22 April 2014
Supreme Court
Download

M/S. SEPAL HOTEL PVT. LTD. Vs STATE OF PUNJAB

Bench: SURINDER SINGH NIJJAR,A.K. SIKRI
Case number: C.A. No.-004678-004678 / 2014
Diary number: 18110 / 2006
Advocates: ANNAM D. N. RAO Vs


1

Page 1

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 4678/ 2014

[Arising out of Special Leave Petition (Civil) No. 12025 of  2006]

M/s. Sepal Hotel Pvt. Ltd. …. Appellant (s)

Versus

State of Punjab & Anr.           …. Respondent  

(s)

J U D G M E N T

A.K. SIKRI, J.

1.Leave granted.

2.The  origin  of  the  lis  in  this  appeal  can  be  treated to  earlier  

proceedings which started sometime in 1970's and culminated in  

the judgment of this Court in the case of  Yogender Pal & Ors. v.  

Municipality, Bhatinda reported in 1994 (5) SCC 709. We would  

revert  back  to  the  said  case  with  detailed  discussion  at  the  

appropriate stage, Suffice it is to mention at the stage that vide  

the said judgment this Court declared Section 192 (1) (c) of the  

1

2

Page 2

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

Punjab Municipal Act {This provision conforms to Section 203 (1)  

(c) of the Haryana Municipal Act} as void, being violative of Article  

14 of the Constitution of India.  However,  overruling of the said  

provision  was  prospective  i.e.  from  the  date  of  the  decision  

rendered on 15.7.1994.

3.Coming to the facts of the present case, Shri Som Chand Katia  

and Shri  Vijay Katia were original owners of land measuring 44  

bighas  6  biswas  comprised  in  Khasra  No.  2001  situated  at  

Bhatinda. Out of the said land a part comprising of 255 fts x 450  

fts was licensed to the appellant for construction of a 3 Star Hotel  

on 15.7.1974. The appellant applied for grant of layout plan for  

the construction of a hotel, which was granted by the Municipal  

Committee.  After  the  receipt  of  the  layout  plan  the  appellant  

herein constructed the hotel on the said land. Since then the hotel  

has been in  existence and running its  business  therefrom.  The  

total area of the hotel was covered by a boundary wall and is in  

possession of the appellant herein.  

4.The  Municipal  Committee  framed  a  new  Scheme  i.e  Town  

Planning Scheme No. 2, Part I, in the year 1975. This Scheme was  

2

3

Page 3

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

sanctioned by the State Government. As per the said Scheme, a  

part of the land covered by the Appellant's hotel was required for  

the construction/widening of the road. The Municipal Committee  

issued a notice dated 7.6.1978 to the appellant herein directing  

the  appellant  to  demolish  the  boundary  wall  of  the  hotel  and  

transfer  that  part  of  the  land  to  the  Municipal  Committee.  

Apprehending an action at the behest of the Municipal Committee,  

the appellant filed a suit for grant of injunction against execution  

of the aforesaid notice. The Counsel for the Committee appeared  

and gave an undertaking not to demolish the boundary wall and  

based  on  this  statement  the  said  suit  was  withdrawn  on  

5.12.1979. However, the Municipal Committee again threatened  

to demolish the boundary wall, thereby impelling the appellant to  

file another suit, being No. 386 dated 18.12.1979. This suit was  

decreed on 11.12.1981 with an observation that Town Planning  

Scheme qua the appellant having not finalised, therefore, the land  

belonging  to  the  appellant  could  not  vest  in  the  Municipal  

Committee.  

5.At  the same time,  the appellant  also  challenged the vires  of  

3

4

Page 4

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

Section 192 (1) (c) of the Municipal Act by way of a Writ Petition  

No.  226  of  1979.  The  said  Writ  Petition  was  disposed  of  by  a  

Division Bench of Punjab and Haryana High Court on 16.1.1980  

alongwith  other  connected  matters  whereby  it  directed  the  

Committee  to  consider  the  objections  of  affected  landowners  

under the provisions of Section 192 (1) (c) of the Act which would  

be filed within 12 weeks before the Committee and the Committee  

would then proceed to consider  the said objection and dispose  

them  of  within  three  months.  Thereafter,  it  could  make  a  

recommendation to the Government in accordance with provisions  

of Section 192 of the Act. It was made clear that till the objections  

are decided, the rights of the landowners would not be affected.  

However,  it  was stated that if  the objections were rejected the  

provisions of Scheme shall become final and shall be forwarded to  

the State Government for amending the Scheme in accordance  

with law.

6.As per the directions, the appellant filed its objections before the  

Municipal  Committee,  stating  therein  that  as  per  the  

measurement at the spot, the road which starts from 40 feet wide  

4

5

Page 5

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

Namdev Road and proposes to connect 30 feet wide road at the  

end of the hotel boundary and which passes through Khasra No.  

2001 is at a distance of 275 feet but was wrongly shown in the  

Scheme  at  224  feet.  So,  it  was  requested  that  the  said  

discrepancy  in  the  Scheme  be  corrected  so  that  there  is  no  

dispute. The above objections of the appellant were considered by  

the Municipal Committee and a Resolution No. 306 dated 9.7.1980  

was passed. The relevant portion concerning the objections of the  

petitioner in Item No. 11 is as under:

“Item No. 11: Vide this objection, the objector had stated that for  joining the 30 feet and 40 feet wide road, the length  of the road has been shown as per the Scheme as 224  feet  whereas  at  the  spot  the  length  is  275  feet.  Therefore, it was decided that the plan of the Sepal  Hotel,  which  has  been sanctioned by  the  Municipal  Committee be checked at the site and after inspecting  the site as per the objections raised by the objector,  the  survey  plan  of  the  one  part  be  corrected.  The  aforesaid resolution was signed by Shri Gopal Singh,  President,  Municpal  Committee,  Bathinda,  Mukhtiar  Singh, Divisional Town Planner, Bathinda and Shri L.D.  Gupta,  Executive  Officer,  Municipal  Committee,  Bathinda.  

7.As  per  the  appellant,  after  passing  of  the  above  Resolution  

dated  9.7.1980,  no  further  action  was  taken  by  the  Municipal  

5

6

Page 6

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

Committee  to  amend the  Scheme nor  any communication  was  

received by the appellant conveying its decision by the Municipal  

Committee with regard to the objections.  

8.In the meantime, the suit bearing no. 386 of 1979 was decreed  

on 11.12.1981,  wherein  it  was observed by the learned Senior  

Sub-Judge that the Town Planning Scheme qua the appellant had  

not become final and, therefore, the subject land cannot vest in  

the  Municipal  Committee  and  the  disputed  land  on  which  

construction  exists  cannot  be  said  to  belong  to  the  Municipal  

Committee.  

9.The  appellant  filed  another  Civil  Suit  bearing  no.  641/  1983  

against the Municipal Committee for permanent injunction not to  

demolish four rooms, which are in the premises of the hotel itself.  

However,  the said suit  was dismissed and the appellant  herein  

filed an appeal before the learned District Judge, Bhatinda, which  

was  withdrawn  upon  the  statements  of  the  Counsel  for  the  

parties. It was agreed that demarcation of the disputed rooms be  

made in the presence of the parties to verify as to whether the  

same  are  part  of  the  street  or  not.  The  demarcation  of  the  

6

7

Page 7

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

disputed rooms was to be made in the presence of the parties.  

Municipal  Committee  was restrained to  demolish  the  rooms till  

demarcation is completed.  

