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2024 Supreme(Bom) 1036

AMIT B. BORKAR
Prithvi Infra Projects – Appellant
Versus
Apex Grievance Redressal Committee – Respondent


Advocates:
Advocate Appeared:
For the Appellants : Girish S. Godbole, Altaf Khan, Akash Bhagat
For the Respondents: Jagdish G. Aradwad, Vijay Patil, Yogesh Patil, Sanjeev Gorwadkar, Nitesh Acharya, Akash Mangalgi, Prasad Dhakephalkar, Mayur Khandeparkar, Vaibhav Charalwar, Ajay Vazirani, Raksha Thakkar, Karan Koya, Palak Salecha, Y.D. Patil
For the Intervenor : Karl Tamboly, Rupesh M. Geete, Shubhan Hundia

Judgement Key Points

Based on the provided legal document, the key legal principles and considerations are as follows:

  1. Authority to Terminate Developer: The authority of the Slum Rehabilitation Authority (SRA) to terminate a developer’s appointment is supported when there is inordinate delay in scheme implementation. The SRA can exercise this power under the relevant legislation, specifically Section 13(2) of the Slums Act, in cases where the developer fails to adhere to approved timelines and procedures (!) .

  2. Grounds for Termination: The grounds for termination include significant delays attributable to the developer, lack of approval or action within reasonable timeframes, and loss of confidence from the slum dwellers. Even if delays are caused by external factors such as legal proceedings or the COVID-19 pandemic, the developer is expected to demonstrate proactive efforts. In this case, the court upheld termination due to inaction and inordinate delays by the developer (!) (!) .

  3. Developer’s Obligations and Timelines: The developer must comply with the procedural timelines and approvals stipulated by the SRA, including obtaining necessary permissions and approvals within prescribed periods. Circulars issued by the SRA provide guidelines for timelines, and failure to adhere to these can justify termination (!) (!) (!) .

  4. Bona Fide Impressions and Afterthoughts: The explanation that officials of the SRA were under a bona fide impression regarding legal restrictions was considered an afterthought, especially since it was raised late and not in the initial proceedings. The court found that the developer had ample opportunity to raise such defenses earlier and that reliance on such an impression does not absolve the developer from delays attributable to their own inaction (!) (!) .

  5. Interpretation of Court Orders: The specific order cited as a restraint only applied to open spaces designated for parks, gardens, and recreational zones. Since the property in question was designated as Rehabilitation and Resettlement (R.R.2.1), the order did not restrict the scheme’s implementation on this land. Therefore, the developer’s reliance on this order as a justification for delay was unfounded (!) (!) .

  6. Role of the SRA and Legal Remedies: When delays or inaction occur, the developer or other parties are expected to approach the appropriate authorities or courts to seek remedies or clarify legal positions. Inaction or failure to do so can be viewed unfavorably in proceedings justifying termination or other administrative actions (!) (!) .

  7. Application of Section 13(2) of the Slums Act: The power to change the developer in case of inordinate delay is supported by the law, provided the delay is unjustified and exceeds reasonable timelines. The courts have upheld the SRA’s authority to exercise this power when the developer fails to act within the prescribed period (!) .

In summary, the legal framework supports the SRA’s authority to terminate a developer’s appointment due to significant delays and non-compliance with procedural requirements, especially when the delays are not adequately justified or remedied within reasonable timeframes.


JUDGMENT :

AMIT B. BORKAR, J.

1. The petitioner, who is a developer seeks to impugn order dated 2 August 2023 passed by respondent No. 2 - Chief Executive Officer, Slum Rehabilitation Authority (“CEO, SRA” for short) exercising power under Section 32 of the Maharashtra Slums Areas (Improvement, Clearance and Redevelopment) Act, 1971 (“the Slums Act” for short) and order dated 13 February 2024 passed by the respondent No. 1 - Apex Grievance Redressal Committee (“AGRC” for short) in Application No. 190 of 2023.

2. Land bearing F.P. No. 663 of Town Planning Scheme No. III, Mahim Division at Kapad Bazar Road, Mahim (West), Mumbai 400 016 in G/North Ward area admeasuring 1961.55 sq. mtr. (“the said property” for short) belonging to the Municipal Corporation of Greater Mumbai (“MCGM” for short) is occupied by slum dwellers and censused in the records of the MCGM.

3. On 24 August 1960, the Government of Bombay vide Notification sanctioned a Town Planning Scheme demarcating a “garden” on the said property. On 8 May 2018, the State Government, by Notification, granted sanction under Section 31(1) of the Maharashtra Regional Town Planning Act, 1966 (“MRTP Act” for short) to the revised Developme

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