Case Note & Summary
The Petitioner, MIG (Bandra) Realtors and Builders Pvt. Ltd., a developer, acquired redevelopment rights over land admeasuring approximately 20149.40 sq. mtrs. in Bandra, Mumbai, from the Middle Income Group CHS Ltd. - Group I (the Society). The land was owned by Respondent No.2, who had constructed 19 buildings with 176 flats and allotted them on hire purchase basis. The Society was the lessee of the land. The Petitioner obtained an IOD from the Municipal Corporation of Greater Mumbai (BMC) for redevelopment under Regulation 33(5) of the DCR. Condition No.10 in the IOD stated: "That the Registered Agreement with the existing tenant along with the list will not be submitted before C.C." The Petitioner challenged this condition as arbitrary and without authority. The Court held that the condition was not supported by any provision of the DCR or the Maharashtra Regional and Town Planning Act, 1966, and was therefore arbitrary and liable to be quashed. The Court directed the BMC to issue the Commencement Certificate without insisting on compliance with Condition No.10.
Headnote
A) Municipal Law - Development Control Regulations - Condition in IOD - Condition No.10 in IOD directing that registered agreement with existing tenant not be submitted before Commencement Certificate is arbitrary and contrary to DCR - The condition was imposed without any statutory backing and was held to be unreasonable and liable to be quashed (Paras 1-12).
Issue of Consideration
Whether Condition No.10 in the IOD requiring that the registered agreement with the existing tenant not be submitted before issuance of Commencement Certificate is valid and enforceable.
Final Decision
The Court quashed Condition No.10 in the IOD and directed the BMC to issue the Commencement Certificate without insisting on compliance with Condition No.10.
Law Points
- Arbitrary condition
- Development Control Regulations
- IOD
- Commencement Certificate
- Tenant agreement
- Redevelopment rights
Case Details
2018 LawText (BOM) (06) 97
Writ Petition No. 1516 of 2016
A.S. Oka, Riyaz I. Chagla
Mr. Virendra Tulzapurkar, Senior Counsel with Mr. Nikhil Sakhardande, Mr. Gaurav Gopal and Ms. Divyanka Kapoor i/b Wadia Ghandy & Co. for the Petitioner; Ms. Vandana Mahadik for Respondent – BMC; Mr. S. Gaikwad, i/b Vishwajit Parshuram Sawant, Respondent No.2.
MIG (Bandra) Realtors and Builders Pvt. Ltd.
Municipal Corporation of Gr. Mumbai & Anr.
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ Petition challenging a condition in an IOD issued by the Municipal Corporation.
Remedy Sought
Quashing of Condition No.10 in IOD and direction to issue Commencement Certificate without insisting on compliance with that condition.
Filing Reason
The Petitioner developer challenged Condition No.10 in the IOD which required that the registered agreement with the existing tenant not be submitted before Commencement Certificate, as arbitrary and without authority.
Issues
Whether Condition No.10 in the IOD is valid and enforceable.
Submissions/Arguments
Petitioner argued that Condition No.10 is arbitrary, without any statutory backing, and contrary to the DCR.
Respondent BMC argued that the condition was imposed to protect the interests of tenants.
Ratio Decidendi
A condition in an IOD that is not supported by any provision of the DCR or the parent Act is arbitrary and cannot be enforced. The BMC cannot impose conditions that have no statutory basis.
Judgment Excerpts
The Petitioner by the present Petition is seeking the quashing and setting aside of Condition No.10 in I.O.D. issued by the Respondent – Corporation.
The condition No.10 reads thus: 'That the Registered Agreement with the existing tenant along with the list will not be submitted before C.C.'
Procedural History
The Petitioner filed a Writ Petition in the High Court of Bombay challenging Condition No.10 in the IOD. Notice was issued for final hearing and disposal at the admission stage. The judgment was reserved on 23rd April 2018 and pronounced on 5th June 2018.
Acts & Sections
- Development Control Regulations for Greater Mumbai, 1991: Regulation 33(5)
- Maharashtra Regional and Town Planning Act, 1966:
