NAGPUR IMPROVEMENT TRUST Vs M/S. BOMBAYWALA .
Bench: HON'BLE MR. JUSTICE A.K. SIKRI, HON'BLE MR. JUSTICE S. ABDUL NAZEER, HON'BLE MR. JUSTICE M.R. SHAH
Judgment by: HON'BLE MR. JUSTICE M.R. SHAH
Case number: C.A. No.-000937-000937 / 2019
Diary number: 36547 / 2016
Advocates: ANAGHA S. DESAI Vs
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1
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 937 OF 2019 [Arising out of SLP (C) No. 32089 of 2016]
Nagpur Improvement Trust & Ors. .. Appellants
Versus
M/s Bombaywala & Ors. …. Respondents
WITH
CIVIL APPEAL NO. 938 OF 2019 [Arising out of SLP (C) No.33160 of 2016]
CIVIL APPEAL NO. 939 OF 2019 [Arising out of SLP (C) No.33004 of 2016]
CIVIL APPEAL NO. 940 OF 2019 [Arising out of SLP (C) No.33226 of 2016]
CIVIL APPEAL NO. 941 OF 2019 [Arising out of SLP (C) No.34176 of 2016]
CIVIL APPEAL NO. 942 OF 2019 [Arising out of SLP (C) No.38036 of 2016]
CIVIL APPEAL NOS. 943944 OF 2019 [Arising out of SLP (C) Nos.96529653 of 2017]
2
TRANSFERRED CASE ©NO. 23 OF 2018
J U D G M E N T
M.R.SHAH, J.
Leave granted in all these Special Leave Petitions.
1. As common question of law and facts arise in this group
of appeals arising out of the impugned judgment and order
dated 15.09.2016 passed by the High Court of Bombay,
Bench at Nagpur passed in Writ Petition No.2695 of 2015, all
these appeals are being disposed of by this common
judgment and order. For the sake of convenience, Civil
Appeal arising out of the SLP© No.32089 of 2016 is treated
as lead matter and the facts in the said appeal are narrated.
2. Feeling aggrieved and dissatisfied with the impugned
judgment and order dated 15.09.2016 passed by the Division
Bench of the High Court of Judicature at Bombay, Nagpur
3
Bench, Nagpur passed in W.P.No.2695 of 2015 by which the
Division Bench has allowed the said Writ Petition preferred by
the respondents Nos.1 to 18 hereinoriginal petitioners Nos.1
to 18 some of the occupants/tenants of the building in
question and by which the Division Bench has set aside the
notice dated 24.04.2015 issued by the Nagpur Improvement
Trust, the original respondentsNagpur Improvement Trust
and others have preferred the present appeals.
3. The facts leading to the present appeals in nutshell are
as under.
4. That the Nagpur Improvement Trust Act 1936
(hereinafter referred to as the ‘NIT Act’) was enacted on
25.12.1936. That the Nagpur Improvement Trust (hereinafter
referred to as the ‘NIT’) vide Board Resolution dated
29.10.1960 framed an improvement Scheme known as
“Abhyankar Road Widening and Buty Mahal Street Scheme”
(hereinafter referred to as “the Scheme”) in respect of 8.7 acres
of land bearing Khasra No.320 and 315 (part) Mouza
Sitabuldi, belonging to the Buty Family. That the same
Scheme came to be framed under Section 31 of NIT Act for
4
“creating new or improving the existing means of
communications and facilities for traffic”. That, inter alia, a
new 15 metres wide road was to be constructed to join
Mahatma Gandhi Road to Abhyankar Road. That the internal
road of 15 metres provided in the said Scheme is the subject
matter of issue in the present matters. That, the said Scheme
came to be published on 29.10.1961 as per Section 39 of the
NIT Act. That, the NIT sought approval of the State
Government of the above Scheme. That the State Government
sanctioned the said Scheme in exercise of powers under
Section 44(1) read with Section 45(1)(a) of the NIT Act on
23.09.1964. Accordingly, a Notification to that effect was also
issued under Section 45 of the NIT Act.
4.1 That, thereafter, the Maharashtra Regional Town
Planning Act, 1966 (hereinafter referred to as the “MRTP Act”)
came into effect on 11.01.1967. At this stage, it is required
to be noted that, as per the MRTP Act, any Development Plan
made under the said Act had to take precedence over any
Scheme to the contrary. The same shall be discussed
hereinbelow.
