Bombay High Court Allows Petitioner in Maharashtra Regional and Town Planning Act Land Reservation Lapsing Case. Reservation Deemed Lapsed as Planning Authority Failed to Acquire Land Within 24 Months After Section 127 Notice.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

Background: The writ petition was filed by a retired individual (the petitioner) against the State of Maharashtra through its Urban Development Department, the Akola Municipal Corporation, and the Town Planning Officer, Akola, seeking a declaration that land reservations had lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act). The dispute pertained to Survey No.22/2 of Mauza Malkapur, Taluka and District Akola, admeasuring 0.26 H.R., where reservations at Survey Nos.180, 181, 182 had been shown in the Development Plan. Facts: The petitioner served a notice under Section 127 of the MRTP Act in the year 1999, which was admittedly served upon respondent No.2 (Akola Municipal Corporation). No steps were taken by the planning authority to acquire the land within the twenty-four-month period prescribed by Section 127(1). Consequently, the reservation in the Development Plan remained, and the petitioner approached the High Court seeking declaration of lapsing. Respondent No.2 contended that the copy of notice was not annexed to the petition and that the petitioner had taken no further steps after serving notice. Legal Issues: The core issue was whether the reservation at Survey Nos.180, 181, 182 lapsed by operation of Section 127 due to the planning authority's failure to acquire the land within twenty-four months of the notice. A secondary issue concerned the duty to notify lapsing under Section 127(2) and the allocation of litigation costs. Arguments: The petitioner argued that notice under Section 127 was served in 1999 and that the law placed the obligation to acquire upon the appropriate authority, not the landowner. Respondent No.2 argued that the petitioner had not annexed the notice and that no further steps were taken by him after serving notice. The court rejected these arguments, observing that under Section 127, the necessary steps are to be taken by the appropriate authority and not by the owner. Court's Analysis: The High Court examined Section 127 of the MRTP Act, which provides that if land reserved for a purpose is not acquired by agreement within ten years or if no declaration under Section 126(2) or (4) is published within that period, the owner may serve notice along with title documents. If within twenty-four months from service of notice the land is not acquired or steps for acquisition are not commenced, the reservation is deemed to have lapsed, and the land becomes available to the owner for development. The court noted that respondent No.2's failure had already resulted in lapsing, and the only remaining requirement was for the government to notify the lapsing by an order published in the Official Gazette under Section 127(2). The court held that respondent No.2 failed to discharge its statutory duty, which caused litigation and warranted costs. Decision: The High Court allowed the writ petition and declared that the reservations at Survey Nos.180, 181, and 182 stood lapsed. It directed respondent No.2 to pay litigation costs of Rs.50,000 to the petitioner within four weeks, with liberty to respondent No.1 to recover the cost from erring officers. The State Government was directed to circulate the order to all planning and development authorities and to take stock of pending cases seeking lapsing of reservation. Compliance with Section 127(2) was directed within eight weeks. The rule was made absolute.

Headnote

A) Constitutional Law - Writ Jurisdiction - Judicial Review - Maharashtra Regional and Town Planning Act, 1966, Section 127 - The High Court considered whether a reservation under a development plan lapsed due to the planning authority's inaction after service of a notice under Section 127 - The court held that once a notice is served, the obligation to acquire the land within 24 months rests on the planning authority, not the landowner; failure leads to automatic lapsing of reservation - Held that the writ petition was maintainable and the reservation lapsed. (Paras 3-8)

B) Town and Country Planning - Lapsing of Reservation - Statutory Interpretation - Maharashtra Regional and Town Planning Act, 1966, Section 127(1) and (2) - The court interpreted Section 127 to mean that upon failure to acquire within 24 months after notice, the reservation is deemed lapsed and the land is released for development - The government is obligated to notify the lapsing by an order published in the Official Gazette under sub-section (2), and the local planning authority must submit a proposal to enable this order - Held that respondent No.2 failed to submit such proposal and itself caused the lapsing to remain unnotified; directions were issued for compliance within eight weeks. (Paras 7-9, 15)

C) Costs - Litigation Costs for Statutory Non-compliance - Administrative Law - Maharashtra Regional and Town Planning Act, 1966, Section 127 - The High Court imposed costs on respondent No.2 for failing to discharge its statutory duty, which compelled the petitioner to litigate - Costs quantified at Rs.50,000 with liberty to respondent No.1 to recover from erring officers; the State Government was directed to circulate the order to all planning authorities and to take stock of pending matters - Held that if the State Government failed to take necessary steps within four weeks, costs in similar matters would be jointly borne by the State and local authority. (Paras 10-14)

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Issue of Consideration

Whether reservations at Survey Nos. 180, 181, 182 in respect of Survey No.22/2 of Mauza Malkapur, Taluka and District Akola lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 due to respondent No.2's failure to take acquisition steps within 24 months of notice; and whether the planning authority could shift burden to the landowner after service of notice.

