JUDGMENT :

G.S. Patel, J.

1. Notice was issued for final disposal at the admission stage. There is an Affidavit in Reply. Hence, Rule, returnable forthwith.

2. We have heard Ms Druti Datar for the Petitioner and Mr Pitale for the sole Respondent, the Municipal Corporation of City of Thane.

3. The Thane Municipal Corporation (“TMC”) insists that a particular reservation continues on a tract of land that belongs to the Petitioner. When the Petitioner applied for a building or development permission, the TMC imposed a condition that the land reservation’s requirement must be met. This condition, styled as Condition No. 1, is said by the TMC to be a reservation for what is called MHADA Housing Site-A for a plot bearing Survey No. 59/A Hissa No. 2/G/2/1 and Gat No. 59/A Hissa No. 2/H situated at Chitalsar, Manpada, Taluka and District Thane. The Development Proposal is No. 2005/160. The Petition seeks that this condition be quashed. According to Ms Datar, this reservation does not subsist. It was deleted following a sanctioned modification to the Development Plan. The TMC cannot insist that this reservation continues. The second prayer is for a mandamus to direct the TMC to approve the Petitioners’ revised building proposals dated 21st February 2022 and 4th May 2022 in respect of lands situated at 59A, Hissa 3B/1/1, 3B/1/2A, 3B/1/2B, 3B/1/2C, 3B/2/1, 3B/4/1, 3B/5, 16/3B/6, 2H, 2/G/2/1, 2/G/2/2, 16B/2/1/2/1, 16B/2/1/2/2 at Village Chitalsar, Manpada, Thane.

4. A short statement of facts will be necessary. These are somewhat complicated. They spiral in different directions, but ultimately funnel to the narrow point we have identified at the forefront.

5. On 6th July 1960, a firm called D Dahyabhai & Co purchased 16 annas of an undivided share in a tract of land known as Manpada Estates at Chitalsar, Manpada, Thane. The total land in question was 433 acres and 36.3/4 Gunthas. At that time, the Urban Land (Ceiling and Regulation Act), 1976 (“ULC Act”) was in force. There came to be passed an order under Section 8 (4) of the ULC Act declaring 3,10,079 sq mts of the purchased land as surplus vacant land. There then followed a notification dated 29th April 1983 under Section 10(2) and Section 10(3) of the ULC Act. The surplus land was deemed to have been acquired by the State Government with effect from 30th August 1983. On 6th February 1987 by a special allotment order, the State of Maharashtra allotted 88,971 sq mts out of the total surplus land to Maharashtra Housing and Area Development Authority (“MHADA”). Possession of this portion was handed over to MHADA on 29th April 1988.

6. D Dahyabhai & Co filed Writ Petition No. 1927 of 1988 assailing the orders under the ULC Act. This writ petition failed. D. Dahyabhai & Co took the matter higher to the Supreme Court and obtained an order of status quo.

7. On 12th November 1988, D Dahyabhai & Co applied to the State Government for retention of 40% of the total surplus land, i.e., 88,971 sq mts.

8. There followed a communication dated 25th January 1989 addressed by the State of Maharashtra through the Housing and Special Assistance Department to the Chief Executive Officer of MHADA requesting him to deliver physical possession of 35,588.40 sq mts to D Dahyabhai & Co. This represented 40% of the total surplus land of 88,971 sq mts. The CEO of MHADA was asked to take steps to utilize the remaining 60% of the land.

9. On 27th January 1989, there followed from the State Government a formal order of exemption under Section 20 of the ULC Act. This order directed that an area admeasuring 35,588.40 sq mts, that is to say, 40% of the total surplus land, was permitted to be retained by the owner for development. This area of 40%, i.e., 35,588.40 sq mts, was, therefore, retention land. On 7th April 1989, physical possession of this area of 35,588.40 sq mts of the exempted or retention land was given to D Dahy