10.Pursuant  to  the above order,  Shri  Hem Raj,  Patwari,  Halqua  

carried out the demarcation of the disputed rooms and submitted  

his report dated 19.8.1986 to the Tehsildar on the basis of which  

an  order  was  passed  wherein  it  was  held  that  there  exists  no  

passage or roads in Khasra No. 2001 in the revenue report. In the  

meantime, the provisions of Section 192 (1) (c) of the Act were  

interpreted by this Court in the case of Yogendra Pal (supra) in  

which  Section  192  (1)  (c)  providing  vesting  of  land  in  the  

Municipal  Committee  was  declared  ultra  vires  and,  therefore,  

these  provisions  were  struck  down  w.e.f.  the  judgment  i.e.  

15.7.1994.  

11.However, the matter did not rest there. The appellant received  

notice  dated  9.9.2003  from  the  successor  of  the  Municipal  

Corporation- Respondent No. 2,  directing the appellant to leave  

the street  within  10 days in  terms of  the same Town Planning  

Scheme  No. 2, Part I, framed in the year 1977. The appellant sent  

7

8

Page 8

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

reply dated 16.9.2003 which was followed by another reply dated  

27.9.2003. It is the case of the appellant that without considering  

these replies, Respondent No. 2 issued notice dated 9.10.2004 to  

the appellant under Sections 246 and 246A of the Act seeking to  

leave 30 feet street as per the Town Planning Scheme No. 2, Part I,  

on or before 13.10.2003. The appellant replied to that notice on  

13.10.2004  alleging  that  the  proposed  action  was  illegal  and  

amounted  to  the  abuse  of  powers.  Immediately  thereafter  the  

appellant  also  filed  the  Writ  Petition  No.  16377  of  2004  on  

13.10.2004 in the High Court seeking quashing of the said notice  

dated 9.10.2004 and that the Town Planning Scheme No. 2, Part I  

be  declared  as  lapsed  due  to  non-implementation.  As  per  the  

appellant, this planning Scheme was not implemented even after  

30  years  of  framing  and  had,  therefore,  lapsed.  However,  the  

appellant withdrew this writ petition on 30.11.2004 with liberty to  

file fresh petitions. Fresh petition No. 19790 of 2004 was filed on  

15.12.2004 challenging the said notice dated 9.5.2004. This Writ  

Petition  has  been  dismissed  by  the  High  Court  vide  judgment  

dated  2.5.2006.  That  judgment  is  impugned  by  filing  Special  

8

9

Page 9

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

Leave  Petition  under  Article  136,  out  of  which  present  appeal  

arises.

12.As pointed out above main contention of the appellant before  

the High Court was that as the Scheme was not implemented for  

the last more than 30 years and objections filed by the appellant  

had  not  been  decided,  the  said  Scheme  had  lapsed  and  

Respondent No. 2 had no authority to implement the same. This  

contention has not found favour with the High Court.  The High  

Court took note of the fact that the appellant had earlier filed Civil  

Writ  No.  226  of  1979  in  the  said  court  challenging  that  very  

Scheme.  That  writ  petition  along  with  many  other  similar  writ  

petitions,  were  disposed  of  holding  that  the  Scheme  under  

challenge was rightly promulgated after passing an appropriate  

Resolution. Matter was remitted to  Respondent No. 2 to decide  

objections,  if  any  filed  by  the  appellant  and  others  similarly  

situated persons, with clear direction that in case the objections  

are rejected, the provision of the Scheme shall become final.  

