JUDGMENT

M.K. MUKHERJEE, J.- This appeal by special leave is directed against the judgment and order dated 22-2-1989 rendered by the High Court of Bombay in WP No. 3682 of 1987. Facts leading to the appeal and relevant for its disposal are as under.

2. The appellant is a firm registered under the Partnership Act and carries on business as builders and developers, while Respondent 1 is a government company within the meaning of Section 617 of the Companies Act, 1956. On 23-3-1971 the Government of Maharashtra issued a notification under sub-section (1) of Section 113 of the Maharashtra Regional and Town Planning Act, 1966 (Act for short) delineating and designating certain area for development as a site for a new town to be known as New Bombay. Concurrently, it declared, in accordance with sub-section (3-A) thereof, Respondent 1 to be the New Town Development Authority for that township. Consequent upon such declaration Respondent 1 assumed, by virtue of sub-section (8) of the said section, all the powers and duties of a Planning Authority under the Act including those under Chapters III and IV thereof. In due course Respondent 1 framed, in exercise of powers conferred by Section 159