SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(MP) 955

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
SANJAY DWIVEDI, J.
RAKESH MANOCHA – Petitioner
Versus
ERA CONSTRUCTION, JABALPUR – Respondent
W.P. No. 6344 of 2023
Decided On : 17-08-2023

Advocates:
Advocate Appeared:
For the Petitioner: Vipin Yadav.
For the Respondents: Dinesh Upadhyay, Amit Sahni.

Headnote:(A) Madhya Pradesh Land Revenue Code, 1959 - Section 44(2) - Constitution of India - Article 226/227 - Legal challenge to order by Additional Commissioner regarding revenue record - Petitioner contended that no opportunity to be heard was given before mutating land records in favour of respondent - Agreement made between parties for land development acknowledged - Court emphasized on legal validity of agreement and opportunity to be heard - Order upheld as no prejudice caused to petitioners. (Paras 2, 10, 16)

(B) Natural Justice - Principle - Not every infraction of natural justice leads to nullification of proceedings unless it causes prejudice; case law cited as reference - Court upheld decision of revenue authority as reasonable given no statutory violation. (Paras 12-14)

(C) Development Agreements - Nature and implications of rights of developers as elucidated, emphasizing necessity of relevant documentation for execution of sale-deeds. (Paras 11, 12)

Facts of the case:
Petitioners contested a decision under the Madhya Pradesh Land Revenue Code which allowed a mutation in favour of a buyer based on an agreement for land development; no hearing was provided to original owners prior to decision, leading to this petition.

Findings of Court:
The court found no necessity for a hearing for the petitioners before the sale deed execution, affirming the authority of the Additional Commissioner to uphold the revenue authority's decision.

Issues: Key issues included the necessity and implications of providing an opportunity to be heard to petitioners in land mutation processes and validity of sale deeds executed by the developer.

Ratio Decidendi: The court identified that the agreement allowed the developer to act upon sale of plots post-completion and ruled that challenges to the sale deed should be adjudicated in civil court, not by revenue authorities.

Result: Petition dismissed.

ORDER :

1. Since pleadings are complete and learned counsel for the parties are ready to argue the matter finally, therefore, on their joint request, it is heard finally.

2. By the instant petition filed under Article 226/227 of the Constitution of India, the petitioners are calling in question the legality, validity and propriety of order dated 17-2-2023 (Annexure-P/9) passed by the Additional Commissioner, Jabalpur Division, Jabalpur in the second appeal preferred by respondent No. 2 under section 44(2) of the Madhya Pradesh Land Revenue Code, 1959 (in short the ‘Code, 1959’) whereby the Additional Commissioner setting aside the order of Sub Divisional Officer has allowed the appeal and also directed the Tahsildar to correct the revenue record.

3. As per the facts of the case, an agreement dated 18-2-2010 (Annexure-P/2) was executed between the petitioners and respondent No. 1 for developing the land situated at Mouza Polipathar, Settlement No. 164, P.H. No. 24/2-29 (New No. 08) Tahsil and District Jabalpur of Khasra No. 2/1 area measuring 0.121 hectare, Khasra No. 2/2 area measuring 0.162 hectare, Khasra No. 6 area measuring 2.146 hectares, Khasra No. 7/1 area measuring 1.052 hectares, Khasra No. 14 area measuring 0.251 hectare, Khasra No. 5 area measuring 1.595 hectares, Khasra No. 9/2 area measuring 1.012 hectares total area 6.339 hectare i.e. 15.66 acres. The agreement got registered as a development agreement under Article 6(d) of the Indian STAMP ACT , 1899 (in short the ‘Act, 1899’). The parties to the agreement had arrived at a settlement that party No. 1 (the petitioners) are the owners of the land which was to be developed by respondent No. 1 being a developer and in lieu of development, respondent No. 1 would be given 54% of the saleable land/plots whereas 46% of the saleable land/plots would be of the petitioners. However, the agreement also contained a clause that saleable right of land/plots in respect of share of respondent No. 1 would accrue in his favour only after obtaining completion certificate. Subsequently, respondent No. 1 after obtaining requisite permission from various authorities had acted upon the agreement dated 18-2-2010 and started the development work. However, the development was later on amended due to decrease in the land and thereafter, an amended layout was prepared on 17-12-2015 which got approved from the Town and Country Planning Department, Jabalpur. After approval of development plan and getting the work order from Municipal Corporation, respondent No. 1 had completed the work on 22-8-2017 and thereafter, the Municipal Corporation had issued a completion certificate on 7-5-2018 as a result whereof 25% plots mortgaged with the Municipal Corporation, Jabalpur got released. The relevant documents relating to layout plan, work order, mortgage-deed, completion certificate and release-deed etc. are on record.

3.1 Clause (E)(1)(a) of the agreement dated 18-2-2010 (Annexure-P/2) deals with the rights of the party which reads as under:

    “(E)(1)(a) On Project Completion, the LANDOWNERS shall by way of consideration for the development of the Project undertaken at the sole cost of the DEVELOPER make available to the DEVELOPER, 54% (Fifty Four percent) of the earmarked and defined Saleable Area as the DEVELOPER’s Allocation. The balance 46% (Forty Six percent) of the Saleable Area representing the LANDOWNERS’ Allocation shall remain with the LANDOWNERS. The area representing the LANDOWNERS’ Allocation/ DEVELOPER’s Allocation shall be marked in the plan.” In view of aforesaid clause of the agreement, respondent No. 1 had executed a sale-deed of the land/plot of his share on 14-8-2019 whereas the owners (petitioners) have also executed a sale-deed of their share on 5-12-2019. However, a declaration-deed was also executed on 10-1-2019 (Annexure-R-2/9) which contained a clause that both the parties agreed to sale the plots falling in their respective shares and thereafter respondent No. 1 will organize r

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top