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2023 Supreme(Bom) 2282

IN THE HIGH COURT OF BOMBAY
N.J.Jamadar, J.
Dhanista Builders And Developers - Appellant
Versus
Municipal Corporation Brihanmumbai Municipal Corporation - Respondent
Appeal From Order No. 245 of 2023
Decided On : 03-10-2023

Advocates appeared:
Uday Warunjikar, Advocate, Kiran Kulkarni, Advocate, Neha Bachim, Advocate, Narendra Walawalkar, Advocate, Smita Tondwalkar, Advocate, Rajendra Bhoi, Advocate, Architect, Advocate, S.B.Shinde, Advocate, R.S.Bonde, Advocate

IMPORTANT POINT
A property owner can seek an injunction against unauthorized construction on their property without necessarily claiming possession, especially when the construction affects their rights and interests.

Headnote:

INJUNCTION - PROPERTY DISPUTE - MUMBAI MUNICIPAL CORPORATION ACT, 1888 - SEC. 527 - The court discussed the provisions of Section 527 of the Mumbai Municipal Corporation Act, 1888, which mandates a notice to the Municipal Corporation before instituting a suit against it. The court interpreted this section in the context of the plaintiff's claim of ownership and the defendants' actions regarding the construction of a dispensary on the property. The court found that the plaintiff's failure to provide proper notice and the timing of the suit raised questions about its maintainability, but ultimately decided that the issues of title and the nature of the jural relationship between the parties required further adjudication.

Fact of the Case:

The plaintiff, a proprietary firm, acquired a property with existing tenanted structures and sought to restrain the Municipal Corporation from constructing a new dispensary on the land, claiming it was done without consent and violated his rights. The Municipal Corporation argued that the dispensary was necessary for public health and had been in existence since 1998.

Finding of the Court:

The court found that the trial court had inconsistently ruled on the plaintiff's title to the property and misapplied legal principles regarding the maintainability of the suit. It noted that the plaintiff's claim was not merely about possession but about unauthorized construction on his property.

Issues: Whether the plaintiff had established prima facie title over the suit property, whether the suit was maintainable under Section 527 of the MMC Act, and whether the Municipal Corporation could construct a new dispensary without the plaintiff's consent.

Ratio Decidendi: The court held that the plaintiff's claim for an injunction was maintainable despite not seeking possession, as the core issue was the unauthorized construction on his property. It emphasized that the Municipal Corporation must follow due process in such developments, and the trial court's findings on title were contradictory and required clarification.

Final Decision: The appeal was partly allowed, the trial court's order was quashed, and the Municipal Corporation was restrained from constructing a building beyond the dimensions of the original dispensary. The court clarified that the Municipal Corporation could reconstruct a building equivalent to the original structure but could not claim any equities for the development.

JUDGMENT/ORDER

N.J.JAMADAR, J. - This appeal is directed against an order dtd. 13/3/2023, passed by the learned Judge, City Civil Court, Greater Bombay, in Notice of Motion No.726 of 20223 in LC Suit (L) No.1901 of 2023, whereby the learned Judge was persuaded to dismiss the Notice of Motion taken out by the plaintiff to restrain respondent Nos.1 to 4 defendant Nos.1 to 4 from constructing a building for Dispensary on a plot of land bearing CTS No.139 (Pt), 140, 140/1 to 15 situated at Parsi Wadi, Near Jai Maharashtra Ganesh Maidan, Ghatkopar (West), Mumbai, ("the suit property') till the final disposal of the suit.

2. For the sake of convenience and clarity, the parties are hereinafter referred to in the capacity in which they are arrayed before the City Civil Court.

3. The background facts leading to this appeal can be summarized as under:

<WXY>(a) The plaintiff is the proprietary firm of Devdas Bhujang Rao. He deals in the business of construction and real estate development. Mr. Dhirajlal Mehta and Anil Kumar Mehta were the holders of the suit property. The plaintiff acquired the suit property under a registered conveyance dtd. 1/2/2011 on 'as is where is basis'. The suit property admeasures 1199 sq. mtrs. or 12, 906 sq. ft. comprising fully tenanted structures standing thereon. Under the deed of conveyance the plaintiff was entitled to the compensation for the structures standing thereon in the event of any development in future.

(b) The plaintiff claimed to have been in possession of the suit property since year 2011. The suit property was affected by reservation for public ground and Gym. Since the suit property is totally encroached by tenanted structures, Brihanmumbai Municipal Corporation ("BMC') constructed WC structures for the occupants and also a Dispensary on the land reserved for Gym for the benefit of those occupants. However no part of the land, the plaintiff asserts, was ever reserved for Dispensary and it was built for the convenience of the occupants.

(c) The plaintiff claimed to have submitted a proposal to Slum Rehabilitation Authority (SRA) for the development of the suit property under Slum Rehabilitation Scheme ' Regulation 33(10) of Amended DCR 1991. The plaintiff decided to incorporate Municipal Dispensary in the proposed development. The Executive Health Officer ' defendant No.4 vide communication dtd. 1/9/2015 conveyed to the Executive Engineer (SRA), no objection for development of Dispensary subject to the Dispensary admeasuring at least 350 sq. mtrs. being reconstructed in the developed structure.

(d) While the redevelopment proposal awaited a decision of SRA, the plaintiff avers, BMC, of whom defendant No.1 is the Commissioner, defendant No.2; the Assistant Commissioner, and Defendant No.3; the Executive Engineer, started work of demolition of the then existing Dispensary over a portion of the suit property. It transpired that BMC had decided to construct a three storey structure utilising the entire FSI jeopardising the SRA Scheme. BMC did not either inform or seek the consent of the plaintiff about the proposed development. Without seeking consent or acquiring the suit property, of which proprietary title vests in the plaintiff, BMC went ahead with the work of demolition and construction of a three storey structure without any sanction and authority. Hence, the plaintiff addressed a letter on 2/6/2021 to defendant No.2. Later on, a legal notice was addressed on 29/8/2022 calling upon BMC not to proceed with the proposed development. As the defendants paid no heed and continued to carry on the development, the plaintiff was constrained to institute the suit for perpetual injunction.

(e) In the said suit, the plaintiff took out a Notice of Motion seeking to restrain the defendants from constructing any building for Dispensary till the disposal of the suit.

(f) The respondent No.1 - Defendant No.1 resisted the suit by filing an affidavit-in-reply and written statement. Tenability of the suit was con

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