13.The  High  Court  further  noted  that  in  order  to  dispose  of  

objections filed by various individuals, matter was put up before  

9

10

Page 10

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

the  Municipal  Committee  on  9.7.1980.  Many  objections  were  

disposed of including Objection Nos. 10 and 11 which were filed  

by  the  Managing  Director  of  the  appellant  and  the  appellant  

respectively.  In  so  far  as  objections  of  the  appellant  are  

concerned, it was ordered that to ascertain length of road left in  

the Scheme, measurement be done at the spot.  Therefore,  the  

only dispute which remained was with respect to measurement of  

the property at the spot. As such the appellant was not right in  

contending that its objections were not disposed of and were still  

pending.  The  High  Court  also  went  through  the  record  and  

discussed the same.  On that  basis,  the High Court  has  further  

observed that some demarcation was got done by the appellant  

from the Revenue Department on the basis of aks – Shajra. In that  

report, it was observed that there is no street in Khasra No. 2001,  

in  which  Hotel  of  the  appellant  is  situated.  However,  the  High  

Court chose to discard that Report got prepared by the appellant,  

giving following reasons

“The appellant is now placing reliance upon the said  demarcation report to say that there existed no street  which, as per allegation of respondent no. 2 has been  encroached by the appellant. No benefit of that report  

10

11

Page 11

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

can be extended to appellant, as the demarcation was  not done keeping in view the Town Planning Scheme.  Report  seems  to  have  been  made  on  wrong  facts.  Admittedly  in  revenue  record,  the  street  is  not  in  existence as the same has been carved out only in the  approved  Scheme,  which  is  under  challenge.  Thereafter, when notice was sent to the petitioner to  remove encroachment from the street, he again tried  to delay the matter and subsequent thereto, filed the  present writ petition”.

14.On the basis of these facts as recorded by the High Court, it  

came to  the conclusion that  the challenge to  the Scheme had  

attained  finality  and  the  objections  were  also  considered  and  

taken to  logical  conclusion.  Nothing remained thereafter  and it  

could  not  be  said  that  the  Scheme had  not  become final  and  

cannot  be  implemented now.  To  recapitulate  in  brief,  the  High  

Court has in the impugned order recorded that:

i. The demarcation report  seems to  be  made on  wrong facts and that in the revenue record there was  no street.

ii. It was further wrongly recorded that the earlier  writ petition had been dismissed by the High Court on  16.1.1980. iii. With  regard  to  the  appellate  order  dated  20.5.1986, it was held that pursuant to the said order,  the Managing Director of the Petitioner “managed to  

11

12

Page 12

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

get a wrong report”, i.e. the demarcation report dated  19.8.1986. iv. Finally, the High Court held that the Scheme had  attained finality in view of the judgment of the Civil  Court  and  the  appeal  had  been  dismissed  as  withdrawn  and,  therefore,  it  was  not  open  to  the  appellant  to  say  that  the  Scheme had not  become  final and could not be implemented after a period of  30 years.  

These are the reasons given by the High Court for dismissing the  

writ petition.  

15.Before we proceed to record the submissions of the counsel on  

either side, we would like to point out the ratio of Yogender Pal  

(supra)  mention to  which has been made in  the  beginning.  As  

pointed out above that was a case where the vires of Section 192  

(1) (c) of the Punjab Municipal Act were challenged as violative of  

Article 14 of the Constitution of India and the appellants therein  

succeed  in  their  challenge.  Aforesaid  provision  was  held  to  be  

unconstitutional as under this provision, to implement a Scheme  

land of the landowner could be taken away without even paying  

any compensation.  At the same time, it  is  noteworthy that the  

overruling of this  provision was made prospective i.e.  from the  

date of the decision rendered on 15.7.1994.  

12

13

Page 13

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

16.It was noticed in para 29 that various lands had been acquired  

for Town Planing Schemes and “in many cases the Schemes have  

also been completed.” In view of the said fact, it was held that it  

would not  be in  public  interest  to  unsettle  the settled state of  

affairs as it would create a total chaos. The court was, therefore,  

mindful of the fact that there would be cases where the Schemes  

had been implemented and constructions etc. had already been  

carried out in terms of the Scheme. Those Schemes which were  

already carried out were, thus, protected.  

17.It  is,  in  this  scenario  the  moot  question  which  falls  for  

consideration is as to whether in the present case the Scheme in  

question had been finalised or not.  

