Municipal authority validly approved the redevelopment of historical theatre land for commercial use, asserting no regulatory violation despite resident objections.

1. Both these petitions can be disposed of by a common judgement.

2. There is a plot at 'C' - Ward of the Bombay Municipal Corporation, known as "Bhangwadi Estate" admeasuring approximately 6330 sq. yards. In the revenue records, the plot had the number of C. S.938 of Bhuleshwar Division. Since about 1960, the property card was showing the name of M/s. New India Assurance Co. Ltd. as the owners of the plot. It appears the buildings situated in this estate have been in existence for the last 80/90 years or more. Apart from various other chawls and other buildings, there also existed a theatre known as "Princess Theatre". The theatre has now been demolished. The petitioners in the first petition are the residents of an adjoining plot bearing No. 585, almost situated behind the place where the theatre was in existence. The petitioners in the other petition are the residents of some of the chawls situated in this Bhangwadi Estate.

3. It appears that M/s. Sandeep and Co., who are respondent No. 3 in the first writ petition, and respondent No. 6 in the second petition, purchased from the owners of the property an area approximately admeasuring 2125 sq. yards under a registered Conveyance dated 16th October, 1978. They bought the portion which included the theatre. Prior to the said Conveyance, the former owners of the said property viz. New India Assurance Co. Ltd. had applied to the Superintendent of Land Records for sub-division of this plot. By an order dated 25th May, 1978, the sub-division was sanctioned, subject to a proper conveyance in favour of the present purchasers. After purchase, M/s. Sandeep and Co. have demolished and removed the theatre as also an adjoining chawl and a room and in its place after obtaining the necessary sanction from the Municipal authorities, they have construed a Shopping Centre. It appears that as on the date of filing of these petitions, the Shopping Centre had not yet come into, existence. It was under construction. The construction has now been completed. But I am told that all the occupants of the Shopping Centre have been informed of this litigation and suitable undertakings have been taken from those persons to the effect that they would be bound by the result of these petitions.

4. After getting the Conveyance from the New India Assurance Co. Ltd., M/s. Sandeep Co., approached the Municipal Corporation for the purpose of construction of a Shopping Centre after demolition of the theatre and the adjoining two structures. At that time, the Municipal Commissioner was informed by a letter dated 19th May, 1979 by the Deputy Secretary to the Government to the effect that in case of redevelopment of plots on which cinema / drama theatres were in existence, the plots cannot be developed otherwise and on such plots a cinema / drama theatre shall be necessarily provided. The letter which is important, is as follows :
"To
The Municipal Commissioner,
Municipal Corporation of Greater Bombay,
Bombay.
Sub : Development Control rules for Greater Bombay - Development of sites on which cinema / drama Theatres are located.
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Sir,
I am directed to refer to this Department letter of even number dated 18th April, 1979 and convey to the Municipal Corporation of Greater Bombay, the following directive of Government under S.154(1) of the Maharashtra Regional and Town Planning Act, 1966 .
"All the plots on which Cinema / Drama Theatres are in existence are hereby designated as plots reserved for cinema / drama theatres in the develop