Case Note & Summary
The petitioners, Marathwada Society Chawl Committee and others, filed a writ petition under Article 226 of the Constitution of India challenging a Government Notification dated 16th July 2016 issued under Section 14(1) of the Maharashtra Slums Area (Improvement, Clearance and Redevelopment) Act, 1973 (Slums Act). The property in question, originally owned by Jeevanbhai Gopalbhai Fanaswala, was declared a slum under Section 4(1) of the Slums Act by notification dated 15.10.1977, published on 27.10.1977. The erstwhile owner did not appeal against this declaration under Section 4(3). The petitioners claimed ownership by a Deed of Conveyance dated 6.6.1985 from the original owner. They argued that as owners, they should have been given preference to develop the property and that respondent no.4 had no authority to apply for acquisition. The respondents, including the State and the Slum Rehabilitation Authority (SRA), contended that upon final notification under Section 14(1), the property vests in the Government and the petitioners' only remedy is compensation. The court considered the submissions and held that the slum declaration had become final as no appeal was filed. The acquisition under Section 14(1) was valid, and the property vested in the Government. The petitioners' claim for preference in development was not sustainable. The petition was dismissed, and rule was discharged with no order as to costs.
Headnote
A) Slum Law - Declaration of Slum - Section 4(1) Maharashtra Slums Act, 1973 - Finality of Declaration - The property was declared as slum under Section 4(1) by notification dated 15.10.1977. The erstwhile owner did not appeal under Section 4(3). The declaration became final and binding. The petitioners, who purchased the property in 1985, cannot challenge the slum declaration or the subsequent acquisition. (Paras 5-6)
B) Slum Law - Acquisition of Slum - Section 14(1) Maharashtra Slums Act, 1973 - Vesting of Property - Upon issuance of final notification under Section 14(1), the property vests in the Government free from all encumbrances. The owner's only remedy is to claim compensation under the Act. The petitioners' contention that they should have been given preference to develop the property is not tenable. (Paras 2-4, 7)
Issue of Consideration
Whether the petitioners, as owners of property declared as slum, can challenge the acquisition notification under Section 14(1) of the Maharashtra Slums Act, 1973 on the ground that they were not given preference to develop the property.
Final Decision
The petition is dismissed. Rule is discharged. No order as to costs.
Law Points
- Slum declaration under Section 4(1) of Maharashtra Slums Act
- 1973 is final if not appealed
- Acquisition under Section 14(1) vests property in government
- Owner's remedy is compensation under the Act
- No right to preference in redevelopment after acquisition
Case Details
2017 LawText (BOM) (09) 119
WRIT PETITION NO. 1036 OF 2017
Shantanu Kemkar, Smt. Anuja Prabhudessai
Mr. Hasanuddin Ansari for the Petitioner, Mr. Abhay Patki, Addl. G.P. for the State-Respondent No.1, Mr. Abhijeet A. Desai for the Respondent No.2, Mr. Tejesh Dande a/w. Bharat Gadhavi i/b. Tejesh Dande & Associates for the Respondent Nos.3 and 4
Marathwada Society Chawl Committee & Ors.
The State of Maharashtra & Ors.
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition under Article 226 challenging a government notification under Section 14(1) of the Maharashtra Slums Act, 1973 for acquisition of slum property.
Remedy Sought
Petitioners sought quashing of the acquisition notification and declaration that they should be given preference to develop the property.
Filing Reason
Petitioners claimed ownership of property and alleged that the acquisition was illegal as they were not given preference to develop and respondent no.4 had no authority to apply for acquisition.
Previous Decisions
The property was declared a slum under Section 4(1) by notification dated 15.10.1977, which was not appealed by the erstwhile owner. The petitioners purchased the property in 1985.
Issues
Whether the petitioners can challenge the acquisition notification under Section 14(1) of the Slums Act after the slum declaration under Section 4(1) had become final.
Whether the petitioners, as owners, have a right to be given preference to develop the property after acquisition.
Submissions/Arguments
Petitioners argued that being owners, they ought to have been given preference to develop the property and that respondent no.4 had no authority to apply for acquisition.
Respondents argued that upon final notification under Section 14(1), the property vests in the Government and the petitioners' only remedy is compensation.
Ratio Decidendi
Once a slum declaration under Section 4(1) of the Maharashtra Slums Act, 1973 becomes final due to no appeal under Section 4(3), the subsequent acquisition under Section 14(1) vests the property in the Government. The owner's remedy is limited to claiming compensation under the Act, and there is no right to preference in redevelopment.
Judgment Excerpts
By this petition under Article 226 of the Constitution of India, the petitioners have impugned the Government Notification bearing No. RNI No. MAHBIL/2009/37831 dated 16th July, 2016 in exercise of the power under Section 14(1) of the Maharashtra Slums Area (Improvement, Clearance and Redevelopment) Act, 1973 (for short 'Slums Act').
The main contention of the petitioner is that being the owners of the property, they ought to have been given preference to develop the said property.
It appears that the plot of land... was originally owned by Jeevanbhai Gopalbhai Fanaswala. It is not in dispute that by notification dated 15.10.1977... under Section 4(1) of the Slums Act, the said property was declared as slum. The erstwhile owner Shri Fanaswala had not filed any appeal in terms of sub sec(3) of Section 4 of the Slums Act, challenging the declaration of the said property as slum.
Procedural History
The petitioners filed a writ petition under Article 226 of the Constitution of India challenging a Government Notification dated 16th July 2016 issued under Section 14(1) of the Maharashtra Slums Act, 1973. The petition was heard by a Division Bench of the Bombay High Court on 26th September 2017 and dismissed.
Acts & Sections
- Maharashtra Slums Area (Improvement, Clearance and Redevelopment) Act, 1973: Section 4(1), Section 4(3), Section 14(1)
- Constitution of India: Article 226
