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)
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.
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