5
4.2 That NIT was appointed as the “Planning Authority”
under the MRTP Act for Nagpur. That, in the year 1967, the
First Final Development Plan for the City of Nagpur under
Sections 22 and 31 of the MRTP Act was prepared and
sanctioned. At this stage, it is required to be noted that, in the
said final Development Plan, the above 15 metres road which
was provided under the Town Planning Scheme under the NIT
Act was not shown in the Development Plan under the MRTP
Act.
4.3 That the NIT, in Board meeting dated 05.06.1981 and
31.12.1981, decided to implement the Scheme. That, a
Special Land Acquisition Officer came to be appointed by the
State Government for acquisition of the land and the
proceedings of the land acquisition came to be initiated.
4.4 That a newspaper article was published on 21.06.1981
stating that the NIT has decided to handover the “Buty Mahal
Development Scheme” to the land owners for redevelopment.
That, in the year 1983, a Writ Petition being WP.No.2326 of
1983 was filed by the land owners before the Nagpur Bench of
6
the Bombay High Court challenging the acquisition. Initially,
the High Court granted an interim stay on the acquisition
proceedings.
4.5 That, on 07.06.1984, the land owners – Shri Yogeshwar
Buty and Smt. Madhuribai Buty approached NIT to allot a
reconstituted plot or plots bearing Nos.6, 7 and 8 belonging to
them. However, the said request came to be rejected by the
NIT on 17.08.1984.
4.6 That, on 13.03.1995, one Smt. Indirabai Buty (land
owner) submitted an application for permission to develop the
land stating inter alia, that; (1) Development of the land would
be as per the Development Plan of the NIT; (2) All the tenants
would be accommodated in the proposed Scheme; (3) The
betterment charges would be paid to the NIT. That, the Board
of NIT in its meeting held on 11.03.1996 passed a Resolution
wherein it was, inter alia, decided ……………..(1) A plot was
allocated in the matter of Shri Yadhuraj Sanghani; (2) Smt.
Indirabai Buty and others land owners to accommodate in
their proposed Scheme, the tenants in the area of the
reconstituted plot and (3) All the petitions in respect of the
7
subject plot would have to be withdrawn unconditionally. On
the basis of the said Resolution of the NIT dated 11.03.1996,
Writ Petition No.2326 of 1983 challenging the acquisition was
withdrawn by the land owners.
4.7 In the meantime, in the year 1989, the First Final
Development Plan which was earlier prepared and sanctioned
in the year 1986, came to be revised. Again, the above 15
metres internal road was not depicted in the revised DP.
4.8 It appears that, in the year 1997, NIT addressed letters
to the Urban Development Department requesting the latter to
obtain permission from the Government to relax Rule 5(2) of
the NIT (Land Disposal) Rules, 1983 (hereinafter referred to as
the “1983 Rules”) under Rule 26 of the 1983 Rules, to allocate
the reconstituted plot in the present Scheme. That the State
Government vide order dated 07.10.1997 issued under Rule
26 of the 1983 Rules relaxed Rule 5(2) and allotted the
reconstituted plot in Survey Nos.3117, 3119, 3123, 3127,
3120, 3122, 3124 and 3125 in Khasra No.320 Mouza
Sitabuldi, subject to certain conditions including inter alia that
…………(i) The Applicants would accept the compensation of
8
the land fixed by the Land Acquisition Officer and give
possession of the lands to him; (ii) Development of the land
would as per the Development Plan of NIT; (iii) All the tenants
are to be accommodated in the Scheme and (iv) That in the
interest of tenants the NIT fixed the plot allotment rate @ 50%
of the market value, without prejudice to Rule 7(3) of the 1983
Rules.
4.9 That the NIT passed a Board Resolution on 23.10.1997 to
implement the altered Scheme in terms of G.O. dated
07.10.1997. That the Special Land Acquisition Officer, NIT
passed an Award dated 16.12.1997 in respect of the land
admeasuring 5677 sq.ft bearing Khasra No.320 Sitabuldi,
Nagpur. That, pursuant to the Award declared by the Land
Acquisition Officer, possession of the land was taken by the
Land Acquisition Officer and handed over to NIT. It appears
that, out of 271552.60 sq.ft of the land, only 114079.36 sq.ft
was acquired by NIT and the rest of the lands remained with
the land owners.
