Case Note & Summary
The dispute arose when the petitioner, having obtained a technical clearance dated 20.03.2025 from the Senior Town Planner, Margao, for a construction proposal, applied to the Village Panchayat of Camorlim on 28.03.2025 for issuance of a construction license under Section 66 of the Panchayat Raj Act. The Panchayat initially delayed and then rejected the application by communication dated 11.06.2026. The grounds for rejection shifted: initially, the Panchayat cited the existence of a compound wall in the road-widening area, but that wall had been removed. Later, the Panchayat took the stand that the technical clearance itself was inappropriate because the village of Camorlim was designated as a VP2 area with a permissible Floor Area Ratio of 60% and a maximum building height of 9 meters. The petitioner filed a writ petition seeking a direction to the Panchayat to grant the license based on the existing technical clearance; after the rejection, the petition was amended to also challenge the rejection communication. No challenge had been mounted by the Panchayat against the technical clearance, and the only pending challenge was by the petitioner in a separate writ petition (No. 783 of 2026(F)). The High Court noted that the technical clearance was valid and subsisting, and that the Panchayat could not unilaterally disregard it on grounds of alleged inappropriateness. The court emphasized that the Panchayat had not itself challenged the clearance, and it could not refuse to act upon a clearance that stood in force. Accordingly, the court quashed the rejection, directed the Secretary of the Panchayat to issue the construction license to the petitioner by 12.08.2026, and clarified that any construction would be subject to the outcome of the pending writ petition challenging the technical clearance or any challenge that the Panchayat might later bring. The rule was made absolute in terms of prayers ‘a’ and ‘aa’ of the petition, granting the petitioner the relief sought.
Headnote
A) Local Government Law – Grant of Construction License – Panchayat bound by unchallenged technical clearance – Panchayat Raj Act, Section 66 – The Village Panchayat of Camorlim rejected petitioner’s application for construction license after technical clearance had been granted by the Senior Town Planner, contending that the clearance was inappropriate as the village fell in VP2 zone with a permissible Floor Area Ratio of 60% and maximum building height of 9 meters. The court noted that the Panchayat had not itself challenged the technical clearance, which remained in force and had not been set aside. Holding that the Panchayat could not refuse to act upon a valid and subsisting technical clearance, the court quashed the rejection communication dated 11.06.2026 and directed the Secretary of the Panchayat to issue the construction license to the petitioner by 12.08.2026. The court further clarified that any construction erected pursuant to the license would be subject to the outcome of the challenge to the technical clearance raised in Writ Petition No.783 of 2026(F) or any similar challenge that the Panchayat might subsequently raise (Paras 8-12).
Issue of Consideration
Whether the Village Panchayat could reject an application for construction license under Section 66 of the Panchayat Raj Act on the ground that the technical clearance granted by the Town Planner was inappropriate for the area, despite the clearance not being challenged or set aside by any competent authority.
Final Decision
The writ petition is allowed. The communication dated 11.06.2026 issued by the Village Panchayat of Camorlim rejecting the construction license application is quashed and set aside. The Secretary of the said Village Panchayat is directed to issue the construction license to the petitioner by 12.08.2026. Any construction erected pursuant to the license shall be subject to the outcome of the challenge raised in Writ Petition No.783 of 2026(F) or any challenge the Panchayat may later raise against the technical clearance. Rule is made absolute in terms of prayer clauses ‘a’ and ‘aa’.
Law Points
- Panchayat cannot reject construction license application on ground that technical clearance by Town Planner is inappropriate when clearance is unchallenged
- license must be granted based on existing technical clearance
- construction remains subject to final outcome of challenge to technical clearance.
