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 reasonabl