Bombay High Court Dismisses Municipal Corporation's Appeal Against Injunction in Demolition Notice Case — Section 299 Notice Invalid for Violating Natural Justice. The court held that a demolition notice under Section 299 of the Mumbai Municipal Corporation Act, 1888, issued without prior show cause notice to the society, is invalid and cannot be enforced.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The case involves an appeal by the Municipal Corporation of Greater Mumbai against an order of the City Civil Court, Mumbai, which granted an interim injunction in favor of the Respondent, Bhandup Amber Co-operative Housing Society Ltd. The Respondent-Society is a registered co-operative housing society whose building was constructed as per a sanctioned plan in 1981, including a boundary wall. On 27th November 2017, the Appellant-Municipal Corporation issued a notice under Section 299 of the Mumbai Municipal Corporation Act, 1888, directing the Respondent-Society to remove the boundary wall, alleging it was an encroachment on municipal land. The Respondent-Society contended that the wall was part of the sanctioned plan and had existed for over 35 years, and that the notice was issued without any prior show cause notice or opportunity of hearing, violating principles of natural justice. The trial court allowed the Notice of Motion and restrained the Municipal Corporation from taking any action pursuant to the notice. The Municipal Corporation appealed, arguing that the notice was valid and that the Respondent-Society had no right to maintain the wall if it was an encroachment. The High Court examined the provisions of Section 299 of the MMC Act, 1888, and noted that the section does not expressly require a prior hearing, but the principles of natural justice must be read into it. The court found that the impugned notice was issued without any prior notice or opportunity to the Respondent-Society, and the Municipal Corporation had not produced any evidence to show that the wall was an encroachment. The court also noted that the Respondent-Society had a sanctioned plan and the wall was part of it, and the wall had been in existence since 1981. The court held that the Respondent-Society had made out a strong prima facie case, the balance of convenience was in its favor, and it would suffer irreparable loss if the wall was demolished. The court dismissed the appeal and upheld the trial court's order granting interim injunction.

Headnote

A) Municipal Law - Demolition Notice - Section 299 Mumbai Municipal Corporation Act, 1888 - Natural Justice - The court considered whether a notice under Section 299 of the MMC Act, 1888, directing demolition of a boundary wall constructed in 1981, was valid without prior show cause notice. The court held that the principles of natural justice require a prior hearing before issuing such a notice, and the impugned notice was issued without giving the Respondent-Society an opportunity of being heard, thus it was invalid. (Paras 1-16)

B) Civil Procedure - Interim Injunction - Prima Facie Case, Balance of Convenience, Irreparable Loss - The court examined whether the trial court correctly granted an interim injunction restraining the Municipal Corporation from acting on the demolition notice. The court held that the Respondent-Society had made out a strong prima facie case, the balance of convenience was in its favor, and it would suffer irreparable loss if the boundary wall was demolished, as the wall was part of the sanctioned plan and existed for over 35 years. (Paras 17-20)

C) Municipal Law - Encroachment - Section 299 Mumbai Municipal Corporation Act, 1888 - The court considered whether the boundary wall of the Respondent-Society constituted an encroachment on municipal land. The court noted that the Appellant-Municipal Corporation failed to produce any evidence to show that the wall was an encroachment, and the Respondent-Society had a sanctioned plan showing the wall within its premises. Therefore, the notice under Section 299 was not justified. (Paras 21-25)

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Issue of Consideration

Whether the impugned notice dated 27th November 2017 issued under Section 299 of the Mumbai Municipal Corporation Act, 1888, directing demolition of the boundary wall of the Respondent-Society, is valid and whether the Respondent-Society is entitled to an interim injunction restraining the Appellant-Municipal Corporation from taking action in pursuance of the said notice.

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Final Decision

The High Court dismissed the appeal and upheld the order of the City Civil Court, Mumbai, granting interim injunction in favor of the Respondent-Society. The court held that the impugned notice under Section 299 of the MMC Act, 1888, was invalid as it was issued without giving the Respondent-Society an opportunity of being heard, violating principles of natural justice. The court also found that the Respondent-Society had made out a strong prima facie case, balance of convenience was in its favor, and it would suffer irreparable loss if the wall was demolished.

