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2020 Supreme(Bom) 1091

IN THE HIGH COURT OF BOMBAY
NITIN JAMDAR, MILIND N. JADHAV, JJ.
Dyna Estate Pvt. Ltd. and Another – Petitioners
Versus
State of Maharashtra and Others – Respondents
Writ Petition (L) No. 2672 of 2020
Decided On : 22-12-2020

Advocates:
Advocate Appeared:
For the Petitioners: Birendra Saraf, Mayur Khandeparkar, Vaibhav Charalwar, Viloma Shah, Dhiren Durante.
For the Respondents: P.K. Dhakephalkar, Vijay Patil, Kedar Dighe, Aspi Chinoy, Chirag Balsara, Kartikeya Desai, Asadali Nazgoanwala, Kartikeya, Shrinivas Bobde, Neha Bhosale, Rohit Jadhav, S.U. Kamdar, J.G. Aradwad.

Headnote:

The Court held that the Petitioners' challenge to the acceptance of the proposal of Precaution on the ground of lack of 70% consents at the time of acceptance of the proposal cannot be accepted. The Court also held that the challenge to the Circular No. 176 dated 2 January 2017 and Clause-6 thereof cannot be entertained at the behest of the Petitioners as the Petitioners have not shown prejudice if the financial capacity of holding company is considered as a matter of policy.

Fact of the Case:

The Petitioners, a developer and a proposed co-operative society of slum dwellers, have filed this writ petition challenging the decision of the Slum Rehabilitation Authority to grant the slum rehabilitation scheme on C.S. No. 599 and 658 at Cuffe Parade, Mumbai admeasuring 113321.54 square meters to Respondent No. 5.

Finding of the Court:

The Court found that the Petitioners had submitted its proposal one year after the proposal of Precaution, and it is mala-fide as it is filed with full knowledge of the proposal of Precaution to deliberately lodge and keep it pending. The Court also found that the proposal of the Petitioners having been submitted through dispatch was not as per Regulations.

Issues: 1. Whether the Petitioners' challenge to the acceptance of the proposal of Precaution on the ground of lack of 70% consents at the time of acceptance of the proposal can be accepted? 2. Whether the challenge to the Circular No. 176 dated 2 January 2017 and Clause-6 thereof can be entertained at the behest of the Petitioners?

Ratio Decidendi: 1. The Court held that the Petitioners' challenge to the acceptance of the proposal of Precaution on the ground of lack of 70% consents at the time of acceptance of the proposal cannot be accepted because: * The proposal of Precaution on its face showed 70% consents of eligible slum dwellers. * The Petitioners' argument that rigorous scrutiny should have been carried out at the pre-scrutiny stage, and the number given in the application must stand frozen, is not correct. * The Apex Committee had only directed the CEO to prepare a report and had not delegated decision making power to the CEO, SRA. 2. The Court held that the challenge to the Circular No. 176 dated 2 January 2017 and Clause-6 thereof cannot be entertained at the behest of the Petitioners because: * The Petitioners have not shown prejudice if the financial capacity of holding company is considered as a matter of policy. * The requirement of furnishing Annexure-III and the objectives of the slum rehabilitation scheme generally did not bar considering the financial capacity of the holding company. * The circular, therefore, was clarificatory.

Final Decision: The Court dismissed the Writ Petition.

JUDGMENT :

NITIN JAMDAR, J.

1. The Petitioners, a developer and a proposed co-operative society of slum dwellers, have filed this writ petition challenging the decision of the Slum Rehabilitation Authority to grant the slum rehabilitation scheme on C.S. No. 599 and 658 at Cuffe Parade, Mumbai admeasuring 113321.54 square meters to Respondent No. 5. Petitioners have challenged the rejection of their proposal for 7252 sq. meters out of C.S. No. 658. Petitioners have also challenged the order passed by the Apex Grievance Redressal Committee rejecting their application challenging the orders of the Authority.

2. Dyna Estate Private Limited, Petitioner No. 1 is engaged in the business of construction and redevelopment. Dr. Babasaheb Ambedkar Nagar Sahakari Griha Nirman Sanstha (Proposed), Petitioner No. 2-is a proposed Co-operative housing society stated to be formed by slum dwellers residing on the plot C.S. No. 658(97/B). The Respondent Nos. 2 to 4 are the authorities and officers of Slum Rehabilitation Authority constituted under the Maharashtra Slum Areas (Improvement, Clearance And Redevelopment) Act, 1971, the Slum Act. Precaution Properties Private Limited, the Respondent No. 5, a subsidiary of Shappoorji Pallonji Limited, is a developer whose proposal for implementing the slum rehabilitation scheme on plot Nos. 599 and 685 is accepted. Respondent No. 6 is Cuffe Parade SRA Co-operative Housing Society Federation (Proposed), which has appointed Respondent No. 5 as a developer. Respondent No. 7 is the Apex Grievance Redressal Committee.

3. The land admeasuring 113321.54 sq. meters on C.S. Nos. 599 and 658 at Cuffe Parade, Colaba, Mumbai is owned by the State Government. A large number of slum dwellers are residing on these plots. After a decision was taken for an integrated slum rehabilitation scheme of this area, several proceedings filed by different parties have ensued in the last decade and a half. Details of all the proceedings are not necessary. Proceedings have been narrated chronologically only to give a backdrop to the impugned orders. Later, we have culled out the specific facts in the context of the submissions of the parties.

4. For the sake of simplicity of narration, the Petitioner No. 1 and Petitioner No. 2 have been referred as ‘Petitioners’ unless otherwise specifically required. Respondent No. 5- Precaution Properties Private Limited and Respondent No. 6-Cuffe Parade SRA CHS Federation (Proposed) are joint in their interest for implementing the scheme and for the purpose narration, reference is only made to ‘Precaution’. The Slum Rehabilitation Authority is referred to as ‘SRA’. The Apex Grievance Redressal Committee is referred to as ‘the Apex Committee’. The requirement of consent of 70% of eligible slum dwellers is referred to as ‘70% consent’. Letter of Intent is referred to as ‘LOI’. The Chief Executive Officer of the Slum Rehabilitation Authority is referred to as ‘CEO.’ The submission of slum rehabilitation scheme is referred to as ‘proposal’.

5. The starting point for narration of facts is the proposal submitted by one Plymouth Construction Private Limited to Mumbai Metropolitan Region Development Authority on 30 July 2004 for development of the plots in question. The Mumbai Metropolitan Region Development Authority, MMRDA, informed Plymouth Construction to get the details of the slum dwellers from the Deputy Collector (Enc./Rem.), the Competent Authority. The Competent Authority found that 2360 slum dwellers were eligible for rehabilitation. On 17 July 2009, it was decided that the proposal of Plymouth Construction cannot be considered by MMRDA and needs to be forwarded to the SRA. In the meanwhile, the proposals were submitted to the SRA by other developers such as Home Land Creators on 8 February 2000, Sneh Developers on 22 May 2009, Doshi Darshan Group on 9 September 2009 and Shree Lekha Enterprise on 28 October 2009. Since the SRA was considering other proposals, Plymouth Construction applied to the Ap

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