IMPORTANT POINT
Decision in (1994) 5 SCC 709 declaring Section 192 (1) (c) if the Act 1911 ultra vires was prospective.

JUDGMENT

A.K. SIKRI, J. –

1. Leave granted.

2. The origin of the lis in this appeal can be treated to earlier proceedings which started sometime in 1970's and culminated in the judgment of this Court in the case of Yogender Pal & Ors. v. Municipality, Bhatinda reported in 1994 (5) SCC 709. We would revert back to the said case with detailed discussion at the appropriate stage, Suffice it is to mention at the stage that vide the said judgment this Court declared Section 192 (1) (c) of the Punjab Municipal Act {This provision conforms to Section 203 (1) (c) of the Haryana Municipal Act} as void, being violative of Article 14 of the Constitution of India. However, overruling of the said provision was prospective i.e. from the date of the decision rendered on 15.7.1994.

3. Coming to the facts of the present case, Shri Som Chand Katia and Shri Vijay Katia were original owners of land measuring 44 bighas 6 biswas comprised in Khasra No. 2001 situated at Bhatinda. Out of the said land a part comprising of 255 fts x 450 fts was licensed to the appellant for construction of a 3 Star Hotel on 15.7.1974. The appellant applied for grant of layout plan for the construction of a hotel, which was granted by the Municipal Committee. After the receipt of the layout plan the appellant herein constructed the hotel on the said land. Since then the hotel has been in existence and running its business therefrom. The total area of the hotel was covered by a boundary wall and is in possession of the appellant herein.

4. The Municipal Committee framed a new Scheme i.e Town Planning Scheme No. 2, Part I, in the year 1975. This Scheme was sanctioned by the State Government. As per the said Scheme, a part of the land covered by the Appellant's hotel was required for the construction/widening of the road. The Municipal Committee issued a notice dated 7.6.1978 to the appellant herein directing the appellant to demolish the boundary wall of the hotel and transfer that part of the land to the Municipal Committee.

Apprehending an action at the behest of the Municipal Committee, the appellant filed a suit for grant of injunction against execution of the aforesaid notice. The Counsel for the Committee appeared and gave an undertaking not to demolish the boundary wall and based on this statement the said suit was withdrawn on 5.12.1979. However, the Municipal Committee again threatened to demolish the boundary wall, thereby impelling the appellant to file another suit, being No. 386 dated 18.12.1979. This suit was decreed on 11.12.1981 with an observation that Town Planning Scheme qua the appellant having not finalised, therefore, the land belonging to the appellant could not vest in the Municipal Committee.

5. At the same time, the appellant also challenged the vires of Section 192 (1) (c) of the Municipal Act by way of a Writ Petition No. 226 of 1979. The said Writ Petition was disposed of by a Division Bench of Punjab and Haryana High Court on 16.1.1980 alongwith other connected matters whereby it directed the Committee to consider the objections of affected landowners under the provisions of Section 192 (1) (c) of the Act which would be filed within 12 weeks before the Committee and the Committee would then proceed to consider the said objection and dispose them of within three months. Thereafter, it could make a recommendation to the Government in accordance with provisions of Section 192 of the Act. It was made clear that till the objections are decided, the rights of the landowners would not be affected. However, it was stated that if the objections were rejected the provisions of Scheme shall become final and shall be forwarded to the State Government for amending the Scheme in accordance with law.

6. As per the directions, the appellant filed its objections before the Municipal Committee, stating therein that as per the measurement at the spot, the road which starts from 40 feet wide Namdev Road and proposes to connect 30 feet wide road at the end of the hotel