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1974 Supreme(MP) 61

Madhya Pradesh High Court
G. L. OZA,G. G SOHONI
Laghu Udyog Karmachari Co-operative Housing Society - Appellant
Versus
State - Respondent
Decided On : 06/06/1974

Advocates:
A.J. Bhojwani, for Petitioner; G.G. Solanki, Dy. Govt. Advocate, (for Nos. 1 to 3) and S.D. Sanghi (for No. 4), for Respondents.

Headnote:(1) Town Improvement Trust Act, 1961 (MP) - S. 71 - power to include land in the scheme - includes the power to exclude such land from the scheme - General Clauses Act. 1957 (MP) - S. 21.

       Section 21 of the Madhya Pradesh General Clauses Act provides that where by any Madhya Pradesh Act, a power to issue Notification orders, etc., is conferred, then that power includes also a power to add to, amend, vary or rescind any Notification, orders, rules or bye-laws so issued. Apparently therefore if the State Government under section 71 of the Town Improvement Trust Act would issue a Notification including any land in a particular scheme, by operation of section 21 of the General Clauses Act it also had the power to issue a Notific1tion releasing a portion of the land from the scheme. [Para 9

       (2) Town Improvement Trust Act, 1961 (MP) - S. 83 - words 'otherwise dispose of' -import of - includes releasing of land in favour of a Co-operative Society.

       The phrase 'otherwise dispose of' in section 83 of the Act is wide enough to cover any manner of transfer. Any land acquired for the purposes of the Trust could be released in favour of Co-operative Society under this provision. [Para 9

       (3) Town improvement Trust Act, 1961 (MP) - Ss.83 and 38 - words 'for the purposes of the Act' - releasing land in favour of a Housing Co-operative Society - is for the purposes of the Act. [Para 10

       (4) Evidence Act, 1872 - S. 115 - estoppel - operatives against statutory bodies.

       The Town Improvement Trust promised a Housing Cooperative Society to release land from one of its schemes for developing a housing colony for its members on certain conditions The Society observed those conditions and purchased the land from the holder for consideration. The Trust could not go back on the promise and revoke the earlier sanction. AIR 1968 SC 718 & AIR 1971 SC 1021 relied on. [Para 11

       (5) Town Improvement Act, 1961 (MP) - S. 150 - order to the prejudice of a person - could not be passed without hearing him. [Para 12

Judgement

OZA, J. : - This is a petition filed by the petitioner seeking a direction for quashing the order passed by respondent dated 22-2-1972 withdrawing the permission granted by the Indore Improvement Trust with the approval of the Government and such other suitable directions.

2. Facts giving rise to this petition are that the petitioner is a co-operative housing society registered under the M. P. Co-operative Societies Act with the object of developing a housing colony for its members. It is alleged by the petitioner : -

(i) That this society before its registration was formed under the name the Maha Malav Co-operative Housing Society; but later it changed its name to "Laghu Udyog Karmachari Co-operative Housing Society Ltd." and was registered on 15-1-1971. This society had in view the land situated on Bhanwarkuva road. Indore within the limits of the Indore Municipal Corporation. This land is described as Khasra No. 1356/2 area 5.19 acres and Khasra No. 1358/2 area 3.51 acres total 8.70 acres and the society was negotiating with the holder of this land. But this land was included in a scheme of respondent No. 4 known as scheme No. 44 and a notification approving this scheme was issued by the State Government under Section 71 of the Madhya Pradesh Town Improvement Trust Act and published in the Madhya Pradesh Gazette dated 13th August, 1965. Consequently, the petitioner society moved respondent No. 4 requesting it to release this land from scheme No. 44 and for

permission to the petitioner to develop it into a colony for the society. Petitioner also made clear in its request that it was prepared to purchase the land.

(ii) That respondent No. 4 by its letter dated 2-7-1971 informed the petitioner that respondent No. 4 has passed a resolution (No. 8 dated 20-1-1971) and has also obtained the sanction of the State Government for releasing this land from scheme No. 44. By this letter the petitioner was also informed by respondent No. 4 that the petitioner should proceed ahead. It was also intimated that in accordance with the resolution of the trust the condition which the trust proposes to impose shall be intimated to the petitioner when a decision is taken to that effect.

(iii) That the petitioner society, in pursuance of this intimation went ahead and got a sale deed executed from the original holder of the land for Rs. 1,40,000/- on 14-7-71 and got it registered. This sale deed according to the petitioner was executed in the name of the Vice-President of the society and therefore it also secured a registered document from the Vice-President described as "release deed" in favour of the petitioner society. After the sale was completed the petitioner proceeded ahead with the survey of the land and preparations of plans for the improvement. Petitioner also submitted the plans to respondent No. 4 for development and the petitioner alleges that it was informed that the representative of the officer incharge, town planning would go on the spot and inspect the site on 31-1-1972. It is, alleged that he in fact inspected the site and the plans and lay out of the petitioner society were approved. It is alleged by the petitioner that the respondent No. 4 recommended the lay out and plans of the petitioner society on the aforesaid land to the Town Planning office and forwarded the plans, estimates and lay outs with the recommendation for sanction vide letter No. 181 dated 24-1-1972 addressed by respondent No. 4 to respondent No. 3 with a copy endorsed to the petitioner. The respondent No. 4 through its Chairman then wrote a letter to the petitioner on 17-2-1972 bearing No. 429 intimating the conditions on which the land had been released by respondent No. 4 and directing that the petitioner will have to observe those conditions while carrying out the development of the colony, and it is alleged that the petitioner society accepted the said conditions and communicated their acceptance vide letter dated 22-2-1972 to respondent No. 4.

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