JUDGMENT

SEN, J.—Leave granted.

2. On 28-5-1974, Gokak Patel Volkart Ltd, submitted a plan for construction of two houses at premises Nos. 124-126 Wodehouse Road, Colaba, Bombay, to the Municipal Corporation of Greater Bombay. The said two houses were occupied by tenants. The plan was for construction of a thirty-storeyed building utilising Floor Space Index (for short FSI) of 2.45 of the said plot.

3. The Development Control Rules existent at the relevant time permitted construction of building on the FSI of 2.45 under R-8 FSI zone in which the above property was situated. The plan was approved by the Corporation and on 13-9-1974 Intimation of Disapproval (IOD) was granted to the Company under Section 346 of the Bombay Municipal Corporation Act. It was stipulated in the IOD that no work should be started unless the existing structures proposed to be removed were in fact removed. It was also stated in the IOD that it was given exclusively for the purposes of enabling the party to proceed further with arrangements of obtaining "No Objection" Certificate from the Housing Commissioner under Section \?>(bb) of the Bombay Rents, Hotel and Lodging House Rates Control Act. In pursuance of t