18.When the Scheme in the present case were framed in the year  

1975  to  implement  the  same,  the  Municipal  Committee  issued  

notice to the appellant  on 7.6.1978 for  demolition of boundary  

wall of the hotel and transfer the same to the Committee, which  

was required for the road. The appellant challenged the same by  

filing  the  writ  petition  in  the  High  Court.  In  fact  various  Town  

13

14

Page 14

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

Planning  Schemes  framed  by  the  Municipal  Committees  of  

Amritsar  and  Bhatinda  were  the  subject  matter  of  challenge  

before the High Court by way of various Civil Writ Petitions. These  

were  disposed of  by  a  common order  dated 16.1.1980.  It  was  

made clear that the provisions of the Scheme in so far as they  

affect the rights of the writ petitioners, will not be taken to be final  

and the said provisions will only become final after the objections  

filed  by  the  appellants  are  considered by  the  Committees  and  

disposed of.  

19.Thus,  a  conjoint  reading  of  the  judgment  in  Yogender  Pal  

(Supra)  decided  by  this  Court  as  well  as  judgment  dated  

16.1.1980 by which aforesaid writ petitions were decided by the  

High  Court  would  make it  clear  that  in  those cases  where  the  

Scheme  had  been  finalised,  they  remain  protected  and  

Respondent  No.  2  shall  have  right  to  go  ahead  with  the  

implementation of the said Scheme.  

20.It is the common case of the parties that the High Court had  

permitted the appellants and others to file their objections and the  

Scheme  was  to  become  final  only  after  the  objections  were  

14

15

Page 15

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

considered by the Committee and disposed of. However, whereas  

Respondent No. 2 maintains that the objections of the appellants  

were disposed of/ rejected, the appellant argues otherwise and it  

is pleaded that the matter remained in limbo without any decision  

on  its  objections.  The  outcome  of  the  present  appeal  would  

depend upon this aspect.

21.In  his  endeavour  to  demonstrate  that  no  final  decision  was  

taken  on  the  objections  of  the  appellant  Mr.  Nidhesh  Gupta,  

learned  Senior  Counsel  for  the  appellant  submitted  that  these  

objections were considered on 30.6.1980 and 8.7.1980. A perusal  

of  the proceedings dated 30.6.1980 makes it  clear  that  it  was  

decided “that verification be done at the spot and in case there is  

any mistake in the plan of the Scheme, the same be got rectified.”  

The objection regarding the demarcation was rejected by placing  

reliance on Section 192 of the Punjab Municipal Act, 1911, which  

permitted land to the extent of 25% to be taken without payment  

of compensation and additional 10% to be taken after payment of  

compensation.  

22.In the proceeding dated 9.7.1980 the claim of the appellant for  

15

16

Page 16

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

compensation was noticed and the said objection was rejected.  

However,  it  was  also  decided  that  the  plan  of  Sepal  Hotel  as  

sanctioned by the  Municipal  Committee  would  be checked and  

after inspecting the spot, survey plan would be corrected in view  

of the objection of the objector.  

23.In  the  meantime,  Civil  Suit  No.  386  of  1979  filed  by  the  

appellant  herein  was  also  decided.  A  perusal  of  the  judgment  

dated 11.12.1981 in the suit makes it clear that the contention of  

the counsel for the appellant herein that the objections had to be  

considered,  was  not  disputed  by  the  counsel  of  the  Municipal  

Committee  and “he conceded that  the  Scheme framed by  the  

Municipal Committee has not yet become final.” It was also held  

that  “it  is  obvious from copies  of  resolution that  the  Municipal  

Committee is seized of the objections filed by the plaintiff.”

24.As  per  Mr.  Gupta,  this  makes  it  clear  that  even  after  the  

resolutions  of  30.6.1980  and  8.7.1980,  the  objections  of  the  

plaintiff were, admittedly, yet to be decided and the Scheme had  

not yet become final.