9
4.10 That the Final Development Plan in terms of Section 31
of the MRTP came to sanctioned in the year 2001.
4.11 That pursuant to the G.O. dated 07.10.1997, the
process of widening of the Abhyankar road was initiated and
notices were issued for demolition of shops. At that stage,
Writ Petition No.798 of 2002 was filed by some of the
Abhyankar Road tenants challenging the demolition notices
issued by the NIT to the tenants in the process of road
widening. The said Writ Petition came to be dismissed by the
High Court by judgment and order dated 22.02.2002. The
matter was carried before this Court. Before this Court, a
compromise was reached between the petitioners of
W.P.No.798 of 2002 and land owners and NIT. By order dated
08.04.2002, SLP© No.4846 of 2002 was disposed of in terms
of the compromise arrived at between the land owners, the
tenants (only on writ petitioners) original petitioners to
W.P.No.725 of 2002), wherein inter alia the following
conditions were specified:
10
The Landlord shall construct a multistoreyed
building on the reconstituted plot that was to be
allotted to him by the NIT.
The Tenant and Landlord shall within a period of
one week from the filing of the compromise petition
would vacate such area out of the property covered
in the instant proceedings in their possession as is
required for widening of the Abhayankar Road.
The compromise also provided, NIT to allot one single
reconstituted plot and redevelopment of suit property to be
carried out in accordance with the Development Plan of
Nagpur City and all tenants to be rehoused post development.
4.12 That thereafter, on the request made by the owners, the
Resolution was passed by the NIT dated 23.10.2003 to allot a
single reconstituted plot admeasuring 10602.09 sq.mts as
undivided share and the same was offered to the Buty family.
That thereafter, the Government by letter dated 12.11.2003
allotted the reconstituted plot to the owners. From the letter
dated 12.11.2003, it appears that the land for road will be
provided as per the Development Plan and that the
11
beneficiaries will have to make land available for road
widening and parking.
4.13 It appears that thereafter the NIT represented to the
State Government vide Representations dated 16.08.2005 and
29.03.2006 purportedly under Section 37(1) of the MRTP Act
in order to increase the width of the Abhyankar Road from 12
metres to 24 metres and for converting the reconstituted plot
from residential to commercial in order to accommodate the
tenants running commercial shops.
4.14 It appears that thereafter on 02.08.2006, the owners
entered into a development agreement with one of the
petitioners herein – M/s Goel Ganga Infrastructure & Real
Estate Pvt. Ltd. For developing the property bearing Khasra
No.320.
4.15 That thereafter the State Government passed an order
dated 22.06.2007 under Section 37(1) of the MRTP Act
permitting the change of use in respect of Khasra No.320 and
315 (Part) from residential to commercial. It appears that the
12
permission was also granted by the State to widen the
Abhyankar Road to 24 metres in place of 12 metres.
4.16 It appears that thereafter the provisional sanction was
granted by NIT on 22.04.2008 to the drawing/building map to
the layout plan submitted by developer for the construction of
a commercial complex. It appears that thereafter vide letter
dated 18.08.2009, the NIT issued a letter to the land owners
allotting a single reconstituted plot admeasuring 114079.36
sq.mts to the land owners, subject to the conditions
mentioned in the said letter. That thereafter, on 10.02.2010, a
lease deed was executed between the NIT and the land owners
in respect of the reconstituted plot subject to the terms and
conditions mentioned in the allotment letter dated 18.08.2009.
It appears that thereafter on 15.05.2012, the NIT sanctioned
the Final Layout Plan in respect of the reconstituted plot as
per the D.C.R. of Nagpur City. That the building plan also
came to be sanctioned on 27.06.2012 in accordance with the
D.C.R. of Nagpur City. That, on 10.12.2014, building permit
and commencement certificates were issued by the NIT subject
to certain conditions specified therein. That a revised building
13
plan was also sanctioned by the NIT on 11.12.2014 subject to
the conditions mentioned therein.
4.17 That thereafter on 24.04.2015, the NIT issued notices to
the tenants asking them to vacate a portion of their shops so
as to enable construction as per the layout plan.
