JUDGMENT - SHAH A.P., J.:---By this petition under article 226 the municipal council of Sirur seeks to challenge the allotment of the land comprised in reserved site No. 57 in the development plan by the State Government to respondent No. 2 Shri Ramalinga Co-operative Industrial Vasahat, Society.

2. The petitioner municipal council is established as per the provisions of section 8 of the Maharashtra Municipalities Act, 1965. In 1979 the petitioner published a draft development plan for the municipal area of Sirur in accordance with section 33 of the Maharashtra Regional Town Planning Act, 1966 ('the Act', for short). Under the draft plan site No. 57 is reserved for municipal industrial estate. The area of the said site in hectare is 7.94. This site consists of two lands which are revenue survey Nos. 1130 and 47. The draft development plan was submitted to the State Government for its sanction along with report prepared by the town planner. So far as the reservation of site No. 57 as municipal industrial estate is concerned, the report reads as under :

“Sirur town has got excellent communication facilities by road and it would be an ideal place for industrialisation if additional supply of water and power is made available and requisite arrangement for disposal of waste is made properly. The municipal council has already initiated augmentation of water supply scheme which can feed to certain extent industrial water demand. Industrial zone was proposed on Pune-Nagar and along Pabal road in sanctioned Development Plan. It is a Government land. Now that Government has adopted decentralization policy for industry and that Bombay Pune regions have become restricted, small towns such as Sirur can attract the future industries. As such industrial zone of sanctioned Development Plan is being reserved as 'Municipal Industrial Estate'. This would encourage local industrialist as Municipal Council would develop lands. The cement works factory is also started along south-west border of municipal limits. Adjoining area is also now proposed for industrial zone.”

3. On September 27, 1983 the State Government sanctioned the said draft development plan submitted by the petitioner municipal council. As per the sanction granted by the Government, the plan became operative from December 1, 1983. In the meanwhile, on February 5, 1981 the State Government issued a notification dissolving all the municipal councils in the State including municipal council of Sirur. At that time the statutory tenure of Sirur municipal council was already over. After the said notification, the authority, powers and functions of the municipal council vested in the administrator who was appointed by the State Government.

4. On February 4, 1984, the 3rd respondent who was a local M.L.A., made an application to the Chief Officer of the municipal council describing himself as the chief promoter of respondent No. 2 Shri Ramalinga Co-operative Industrial Vasahat, Society for issuing a no objection certificate for allotment of survey No. 1130 which is a reserved site for municipal industrial estate to the respondent No. 2 society. The application made by the respondent No. 3 reads as follows :

“The proposed Ramaling Industrial Co-operative Institute has proceeded for establishing an Industrial Estate on a co-operative principle at Sirur, Ghodnade. The Co-operative Industrial Institute is in need of a land and it is found that S.No. 1130 Sirur has been reserved for Industrial Estate. The said land is intended to be obtained for the proposed institute and therefore no objection certificate is to be taken from your office. Therefore it is prayed that, no objection certificate should be issued.”

5. It appears that on the same day the Chief Officer of the municipal council put up a draft letter before the administrator pointing out to the administrator the position of the land in question and the necessity of taking Government sanction. But it appears that the administrator scored out

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