filing Reason

The petitioners served a purchase notice under Section 127(1) on 06.01.2015, but the authority did not take effective steps for acquisition within twelve months. The provision was amended during the twelve-month period, and the respondents claimed the amendment gave them additional time.

Issues

Whether the amendment to Section 127(1) of the MRTP Act, 1966 enlarging the period for taking effective steps for acquisition applies to purchase notices served before the amendment came into effect.

Submissions/Arguments

Petitioners argued that the amendment should not apply retrospectively and that since no effective steps were taken within twelve months from the date of service of notice, the reservation lapsed. Respondents argued that the amendment applied and the authority had additional time to take steps for acquisition.

Ratio Decidendi

The amendment to Section 127(1) of the MRTP Act, 1966 enlarging the period for taking effective steps for acquisition does not apply to purchase notices served before the amendment came into effect, as the right to deemed lapse accrues upon expiry of the original twelve-month period without effective steps, and such a vested right cannot be taken away by a retrospective amendment unless clearly intended.

Judgment Excerpts

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, is a question that falls for consideration in this petition. In the circumstances, the petition is allowed. It is held that the amendment to Section 127(1) of the Act would not apply to the notice served by the petitioners on the respondent no.2 on 06.01.2015.

Procedural History

The petitioners filed Writ Petition No. 3904/2016 before the Bombay High Court, Nagpur Bench, challenging the failure of the Municipal Council Pusad to acquire their land reserved for primary school. The petition was heard finally at the stage of admission with consent of parties. Rule was made returnable forthwith. The Court delivered oral judgment on 22.12.2016.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: Section 127(1)
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