Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Bom) 821

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
MANISH PITALE, SHREERAM V. SHIRSAT, JJ.
Pune Ex-servicemen Co-operative Housing Society Ltd. - Petitioner
Versus
The Municipal Corporation of City of Pune and others - Respondents
WRIT PETITION NO. 5838 OF 2010, WRIT PETITION NO. 1991 OF 2005, CIVIL APPLICATION NO. 2396 OF 2008, WRIT PETITION NO. 2119 OF 2005, WRIT PETITION NO. 4433 OF 2006, WRIT PETITION NO. 8720 OF 2010
Decided On : 06-05-2026

Advocates Appeared:
For the Petitioner: Mr. S. S. Kanetkar
For the Respondent: Mr. Rajdeep Khadapkar, Mr. A. I. Patel, Addl. GP a/w. Ms. Tanu N. Bhatia, AGP

Rule enabling takeover of open spaces in private layouts for ₹1 compensation on misuse is unconstitutional under Article 300A for illusory compensation and ultra vires parent Act due to invalid statutory source from street provisions.

Headnote:(A) Constitution of India - Article 300A - Development Control Rules - Rule 13.3.1.5 - Right to property - Deprivation of property in open spaces of private sanctioned layouts - Rule permitting planning authority to take over such spaces for illusory compensation of ₹1 upon alleged misuse, sourced from provisions on vesting and control of public streets - Held unconstitutional as violating Article 300A; ultra vires parent Act; declarations published for taking possession quashed. (Paras 1, 42, 47, 57)

(B) Right to property - Constitutional right under Article 300A - Deprivation requires authority of law that is just, fair, reasonable - Public purpose and compensation inherent; illusory or nominal compensation invalid; law amenable to judicial review for arbitrariness under Article 14. (Paras 25-29)

(C) Municipal law - Development control - Open spaces in pre-existing layouts - No unbridled power to takeover without proper acquisition; action claiming management under police powers rejected if effecting acquisition; permissible uses including structures allowed, violations addressable otherwise. (Paras 32-36, 48-49)

Facts of the case:
Multiple writ petitions challenging constitutional validity of development control rule and public declarations by municipal corporation intending to take possession of open spaces in sanctioned private layouts (approved prior to rule's enforcement) citing misuse, offering nominal ₹1 compensation; interim status quo maintained.

Findings of Court:
Impugned rule held unconstitutional and ultra vires; declarations and consequential actions quashed; petitioners entitled to use open spaces in accordance with law.

Issues: Whether rule violates Article 300A by providing illusory compensation and lacking valid statutory source; whether declarations amount to acquisition or mere management; applicability to pre-existing layouts.

Ratio Decidendi: Rule fails as 'law' under Article 300A due to sourcing from irrelevant street provisions, arbitrary 'misuse' criterion without definition or prior notice, illusory compensation; distinguishes prospective reservation rules with proper statutory backing; plot holders retain rights subject to permissible development.

Result: Writ petitions allowed; rule struck down.

Table of Content
1. challenges to rule 13.3.1.5 validity under article 300a. (Para 1 , 2 , 3)
2. factual background of pre-1987 sanctioned layouts and pmc notices. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
3. petitioners argue rule ultra vires, illusory compensation. (Para 18 , 19)
4. respondents defend rule as valid law, police power. (Para 20 , 21 , 22 , 23 , 24)
5. article 300a protects property as human right requiring fairness. (Para 25 , 26 , 27 , 28 , 29 , 30)
6. declarations constitute acquisition, not mere management. (Para 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38)
7. prior judgments strike similar rules for illusory compensation. (Para 39 , 40 , 41)
8. rule ultra vires bpmc act, arbitrary under article 14. (Para 42 , 43 , 44 , 45 , 46 , 47)
9. undefined 'misuse'; structures permitted in open spaces. (Para 48 , 49)
10. distinguishes vasanth case; rule lacks statutory basis. (Para 50 , 51 , 52 , 53 , 54)
11. pre-rules layouts; no token compensation justified. (Para 55 , 56)
12. rule unconstitutional; declarations quashed, status quo restored. (Para 57 , 58 , 59)

JUDGMENT :

Manish Pitale, J.

1. These petitions challenge the constitutional validity of Rule 13.3.1.5 of the Development Control Rules (the said Rule) for the city of Pune. The petitioners claim that the said Rule violates Article 300A of the Constitution of India and they also claim that the said Rule could not have been framed with reference to Sections 202 and 203 of the then Bombay Provincial Municipal Corporations Act, 1949 (BPMC Act) [now the Maharashtra Municipal Corporations Act, 1949 (MMC Act)], as the said sections pertain to vesting of public streets in the Corporation, with no reference to open spaces in private sanctioned layouts. The petitioners also contend that the said Rule gives unbridled power to the respondent – Pune Municipal Corporation (PMC) to enter upon and take over the open spaces in such private layouts, without any reference to acquisition and upon payment of illusory compensation of Rs. 1 only.

2. All these petitions were filed when the respondent – PMC caused public notices to be issued in newspapers, declaring that it was taking over open spaces in layouts concerning the petitioners. The petitioners claim that this was wholly arbitrary and in exercise of power under the said Rule, which itself is constitutionally invalid. The respondent – PMC and respondent – State have opposed the contentions raised on behalf of the petitioners. In all these petitions, Rule was granted with interim relief in favour of the petitioners, during the pendency of these petitions.

3. It would be necessary to briefly refer to the chronology of events in each of the petitions, leading to challenge raised in these petitions. Since Writ Petition No.5838 of 2010 was argued as the lead petition, this Court is first referring to the facts pertaining to the said petition.

4. In Writ Petition No.5838 of 2010, the petitioner is Pune Ex- servicemen Co-operative Housing Society Ltd., which is aggrieved by a public declaration dated 11.02.2010 published in Daily Sakal, whereby it was stated that since the open spaces in the layout of the petitioner – society were being misused, the PMC was taking possession of the open spaces, as per the said Rule. The said society was registered on 24.05.1948 and by an order dated 20.05.1957, the Collector of Pune allotted the land to the society in Survey No.48/1, Erandwane, Pune. The society consists of members (plot holders), who have constructed their individual structures on the plots. The revised layout of the society was sanctioned by PMC on 10.05.1994, which specified five open spaces. This constituted 10% of the total area of the plot of land of the petitioner – society.

5. According to the society, one of such open spaces numbered as ‘C’, was in danger of being misused, as residents of slum abutting the land of the petitioner – society, were making attempts to encroach upon the open space. It was found that cattle

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2026 Supreme(Bom) 821

Rule enabling takeover of open spaces in private layouts for ₹1 compensation on misuse is unconstitutional under Article 300A for illusory compensation and ultra vires parent Act due to invalid statutory source from street provisions.

Cases Referred (7)