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2025 Supreme(Bom) 10

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A.S. GADKARI, KAMAL KHATA, JJ.
Kamal Sevakram Jadhawani and Anr. – Petitioners
Versus
State of Maharashtra (to be served through Govt. Pleader, High Court, Bombay) and Ors. – Respondents
WRIT PETITION NO.747 OF 2024 WITH INTERIM APPLICATION (L) NO.20688 OF 2024 WITH INTERIM APPLICATION (L) NO.17624 OF 2024 WITH WRIT PETITION NO.3865 OF 2024 WITH CONTEMPT PETITION NO. 105 OF 2024 WITH CONTEMPT PETITION NO. 105 OF 2024 WITH INTERIM APPLICATION (L) NO.20746 OF 2024
Decided On : 21-01- 2025

Advocates Appeared:
For the Parties :Adv. Ashish Kamat, Senior Advocate a/w. Adv. Akshay Patil, Adv. Ish Jain, Adv. Kiran Jain, Adv. Duj Jain, Adv. Vinayak Siraskar, Adv. Nayan Bhalekar i/by Kiran Jain & Co., Ms. Rubin Vakil a/w. Adv. Hindavi Lubde i/by Adv. Rahul Karnik, Mr. Shyam Mehta, Senior Advocate a/w. Ms. Leena Shah, Adv. Shubham Mishra i/by M/s. Shah and Furia Associates., Mr. Chetan Kapadia, Senior Advocate a/w. Adv. Shraddha Achliya, Adv., Sunil Gangan, Adv. S.M. Seegarla i/by RMG Law Associates, Mr. Mayur Khandeparkar a/w. Adv. Jagdish G. Aradwad (Reddy), Mr. Aspi Chinoy, Senior Advocate a/w. Adv. Shardul Singh, Adv. Sayali Sawant, Mr. Dipesh Siroya, AGP, Ms. Gaurangi Patil, AGP.

The court affirmed that removed Developers retain locus to challenge demolition actions, emphasizing the need for transparency and legality in the SRA and BMC's conduct.

Headnote:(A) The Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 - Section 13(2) - Brihanmumbai Municipal Corporation Act, 1888 - Section 353B - Writ petitions challenging demolition of Composite Building No. 1 and seeking quashing of approvals for conversion and demolition - Petitioners claim entitlement to free sale area after removal as Developer under Slum Act - Court finds actions of SRA and BMC to be mala fide and unlawful, emphasizing that the Petitioners retained locus to challenge the demolition despite their removal as Developers. (Paras 12, 13, 44)

(B) Locus Standi - The court ruled that the Petitioners, despite being removed as Developers, retained the right to challenge the actions of the new Developer and SRA, as they were in possession of the premises. (Paras 43, 44)

(C) Malafide Actions - The court criticized the SRA and BMC for their failure to act transparently and for delegating authority to the Developer, leading to unlawful demolition. (Paras 32, 36, 41)

Facts of the case:
The Petitioners, previously Developers of a slum rehabilitation project, challenged the demolition of a Composite Building, asserting their entitlement to a free sale area after being removed under Section 13(2) of the Slum Act. The SRA and BMC's actions were questioned for legality and transparency.

Findings of Court:
The court found the SRA and BMC's actions to be mala fide, emphasizing the Petitioners' entitlement to the earmarked area in the new building and ordered compensation or transit accommodation.

Issues: The main issues included the legality of the demolition, the Petitioners' entitlement to the free sale area, and the actions of the SRA and BMC.

Ratio Decidendi: The court held that the Petitioners retained locus to challenge the demolition despite their removal as Developers, and the SRA's actions were found to be unlawful and lacking transparency.

Result: Writ petitions allowed; Respondent No. 3 directed to earmark the area of 856.60 sq. mtrs. for the Petitioners.

Judgement Key Points

Key Points: - The Petitioners, though removed as Developers under Section 13(2) Slum Act, retained locus to challenge the demolition and actions of the new Developer and SRA. (!) (!) (!) - The Court held the SRA and BMC actions mala fide and unlawful, including improper delegation of occupancy verification to the Developer and reliance on a private structural report; ruled that Section 353B notice was unlawful as the building was not 30 years old and outside SRA scheme context. (!) (!) (!) (!) (!) - The Court directed Respondent No.3 to earmark 856.60 sq mtrs in the new building for the Petitioners, with the Petitioners entitled to transit accommodation or compensation in the interim; Chamankar’s entitlement to area or market-rate compensation to be decided by SRA within six months. (!) (!) (!) (!)

