Bombay High Court Dismisses Petition Challenging Removal of Land Reservation for Architects' Association. State's Power to Modify Development Plan Under Section 31 of MRTP Act Upheld; No Vested Right in Reservation.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The petitioner, Indian Institute of Architects, a society registered under the Societies Registration Act, 1860, filed a writ petition under Article 226 of the Constitution of India challenging a communication dated 12.04.1991 from the Nagpur Improvement Trust (respondent No. 1) informing that the land under reference No. W-87 reserved for the Architect Association could not be allotted to them. The petition was filed in June 1991. Subsequently, the State of Maharashtra (respondent No. 2) sanctioned a draft development plan under Section 31(1) of the Maharashtra Regional and Town Planning Act, 1966, removing the reservation in favour of the petitioner. This notification was published on 21.09.2001 and the challenge to it was incorporated by way of amendment. Later, after finalization of the development plan under Section 31(6) of the Act, the Nagpur Improvement Trust decided to develop the land on BOT (Build-Operate-Transfer) basis and called for tenders. The offer of respondent No. 4, Indo Pacific Software and Entertainment Limited, was accepted, and respondent No. 4 was added as a party on 06.10.2004. The parties invited the court's attention to a judgment concerning the same site delivered by the court. The court held that the reservation in a development plan does not create any vested right in favour of the petitioner. The State Government has the power to modify the development plan under Section 31(1) and finalize it under Section 31(6). After finalization, the petitioner cannot challenge the removal of reservation. The allotment on BOT basis to respondent No. 4 is valid, and the petitioner has no locus standi to challenge it. The petition was dismissed.

Headnote

A) Town Planning - Reservation - Vested Right - Section 31 Maharashtra Regional and Town Planning Act, 1966 - Reservation of land for Architect Association does not create any vested right in favour of the petitioner - The State Government has power to modify the development plan under Section 31(1) and the final plan under Section 31(6) - The petitioner cannot challenge the removal of reservation after the plan is finalized (Paras 1-3).

B) Town Planning - BOT Allotment - Validity - Section 31 Maharashtra Regional and Town Planning Act, 1966 - After finalization of development plan, the Nagpur Improvement Trust decided to develop the land on BOT basis and accepted the offer of respondent No. 4 - The allotment is valid and the petitioner has no locus to challenge it (Paras 1-3).

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Issue of Consideration

Whether the petitioner has a vested right in the reservation of land for its association, and whether the State's action in removing the reservation and allotting the land on BOT basis is valid.

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Final Decision

The petition is dismissed. The court upheld the State's power to modify the development plan under Section 31 of the MRTP Act and found no vested right in the petitioner.

Law Points

  • Reservation in development plan does not create vested right
  • State can modify plan under Section 31 MRTP Act
  • BOT allotment valid
  • no locus standi for petitioner after reservation removed
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Case Details

2006 LawText (BOM) (06) 114

Writ Petition No. 1626/1991

2006-06-23

P. V. Kakade, B. P. Dharmadhikari

Mr. A. A. Naik for Petitioner, Mr. S. K. Mishra for Respondent No. 1, Mr. Dhote (A.G.P.) for Respondent Nos. 2 and 3, Mr. H. D. Dangre for Respondent No. 4

Indian Institute of Architects

Nagpur Improvement Trust, State of Maharashtra, Govindrao Hanumantrao Mulak, Indo Pacific Software and Entertainment Limited

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Nature of Litigation

Writ petition under Article 226 challenging communication refusing allotment of land and subsequent removal of reservation.

Remedy Sought

Petitioner sought allotment of land reserved for Architect Association and challenge to removal of reservation.

Filing Reason

The Nagpur Improvement Trust informed the petitioner that the land reserved for Architect Association could not be allotted to them.

Issues

Whether the petitioner has a vested right in the reservation of land? Whether the State's action in removing the reservation and allotting land on BOT basis is valid?

Submissions/Arguments

Petitioner argued that the reservation created a right in their favour. Respondents argued that reservation does not create vested right and State has power to modify plan.

Ratio Decidendi

Reservation in a development plan does not create any vested right in favour of the person for whose benefit it is made. The State Government has the power to modify the development plan under Section 31(1) and finalize it under Section 31(6) of the Maharashtra Regional and Town Planning Act, 1966. After finalization, the petitioner cannot challenge the removal of reservation.

Judgment Excerpts

By this petition filed under article 226 of the Constitution of India the petitioner, a Society registered under the Societies Registration Act, 1860, has challenged the communication dated 12.04.1991 issued by the Trust Engineer, informing the petitioners that the land, which is under reference No. W-87 for Architect Association, cannot be allotted to them. It appears that, later on in exercise of powers under Section 31(1) of the Maharashtra Regional and Town Planning Act, 1966, respondent No. 2-State of Maharashtra has sanctioned draft development plan, in which such reservation in favour of petitioner has been removed.

Procedural History

Petition filed in June 1991 challenging communication dated 12.04.1991. Subsequently, State sanctioned draft development plan removing reservation (notification published 21.09.2001), challenge incorporated by amendment. After finalization of plan, Trust decided to develop land on BOT basis and accepted offer of respondent No. 4, who was added on 06.10.2004. Judgment delivered on 23.06.2006.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: Section 31(1), Section 31(6)
  • Societies Registration Act, 1860:
  • Constitution of India: Article 226
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High Court Bombay High Court Dismisses Petition Challenging Removal of Land Reservation for Architects' Association. State's Power to Modify Development Plan Under Section 31 of MRTP Act Upheld; No Vested Right in Reservation.
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