4.18 The aforesaid notices gave rise to filing of Writ Petition
No.2695 of 2015 before the High Court of Bombay, Nagpur
Bench. In the said Writ Petition, the Respondents Nos.1 to 18
herein the original writ petitioners prayed inter alia for an
order quashing the notices issued by the NIT on 24.04.2015.
That the said petition was opposed by the original writ
petitioners as well as the NIT. It appears that thereafter the
original writ petitioners filed an application being C.A.No.1615
of 2015 in W.P.No.2695 of 2015 praying for amendment to the
prayers in the writ petition and allow them to challenge the
sanctioned plan dated 27.06.2012 and the revised plan dated
11.12.2014. The said amendment was opposed by the original
land owners and the developers. However, thereafter High
Court allowed the said Amendment application.
14
4.19 It appears that, during the course of the hearing,
the High Court by order dated 03.09.2015 in W.P.No.2695 of
2015 directed the Chairman, NIT to explore the possibility of
an amicable settlement by calling the representatives of both
the tenants and the developers and land owners and directed
to submit a report to the Court. It appears that, pursuant to
the order dated 03.09.2015, the Chairman, NIT called all the
parties. That thereafter the Chairman, NIT submitted a report
on 15.10.2015 stating that no settlement could be arrived at
between the parties.
4.20 That thereafter, by impugned judgment and order,
the High Court has allowed the Writ Petition and has quashed
and set aside the demolition notice dated 28.04.2015 issued
by the NIT. The High Court has also further observed that it
will be open for the NIT to issue fresh notices of demolition to
the writ petitioners after the sanctioned layout plan dated
15.05.2012, the building permit granted on 27.06.2012
revised on 11.12.2014 as well as the construction, if any,
carried out are brought in conformity with the Scheme
published under Section 45 of the NIT Act of 23.09.1964.
15
While passing the impugned judgment and order the High
Court has observed and held that the layout plan sanctioned
in the building permit granted are contrary to the provisions of
the Scheme published and sanctioned under Section 45 of the
NIT Act and that the same suffers from vice of internal
mischief.
4.21 That the impugned judgment and order passed by the
High Court dated 15.09.2016 in W.P.No.2595 of 2016 is the
subject matter of the present appeals.
5. It appears that, in the meantime and after the impugned
judgment and order passed by the High Court, the original
Scheme sanctioned under Section 45 of the NIT Act which
provided 15 metres internal road came to be modified as
provided under the NIT Act by deleting 15 metres internal
road. The same came to be published in the Government of
Maharashtra Gazette on 24.04.2017. That the W.P.No.5005 of
2017 was filed by the 18 tenants/shopkeepers before the
Nagpur Bench, Bombay High Court questioning the Resolution
passed by the NIT dated 24.04.2017 issued under Section 46
16
of the NIT Act deleting 15 metres internal road and another
internal road from the Scheme. That a Transfer Case No.23 of
2018 was filed before this Court praying inter alia for transfer
of W.P.No.5005 of 2017 to this Court. That is how, the
Transfer Case No.23 of 2015 is also listed along with the
present group of appeals.
5.1 We have heard the learned counsel appearing for the
respective parties in the transferred Writ Petition No.5005 of
2017 also, along with the other appeals arising out of the
impugned judgment and order dated 15.09.2016 passed in
W.P.No.2695 of 2015.
6. Mr. V. Giri, Mr. Mukul Rohtagi and Mr. Dhruv Mehta,
learned senior counsel appearing on behalf of the respective
appellants have vehemently submitted that the impugned
judgment and order passed by the High Court is contrary to
the provisions of MRTP Act and also the law laid down by this
Court in the case of Manohar Joshi vs. State of
Maharashtra & Anr. 2012 (3) SCC 619.
17
6.1 The learned counsel appearing on behalf of the
respective appellantsoriginal respondents have vehemently
submitted that while passing the impugned judgment and
order the High Court has not properly appreciated and
considered the relevant provisions of MRTP Act.