25.It  is  further  submitted  that  since  in  spite  of  the  aforesaid  

16

17

Page 17

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

orders, the Municipal Committee was seeking to pursue the action  

under the Scheme without deciding the objections, another Suit  

No. 64 of 23.12.1983 was filed by the appellant herein. After the  

suit  had been dismissed,  the appellate court passed a consent  

order dated 20.5.1986 wherein it was agreed that the appeal will  

be dismissed as withdrawn and an application for demarcation will  

be submitted within a month. The Municipal Committee agreed  

that demarcation shall be made in the presence of the parties and  

they will not demolish the disputed rooms till the demarcation was  

done. The appeal was dismissed as withdrawn in view of the said  

statement.  

26.Thereafter, a demarcation was done on 19.8.1986. A perusal of  

the same makes it clear that it was noticed therein that there was  

no  street  falling  in  the  concerned  Khasra  number  as  per  the  

revenue  record  and,  therefore,  the  street  could  not  be  

demarcated.  

27.Mr.  Gupta,  questioned  the  correctness  of  the  finding  of  the  

impugned order by making the following submissions:

i. The order dated 16.1.1980 categorically records  that the provisions of the Scheme in so far as they  

17

18

Page 18

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

affect the rights of the petitioners will not be final and  the  provisions  will  only  become  final  after  the  objections  filed  by  the  appellant  are  considered by  the committee and disposed of. ii. A  perusal  of  the  proceedings  dated  30.6.1980  and 8.7.1980 makes it clear that the objections were  still  pending  and  demarcation  etc.  had  still  to  be  carried out.  iii. This  fact  stood  admitted  in  the  order  dated  11.12.1981  wherein  the  counsel  for  the  Municipal  Committee  had  conceded  that  the  Scheme  framed  had  not  yet  become  final  and  that  the  Municiapl  Committee was seized of the objections. iv. It is submitted that after the aforesaid date, the  only progress was the report dated 19.8.1986, as per  which report the demarcation of the street could not  be done since there was no street as per the revenue  record.  Assuming  there  was  an  error  in  the  said  demarcation, at best a fresh demarcation could have  been ordered. In any event, it could not be said that  the Scheme had been finalised,  as recorded by the  High Court. v. A perusal of the order passed by the appellate  court dated 20.5.1986 also makes it absolutely clear  that it was agreed that there will no demolition till the  demarcation  was  done.  Accordingly,  without  any  demarcation having admittedly been done thereafter,  there was no question of the Scheme having become  final.  vi. That the aforesaid facts are further reinforced for  a consideration of the agenda item dated 27.12.1995,  pursuant to the judgment of this court. A perusal of  the  resolution  makes  it  clear  that  the  Municipal  Committee had “decided that the Schemes which are  

18

19

Page 19

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

pending are hereby dropped by the Municipal Council,  Bathinda and the office is directed to act accordingly.”  Thus, all pending Schemes stand dropped as per the  aforesaid resolution.  

28.Per  contra,  Mr.  Mahabir  Singh,  learned  Senior  Counsel  

appearing for Municipal Corporation, Bhatinda (Respondent No. 2)  

submitted that the judgment in the case of Yogender Pal had no  

applicability as the law declared therein was made prospective by  

observing that it would not be in public interest to unsettle the  

settled  state  of  affairs.  It  was,  thus,  a  case  of  prospective  

overruling. He further submitted that as per the judgment dated  

16.1.1980 of the High Court, the provisions of the Scheme were  

not to become final unless the objections filed by the appellants  

are disposed of by the Committee. A fortiorari, the Scheme was to  

attain finality if the objections were to be rejected and that was  

specially observed by the High Court. Countering the submissions  

that the objections had not been decided/ rejected Mr. Mahabir  

Singh argued that these objections were specifically rejected by  

the Municipal Committee way back on 30.6.1980 and on 9.7.1980.  

