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SUPREME COURT OF INDIA
RANGANATH MISRA, P.B. SAWANT AND K. RAMASWAMY, JJ.
M/s. Shantistar Builders, Appellant v. Narayan Khimalal Totame and others, Respondents.
Civil Appeal No. 2598 of 1989, D/- 31-1-1990.
Cases Referred : Chronological Paras
AIR 1979 SC 1415 : (1979) 3 SCR 802 3
- as in the case of M/s. Shantistar Builders v. Narayan Khimalal Totame, AIR 1990 SC 630, Supreme Court recommended to the Central Government to prescribe appropriate guidelines laying down the true scope of the term “weaker sections of the society”.
– As held in the case of M/s Shantistra Builders v. Narayan Khimalal Totame, AIR 1990 SC 630 = 1990(1) CCC 384, the allotment shall be on the basis of “one family” — one flat and the family shall include husband wife and dependent children. A family which has one flat in any urban agglomeration within the State shall not be entitled to allotment or acquisition by transfer of a flat under the Code.
– Held also: Government nominees contemplated under the Code must belong to weaker sections of the society and shall also be subject to the rule of one family one flat. The number of government nominees should not exceed 5 per cent of the total accommodation available in any scheme.
– Held further : Every builder shall maintain a register of applicants chronologically registering them on the basis of the date of receipt of the applications. The register should be up to date and available for the inspection by the authorities. As and when an application is received by the builder an appropriate receipt acknowledging acceptance of such application shall be issued to the applicant and in such receipt, the number in the Application register shall be clearly indicated. Simultaneously, a copy of the application with its number shall be sent by the builder to the Committee for its record.
– As a working guidelines it was directed that a means test for identifying weaker sections of the society shall be adopted and for the present income of the family of the applicant must not exceed Rs. 18000 to come within meaning of the term to qualify for allotment. The applicant shall be called upon to satisfy the Committee about the limit of income and the present prescription of Rs. 13000 may be varied from time to time by the State Government taking into consideration the fall of the value of the rupee, general improvement in the income of the people now with in the annual income limit of Rs. 18000 and other relevant factors. It shall be open to the State Government to prescribe appropriate guideline in the matter of identifying the weaker sections of the society.
Held further: in the matter of implementation of the scheme and with a view to providing satisfactory execution there of an fulfilling the landable purpose stipulated under the Act and undertaken by the scheme, it is necessary that there should be a committee in respect of the schemes in every agglomeration for weaker section sanctioned under Section 20 and 21 of the Act of overseeing the implementation of every scheme, particularly in the matter of due compliance of the conditions under which exemption is granted, timely construction of the flats, appropriate advertisement as contemplated, registration of the applications in response to advertisements in a systematic manner, appropriate allotment of flats including proprieties on the basis of registration, ensuring legitimate charges only being demanded and monitoring strict compliance to avoid underhand dealing or any unjust treatment. It should be handled by the competent authority in a committee consisting of himself, a judicial officer not below the rank of an Additional District Judge and a Government engineer not below the rank of Superintending Engineer. In the committee, the judicial officer shall function as the Chairman.
This Committee shall have powers to scrutinize all relevant documents and give appropriate directions to the builders and applicants keeping the requirements of the schemes and the Code in view.
Members of the Scheduled Casts and Scheduled Tribes have ordinarily been accepted as belonging to the weaker sections. Attempt to bring in the test of economic means has often been tried but no guidelines has been evolved. Undoubtedly, apart from the members of the Scheduled Casts and Scheduled Tribes, there would be millions of other citizens who would also belong to the weaker sections. The Constitution makes intended all citizens of India belong to the weaker sections to be benefited when Article 46 was incorporated in the constitution. Parliament in adopting the same language in Section 21 of the Act also intended people of all weaker sections to have the advantage. It is, therefore, appropriate that the Central Government come forward with an appropriate guideline to indicate who be included within weaker sections of the society.
Judgement
RANGANATH MISRA, J.:- Respondents filed a writ petition under Art. 226 of the Constitution in the Bombay High Court challenging permission to the builders to escalate the rates in respect of construction permitted on exempted land under the provisions of the Urban Land (Ceiling & Regulation) Act, 1976 (hereinafter Act for short). The respondents made an application (Civil Application No. 5748/88) for amendment of the averments in that writ petition but by order dated 12th of December, 1988, the High Court rejected the civil application and refused leave to amend. By a subsequent order dated 16th of December, 1988, in the writ petition, the High Court held :
"The Writ Petition as filed does not survive. It has become infructuous by changed Government policy and the resolutions and letters already referred to in our order under the Civil Application. Hence, the same is dismissed.
We propose to give some directions regarding future monitoring of the scheme. These directions are restricted to this particular project only and although detailed monitoring is desirable with regard to all schemes sanctioned under Section 20, this should be considered by the Government and no directions by the Court can be given generally without considering the difficulties of the Government. However, this one scheme is capable of proper monitoring and we propose to give certain additional directions to the competent authority for monitoring the same ...........
"The direction of the High Court in regard to monitoring has been challenged by the builder in this appeal by special leave.
2. At the initial stage of hearing of this appeal we had been told that the State of Maharashtra was considering the formulation of certain guidelines in respect of constructions over exempted lands covered under S. 20 of the Act and at the close of the hearing the formulation of the State Government has been placed for our consideration.
3. A Constitution Bench of this Court in Union of India v. Valluri Basavaiah Chaudhary, (1979) 3 SCR 802 : (AIR 1979 SC 1415), while dealing with a dispute relating to the vires of the Act stated (at p. 1419 of AIR):
"The primary object and purpose of the Urban Land (Ceiling and Regulation) Act, 1976, as the long title and the preamble show, is to provide for the imposition of a ceiling on vacant land in urban agglomerations, for the acquisition of such land in excess of the ceiling limit, to regulate the construction of buildings on such land and for matters connected therewith, with a view to preventing the concentration of urban land in the hands of a few persons and speculation and profiteering therein, and with view to bringing about an equitable distribution of land in urban agglomerations to subserve the common good, in furtherance of the Directive Principles of Art. 39(b) and (c)."
4. Under the scheme of the Act, urban agglomerations have been divided into four classes and a ceiling has been prescribed for each classification. The vacant land in excess of the ceiling under the provisions of S. 10 of the Act vests in the State by way of acquisition and the vacant sites thus acquired by the State are intended to be utilised for purposes of housing and Ss. 23 and 24 of the Act provide for disposal of vacant land. The Act, therefore, purports to take away the excess land from the holders thereof and utilise the same for purposes of housing and other public purposes. Chapter IV of the Act provides for regulation of transfer as also use of urban property. Section 20 empowers the State to exempt lands from the purview of the Act by providing:
"20. Power to exempt.
(1) Notwithstanding anything contained in any of the foregoing provisions of this chapter,-
(a) where any person holds land in excess of the ceiling limit and the State Government is satisfied, either on its own motion or otherwise, that, having regard to the location of such land, the purpose for which such land is being used of is proposed to be used and such other relevant
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