What is the locus standi of the Petitioners to challenge demolition and actions of the new Developer and SRA?

What is the Court's finding regarding the legality and transparency of the SRA and BMC actions, including the 353B notice and demolition?

What relief and remedies did the Court grant to the Petitioners regarding earmarked area and interim compensation or transit accommodation?


JUDGMENT :

(Kamal Khata, J) :

1) Before us there are two interconnected Writ Petitions.

2) In Writ Petition No.747 of 2024, Petitioners-Jadhawani’s seek the following substantive 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, calling for the papers and files leading to granting the permission for the conversion of the scheme as per Government order dated 23/04/2013 at Exhibit ‘F’ and Conversion of the scheme as per the provisions of DCPR 2034 and approvals / sanctions / permissions / IOA / Reports / Letter of Intent / Commencement Certificate / Further Commencement Certificates / Occupation Certificate in respect to the Existing Composite Building No.1 and proposed Rehab Building No.2 and after going into the legality, validity and propriety thereof, to quash and set aside the approval granted for Conversion of Composite Building No.1 and the approval granted for demolition of the Composite Building No.1 vide LOI dated 05/12/2019 at Exhibit ‘I’

    b) this Hon’ble Court be pleased to stay the I.O.A. dated 10/02/2020 at Exhibit ‘M’ issued for Rehab Building No.1 for construction of new rehab Building by Demolition of the existing Building No.1 on land bearing CTS Nos. 825/1(pt) & 825/2 (pt) of Village Ambivali, Andheri (West), Mumbai;

    c) this Hon’ble Court be pleased to direct the Respondent no.2 to provide the Petitioners sale shop on Ground to Second floor in the sale building to be approved by the Respondent no.2 on land bearing CTS Nos. 825/1 (pt) & 825/2 (pt) of Village Ambivali, Andheri (West), Mumbai in case of the demolition of the Petitioners shops in the Composite Building no.1;”

3) In Writ Petition No.3865 of 2024, Petitioners-Chamankar’s seek the following substantive reliefs:

    “(a) that this Hon’ble Court be pleased to issue writ of certiorari or any other writ as deemed fit and proper by this Hon’ble Court and issue such order and/or directions to stop the demolition of the Composite Building No. 1 on the plot bearing CTS no. 825/1 (pt) & 825/2 (pt), situated at Village Ambivali, Andheri (East), Mumbai and call for the papers and records and file pertaining to the Composite Building No. 1 along with all sanctions, permissions, reports, certificates and after scrutinizing the same the legality and propriety thereof be considered and all such approvals, sanctions and permissions of conversions be quashed and set aside granting approval and permission for conversion of the said Composite Building No. 1 along with the demolition permission of the building vide LOI dated 27th July 2023;

    (b) that this Hon'ble Court be pleased to cancel and set aside the said LOI dated 27th July 2023, IOA dated 25th August 2023, permission to allow demolition by letter dated 17th May 2024 and private report dated 1/4/2024 of Sardar Patel College of Engineering;”

4) In Writ Petition No.3865 of 2024 under Article 226 of the Constitution of India, the Petitioners seeks a direction to the Respondents to stop the demolition of the composite building, which has been declared as dilapidated and classified as “C-1” based on a report allegedly procured by Respondent No. 3 in collusion with Respondent No 2. The Petitioners further challenge the legality and validity of Letters of Intent (LOI) dated 27th July 2023 and Intimation of Approval (IOA) dated 25th August 2023, both issued in favour of Respondent No.3. The Petition highlights a breach of statutory duties and obligations by Respondent No. 2-SRA, who at the behest of Respondent No.3-Developer secured demolition permissions based on a private institute’s report, without adhering to the due process of law.

5) Mr. Aspi Chinoy, learned senior counsel representing the Respondent No.3 – Developer, raises a preliminary objection regarding the Petitioner’s locus standi to challenge the building’s demolition. He contends that the Petitioner-Chamankars’ is none other than the former Developer who was r

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