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2025 Supreme(Bom) 392

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A.S. GADKARI, KAMAL KHATA, JJ.
Bombay Slum Redevelopment Corporation Pvt. Ltd. & Ors. - Petitioners
Versus
Slum Rehabilitation Authority & Ors. - Respondents
Writ Petition No. 2041 of 2021 With Interim Application No. 949 of 2024 With Interim Application (L) No. 4386 of 2025
Decided On : 07-03-2025

Advocates:
Advocate Appeared:
Mr. Ankit Lohia a/w Mr. Nishant Chothani, Mr. Atman Mehzta, Mr. Vipul
Patel & Mr. Rachit Bharwada i/by Mr. Jitendra Shah for the Petitioners in
WP/2041/2021 and for the Applicants in IAL/4386/2024 in
WP/2041/2021.
Mr. Sachin A. Mhatre a/w Mr. Suraj Chaudhary, Ms. Diksha Shirodkar i/by
Mhatre Law Associates for the Applicant in IA/949/2024 in
WP/2041/2021.
Mr. V.A. Thorat, Senior Advocate, i/by Mr. Anoop Patil for Respondent Nos.
1 & 2-SRA and for Respondent No.6-AGRC in WP/2041/2021.
Mr. Srikrishna Ganbavle a/w Mr. Rahul Rao & Ms. Revati Rajput i/b. Rajput
Vaidya & Associates for Respondent Nos. 3 & 5 In WP/2041/2021.
Mr. Vishal Raman i/by Mr. Ravi S. Kotian for Respondent No.4 in
WP/2041/2021.
Mr. Mayur Khandeparkar a/w Mr. Ashish Vernekar for Respondent No.9 in
WP/2041/2021.

The court upheld the termination of the Petitioners' appointment as developers, affirming that proper procedures were followed and that the Petitioners lacked standing due to project delays.

Headnote:

(A) Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 - Section 13(2) - Petitioners challenge orders terminating their appointment as developers, alleging lack of jurisdiction and procedural irregularities - Respondents assert compliance with procedural requirements and termination due to project delays. (Paras 2, 3, 6)

(B) Jurisdiction - The court examined whether the orders were passed within the jurisdiction of the CEO, SRA, and AGRC, and whether due process was followed. (Paras 2, 3)

(C) Locus Standi - The court addressed the standing of the Petitioners to maintain the petition in light of their termination for delays. (Paras 3, 7)

Facts of the case:
The Petitioners sought to quash orders terminating their appointment as developers, claiming procedural violations and arbitrary decision-making. The Respondents contended that the Petitioners delayed the project and that proper procedures were followed in appointing a new developer.

Findings of Court:
The court found no irregularities in the process followed by the Respondents and upheld the decision to appoint a new developer.

Issues: The main issues included the legality of the termination orders and the Petitioners' standing to challenge them.

Ratio Decidendi: The court ruled that the Respondents acted within their jurisdiction and followed due process, dismissing the Petitioners' claims of procedural impropriety.

Result: Petition dismissed.

JUDGMENT :

1) By this Petition, the Petitioners seek the following reliefs:

“(a) In view of aforesaid reasoned grounds, the Petitioners submit that this Hon’ble Court be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other writ, order or direction, calling upon the records and proceedings from the file of the Respondent No.2 and 7 and after going through the legality, propriety and validity of the Impugned notice dated 19/6/2019 (Exhibit ‘Z’ hereto) and any decision taken on 7th July 2019, be pleased to quash and/or set aside the same.

(b) The Petitioners submits that this Hon’ble Court be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other writ, order or directions against the Respondent Nos. 1, 2, 7, 8 to grant opportunity to Petitioners to complete the construction of redevelopment of suit property and set aside the order dated 25/1/2016 passed by Respondent No.2 and order dated 29/4/2017 passed by Respondent No.6.

(c) The Petitioners submit that this Hon’ble Court be pleased to issue writ of Mandamus or any writ, order or directions to Respondent No.1 & 2 and the Police Department to initiate enquiry against Respondent No.9 with regard to complaints raised by Petitioners.”

2) Mr. Lohia, the learned Advocate for the Petitioners submits that, the Order dated 25th January, 2016 passed by Respondent No.2 in exercise of its powers under Section 13(2) of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 and the Order passed by the Chief Executive Officer (CEO), Slum Rehabilitation Authority (SRA), Respondent No.2 and the Apex Grievance Redressal Committee (AGRC) are passed without following the mandatory procedure of issuance of the show cause notice. In other words, the Petitioners seek to challenge the Orders passed by the CEO, SRA and the AGRC terminating the developer under Section 13(2) of the Slums Act on the basis that the Orders are passed in excess of/beyond the jurisdiction vested in the CEO, SRA and AGRC. He argues that both the impugned Orders are passed without considering the documents on record and are thus manifestly arbitrary, discriminatory and guided by extraneous reasons.

3) Per Contra Mr. Thorat for the Respondent Nos.1 and 2-SRA and for Respondent No.6-AGRC submits that, by a detailed Order dated 11th December 2023 this Court had directed the SRA to conduct another meeting as directed in the Order. He submitted that, such a meeting was conducted and a compliance Affidavit in that regard has been filed. The result of the said meeting was that the resolution to appoint a new developer was passed and consequently, the new developer came to be appointed.

3.1) He asserted that, the Petitioners have no locus to maintain the Petition as their appointment was terminated for inordinately delaying the project. He contended that due procedure was followed by the CEO SRA and the findings were upheld by the AGRC. In view of the aforesaid, the learned counsel submitted that the Petition be dismissed.

4) This Court by its Order dated 11th December 2023 had kept the Petition pending only because this Court was unhappy with the manner in which the elections were held and the decision was taken. In paragraph 46 the Order stated that:

“46. If the court is satisfied with the result of the meeting, then it goes without saying that the Petitioner will be bound by the outcome. Equally the 9th Respondent and Respondent Nos.3 to 5 will also necessarily be bound by the outcome of the meeting if the report of the SRA is accepted by the court. In other words, there is no possibility of this exercise being undergone and yet leaving the Petitioner an opportunity to argue the Petition on merits thereafter.”

5) By our Order dated 15th April 2024 we issued directions regarding the manner in which the meeting must be held in the presence of the concerned Authorities. In the meeting, the only thing that had to be decided was, whether the Petitioners shou

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