High Court of Bombay Decides Surviving Issue on Interpretation of Government Notification in Land Reservation Dispute. The Court Examines Whether Lessee Entitled to Non-Cash Compensation Under 2004 Notification for Release of Reserved Land for Development.

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

The writ petition was filed by Mafatlal Industries Limited and its officer seeking directions to enforce a Government Notification dated 10-02-2004 that released 50% of a reserved land parcel for development and entitled the petitioners to non-cash compensation by way of a Development Rights Certificate. The land, aggregating 70,361.20 square metres, was held by the petitioners under perpetual leases granted in 1921 and 1923. In 1967, a portion of the land was reserved for extension of a zoo. The 2004 Notification released 30,910.15 square metres (‘subject land’) from reservation and required the surrender of the remaining balance (‘MCGM land’) to the Corporation. A Public Interest Litigation (Writ Petition No.660 of 2004) challenged the notification, but the State defended it. The petitioners applied for development permission and surrender of the reserved land for grant of a Development Rights Certificate. The writ petition raised multiple prayers, most of which were already answered by an earlier judgment of the Bombay High Court in Hindustan Unilever Limited v. State of Maharashtra (O.S. Writ Petition (L) No.122 of 2018). The sole surviving issue was the interpretation of the 2004 Notification. The judgment set out the background facts, including the lease history, the reservation, the notification, and the affidavit of the Principal Secretary explaining the decision to partially dereserve the land. The court took up the petition for final disposal on 14 and 16 August 2018. The text of the judgment provided ends abruptly after narrating the facts; accordingly, the final holding on the interpretation of the notification is not extracted. The court had indicated that the majority of the prayers stood answered and the remaining part would be decided based on the interpretation of the 2004 Notification.

Headnote

A) Town Planning - Reservation and Dereservation - Interpretation of Government Notification - Maharashtra Regional and Town Planning Act, 1966, Development Control Regulations for Greater Mumbai, 1991 - The 2004 Notification released 50% of the reserved land for development under D.C. Regulation 58, while the balance remained reserved and was to be surrendered to MCGM; the notification was challenged in a PIL, and the State defended it. The petitioners sought enforcement of the notification for non-cash compensation; the court was required to interpret the notification in light of the lessee’s rights and the State’s obligations. Held that the interpretation of the notification was necessary to determine the petitioners’ entitlement and the court proceeded to construe its terms (Paras 1-12).

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Issue of Consideration

Interpretation of Government of Maharashtra Notification dated 10-02-2004 regarding release of land from reservation and entitlement to non-cash compensation in terms of Development Rights Certificate.

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Case Details

2018 LawText (BOM) (08) 59

Writ Petition No.2982 of 2016 with Notice of Motion No.5 of 2017

2018-08-16

S.C. Dharmadhikari, Bharati H. Dangre

Darius J. Khambata, P.K. Dhakephalkar, Ashish Kamat, Aditya Mehta, M.S. Federal, Murtuza Federal, Paulomi Mehta, Aanchal Rohira, Namrata M. Shah, Kedar Dighe, Divyanka Kapoor, Anil Y. Sakhare, Rohan Mirpury, Dhruti Kapadia, Yashwant D., Harshad Pimple, Kisan Gaekwad

Mafatlal Industries Limited and Rajendra R. Likhite

State of Maharashtra, District Collector Mumbai City, Recovery Officer, Glider Buildcon Realtors Pvt. Ltd., Municipal Corporation of Greater Mumbai

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Nature of Litigation

Writ petition seeking directions to act in accordance with 2004 Notification, grant non-cash compensation, stay Panchnama and receipt, and restrain interference with possession.

Remedy Sought

Petitioners sought to direct respondents to grant non-cash compensation in terms of Development Rights Certificate under 2004 Notification, stay impugned Panchnama and receipt dated 7-1-2017/2016, and restrain interference with possession of MCGM land.

Filing Reason

The petitioners, lessees of land, sought enforcement of their rights under the 2004 Notification which released part of the land from reservation for development, and challenged actions interfering with their possession.

Previous Decisions

Majority of prayers in the writ petition stood answered by earlier judgment in Hindustan Unilever Limited v. State of Maharashtra (O.S. Writ Petition (L) No.122 of 2018).

Issues

Interpretation of Government of Maharashtra Notification dated 10-02-2004 regarding release of land from reservation and entitlement to non-cash compensation.

Judgment Excerpts

The surviving issue then remains about the interpretation of Government of Maharashtra Notification dated 10-02-2004 (Exhibit G to the petition). By its Notification dated 10-02-2004, the Urban Development Department of the State of Maharashtra inter alia released 50% of the land from reservation and making it available to Mafatlal for development under D.C. Regulation 58.

Procedural History

Writ petition filed; earlier judgment in Hindustan Unilever Limited answered majority prayers; surviving issue taken up for final disposal on 14 and 16 August 2018.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 44
  • Brihanmumbai Municipal Corporation Act, 1888: 302
  • Development Control Regulations for Greater Mumbai, 1991: Regulation 34, Regulation 58, Appendix VII
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