Supreme Court Allows Appeal in Land Reservation Lapse Case Under MRTP Act — Notice Held Valid and Acquisition Steps Inadequate. The court held that the second notice under Section 127 was not premature and the municipality failed to take adequate acquisition steps within 24 months, resulting in lapsing of reservation.

  • 5
Judgement Image
Font size:
Print

Case Note & Summary

The appellant, a partnership firm and joint owner of land in Survey No.7, Mouja Durgavada, Morshi, had its land reserved for shopping centre and garden in the final development plan published on 11.07.2005 and effective from 01.09.2005. After the lapse of 10 years, the appellant served a first notice under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 on 13.07.2015, which was replied as premature. A second notice was sent on 31.08.2015. The municipality's General Body Meeting on 30.11.2015 resolved to acquire the land, and a proposal was submitted to the Collector on 14.01.2016, but was returned as not in order. A fresh proposal was submitted on 16.12.2016, but no further steps were taken. The appellant filed a writ petition seeking declaration that the reservation had lapsed. The High Court dismissed the petition, holding that the second notice was premature and thus no need to examine acquisition steps. The Supreme Court allowed the appeal, holding that the second notice was received on 02.09.2015, after the 10-year period, and was valid. The court further held that the municipality did not take adequate steps for acquisition within 24 months, as the proposal was not in order and no acquisition occurred. Consequently, the reservation lapsed and the land stood released from reservation.

Headnote

A) Town Planning - Lapsing of Reservation - Section 127 of Maharashtra Regional and Town Planning Act, 1966 - Notice Period - The court held that the second notice dated 31.08.2015 was received on 02.09.2015, after the expiry of 10 years from the date the final development plan came into force (01.09.2005), and thus was not premature. The High Court erred in relying solely on the acknowledgment receipt without considering the General Body Meeting resolution which recorded the correct date of receipt. (Paras 14-15)

B) Town Planning - Lapsing of Reservation - Section 127 of Maharashtra Regional and Town Planning Act, 1966 - Acquisition Steps - The court found that the municipal authorities did not take adequate steps for acquisition within 24 months from the service of notice. The proposal submitted was not in order and no further action was taken, leading to the lapsing of reservation. (Paras 16-17)

C) Constitutional Law - Right to Property - Article 300A - The court emphasized that prolonged delay in acquisition affects the owner's right to enjoy property, and the provision for lapsing is not to be used as a tool to defeat the purpose of the Act but to protect owners from indefinite reservation. (Para 15)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the notice under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 was premature and whether the municipal authorities took adequate steps for acquisition within 24 months to prevent lapsing of reservation.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court allowed the appeal, set aside the High Court order, and declared that the reservation of the appellant's land had lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966. The land stood released from reservation and became available to the owner for development as permissible.

Law Points

  • Section 127 of Maharashtra Regional and Town Planning Act
  • 1966
  • lapsing of reservation
  • notice period
  • acquisition steps
  • factual finding in writ jurisdiction
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (SC) (8) 36

Civil Appeal No. 6661 of 2019 (Arising out of SLP (C) No. 7481 of 2018)

2019-01-01

N.V. Ramana, J.

B Alaji Associates

The State of Maharashtra and Others

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal against High Court order dismissing writ petition seeking declaration that reservation of land had lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966.

Remedy Sought

Declaration that the reservation of the appellant's land had lapsed and consequential relief.

Filing Reason

The appellant's land was reserved for shopping centre and garden; after 10 years, the appellant served notices under Section 127, but the municipality did not acquire the land within 24 months, leading to the filing of the writ petition.

Previous Decisions

The High Court of Judicature at Bombay (Nagpur Bench) dismissed the writ petition on 05.02.2018, holding that the second notice was premature and thus no need to examine acquisition steps.

Issues

Whether the second notice under Section 127 of the MRTP Act was premature. Whether the municipal authorities took adequate steps for acquisition within 24 months from the service of notice.

Submissions/Arguments

Appellant: The second notice was received on 02.09.2015, after the 10-year period, and the municipality did not take adequate steps for acquisition within 24 months. Respondents: The second notice was served on 01.09.2015, before completion of 10 years, and was premature; the municipality submitted a proposal for acquisition, thus steps were taken.

Ratio Decidendi

Under Section 127 of the MRTP Act, a notice served after the expiry of 10 years from the date the final development plan comes into force is valid. The municipality must take adequate steps for acquisition within 24 months from the service of notice; failure to do so results in lapsing of reservation. The court may rely on internal records like minutes of meetings to determine the date of receipt of notice, especially when there is inconsistency with acknowledgment receipts.

Judgment Excerpts

In our considered opinion, the writ courts, usually, should not indulge themselves in such factual findings. However, this case has been dragged too long and any further delay would unduly affect the right to enjoy property and benefits thereof. Having come to this understanding, we can conclude that the second notice can be said to have reached the Municipality on 02.09.2015, after the expiry of the stipulated period. If municipality does not take the required measures in accordance with the aforesaid provision, then the land would be dereserved and the owner can develop the same in accordance with law.

Procedural History

The appellant filed a writ petition before the High Court of Judicature at Bombay (Nagpur Bench) which was dismissed on 05.02.2018. The appellant then filed a Special Leave Petition before the Supreme Court, which was converted into Civil Appeal No. 6661 of 2019.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 127
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Appeal in Land Reservation Lapse Case Under MRTP Act — Notice Held Valid and Acquisition Steps Inadequate. The court held that the second notice under Section 127 was not premature and the municipality failed to take adequate a...
Related Judgement
Supreme Court Supreme Court Remands Electricity Theft Case to High Court for Fresh Consideration Under Section 152 of Electricity Act, 2003. Settlement in Lok Adalat does not automatically quash FIR; compounding provisions must be examined.