Supreme Court Upholds Settlement for Independent Slum Development by Three Societies. Fabricated Withdrawal of Consent Rejected; SRA's Settlement Terms Allowed to End 14-Year Litigation.

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Case Note & Summary

The Supreme Court disposed of two Special Leave Petitions challenging a Bombay High Court order that had rejected writ petitions filed by Adarsh Estate Sahakari Griha Nirman Sanstha Maryadit (Adarsh) and Saidham Co-operative Housing Society (Saidham) against the Slum Rehabilitation Authority's (SRA) decision to process Maruti Nagar Co-operative Housing Society's (Maruti) slum rehabilitation proposal. The dispute involved three societies of slum dwellers on plots owned by the Municipal Corporation of Greater Mumbai. Maruti had initially obtained Annexure-II (list of eligible slum dwellers) but it was cancelled due to fraud. Adarsh and Saidham then submitted proposals and paid scrutiny fees. Maruti approached the High Power Committee, which set aside the SRA's rejection of its proposal. The High Court dismissed the writ petitions filed by Adarsh and Saidham. During the Supreme Court proceedings, the SRA proposed a settlement for independent development of each society on their respective plots, which all parties initially accepted. However, Maruti later sought to withdraw its consent through a letter purportedly signed by 172 slum dwellers. The court appointed a Local Commissioner, whose report revealed that the letter was fabricated, with only six genuine signatures. The court rejected Maruti's application to withdraw consent, allowed the SRA's settlement application, and disposed of the petitions in terms of the settlement, directing that each society develop its property independently. The court emphasized that the settlement was fair and in the interest of slum dwellers, who had been deprived of decent accommodation for over 14 years due to the litigation.

Headnote

A) Slum Rehabilitation - Consent Withdrawal - Fabricated Document - The court examined the validity of a letter purporting to withdraw consent from a settlement. The Local Commissioner's report revealed that the letter dated 11th October 2018 was signed by only 6 persons, with other names plucked from an earlier letter. Held that the letter was a fabricated document and the withdrawal was invalid (Paras 8-9).

B) Slum Rehabilitation - Settlement Terms - Independent Development - The court considered the settlement proposed by the SRA for independent development of three societies on separate plots. All stakeholders had initially accepted the terms. Held that the settlement was fair, reasonable, and in the interest of slum dwellers, and no prejudice would be caused by independent development (Paras 6-7, 9).

C) Slum Rehabilitation - Delay in Development - Public Interest - The court noted that litigation between societies had delayed the project for over 14 years, depriving slum dwellers of decent accommodation. Held that the settlement should be implemented to expedite development and serve the public interest (Para 9).

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Issue of Consideration

Whether the withdrawal of consent by Maruti Nagar Co-operative Housing Society from the settlement terms proposed by the Slum Rehabilitation Authority was valid and whether the settlement should be implemented.

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Final Decision

The Supreme Court rejected I.A. No. 11905/2019 (Maruti's application to withdraw consent), allowed I.A. No. 97692/2018 (SRA's settlement application), and disposed of the Special Leave Petitions in terms of the settlement dated 16th April 2018, directing independent development of each society's property. Parties to bear their own costs.

Law Points

  • Consent withdrawal
  • fabricated document
  • settlement terms
  • slum rehabilitation scheme
  • independent development
  • public interest
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Case Details

2019 LawText (SC) (8) 26

Special Leave Petition (Civil) No. 6070 of 2014 with Special Leave Petition (Civil) No. 6204 of 2014

2019-08-08

S.A. Bobde, R. Subhash Reddy, B.R. Gavai

Adarsh Estate Sahakari Griha Nirman Sanstha Maryadit (Proposed) and Saidham Co-operative Housing Society

State of Maharashtra and Ors., Municipal Corporation of Greater Mumbai, Slum Rehabilitation Authority, Maruti Nagar Co-operative Housing Society

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Nature of Litigation

Civil appeals against Bombay High Court order rejecting writ petitions challenging SRA's decision to process Maruti's slum rehabilitation proposal.

Remedy Sought

Petitioners sought to set aside the High Court order and allow their slum rehabilitation proposals to proceed.

Filing Reason

The SRA rejected petitioners' proposals and directed processing of Maruti's proposal based on revised Annexure-II.

Previous Decisions

Bombay High Court dismissed Writ Petition Nos. 1595/2009 and 1596/2009 on 20th January 2014.

Issues

Whether the withdrawal of consent by Maruti from the settlement was valid. Whether the settlement terms proposed by SRA should be implemented.

Submissions/Arguments

Petitioners argued that the settlement was fair and should be implemented. Maruti sought to withdraw its consent, claiming the settlement was not in its interest. Slum dwellers of Maruti supported the settlement.

Ratio Decidendi

A consent withdrawal based on a fabricated document is invalid. A settlement that is fair, reasonable, and in the interest of slum dwellers, and which has been accepted by all stakeholders, should be implemented to expedite development and serve public interest.

Judgment Excerpts

A perusal of the report would categorically show, that letter dated 11th October 2018 was not signed by 172 slum dwellers but only by 6 persons. Taking into consideration all these aspects of the matter, it is clear that letter dated 11th October, 2018 thereby seeking to withdraw the consent which was already given to the terms of settlement is a fabricated document... We further find, that if all the 3 societies are permitted to be developed independently, no prejudice would be caused to any of slum dwellers.

Procedural History

Maruti submitted a slum rehabilitation proposal in 2005; Annexure-II issued but cancelled in 2006 due to fraud. Adarsh and Saidham submitted proposals in 2008; SRA accepted scrutiny fees. Maruti approached High Power Committee in 2008, which set aside SRA's rejection in 2009. Adarsh and Saidham filed writ petitions in Bombay High Court in 2009; High Court granted interim relief but finally dismissed petitions on 20th January 2014. Petitioners filed Special Leave Petitions in Supreme Court. During pendency, SRA proposed settlement in 2018; all parties initially accepted. Maruti filed application to withdraw consent in 2019; Supreme Court appointed Local Commissioner, whose report revealed fabrication. Supreme Court rejected withdrawal and disposed of petitions in terms of settlement on 8th August 2019.

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Supreme Court Supreme Court Upholds Settlement for Independent Slum Development by Three Societies. Fabricated Withdrawal of Consent Rejected; SRA's Settlement Terms Allowed to End 14-Year Litigation.
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