Law Points

  • Natural justice
  • prior hearing
  • Section 299 Mumbai Municipal Corporation Act 1888
  • demolition notice
  • injunction
  • prima facie case
  • balance of convenience
  • irreparable loss
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Case Details

2018 LawText (BOM) (09) 46

Appeal from Order No.595 of 2018 along with Civil Application No.787 of 2018

2018-09-28

Dr. Shalini Phansalkar-Joshi, J.

Mr. J. Reis, Senior Counsel, along with Mrs. Madhuri More, for the Appellants-Applicants/Municipal Corporation; Mr. Vishwajeet Kapse, a/w. Mr. Ajinkya Badar, I/by Mr. Harish R. Pawar, for the Respondent.

The Municipal Corporation of Greater Mumbai & Anr.

Bhandup Amber Co-operative Housing Society Ltd.

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Nature of Litigation

Civil Appeal against an interim injunction order restraining the Municipal Corporation from acting on a demolition notice.

Remedy Sought

The Respondent-Society sought an interim injunction restraining the Appellant-Municipal Corporation from taking any action in pursuance of the impugned notice dated 27th November 2017 issued under Section 299 of the Mumbai Municipal Corporation Act, 1888.

Filing Reason

The Appellant-Municipal Corporation issued a notice under Section 299 of the MMC Act, 1888, directing the Respondent-Society to remove its boundary wall, alleging it was an encroachment on municipal land. The Respondent-Society claimed the wall was part of the sanctioned plan and had existed since 1981, and the notice was issued without prior hearing.

Previous Decisions

The City Civil Court, Mumbai, by order dated 19th March 2018, allowed the Notice of Motion No.4510 of 2017 in L.C. Suit No.2663 of 2017, granting an interim injunction in favor of the Respondent-Society.

Issues

Whether the impugned notice dated 27th November 2017 issued under Section 299 of the Mumbai Municipal Corporation Act, 1888, is valid and enforceable. Whether the Respondent-Society is entitled to an interim injunction restraining the Municipal Corporation from taking action pursuant to the said notice.

Submissions/Arguments

Appellant-Municipal Corporation argued that the notice under Section 299 was valid and the Respondent-Society had no right to maintain the boundary wall if it was an encroachment on municipal land. Respondent-Society argued that the notice was issued without any prior show cause notice or opportunity of hearing, violating principles of natural justice, and that the wall was part of the sanctioned plan and had existed for over 35 years.

Ratio Decidendi

The principles of natural justice require that before issuing a notice under Section 299 of the Mumbai Municipal Corporation Act, 1888, directing demolition of a structure, the party must be given a prior opportunity of being heard. A notice issued without such hearing is invalid and cannot be enforced. Additionally, where a structure has been in existence for a long period and is part of a sanctioned plan, the party has a strong prima facie case, and the balance of convenience favors granting an interim injunction to prevent irreparable loss.

Judgment Excerpts

The impugned notice dated 27th November 2017 was issued under Section 299 of the Mumbai Municipal Corporation Act, 1888, without giving any prior show cause notice or opportunity of hearing to the Respondent-Society. The principles of natural justice require that before any adverse action is taken, the party must be given an opportunity of being heard. The Respondent-Society has made out a strong prima facie case, the balance of convenience is in its favor, and it would suffer irreparable loss if the boundary wall is demolished.

Procedural History

The Respondent-Society filed L.C. Suit No.2663 of 2017 in the City Civil Court, Mumbai, seeking a declaration that the notice dated 27th November 2017 under Section 299 of the MMC Act, 1888, was illegal and void, and for an injunction restraining the Municipal Corporation from acting on it. The trial court allowed the Notice of Motion No.4510 of 2017 on 19th March 2018, granting an interim injunction. The Municipal Corporation appealed against this order before the High Court of Bombay, which dismissed the appeal on 28th September 2018.

Acts & Sections

  • Mumbai Municipal Corporation Act, 1888: Section 299
  • Maharashtra Co-operative Societies Act, 1960:
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