6.2 The learned counsel appearing on behalf of the
respective appellants have vehemently submitted that though
in the original Scheme framed under the provisions of the
NIT, 1936 there was a provision for 15 metres internal road,
thereafter when the MRTP Act came to be enacted and came
into force and the Development Plan framed and sanctioned
under the provisions of the MRTP Act did not contain any
“internal road” as was there in the Scheme published under
Section 45 of the NIT Act, in view of the provisions of the
MRTP Act, the Development Plan overrides the DP Scheme
and, therefore, there is no question of providing any internal
road. It is submitted that the High Court has not properly
appreciated the abovesaid at all.
18
6.3 It is vehemently submitted by the learned counsel
appearing on behalf of the respective appellants that, as per
the law laid down in the case of Manohar Joshi (supra), the
DP Plan overrides the Scheme; and anything contrary to the
DP Plan in the Scheme shall have to be varied to bring it in
line with the Development Plan sanctioned under the
provisions of MRTP Act. It is submitted that, therefore, the
High Court has materially erred in quashing and setting
aside the notices of demolition which are based upon final
layout plan sanctioned on 15.05.2012 and building permit
granted on 27.06.2012, and revised on 11.12.2014, which
were as per the provisions of MRTP Act.
6.4 It is further submitted by the learned counsel appearing
on behalf of the respective appellants that the High Court has
materially erred in misreading and/or misinterpreting the
judgment of this Court in Manohar Joshi (supra) and held
that the statutory obligations created upon the NIT under
Section 45 of the NIT Act to execute the Scheme to the extent
it is not in variation or modification of the proposals in the
Final Development Plan, continues to subsist and can be
19
enforced. It is vehemently submitted by the learned counsel
appearing for the respective appellants that the aforesaid
observations are just contrary to the observations made by
this Court in the case of Manohar Joshi (supra). It is
submitted that in the case of Manohar Joshi (supra) this
Court has specifically observed and held that even if such a
variation as directed under Section 39 of MRTP Act does not
take place, the land cannot be put to use in any way in
contradiction with the provisions in the DP Plan.
6.5 It is further submitted by the learned counsel appearing
on behalf of the respective appellants that even the aforesaid
finding and the observation are contrary to Section 43 of the
MRTP Act which provides that once the declaration of
intention to prepare a Development Plan is presented, no
development contrary thereto can be permitted.
6.6 It is further submitted by the learned counsel for the
respective appellants that the High Court has not properly
appreciated and considered the fact that, in view of the
subsequent development and the widening of the existing
20
road, there was no necessity for internal road as provided in
the Scheme under the NIT Act. It is submitted that as such
in view of the subsequent development and widening of the
existing road, when subsequently the DP under the MRTP Act
was prepared, there was no provision for 15 metres internal
road as provided earlier in the Scheme under the NIT Act.
6.7 It is further submitted by the learned counsel that the
High Court has not properly appreciated the fact that as such
in the Development Plan prepared under the provisions of
MRTP Act, which was first prepared in the year 1976 and in
the subsequent DP, there was no provision for the internal
road and, despite the same, the same was not challenged by
the original writ petitioners. It is submitted that even initially
what was challenged in the main writ petition was demolition
notices. It is submitted that even subsequently also the DP
prepared and sanctioned under the provisions of MRTP Act,
which does not contain any provision for internal road was
not under challenge at all. It is submitted that, therefore, the
layout plan came to be sanctioned under the provisions of the
MRTP Act and the building permit was issued under the
21
provisions of MRTP Act, which came to be challenged
subsequently by way of amendment. It is submitted that in
view of the relevant provisions of the MRTP Act, the
construction has to be made as per the layout plan and the
building permit granted under the provisions of MRTP ACT.
It is submitted, that, therefore, the High Court has materially
erred in quashing and setting aside the final layout plan as
well as the building permit solely on the ground that the
same is in contravention of the Scheme published under
Section 45 of the NIT Act.
6.8 It is further submitted by the learned counsel for the
Appellants that the High Court has not properly appreciated
and considered the stand of the NIT that punctuated lines in
the Development Plan only indicate the boundaries of the
Scheme under the control of the NIT and it has no more
significance than this.
6.9 It is further submitted by the learned counsel that the
High Court has materially erred in observing that, in the
absence of any provisions contrary to the internal road,
22
shown in the Development Plan, it cannot be said that the
provisions of the internal road vanishes automatically. It is
submitted that the High Court has not properly appreciated
the fact that as such the Development Plan which has been
prepared in consonance with the provisions of the MRTP Act,
specifically do not provide any internal road, which was
earlier provided in the Scheme under the NIT Act.
