SUPREME COURT OF INDIA
SURYA KANT, NONGMEIKAPAM KOTISWAR SINGH, JJ.
Tarabai Nagar Co-Op. Hog. Society (Proposed) – Appellant
Versus
The State of Maharashtra and others – Respondents
Civil Appeal No. 11014 of 2025 (Arising out of Special Leave Petition (C) No. 19774 of 2018)
with
The State of Maharashtra and another – Appellants
versus
Indian Cork Mills Private Limited and others – Respondents
Civil Appeal No. 11015 of 2025 (Arising out of Special Leave Petition (C) No. 25494 of 2018)
with
The Slum Rehabilitation Authority – Appellant
versus
The State of Maharashtra and others – Respondents
Civil Appeal No. 1016 of 2025 (Arising out of Special Leave Petition (C) No. 27497 of 2018)
Decided on : 22-08-2025
| Table of Content |
|---|
| 1. arguments on the legislative interpretation of the slums act. (Para 40 , 41 , 42) |
| 2. court's observations on preferential rights and necessity of notice. (Para 83 , 84 , 85 , 86 , 87) |
| 3. ratio decidendi regarding the validity of the acquisition. (Para 88 , 89 , 90 , 91 , 92 , 93 , 94 , 95 , 96 , 97 , 98 , 99 , 100 , 101 , 102 , 103 , 104 , 105 , 106) |
| 4. final conclusion and directions by the court. (Para 107 , 108 , 109) |
JUDGMENT :
SURYA KANT, J.
Leave granted.
2. The dispute which falls for consideration in these Civil Appeals pertains to the validity of the acquisition of land bearing CTS Nos. 119 I and 119 I/1-83 in Village Tungwa, Taluka Kurla, Mumbai, admeasuring 9,054 sq. m. (Subject Land), under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 (Slums Act). The High Court of Judicature at Bombay (High Court), vide the Impugned Judgments dated 13.06.2018 and 09.07.2018, has: (i) allowed the writ petition filed by the landowner; (ii) held the acquisition to be void; and (iii) directed the State of Maharashtra and the Slum Rehabilitation Authority (SRA) to invite the landowner and consider its proposal for redevelopment. The instant appeals have, thus, been preferred by the proposed housing society of slum dwellers, the State of Maharashtra, and the SRA.
A. LEGISLATIVE SCHEME
3. Before delving into the facts of this case, it may be prudent to first consider the legislative scheme of the Slums Act.
4. The Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 was originally enacted by the Maharashtra State Legislature as “[an] Act to make better provision for the improvement and clearance of slum areas in the State and their redevelopment.”
A.1 Original Framework for Slum Redevelopment (1971)
5. In its original form, the Slums Act provided a procedure for appointment of a Competent Authority (Section 3); declaration by the Competent Authority of certain slums as ‘Slum Areas’ (Chapter II); improvements to be conducted in such Slum Areas by the landowner or the Competent Authority (Chapter III); clearing and redevelopment of the Slum Areas (Chapter IV); and the acquisition of land for such redevelopment (Chapter V).
6. Given the background of the instant appeals, it seems to us that, besides the definitions contained in Section 2 of the Slums Act, Chapters IV and V thereof also merit a more detailed consideration.
7. Section 2 contains the definitions of various terms and phrases used in the Slums Act:
[xxxx]
(d) “land” includes building and also benefits to arise out of land, things attached to the earth or permanently fastened to anything attached to the earth;
(e) “occupier” includes,—
(i) any person who for the time being is paying or is liable to pay to the owner the rent or any portion of the rent of the land or building in respect of which such rent is paid or is payable;
(ii) an owner in occupation of, or otherwise using, his land or building;
(iii) a rent-free tenant of any land or building;
(iv) a licensee in occupation of any land or building; and
(v) any person who is liable to pay to the owner damages for the use and occupation of any land or building;
(f) “owner”, when used with reference to any building or land, means the person who receives or is entitled to receive the rent of the building or land, if the building or land were let, and includes,—
(i) an agent or trustee who receives such rent on account of the owner;
(ii) an agent or trustee who receives the rent of, or is entrusted with, or concerned for, any building or land devoted to religious or charitable purpose;
(iii) a receiver, sequestrator or manager appointed by a court of competent jurisdiction to have the charge of or to exercise the rights of owner of the said building or land; and
(iv) a mortgagee-in-possession; but does not include, a slumlord;
[xxxx]
(h) “slum clearance” means the clearance of any slum area by the demolition
Atesham Ahmed Khan v. Lakadawala Developers Pvt. Ltd.
Awdesh Vasistha Tiwari v. Chief Executive Officer, Slum Rehabilitation Authority
The court established that a notice under Section 13 is mandatory for the 120-day period to commence, affirming the landowner's preferential right to develop slum rehabilitation areas.
The court reaffirmed that the preferential right of a landowner over slum redevelopment schemes must be respected before any acquisition is initiated under relevant legislation.
State cannot acquire private land for slum rehabilitation without recognizing and allowing landowners' preferential rights to develop the land.
Slum rehabilitation – Private agreements cannot be enforced in Slum Rehabilitation Schemes as against statutory mandate of SRA.
The Slum Rehabilitation Authority can terminate a developer's appointment for inordinate delays in scheme implementation, emphasizing the developer's obligation to act proactively.
The main legal point established in the judgment is that once land is acquired by the State Government under the Maharashtra Slum Areas Act, it vests absolutely in the State Government free from all ....
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