Supreme Court Upholds Slum Rehabilitation Authority's Declaration and Clearance Orders for Entire Area Including Undeclared Land. Prior Notification Under Section 4 of Maharashtra Slums Areas Act Not Required Before Proceedings Under Chapter I-A.

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Case Note & Summary

The Supreme Court dismissed the appeal filed by the occupants (appellants) challenging the declaration of 5168.50 sq. mts. in Survey Nos. 27 and 28 at Ramwadi Wadgoan Sheri, Pune as a Slum Rehabilitation Area under Section 3C and Slum Clearance Area under Section 3D of the Maharashtra Slums Areas (Improvement, Clearance and Re-development) Act, 1971. The appellants, who were occupants of tenements in the disputed area, had challenged the orders dated 24.05.2006 and 01.09.2009 before the Maharashtra Slum Areas Tribunal, which partially allowed their appeal by setting aside the orders in respect of 1045.50 sq. mts. of land that was not previously declared as a slum area under Section 4. The High Court reversed the Tribunal's order, holding that a prior declaration under Section 4 is not required for proceedings under Chapter I-A, and that the appellants were not entitled to a pre-decisional hearing. The Supreme Court upheld the High Court's judgment, reasoning that Chapter I-A is a self-contained code for slum rehabilitation and that the Slum Rehabilitation Authority exercises legislative functions under Sections 3A to 3D. The court also noted that the Special Rules for Pune allow encumbered areas to be included in the scheme, and that the appellants, being occupants, were not entitled to a hearing before the declaration. The court dismissed the appeal, allowing the slum rehabilitation scheme to proceed.

Headnote

A) Slum Rehabilitation - Declaration under Section 3C - Prior Notification under Section 4 - The court held that a prior declaration under Section 4 of the Maharashtra Slums Areas (Improvement, Clearance and Re-development) Act, 1971 is not a prerequisite for initiating proceedings under Chapter I-A of the Act. The Slum Rehabilitation Authority can declare an area as a Slum Rehabilitation Area under Section 3C even if part of the area was not previously declared as a slum area under Section 4. The High Court correctly interpreted that Chapter I-A is a self-contained code for slum rehabilitation. (Paras 10-14)

B) Slum Rehabilitation - Right of Hearing - Section 3C(2) - The court held that occupants who are not owners or long-term lessees are not entitled to a pre-decisional hearing before the declaration under Section 3C is made. The Tribunal erred in holding that the appellants were entitled to notice under Section 36 of the Act before the order dated 24.05.2006 was passed. The High Court correctly held that no pre-decisional hearing is necessary. (Paras 5-6, 14)

C) Slum Rehabilitation - Encumbered Area - Special Rules - The court noted that the Special Rules and Regulations governing the Slum Rehabilitation Scheme in Pune allow encumbered areas to be included in the Slum Rehabilitation Area. The High Court relied on these rules to conclude that the entire area of 5168.50 sq. mts. could be declared as a slum rehabilitation area. (Para 6)

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Issue of Consideration

Whether a declaration under Section 4 of the Maharashtra Slums Areas Act is a prerequisite for initiating proceedings under Chapter I-A (Sections 3A to 3D) of the Act; Whether occupants are entitled to a pre-decisional hearing before a declaration under Section 3C is made.

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Final Decision

The Supreme Court dismissed the appeal and upheld the judgment of the High Court, declaring that the slum rehabilitation area declaration and slum clearance order apply to the entire area of 5168.50 sq. mts.

Law Points

  • Interpretation of Sections 3C
  • 3D
  • 4
  • 12
  • 36 of Maharashtra Slums Areas (Improvement
  • Clearance and Re-development) Act
  • 1971
  • Requirement of prior declaration under Section 4 before Chapter I-A proceedings
  • Right of hearing before declaration under Section 3C
  • Scope of 'encumbered area' in slum rehabilitation scheme.
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Case Details

2019 LawText (SC) (10) 56

Civil Appeal Nos. 7784-7787 of 2019 (Arising out of S.L.P. (C) Nos.19206-19209 of 2017)

2019-10-18

L. Nageswara Rao, J.

Kantabai Vasant Ahir & Ors.

Slum Rehabilitation Authority & Ors.

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Nature of Litigation

Civil appeal against High Court judgment upholding slum rehabilitation area declaration and slum clearance order.

Remedy Sought

Appellants sought to set aside the orders dated 24.05.2006 and 01.09.2009 declaring the area as slum rehabilitation area and slum clearance area.

Filing Reason

Appellants challenged the declaration of 5168.50 sq. mts. as slum rehabilitation area and slum clearance area, contending that part of the area was not previously declared as slum under Section 4 and that they were not given hearing.

Previous Decisions

The Maharashtra Slum Areas Tribunal partly allowed the appeal and set aside the orders in respect of 1045.50 sq. mts. The High Court reversed the Tribunal's order and upheld the declarations for the entire area.

Issues

Whether a declaration under Section 4 of the Act is a prerequisite for initiating proceedings under Chapter I-A? Whether the appellants were entitled to a pre-decisional hearing before the declaration under Section 3C?

Submissions/Arguments

Appellants argued that the Act applies only to slum areas and a notification under Section 4 is prerequisite for Chapter I-A proceedings; the orders under Sections 3C and 3D are unsustainable for lack of such notification for 1045.50 sq. mts. Respondent Nos. 1 and 2 argued that Chapter I-A is self-contained and no prior declaration under Section 4 is required; the High Court correctly interpreted the provisions. Respondent No. 3 argued that all other slum dwellers have shifted and the scheme is held up only by the appellants; the appellants will get ownership flats after development.

Ratio Decidendi

Chapter I-A of the Maharashtra Slums Areas Act is a self-contained code for slum rehabilitation and does not require a prior declaration under Section 4. The Slum Rehabilitation Authority exercises legislative functions under Sections 3A to 3D, and no pre-decisional hearing is required for occupants who are not owners or long-term lessees.

Judgment Excerpts

The High Court held that a declaration of an area as a slum area under Section 4(1) of the Act is not required before proceedings are initiated under Chapter I-A of the Act. The High Court was of the further opinion that no pre-decisional hearing prior to the issuance of declaration by the SRA under Section 3C of the Act is necessary.

Procedural History

The Slum Rehabilitation Authority declared 5168.50 sq. mts. as Slum Rehabilitation Area on 24.05.2006 under Section 3C and passed Slum Clearance Order on 01.09.2009 under Section 3D. The appellants challenged these orders before the Maharashtra Slum Areas Tribunal, which partly allowed the appeal on 24.05.2006 and 01.09.2009. The High Court reversed the Tribunal's order and upheld the declarations. The appellants appealed to the Supreme Court.

Acts & Sections

  • Maharashtra Slums Areas (Improvement, Clearance and Re-development) Act, 1971: Section 3C, Section 3D, Section 4, Section 12, Section 36, Section 2(ga), Section 2(h-b), Section 2(h-c), Section 2(h-d), Section 3A
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Supreme Court Supreme Court Upholds Slum Rehabilitation Authority's Declaration and Clearance Orders for Entire Area Including Undeclared Land. Prior Notification Under Section 4 of Maharashtra Slums Areas Act Not Required Before Proceedings Under Chapter I-A.