2026 Supreme(Mad) 1171

IN THE HIGH COURT OF JUDICATURE AT MADRAS
V. Lakshminarayanan, J.
S.Mehdi Ispahani - Petitioner
Versus
The Member Secretary, Chennai Metropolitan Development Authority - Respondent
W.P.Nos.1183 & 6888 of 2026 and W.M.P.Nos.1384, 1387 & 1388 of 2026
Decided On : 24-04-2026

Planning authority cannot mandate gift deed for street alignment land as precondition for permission; violates Article 300A, lacks statutory basis, bypasses acquisition with compensation under T&CP Act Sections 36-39.

Headnote:(A) Town and Country Planning Act, 1971 - Sections 9-C, 17-21, 24, 26-28, 30, 32-33, 35-A, 36-39, 47, 49, 54, 56-57 - Tamil Nadu Combined Development and Building Rules, 2019 - Rule 35(19) - Constitution of India - Article 300A - Planning authority cannot insist on execution of gift deed for land reserved for street alignment/road widening as condition precedent for grant of planning permission - Such insistence violates right to property under Article 300A, bypasses acquisition procedure under Sections 36-37, and lacks statutory basis under Section 49 - Land owners willing to provide undertaking not to construct on reserved area and surrender upon payment of compensation - Rule 35(19) applicable only if land notified and within statutory period under Section 38 - Gift deed optional for TDR/FSI, not compulsory - Reliance on Development Control Rules 1975 Rule 18(b), Development Regulations 2008 Rule 26(22) read with Section 37(1) confirms voluntariness. (Paras 2, 20-48)

(B) Article 300A - Authority of law for deprivation of property requires seven sub-rights including notice, hearing, reasoned decision, public purpose, fair compensation, expeditious process, conclusion - Insistence on gift deed bypasses these via executive action, prohibited by maxim quando aliquid prohibetur ex directo prohibetur et per obliquum. (Para 21-22)

(C) Administrative Law - Planning authority cannot fetter discretion under Section 49 by imposing non-statutory condition precedent like gift deed - Must exercise power per statute, not to extract land free of cost. (Paras 40-41)

Facts of the case:
Writ petitions challenging planning authority's condition requiring registered gift deed for street alignment portion as precondition for planning permission on applications dated 11.03.2025 and 09.01.2026 - Properties on roads proposed for widening per Second Master Plan - Petitioners owners by settlement/sale deeds, undertook no construction on reserved area, willing to surrender upon compensation - Authority countered citing Master Plan, rules for TDR/FSI, no lapse under Section 38.

Findings of Court:
Impugned conditions quashed; applications to be considered without gift deed insistence within 4 weeks upon undertaking; cost of Rs.25,000/- each imposed on authority for persistent illegal practice.

Issues: (i) Whether planning authority can mandate gift deed for reserved land under Section 36 as precondition for permission? (ii) Whether Section 35-A empowers enforcement of such claim?

Ratio Decidendi: Right to property protected under Article 300A cannot be deprived without authority of law including fair compensation; T&CP Act provides acquisition under Sections 36-37 or compensation under Section 39, not compulsory gifting via Section 49; rules offer voluntary option for TDR, not mandatory; reservation lapses if not acquired timely per Section 38; authority must follow statute, not impose unconstitutional conditions.

Result: Writ petitions allowed.