He further submitted that this rejection was never challenged by  

19

20

Page 20

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

the  appellant.  Instead  he  preferred  a  civil  suit  for  permanent  

injunction which was, however, dismissed on 4.11.1985. A reading  

of  this  order  would  reveal  that  the  objections  were  duly  

considered by the Committee and the same were dismissed. Even  

appeal  was filed  against  this  judgment  and decree of  the  trial  

court but the appellant withdrew the same and, therefore, finding  

of the trial court that objections were rejected had become final.  

His further plea was that these are pure finding of facts which  

have been arrived at against the appellant who has dragged on  

the matter for last 30 years after successfully encroaching upon  

the land which was duly carved under Town Planning Scheme for  

public  street.  He  further  submitted  that  the  appellant  had  

suppressed all these proceedings including filing of Civil Writ No.  

19812 of 1996 which was subsequently withdrawn by him.

29.We  have  given  our  anxious  thought  to  the  aforesaid  

submissions of learned Counsel for  the parties.  It  is a common  

case of the parties that the judgment in Yogender Pal (Supra) is  

prospective i.e from the date of judgment which is 15.7.1994. It is  

also a common case of the parties that the Scheme in question  

20

21

Page 21

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

was framed much earlier.  Thus, as pointed out above, the only  

issue  is  as  to  whether  the  Scheme  had  attained  finality  and  

answer to this question depends upon another issue viz. whether  

objections of the appellant to the Scheme were disposed of by  

Respondent  No.  2  or  not,  in  compliance  with  directions  dated  

19.6.1980 of the High Court.  

30.It  is  borne from the record  that  these objections  were  duly  

considered  on  30.6.1980  and  8.7.1980.  In  the  proceedings  of  

30.6.1980 objections of the appellant regarding demarcation were  

rejected. At the same time it was decided that verification be done  

at the spot and in case there is any mistake in the plan of the  

Scheme, the same be got rectified.  It  was so done.  Thereafter,  

matter  came  up  before  the  Committee  on  9.7.1980  and  after  

considering the entire matter the Committee specifically rejected  

the objections of the appellant. Operative portion of the minutes  

of the meeting dated 30.6.1980 as well as 9.7.1980 are as under:

“  Minutes of the Meeting dated 30.6.1980:   

Shri  Som Chand Katia,  Writ Petitioner No. 226/79 is  present. He has stated that his total land measuring  31550 sq. yards is covered under the Scheme and his  land to the extent of 35% has been taken under the  

21

22

Page 22

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

Scheme and some of his land thus goes waste. The  objector has been asked to get  the demarcation of  the total land at the spot and produce the plan in the  office of Municipal Committee by 7.7.1980 and should  also get the spot inspection of the land so that in spot  inspection it could be verified as to how much of his  land falls under the Scheme. In case any area more  than  25% of  his  total  land  comes  under  the  park/  road,  the same may be adjusted.  The objector  has  stated that he is not ready to give any land for road or  park  without  compensation.  Thus  objection  of  the  objector is rejected because under Section 192 of the  Punjab Municipal Act, 1911 land to the extent of 25%  without payment of compensation and an additional  10% with payment of compensation can be taken for  the purpose or roads and parks under the proposed  Town Planning Scheme.”

Minutes of the Meeting dated 9.7.1980 “As per  decision dated 30.6.1980,  the objector  Shri  Som  Chand  Katia  was  required  to  get  the  measurement of his land at the spot. He has produced  a photostat copy of revenue record relating to Khasra  No. 2001 which has been attested by Halqa Patwari.  As per the same, their total area in the Scheme comes  to 44300 sq. yards. The plea of objector is that the  Sepal  Hotel  whose  area  is  12750  sq.  yards  has  different out of the total area and the land for roads  and parks be taken out of the remaining area as per  law. But he should be given compensation of the same  as well. On perusal of record, it is found that sanction  of building plan of Sepal Hotel has also been given to  them  who  were  the  original  owners  of  total  land.  Therefore, the Sepal Hotel had also been adjusted in  the Scheme. Therefore, the Sepal Hotel had also been  adjusted in the Scheme. Therefore, it is decided that  the  plot  of  Sepal  Hotel  cannot  be  treated  to  be  different from the land belonging to the said family  

