The Supreme Court held that the reservation of the land had lapsed under both Section 49(7) and Section 127 of the MRTP Act due to the failure of the authorities to acquire the land within the prescribed time frame. The Court invoked Article 142 of the Constitution to do complete justice, declaring the land free from reservation and allowing the appellants to develop it. The Court emphasized that the timeline under the MRTP Act is sacrosanct and must be adhered to by the authorities.

Lapse of reservation under Section 127 of the MRTP Act. (Para 34-35) Invocation of Article 142 to do complete justice. (Para 40-41) Importance of adhering to statutory timelines under the MRTP Act. (Para 50)

Major Acts:

1. Constitution of India (COI), Article 142 – Power of the Supreme Court to do complete justice.

2. Maharashtra Regional and Town Planning Act, 1966 (MRTP Act) – Sections 49, 126, and 127.

3. Land Acquisition Act, 1894 – Section 6.

Subjects:
Land reservation – Lapse of reservation – Purchase notice – Section 49 MRTP Act – Section 127 MRTP Act – Inordinate delay – Article 142 – Complete justice – De-reservation – Acquisition proceedings – Public purpose.

Facts:

1. Nature of the Litigation: The case involved a dispute over a plot of land reserved for a private school under the MRTP Act, 1966. The land was reserved in 1993, but no acquisition proceedings were initiated for over 33 years.

2. Who is asking the court and for what remedy? The appellants, Nirmiti Developers, sought a declaration that the reservation of the land had lapsed under Section 49(7) and Section 127 of the MRTP Act, and requested the court to allow them to develop the land.

3. Reason for filing the case: The appellants argued that the reservation had lapsed due to the failure of the authorities to acquire the land within the stipulated time frame, and they should be allowed to use the land as per the permissible development plan.

4. What has already been decided until now? The High Court had dismissed the appellants' petition, granting them liberty to take appropriate legal steps, but did not declare the reservation as lapsed.

Issues:

1. Whether the reservation of the land under the MRTP Act had lapsed due to the failure of the authorities to acquire the land within the prescribed time frame?

2. Whether the appellants, as purchasers of the land, could benefit from the de-reservation under Section 49 of the MRTP Act?

3. Whether the court could invoke Article 142 of the Constitution to do complete justice in light of the inordinate delay in acquisition proceedings?

Submissions/Arguments:

1. Appellants' Arguments:

   • The reservation had lapsed under Section 49(7) of the MRTP Act as the authorities failed to acquire the land within one year of the confirmation of the purchase notice in 2007.

   • The reservation also lapsed under Section 127 of the MRTP Act as no steps were taken to acquire the land within 10 years of the development plan coming into force in 1993.

   • The appellants, as purchasers, should be allowed to develop the land as the original owners had not taken any steps to develop it after the reservation lapsed.

2. Respondents' Arguments:

   • The reservation could not lapse as the authorities had initiated steps to acquire the land, albeit belatedly.

   • The appellants, being purchasers, could not benefit from the de-reservation under Section 49 of the MRTP Act, as it was meant for the original owners.

Ratio:

1. Lapse of Reservation: If land reserved under the MRTP Act is not acquired within 10 years of the development plan coming into force, and no steps are taken within one year of a purchase notice under Section 127, the reservation lapses, and the land becomes free for development. (Para 34, 35)

2. Article 142: The Supreme Court can invoke Article 142 to do complete justice in cases of inordinate delay, especially when statutory timelines are not followed. (Para 40, 41)

3. Timeline Under MRTP Act: The timelines under Sections 49 and 127 of the MRTP Act are mandatory, and failure to adhere to them results in the lapse of reservation. (Para 50)