High Court Refers Writ Petition to Larger Bench Due to Conflict on MRTP Act Reservation Lapsing. Dispute Involves Whether Notice Under Section 127 Served Before Plan Revision Lapses Upon Finalisation of Revised Development Plan Under Maharashtra Regional and Town Planning Act, 1966.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The judgment pertains to a writ petition filed by an agriculturist challenging the reservation of his land for a primary school under the Maharashtra Regional and Town Planning Act, 1966. The background involves a development plan initially finalised in 1966, with a revision effective in 1987 maintaining the reservation. In 2013, a notice was issued under Section 26(1) of the MRTP Act proposing further revision. The petitioner served a notice under Section 127(1) in May 2015, urging the purchase of the property. The revision was finalised in January 2017, before the expiry of the 24-month notice period under an amended provision. The petitioner argued that the reservation lapsed in May 2017 due to the planning authority's failure to acquire the land within the prescribed period. The legal issue centered on whether such a notice lapses upon the finalisation of a revised development plan, with conflicting decisions by co-equal benches of the High Court. One set of decisions supported the petitioner's contention that the reservation lapses if no acquisition steps are taken, while another set held that a revised plan provides a fresh starting point for the Section 127 period. The court noted that these decisions did not consider the distinction of whether the notice was served before or after plan revision, and certain observations by a Full Bench were also unaddressed. Arguments included the petitioner's reliance on precedents like Santu Sukhdeo Jaibhave & Ors. and Sadashiv Tryambak Rajebahadur & Ors., while the planning authority cited Salim Nizam Sanadi & Ors. and Shri. Amuksidha Shrikant Majge and Anr. The court's analysis highlighted the prima facie conflict and the need for resolution by a larger bench under Rule 8 of Chapter I of the Bombay High Court Appellate Side Rules, 1960. The decision involved referring the petition to a larger bench, as the conflict could not be resolved by a Division Bench, and the matter was clubbed with another petition for this purpose. The judgment does not provide a final holding on the merits but directs further proceedings before a larger bench.

Headnote

A) Town Planning - Lapsing of Reservation - Section 127 Maharashtra Regional and Town Planning Act, 1966 - Conflict of Decisions - The petitioner's land was reserved for a primary school in the development plan, and a notice under Section 127(1) was served in 2015 before the revision of the plan was finalised in 2017. The petitioner contended that the reservation lapsed in 2017 due to the planning authority's failure to acquire the land within 24 months. The court noted conflicting decisions by co-equal benches on whether such a notice lapses upon revision of the plan. Held that the matter required resolution by a larger bench due to the prima facie conflict and unconsidered observations by a Full Bench. (Paras 2-15)

B) Civil Procedure - Reference to Larger Bench - Rule 8 Chapter I Bombay High Court Appellate Side Rules, 1960 - The Division Bench, upon identifying a conflict between two sets of decisions by co-equal benches on the interpretation of Section 127 of the MRTP Act, referred the writ petition to a larger bench under Rule 8 of Chapter I of the Bombay High Court Appellate Side Rules, 1960. The conflict pertained to whether a notice under Section 127(1) served before plan revision lapses upon finalisation of the revised plan. Held that the matter should be heard by a bench of more than two judges to resolve the conflict. (Paras 14-15)

Issue of Consideration: Whether the reservation of land lapses under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 when a notice under Section 127(1) is served before the finalisation of a revised development plan, and the planning authority fails to take steps to acquire the property within the prescribed period, despite the revision being finalised before the expiry of that period.

Final Decision

The writ petition was referred to a larger bench under Rule 8 of Chapter I of the Bombay High Court Appellate Side Rules, 1960, due to a conflict of decisions by co-equal benches on the interpretation of Section 127 of the Maharashtra Regional and Town Planning Act, 1966. The matter was clubbed with Writ Petition No.5180 of 2022 for this purpose.

2026 LawText (BOM) (03) 120

Writ Petition No. 5798 of 2023

2026-03-27

Ravindra V. Ghuge J. , Sandeep V. Marne J., Abhay J. Mantri J.

2026:BHC-AS:14949-DB

Mr. Yatin Malvankar, Mr. Milind Sathe, Smt. Neha Bhide, Mr. Jay Sanklecha, Smt. R.M. Shinde, Mr. Vishwanath Talkute

Mr. Nilesh Prakashrao More

State of Maharashtra, Regional Transport Office (RTO), Chief Executive Officer of the Phaltan Nagar Parishad, District Collector Satara

Nature of Litigation: Writ petition challenging the reservation of land under the Maharashtra Regional and Town Planning Act, 1966

Remedy Sought

Petitioner seeks a writ of mandamus (as per prayer clause [A], though full text not provided in excerpt)

Filing Reason

Alleged failure of planning authority to acquire reserved land within prescribed period under Section 127 of MRTP Act, leading to lapsing of reservation

Previous Decisions

Order dated 29 July 2024 by Division Bench referring matter to Chief Justice for directions under Rule 8; order dated 17 December 2024 by Chief Justice clubbing petitions and referring to Larger Bench; Writ Petition No.5180 of 2022 disposed off on 25 July 2025 with directions for acquisition

Issues

Whether the reservation of land lapses under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 when a notice under Section 127(1) is served before the finalisation of a revised development plan, and the planning authority fails to take steps to acquire the property within the prescribed period.

Submissions/Arguments

Petitioner contends that notice under Section 127(1) served in 2015 does not lapse upon revision of development plan in 2017, and reservation lapses in 2017 due to failure to acquire Planning authority relies on decisions that revised plan provides fresh starting point for Section 127 period

Ratio Decidendi

When there is a prima facie conflict between decisions of co-equal benches on a question of law, and certain observations by a Full Bench have not been considered, the matter should be referred to a larger bench for resolution under the applicable rules.

Judgment Excerpts

"The development plan for Pune was initially finalised on 8 July 1966, reserving the Petitioner’s property for the public purpose of the Primary School." "The Petitioner contends that on the expiry of 24 months, i.e. on 22 May 2017, the reservation lapses because, in the meantime, the Planning Authority has failed to take steps to acquire the said property as contemplated under the scheme of Sections 126 and 127 of the MRTP Act." "Given the prima facie conflict between the two sets of judgments delivered by the Coordinate Co-equal Benches and the fact that certain observations made by the Full Bench in Vishwas Bajirao Patil (supra) were not considered, We think that this matter could be more advantageously heard by a Bench of more than two Judges."

Procedural History

Writ Petition No.5798 of 2023 filed; Order dated 29 July 2024 by Division Bench in Writ Petition No.5180 of 2022 directed Registry to place matter before Chief Justice under Rule 8; Order dated 17 December 2024 by Chief Justice clubbed Writ Petition Nos.5180 of 2022 and 5798 of 2023 and referred to Larger Bench; Writ Petition No.5180 of 2022 disposed off on 25 July 2025; Judgment pronounced on 27 March 2026 referring current petition to Larger Bench.

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