22

23

Page 23

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

under the purposes of Scheme and in this way out of  total  ownership  land,  the  land  under  the  road  and  parks does not form more than 25% which is as per  law, therefore, this objection is rejected. Therefore, in this objection, the objector has written  that  the  length  of  road  joining  the  30'  x  40'  wide  roads has been shown to be 224 under the Scheme  whereas the sport  the same is  275.  therefore,  it  is  decided that plan of the Sepal Hotel as sanctioned by  Municipal  Committee  be  checked  at  the  spot  and  after inspecting the spot survey plan be got corrected  in view of the above objection of objector.”

31. It is clear from the above that objections were specifically  

rejected. Only thing which the Municipal Committee wanted was  

to check the plan of Sepal Hotel as sanctioned by the Municipal  

Committee at the spot and after inspecting the spot the survey  

plan  be  corrected.  It  is  also  clear  from  the  above  that  main  

objection was for payment of compensation which was rejected on  

the ground that the land under the road and the parks does not  

form more than 25% and, therefore, in view of Section 192 of the  

Act no compensation was payable.

32.Learned  Senior  Counsel  for  the  respondent  is  right  in  his  

submission that these orders were not challenged.  Instead,  the  

appellant filed Civil Suit No. 614 of 1983. However, this suit was  

dismissed by the trial court. The appellant preferred appeal there  

23

24

Page 24

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

against.  This  appeal  was  dismissed  as  withdrawn.  It  was  the  

contention of the appellant that this appeal was withdrawn in view  

of consent order dated 20.5.1986 wherein it was agreed that an  

application for demarcation will be submitted within a month and  

demarcation shall be made in the presence of the parties and till  

then respondent shall not demolish the disputed rooms. However,  

from  this  the  appellant  cannot  be  allowed  to  contend  that  

objections  had  not  been  decided.  The  at  the  most,  issue  of  

demarcation was to be settled as the appellant was raising this  

issue time and again. However,  it  is accepted by the appellant  

itself that demarcation was done on 19.8.1986.  

33.From the aforesaid, we cannot agree with the contention of the  

appellant that objections of the appellant were still  pending. At  

the  same  time  it  becomes  clear  that  the  only  issue  which  

remained was about the demarcation and demarcation was also  

carried out and the Patwari submitted his Report dated 19.8.1986.

34.Having said so, what we find is that this demarcation report  

has altered the position.  As per  the demarcation Report  of  the  

Patwari, 30 feet road as set out in the Town Planning Scheme does  

24

25

Page 25

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

not exist in the revenue record. Once that be the position, how the  

Scheme would be implemented is the poser. The High Court has  

remarked that the appellant managed to get a wrong Report. At  

the same time, what is the correct position at the site has also not  

come on record. In a situation like this, we are of the opinion that  

once  the  High  Court  observed  that  there  was  an  error  in  the  

demarcation Report, more appropriate action was to order fresh  

demarcation.  

35.In view of the above though we reject all the contentions of the  

appellant, at the same time we modify the order of the High Court  

to the extent that there shall be fresh demarcation done at the  

site  through Patwari.  On the  basis  of  said  demarcation,  if  it  is  

found that in the revenue record 30 feet road exists, that area will  

be clearly demarcated and delineated, and thereafter the Scheme  

would be implemented. The aforesaid exercise shall be carried out  

within a period of two months from today. The appellant shall be  

associated in the exercise of demarcation. Once this demarcation,  

is done the parties shall abide by the same.  

36.Appeal disposed of in the aforesaid terms.  

25

26

Page 26

C.A. No.4678/ 2014 @ SLP(C)No. 12025 of 2006

...….........................J. [Surinder Singh Nijjar]

…...........................J. [A.K. Sikri]

New Delhi April 22, 2014

26