1. Land reservation — Purchase notice under Section 49, MRTP Act — Confirmation of notice — Failure to complete acquisition proceedings despite application for acquisition. (Para 3 , 4 , 5 , 6 )
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2018 Supreme(SC) 114
SUPREME COURT OF INDIA
R.F. Nariman, Navin Sinha, JJ.
Chhabildas - Appellant
Versus
The State of Maharashtra & Ors. - Respondents
Civil Appeal No. 1607 of 2018 (Arising Out of SLP (C) No. 3633 of 2015)
Decided On : 06-02-2018
IMPORTANT POINT
If no action is taken for acquisition of land for 10 years after publication of plan and the land owner serves a purchase notice, steps for acquisition must follow within one year of the purchased notice. Failing that, land acquisition proceedings would lapse.
Headnote:(a) Maharashtra Regional Town Planning Act, 1966 – Section 49 – Obligates the State, on receipt of purchase notice by authorities, to acquire the land – Timeline of essence – Decision cannot be delayed indefinitely – On the appropriate authority making necessary application to acquire the land within time u/s 49(7), sections 126 and 127 come into play. (Para 12, 13)
(b) Maharashtra Regional Town Planning Act, 1966 – Section 126(2), 49 r/w section 6, :and acquisition Act, 1894 – Land required or reserved for public purpose – Authority making application for acquisition – Government may make declaration u/s 6, Land Acquisition Act, 1894 within one year – Failing which land owner may serve purchase notice u/s 49 – In that event section 126(2) will not apply – Appropriate authority may then make application for acquisition upon which Government may u/s 126(4) make declaration u/s 6 within one year – Failing that, land owner may move a court for directing Government to make requisite declaration. (Para 14, 15)
(c) Maharashtra Regional Town Planning Act, 1966 – Section 127 and 49 – Inaction in acquisition of land for 10 years after publication of plan – Purchase notice may be served u/s 127 – Steps for acquisition must follow within one year of purchased notice – Failing that, land acquisition proceedings would lapse – Instantly 15 years passed since date of publication of plan – 10 years passed since service of purchase notice u/s 49 – Held, reservation contained in the development plan as well as acquisition proposal have lapsed. (Para 16, 23, 31)
(2007) 7 SCC 555; 1988 Supp. SCC 55; (2013) 5 SCC 627; (2015) 3 SCC 154 – Relied upon
(2009) 1 SCC 514 – Distinguished
Facts of the case:
This case concerns a purchase notice issued under Section 49 of the Maharashtra Regional Town Planning Act, 1966 and, in particular, the effect of Sub-section (7) thereof.
On 11th February, 2002, the Development Plan of Jalgaon City was sanctioned by the State Government. The Appellant’s land was reserved for primary school and play ground.
On 7th May, 2007, the Appellant issued a purchase notice under Section 49(1)(e) of the Act.
On 12th December, 2007, the State Government confirmed the aforesaid purchase notice and stated that proceedings for acquisition of land shall be initiated within one year i.e. before 12th December, 2008.
The appellangt wrote a letter to the Commissioner, Jalgaon on 15th January, 2014, that the said proposal has lapsed and that, therefore, the land should be returned to the owner. On 28th March, 2014, the Assistant Director, Town Planning, Jalgaon Municipal Corporation, wrote back to the owner stating that the land acquisition proposal by the Municipal Corporation “is in process” and stated that, as Section 49(7) was satisfied on the facts of the present case, there was no lapse.
A writ petition dated 2nd May, 2014 was then filed by the owner which was dismissed.
Finding of the Court:
Reservation contained in the development plan as well as acquisition proposal have lapsed.
Result: Appeal disposed of.
Legal Category Hierarchy
Table of Contents
2. Whether reservation lapses under Section 49 after application for acquisition is made, or if a separate notice under Section 127 is mandatory for lapsing. (Para 7 , 8 )
3. Section 49 creates an obligation to acquire; subsequent proceedings follow Sections 126 and 127, where steps for acquisition require a Section 6 declaration. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 )
4. Land reservation may lapse due to inordinate delay in acquisition, though generally, a second purchase notice under Section 127 is required after ten years. (Para 24 , 31 )
5. Reservation and acquisition proposal declared lapsed under Article 142 of the Constitution, with directions that future cases must follow the Section 127 notice procedure. (Para 31 )
6. Does the process of land acquisition under Section 49 of the MRTP Act end with the application to acquire?
No. Once the appropriate authority makes an application to acquire land under Section 49(7), the process proceeds in accordance with the provisions of Sections 126 and 127 of the Act. (Para 13 , 24 )
7. Does a mere application by the planning authority to the State Government constitute steps for acquisition under Section 127 of the MRTP Act?
