IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A.S. OKA & S.C. GUPTE, JJ.
M/s. La’ BuilDe Corporation
Vs.
Union of India & Ors.
Writ Petition No. 1190 of 2004
Decided On: 9th January, 2014
Constitution of India - Articles 226 and 227 - Conversion of land. - Since petitioners are not interested in obtaining conversion of land as per revised policy of Govt. hence respondent/Govt. must return earnest money deposited by petitioner with interest @ 9% p.a.
Constitution of India - Articles 226 and 227 - Conversion of land from lease hold to free hold. - Since conversion of land from lease hold to free hold is permissible subject to approval of Govt. of India hence non-signing of policy by concerned Minister is of no consequence.
Constitution of India - Articles 226 and 227 - Conversion of land. - Conversion of land from lease hold to free hold is permissible on payment of conversion cost subject to approval of Govt. of India.
A.S. OKA, J.
By order dated 9th September 2013 passed by the Apex Court, a direction has been issued to dispose of this Writ Petition within a period of four months from the date of the said order. Only in view of the order of the Apex Court that we have given priority to the hearing of this Petition though Writ Petitions from the year 1997 are pending in this Court for final hearing which include even matters of senior citizens. On 5th, 11th, 12th December 2013 and today, we have heard Shri Bhagwanji Raiyani, a partner of the Petitioner firm appearing in person, Shri S.R. Rajguru for Union of India and Shri K.J. Presswala for Respondent No. 3-the Chief Executive Officer, Cantonment, Pune. With a view to appreciate the submissions, it is necessary to make a reference to the facts of the case in brief.
2. Initially, there were four Petitioners and the present Petitioner was the fourth Petitioner. Later on the names of the first three Petitioners were deleted. On 14th March 1907, the Secretary of State for India in Council granted perpetual lease in respect of the land in question bearing Survey No. 390/2992 and House No. 2401-A admeasuring about 5992.56 sq. meters (for short "the said land") situated within the limits of the Pune Cantonment Board. The lessee was one Jussuff Hussein Jaffer. Subsequently, the said lease was transferred in the joint names of Ms. Khorshed Kaikhsuroo Parvi and Shri D.C. Supariwalla. The said Ms. K.K. Parvi and Shri D.C. Supariwalla assigned leasehold rights in respect of the said land in favour of 1st to 3rd Petitioners in this Petition by a registered Deed of Conveyance dated 22nd December 1980. The 1st to 3rd Petitioners by an agreement dated 18th October 1982 agreed to sell, assign or grant development rights in respect of the said land to the 4th Petitioner which is now the only Petitioner in this Petition. There was a dispute between the 1st to 3rd Petitioners and the present Petitioner which was referred to arbitration. An award was made by the learned Arbitrator which was subjected to a challenge by filing an Arbitration Petition in this Court. The present Petitioner (original 4th Petitioner) claims that on the basis of the compromise arrived at in the Arbitration Petition, the present Petitioner acquired right, title and interest in respect of the said land from the 1st to 3rd Petitioners. The present Petitioner is relying upon the Power of Attorney executed by the original 1st to 3rd Petitioners in favour of Shri Bhagwanji Raiyani and Shri Rajesh N. Sakla to enable them to carry on development of the said land.
3. The case made out by the Petitioner is that an application was made on 12th October 1992 for grant of building permission and for conversion of the tenure of the said land to free-hold tenure. According to the case of the Petitioner, the said proposal was processed and the Director of Defence Estates directed the Petitioner to deposit a sum of Rs.36,53,617 being the 25% of the total premium of Rs.1,46,14,468/-. Reliance is placed on the letter dated 1st February 1996 issued to the Constituted Attorney of Shri Supariwalla and Ms. Parvi by the Chief Executive Officer of the Pune Cantonment Board. Accordingly, on 9th February 1996, the Petitioner deposited a sum of Rs.36,53,617/-. Reliance is placed on the letter dated 4th April 1996 sent by the 4th Respondent to the Director General of Defence Estates requesting for grant of sanction for conversion. The Petitioner addressed a letter to the 1st Respondent/Union of India on 10th June 1998 complaining about the delay in sanctioning the application. By a letter dated 20th June 1998, the 3rd Respondent demanded a further amount of Rs.13,85,482/- from the Petitioner being 25% of the differential amount payable towards the difference between the premium payable in the year 1996 and the premium payable in the year 1998 for conversion of land into a free-hold land. The Petitioner stated that under protest, he paid the said amount. The P
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