IN THE HIGH COURT OF JUDICATURE AT BOMBAY
R.D.Dhanuka, M.M.Sathaye, JJ.
A.H. Wadia Trust – Appellant
Versus
State of Maharashtra – Respondent
Writ Petition No. 1347 of 2019
Decided On : 09-01-2023
Violation of Principles of Natural Justice - Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 - Sec. 13(1), Sec. 3D(b)(iii), Sec. 3B(4)(c) - Sec. 14(1) - Sec. 3C - Sec. 17 - Sec. 17A - Sec. 4(1) - Sec. 3C - Sec. 14(1) - Sec. 13(1) - DCR 33(10) - Main Legal Point
Fact of the Case:
The petitioners sought to quash an order, report, and notification issued by the respondents under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. The petitioners claimed to be the absolute owners of a piece of land and opposed the acquisition of their land as a Slum Rehabilitation Area. The respondents issued notices and conducted hearings, but the petitioners did not submit a redevelopment scheme. The Slum Authority took possession of the land and deposited compensation with the Civil Court.
Finding of the Court:
The Court found that the petitioners were not granted any reasonable time to submit a proposal for redevelopment after the issuance of the notification under Sec. 3C of the Slum Act. The Court also noted that the petitioners did not submit any scheme despite an opportunity granted by the Slum Rehabilitation Authority. The Court held that the petitioners' originating summons seeking interpretation of the Will remained pending, and they were not in a position to submit a redevelopment scheme. The Court concluded that the impugned order/notification was validly passed after applying the principles of natural justice, and no case was made out for interference.
Issues: Violation of principles of natural justice, delay in challenging the notification, failure to submit a redevelopment scheme, and the effect of the pending originating summons on the petitioners' ability to submit a scheme.
Ratio Decidendi: The Court held that the petitioners were not in a position to take any decision regarding redevelopment due to the pending originating summons. The Court also found that the petitioners did not submit any scheme despite an opportunity granted by the Slum Rehabilitation Authority. The Court emphasized that the Slum Rehabilitation Scheme has a different object under Chapter IA and that the provisions of Sec. 14 are independent. The Court considered previous judgments and held that the petitioners' failure to submit a redevelopment scheme did not entitle them to stall the redevelopment process.
Final Decision: The writ petition was dismissed, and the rule was discharged. The ad-interim order passed by the Court was vacated, and no costs were awarded to either party.
JUDGMENT
R.D.DHANUKA, J. - Rule. Mr.Shastri, learned AGP waives service for the respondent no.1. Mr.Patil, learned counsel waives service for the respondent nos.2, 3 and 4. Mr.Sakhalkar, learned counsel waives service for the respondent nos.5 and 6. Rule is made returnable forthwith.
2. By this petition filed under Article 226 of the Constitution of India, the petitioners have prayed for a writ of certiorari for quashing and setting aside the impugned order dtd. 9/2/2017, report dtd. 9/2/2017 and the notification dtd. 23/5/2018 issued by the respondents.
3. The petitioners also prayed for a writ of mandamus for an order and direction against the respondent no.2 - Slum Rehabilitation Authority (SRA) and the respondent no.3 - Chief Executive Officer (CEO) to first accord/offer a reasonable opportunity to the petitioners to redevelop the said land in accordance with the law under the provisions of Sec. 13(1) read with Sec. 3D(b)(iii) and Sec. 3B(4)(c) of Chapter IA of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 (for short "the Slum Act"). Some of the relevant facts for the purpose of deciding this petition are as under :-
4. It is the case of the petitioners that the petitioners are the absolute owners of a piece of land bearing CTS No.46, 46/1 to 39 situated at Village Sahar, Taluka Andheri, Mumbai admeasuring 3022.40 sq. mtrs. (hereinafter referred to as "the writ property"). It is the case of the petitioners that on 3/7/2015, the respondent no.6 developer approached the petitioners for purchase of the writ property. On 4 th August 2015, the respondent no.6 made an application before the CEO of SRA for seeking acquisition of land bearing CTS Nos.22, 27, 27/1 to 11, 28, 28/1, 44, 44/1 to 4, 45, 46, 46/1 to 39 as a Slum Rehabilitation Area under the provisions of Sec. 14(1) of the Slum Act without giving any notice/intimation to the petitioners.
5. On 23/9/2015, the respondent no.3 issued a notice to conduct survey of the said area. The petitioner no.1-trust opposed the said survey being conducted in such shoddy and hasty manner. Survey of the said area however, was carried out. On 16 th January 2016, the respondent no.6 made an application to the SRA for declaring the said area which includes the writ land as a Slum Rehabilitation Area. It is the case of the petitioners that the petitioners have not been issued any notice or were not informed by the respondent no.6 developer in respect of the said application dtd. 16/1/2016.
6. On 6/2/2016, the SRA issued a public notice inviting objections from the interested persons to the proposed declaration as a Slum Rehabilitation Area. The CEO of SRA issued two notices i.e. 1/3/2016 and 10/3/2016 respectively only to the respondent no.5-Society, the respondent no.6 developer and the promoter of the Thakur Chawl calling upon them to participate in a hearing to be conducted on the issue of declaration of the said area as Slum Rehabilitation Area.
7. It is the case of the petitioner that ex parte hearing was conducted by CEO of SRA on 15/3/2016 without granting any opportunity to the petitioners to participate in the same proceedings. According to the petitioners, the petitioner no.1 Trust could not take any steps to represent their side before the CEO, SRA. On 7 th April 2016, CEO of SRA passed an order declaring and notifying inter alia the writ property as Slum Rehabilitation Area in terms of Sec. 3C of the Slum Act. On 11/4/2016, a Gazette Notification was issued publishing the Notification notifying and declaring inter alia the writ land as Slum Rehabilitation Area.
8. On 30/5/2016, the SRA issued a notice to the petitioners calling upon them to show cause as to why the writ property should not be acquired under Sec. 14(1) of the Slum Act. By letter dated 14 th June 2016, the petitioners contended that the said land had not been declared as Slum Rehabilitation Area and sought inspection of all the documents. It is the case of the petitioners that as there was
The main legal point established in the judgment is the preferential right of the owner to redevelop the property under the Slum Act, the starting point for commencement of 'reasonable time' for rede....
The central legal point established in the judgment is that the lack of notice from the Respondents did not prejudice the Petitioners' rights, as they were unable to submit a redevelopment scheme due....
The court reaffirmed a landowner's preferential right to redevelop slum areas under the Maharashtra Slum Act, necessitating notice to the owner before acquisition proceedings, rendering subsequent ac....
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.
Landowners possess a primary preferential right to undertake redevelopment under rehabilitation schemes; however, this right is subordinate to statutory procedural compliance, including the mandatory....
State cannot acquire private land for slum rehabilitation without recognizing and allowing landowners' preferential rights to develop the land.
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.
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