No. Steps towards acquisition commence only when the State Government permits the acquisition and publishes the declaration under Section 6 of the Land Acquisition Act. (Para 20 , 22 )
8. Under what conditions does a land reservation lapse under Section 127 of the MRTP Act?
Reservation lapses if land is not acquired or acquisition proceedings do not commence within ten years of the plan's force, and no steps are taken within one year of a purchase notice. (Para 16 , 19 , 23 )
9. Can land be released from reservation if there is an inordinately long delay in acquisition despite a purchase notice?
Yes, the court may release land from reservation to prevent the owner from being deprived of property indefinitely, potentially exercising powers under Article 142 of the Constitution to do complete justice. (Para 27 , 28 , 29 , 30 , 31 )
JUDGMENT :
R.F. Nariman, J.
1. Leave granted.
2. The present case concerns a purchase notice issued under Section 49 of the Maharashtra Regional Town Planning Act, 1966 (hereinafter referred to as “the Act”) and, in particular, the effect of Sub-section (7) thereof. The aforesaid Section 49 along with other relevant provisions of the Act, as they stood at the relevant time, are reproduced hereunder:
Section 49 - Obligation to acquire land on refusal of permission or on grant of permission in certain cases.-
(1) Where-
(a) any land is designated by a plan as subject to compulsory acquisition, or
(b) any land is allotted by a plan for the purpose of any functions of a Government or local authority or statutory body, or is land designated in such plan as a site proposed to be developed for the purposes of any functions of any such Government, authority or body, or
(c) any land is indicated in any plan as land on which a highway is proposed to be constructed or included, or
(d) any land for the development of which permission is refused or is granted subject to conditions, and any owner of land referred to in clause (a), (b), (c) or (d) claims-
(i) that the land has become incapable of reasonably beneficial use in its existing state, or
(ii) where planning permission is given subject to conditions that the land cannot be rendered capable of reasonably beneficial use by the carrying out of the permitted development in accordance with the conditions; or
(e) the owner of the land because of its designation or allocation in any plan claims that he is unable to sell it except at a lower price than that at which he might reasonably have been excepted to sell if it were not so designated or allocated, the owner or person affected may serve on the State Government within such time and in such manner, as is prescribed by regulations, a notice (hereinafter referred to as "the purchase notice ") requiring the Appropriate Authority to purchase the interest in the land in accordance with the provisions of this Act.
(2) The purchase notice shall be accompanied by a copy of any application made by the applicant to the Planning Authority, and of any order or decision of that Authority and of the State Government, if any, in respect of which the notice is given.
(3) On receipt of a purchase notice, the State Government shall forthwith call from the Planning Authority and the Appropriate Authority such report or records or both, as may be necessary, which those authorities shall forward to the State Government as soon as possible but not later than thirty days from the date of their requisition.
(4) On receiving such records or reports, if the State Government is satisfied that the conditions specified in subsection (1) are fulfilled, and that the order or decision for permission was not duly made on the ground that the applicant did not comply with any of the provisions of this Act or rules or regulations, it may confirm the purchase notice, or direct that planning permission be granted without condition or subject to such conditions as will make the land capable of reasonably beneficial use. In any other case, it may refuse to confirm the purchase notice, but in that case, it shall give the applicant a reasonable opportunity of being heard.
(5) If within a period of six months from the date on which a purchase notice is served the State Government does not pass any final order thereon, the notice shall be deemed to have been confirmed at the expiration of that period.
(6) Omitted.
(7) If within one year from the date of confirmation of the notice, the Appropriate Authority fails to make an application to acquire the land in respect of which the purchase notice has been confirmed as required under section 126, the reservation, designation, allotment, indication or restriction on development of the land shall be deemed to have lapsed; and thereupon, the land shall be deemed to be released from the reservation, designation, or, as the case may be, allotment, in
