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2024 Supreme(Bom) 38

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A.S. CHANDURKAR, FIRDOSH P. POONIWALLA, JJ.
Bhupendra Villa Premises Co-operative Society Limited and Ors. – Petitioners
Versus
The Union of India, Through General Manager and Ors. – Respondents
Writ Petition No.2291 Of 2022
Decided On : 02-01-2024

Advocates Appeared:
For the Petitioners: Mr. Vineet B. Naik, Sr. Adv. a/w. Adv. Amod Eklaspur, Adv. Ayaz Bilawala and Adv. Yogesh A. Gaikwad i/b. M/s. Bilawala & Co.
For the Respondents: Adv. R.P. Ojha with Adv. Ankit Ojha, Adv. Kirti Ojha and Adv. Rakesh Dubey.

The refusal of a No Objection Certificate for redevelopment based on misinterpretation of lease terms was deemed arbitrary, reinforcing the need for state entities to act fairly under Article 14 of the Constitution.

Headnote:(A) Indenture of Lease - Clauses 2(l), 2(d), 2(j), 2(m), and 2(n) - Mumbai Municipal Corporation Act, 1988 - Section 354 - Writ for NOC for redevelopment denied; impugned order quashed due to unfair reasons; clarity on ownership rights over building and land. (Paras 1-59)

(B) Article 14 of the Constitution of India - Requirement of fair and just action by state entities; unreasonable refusal of NOC deemed arbitrary. The Respondents cannot refuse NOC unreasonably. (Paras 56-58)

Facts of the case:
The Petitioners intend to redevelop a dilapidated building on leased land; prior NOC for redevelopment was wrongfully denied based on misinterpretation of the lease.

Findings of Court:
Respondents acted unreasonably in refusing the NOC; the Petitioner is entitled to redevelop their building, subject to compliance with existing building line restrictions.

Issues: Ownership rights under an Indenture of Lease; appropriateness of Writ jurisdiction in addressing contractual interpretation.

Ratio Decidendi: The Court clarified that owners of developments have rights that should not be arbitrarily denied by state entities, reinforcing that lease terms can allow redevelopment.

Result: Writ Petition accepted; NOC mandated to be issued.

Table of Content
1. request for writs on land redevelopment (Para 1 , 2)
2. historical background of the land lease (Para 3 , 4 , 5 , 6 , 7 , 8)
3. building condition and redevelopment plans (Para 9 , 10 , 11 , 12 , 13 , 14)
4. timeline of noc application rejections (Para 20 , 21 , 22)
5. court’s reasoning on noc denial (Para 26 , 27 , 28)
6. interpretation of lease terms (Para 29 , 30 , 31 , 32 , 33)
7. legal principles on ownership and lease (Para 37 , 38 , 39)
8. defending the noc's necessity and reasonableness (Para 46 , 47 , 48)
9. writ petition considerations against contractual disputes (Para 53 , 54)
10. final orders and directives (Para 58)

JUDGEMENT

(Firdosh P. Pooniwalla J.) :-

1. Rule. Rule made returnable forthwith. Heard finally by consent of the parties.

2. The present Petition seeks the following final reliefs:

    “a. This Hon'ble Court be pleased to issue a Writ of Certiorari or a Writ in the nature of Certiorari or any other appropriate Writ, Order, or direction thereby calling for the records & proceedings in respect of the Impugned Letter i.e., Letter dated 01/02/2022 issued by Respondent No. 2; and after perusal of the records & proceedings be pleased to quash and set aside the Impugned Letter dated 01/02/2022 being Exhibit 'A' hereto;

    b. This Hon'ble Court be pleased to issue a Writ of Mandamus or a Writ in the nature of Mandamus or any other appropriate Writ, Order, or direction thereby directing the Respondent Nos. 1 to 5 to issue a No Objection Certificate for the redevelopment of subject land situated at Jame Jamshed Road, F/North Ward, Matunga (C.R.), Mumbai - 400 019;

    c) This Hon'ble Court be pleased to issue a Writ of Prohibition thereby restraining the Respondent Nos. 1 to 5 or any person claiming through them; from interfering or obstructing or hindering the redevelopment of subject land situated at Jame Jamshed Road, F/North Ward, Matunga (C.R.), Mumbai - 400 019.”

3. The land, which is the subject matter of the present Writ Petition, is land admeasuring 935.62 sq. mtrs. or thereabouts, bearing C.S. No.748/10 of Matunga Division, and Plot No.546 situated at Jame Jamshed Road, F/North Ward, Matunga (C.R.), Mumbai – 400019 (“the said land”).

4. By an Indenture of Conveyance dated 7th December 1926, executed by the Trustees of Improvement of City of Bombay, the said land was vested in the Secretary of the State for India in Council (the predecessors of Respondent no.1).

5. By an Indenture of Lease dated 14th November 1940 (“the said Indenture of Lease”) , the said land was leased by the Governor-General of India in Council to Bai Champa for a term of 999 years commencing from 16th June 1939.

6. In about 1940, a ground plus two-storey building, with 12 flats and a garage, was constructed by the original lessee on the said land.

7. On 9th August 1955, by a Deed of Transfer, the said land was assigned by Bai Champa to her three sons, Bhai Harshadlal Doongersey, Bhai Bhupendra Doongersey and Bhai Suryakant alias Suresh Doongersey. The said assignment was consented to by Respondent no.5 on behalf of the President of India.

8. In about 1967/1968, an additional storey comprising of 4 flats and 2 garages was constructed on the existing structure and the building came to be known as ‘Bhupendra Villa’. The Petitioner no.1 Society was formed by occupants of the building and the former co-owners of the building. At present, Petitioner no.1 Society comprises of 19 members and houses 38 individuals, including 20 Senior Citizens and 3 children.

9. The construction activity undertaken in 1967/1968 was consented to by the General Manager (W) on behalf of the Chief Engineer, Central Railway, vide letter dated 2nd May 1968.

10. By a Deed of Assignment dated 7th March 1973, the said land was assigned by Bhai Harshadlal Doongersey, Bhai Bhupendra Doongersey and Bhai Suryakant alias Suresh Doongersey in favour of the Petitioner no.1 Society. The Assignment of the said Indenture of Lease was consented to by Respondent no.5 for and on behalf of the

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