SWATANTER KUMAR, RANJANA PRAKASH DESAI
R. K. Mittal – Appellant
Versus
State of U. P. – Respondent
What is the legal status of running banks or commercial businesses in residential sectors under the Master Plan and relevant Acts? What are the rights of doctors, lawyers, and architects regarding the use of ground floor space in residential premises for professional offices or clinics? What is the legal consequence for a lessee who breaches the terms of a lease deed by changing the user of a plot from residential to commercial?
Key Points: - The running of a bank or any commercial business by a company in a residential sector is impermissible and amounts to a violation of the Master Plan and statutory provisions (!) (!) (!) . - Commercial activity of any kind in a residential sector is impermissible, and cases involving banks, nursing homes, or offices in such sectors constitute an impermissible change of user (!) (!) (!) . - No jurisdiction or authority vests in the officers of the Development Authority to permit a change of user in their discretion or in violation of the law in force (!) (!) . - Section 14 of the U.P. Industrial Area Development Act, 1976 empowers the Development Authority to resume the site or forfeit money paid if the lessee commits a breach of lease terms (!) (!) . - The Development Authority has no power to vary the user and spaces prescribed in the Master Plan except by amending relevant laws for a proper object and purpose (!) (!) . - Doctors, lawyers, and architects are permitted to use 30 per cent of the area on the ground floor in their premises in a residential sector for running clinics or offices (!) (!) . - For such permitted use by professionals, the authorities are liable to pay charges as determined by the Development Authority after granting an opportunity of being heard (!) (!) . - The doctrine of legitimate expectation has no applicability when the authority's action violates statutory provisions, as there cannot be a waiver of the law (!) (!) . - The Master Plan and Zonal Plan have a binding effect in law, and arbitrary acts nullifying them invite court intervention to quash orders or direct appropriate action (!) (!) . - If a lessee fails to stop the offending commercial activity within the stipulated time, the Development Authority shall seal the premises and proceed to cancel the lease deed (!) (!) .
JUDGMENT
Swatanter Kumar, J.
1. Leave granted in both the Special Leave Petitions.
2. The ambit and scope of power of New Okhla Industrial Development Authority (for short, the ‘Development Authority’) to permit users, other than residential, in the sectors specifically earmarked for ‘residential use’ in the Master Plan of the New Okhla Industrial Development Area (for short, the ‘Development Area’) is the basic question that falls for consideration of this Court in this bunch of appeals. These appeals demonstrate some of the instances of widespread violation of statutory provisions and somewhat arbitrary exercise of power by the Development Authority. Lack of adoption of uniform application of law has resulted in large number of cases of violation of law all over the State of Uttar Pradesh going unnoticed. The time has come for the Development Authorities to change their style of functioning and act vigilantly and uniformly, that too, strictly in accordance with law, keeping in view the larger public interest.
Introductory Facts
3. This judgment shall dispose of the above referred four civil appeals and the applications for intervention therein. Out of the four appeals, in Civil A
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