2023 Supreme(Bom) 1648
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Milind N. Jadhav, J.
Gemini Developers (Through its authorized representative Mr. Deep Malhotra) - Petitioner
Versus
State of Maharashtra & Ors. - Respondents
Writ Petition No. 103 of 2020
Decided On : 15-12-2023
For the Petitioner:Mr. Anoshak Daver a/w. Ms. Deepa Pahuja i./by J Law Associates, Advocates
For the Respondent:Mr. Manish Upadhye, AGP, Mr. Jagdish G. Aradwad (Reddy), Advocate, Mr. Vijay Singh i./by Desai Legal, Advocate
Headnote:
Writ Petition - Challenge to AGRC Order - Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 - Summary of Acts and Sections: The court discussed the provisions of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, particularly focusing on the SRA office order dated 23.03.2015. The court highlighted the exemption clause (ix) of the office order, which was central to the decision.
Fact of the Case:
The Writ Petition challenged the AGRC order directing the Petitioner to pay additional fees and complete the slum rehabilitation project within 24 months, based on a change in the Developer from a proprietorship to a partnership firm.
Finding of the Court:
The court found that the Petitioner, as a partnership firm comprising the legal heirs of the deceased sole proprietor, was exempt from paying the additional fees as per the SRA office order dated 23.03.2015. The court also directed the authorities to grant necessary permissions for the project's completion and left open the possibility of considering the Petitioner's application for an extension beyond the 2-year period.
Issues: The key issue was whether the Petitioner, as a partnership firm formed after the demise of the sole proprietor, was liable to pay the additional fees as per the SRA office order dated 23.03.2015.
Ratio Decidendi: The court held that the exemption clause (ix) of the SRA office order applied to the Petitioner's case, as the conversion from a proprietorship to a partnership firm was not intended to induct any third party but only the legal heirs, and therefore, the Petitioner was not liable to pay the additional fees.
Final Decision: The court quashed and set aside the direction for the Petitioner to pay the additional fees and directed the authorities to proceed with granting necessary permissions for the project's completion. The court also left open the possibility of considering the Petitioner's application for an extension beyond the 2-year period.
JUDGMENT :
1. This Writ Petition is filed under the provisions of Articles 226 and 227 of the Constitution of India seeking to partially challenge order dated 28.06.2019 passed by the Respondent No.2 i.e. Apex Grievance Redressal Committee (for short “AGRC”) in Appeal No.09 of 2015 directing the Petitioner to pay an additional 5% of the land cost as per the annual schedule of rates on account of there being a change in the Developer and in consonance with Slum Rehabilitation Authority (for short “SRA”) office order dated 23.03.2015.
2. By consent of all parties, hearing of this Writ Petition is taken up finally, considering that completion of redevelopment of the subject slum rehabilitation project has been stalled in the meanwhile.
3. Such of the relevant facts necessary for adjudication of the present lis are briefly outlined herein under:-
3.1. Petitioner i.e. M/s. Gemini Developers are owners and Developers of private property bearing CTS Nos. 88, 89, 90 of Village Kolekalyan, Santacruz (East), Mumbai – 400 055 (for short “the said property”) which has been declared as ‘Slum’ under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 (for short “the said Act”). The said property has 172 eligible slum dwellers entitled for rehabilitation. In the year 2003, M/s. Gemini Developers, a sole proprietorship concern of one Mr. Ramesh Malhotra, predecessor of the present Petitioner was appointed as Developer by Respondent No.6 – Society. Between the years 2006 and 2016, series of developments took place whereby ultimately all eligible slum dwellers were either accommodated in the transit accommodation on the said property itself or they accepted transit rent and moved out. Some of the non-cooperative slum dwellers filed proceedings before the Respondent No.4 - Competent Authority which were also disposed. In the year 2015, Writ Petition (L) No.2387 of 2015 was filed by Respondent No.6 - Society in this Court, seeking a stay on the election result confirming the Petitioner as Developer and the same was also disposed on 26.08.2015. Finally, Respondent No.6 - Society represented by some members from the non co-operative and non-vacating 22 tenements, a miniscule minority, filed Appeal No.09 of 2015 before the High Power Committee (now AGRC) challenging the order dated 20.08.2015 passed by Respondent No.3 – Chief Executive Office, Slum Rehabilitation Authority (for short “CEO, SRA”).
3.2. The Petitioner, at the then time was the sole proprietorship concern of one Mr. Ramesh Malhotra. He expired on 08.03.2016, leaving behind his Will dated 18.02.2014 bequeathing the subject slum rehabilitation project undertaken by the proprietory concern in favour of his wife and son. Immediately before his demise, Mr. Ramesh Malhotra formed a partnership firm in the same name i.e. M/s Gemini Developers and converted the original proprietorship concern into a partnership firm by inducting his wife and son (his legal heirs) as the two other partners alongwith him. The reason for doing so was because at the then time in the year 2015-2016, Mr. Ramesh Malhotra suffered from cardiac arrest and renal failure and in order to ensure that the subject slum rehabilitation project was continued and taken to its fruition, he devised this method of converting the sole proprietorship concern into a partnership firm alongwith his own legal heirs. Immediately within 2 months of forming the partnership firm and converting the sole proprietorship concern into partnership firm, Mr. Ramesh Malhotra expired on 08.03.2016.
3.3. Taking advantage of the situation, Respondent No.6 - Society filed Writ Petition No.70 of 2017, however, in the light of the above development, by order dated 26.07.2018, this Court remanded the case to the Respondent No.2 – AGRC to decide on the said issue and the grievance raised by the Respondent No.6 - Society in the light of the demise of Mr. Ramesh Malhotra.
3.4. By order dated 28.06.2019, the Appeal filed by Respondent No