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Final Decision

Writ petition allowed; reservations at Survey Nos.180, 181, 182 declared lapsed; respondent No.2 directed to pay Rs.50,000 cost to petitioner within four weeks; respondent No.1 at liberty to recover cost from erring officers; State Government directed to circulate order to all planning/development authorities and take stock of pending lapsing matters; compliance with Section 127(2) within eight weeks; rule made absolute.

Law Points

  • Reservation lapses if land not acquired within 24 months from service of Section 127 notice
  • Planning authority has statutory duty to acquire land
  • Government must notify lapsing under Section 127(2) in Official Gazette
  • Planning authority must submit proposal for notification
  • Failure to discharge statutory duty attracts litigation costs
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Case Details

2026 LawText (BOM) (08) 169

WRIT PETITION NO.1668/2020

2026-08-24

Anil L. Pansare, Nivedita P. Mehta

S. O. Kashid (Petitioner), A. V. Palshikar (AGP for Respondent No.1), Anjan De (Respondent Nos.2 and 3)

Anantrao Kashiram Wathurkar

State of Maharashtra through its Secretary, Urban Development Department, Mantralaya, Mumbai; Akola Municipal Corporation, Akola through its Commissioner; Town Planning Officer, Akola Municipal Corporation, Akola

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Nature of Litigation

Writ petition seeking declaration that reservations in a development plan lapsed due to non-acquisition under Section 127 of MRTP Act

Remedy Sought

Petitioner sought declaration that reservations at Survey Nos.180, 181, 182 in Development Plan in respect of Survey No.22/2 of Mauza Malkapur, Taluka and District Akola admeasuring 0.26 H.R. stood lapsed

Filing Reason

Reservation not acquired within ten years and after service of notice under Section 127 no steps taken within 24 months by planning authority

Issues

Whether reservations at Survey Nos.180, 181, 182 lapsed under Section 127 of MRTP Act due to planning authority's failure to acquire land within 24 months of notice Whether planning authority could shift burden to landowner to take steps after serving notice under Section 127

Submissions/Arguments

Petitioner: Notice under Section 127 served in 1999; obligation to acquire lies on appropriate authority not owner Respondent No.2: Copy of notice not annexed to petition and petitioner took no steps after serving notice

Ratio Decidendi

Under Section 127 of the Maharashtra Regional and Town Planning Act, 1966, upon service of notice by the landowner, the planning authority is under obligation to acquire the land within 24 months; failure to do so results in automatic lapsing of reservation and release of land for development. The government must notify lapsing under Section 127(2) after proposal from the local authority. Planning authority cannot shift burden to landowner after notice. Statutory non-compliance attracts litigation costs.

Judgment Excerpts

If any land reserved, allotted or designated for any purpose specified in any plan under this Act is not acquired by agreement within ten years from the date on which a final Regional Plan, or final Development Plan comes into force or if a declaration under sub-section (2) or (4) of section 126 is not published in the Official Gazette within such period, the owner or any person interested in the land may serve notice, along with the documents showing his title or interest in the said land, on the Planning Authority, the Development Authority or, as the case may be, the Appropriate Authority to that effect; and if within twenty-four months from the date of the service of such notice, the land is not acquired or no steps as aforesaid are commenced for its acquisition, the reservation, allotment or designation shall be deemed to have lapsed, and thereupon, the land shall be deemed to be released from such reservation, allotment or designation and shall become available to the owner for the purpose of development as otherwise, permissible in the case of adjacent land under the relevant plan. In the present case, failure at the hands of respondent No.2 has already resulted into lapsing of the reservation. The land is deemed to be available to the petitioner for the purpose of development, in accordance with law. The necessary steps are to be taken by the appropriate authority and not by the owner of the land.

Procedural History

Petitioner served notice under Section 127 of MRTP Act in 1999; respondent No.2 admitted service but took no steps; petitioner filed writ petition seeking declaration that reservation lapsed; High Court heard the petition finally with consent of parties and allowed it.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 127, 126
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