6.10 It is further submitted by the learned counsel that
even the Government Resolution dated 07.10.1997
specifically provided and/or permitted to develop the land
in question
as per the Development Plan and not as per the Scheme. It is
submitted by learned counsel that while issuing G.O. dated
07.10.1997, it was specifically noted that the 50 ft. (15
metres) wide road through the land is not provided under the
Development Plan. It is submitted that the aforesaid was
even considered and noted by the NIT. It is submitted that
despite the above the High Court has observed that all
throughout the NIT desired to implement the Scheme.
23
6.11 It is further submitted by the learned counsel that the
High Court has not properly appreciated the fact that even
one consolidated plot was allotted under the provisions of the
MRTP Act and thereafter the layout plan as per the provisions
of the MRTP Act was submitted and got sanctioned and the
development permission was obtained to carry out the
construction which was granted as per the DP sanctioned
under the provisions of MRTP Act. It is submitted that the
High Court has materially erred in quashing and setting
aside the demolition notices which as such were consequent
upon the sanction of the layout plan and the grant of the
permission. It is submitted that the High Court has
materially erred in quashing and setting aside the sanctioned
layout plan as well as the development permission granted
under the provisions of the MRTP Act. It is further submitted
by the learned counsel that the High Court has, therefore,
materially erred in observing and holding that grant of
permission/sanction of layout plan which was in
contravention of the Scheme under the NIT Act was a
mischief in law to provide an unfair advantage to the
24
developers and the owners and it deprives the facility of
frontage to the tenants on the internal road.
6.12 It is further submitted by the learned counsel that the
High Court has materially erred in not appreciating the fact
that only 18 tenants filed the writ petition and were
aggrieved, against which majority of the tenants accepted the
settlement/compromise before this Court. It is stated that
the appellants are ready and willing to provide the same
benefit to the original writ petitioners herein also. It is
submitted, however, for some oblique reason and/or to get
some more benefits, only 18 tenants approached the High
Court and filed the writ petition.
6.13 The learned Counsel appearing on behalf of the
respective appellants have vehemently submitted that, on one
hand, the High Court has specifically observed that, in
paragraph 86, the High Court has not set aside and it is also
not necessary for the High Court to set aside the layout plan
and the building permit granted by the NIT, the ultimate
observation made by the High Court in paragraph 89(2)
25
would tantamount to quashing and setting aside the
sanctioned layout plan and even the building permit.
6.14 Making the above submissions and relying upon the
provisions of NIT Act as well as the MRTP Act and the
decision of this Court in the case of Manohar Joshi (supra),
it is requested to allow the present appeals and quash and
set aside the impugned judgment and order passed by the
High Court.
7. The present appeals are vehemently opposed by Ms.
Rukhmini Bobde, learned Advocate appearing for the writ
petitioners and Ms. Deepa Kulkarni learned Advocate also.
7.1 The learned counsel appearing on behalf of the original
writ petitioners have supported the impugned judgment and
order passed by the High Court.
7.2 It is vehemently submitted by the learned counsel
appearing on behalf of the original writ petitioners that the
impugned judgment and order passed by this High Court is
26
absolutely in consonance with the provisions of the NIT Act
as well as the MRTP Act, which is not required to be
interfered by this Court.
7.3 It is vehemently submitted by learned counsel for
original writ petitioners that on true interpretation of the
provisions of NIT Act, more particularly Section 45(3) and 45
of the NIT Act, the High Court has rightly observed and held
that unless and until the Scheme sanctioned under the NIT
Act is varied and/or is modified under the provisions of the
NIT Act, the Scheme shall prevail and shall have to be acted
upon.
7.4 The learned counsel appearing on behalf of the original
writ petitioners have emphasised on the object and purpose
to provide 15 metres internal road in the Scheme sanctioned
under the NIT Act. It is submitted that the internal road
provided in the Scheme sanctioned under Section 45 of the
NIT Act was a part of Street Scheme so as to avoid the traffic
congestion. It is submitted that the use of land in question
on the date of such Scheme was initially for residential
27
purposes with internal road, one cinema theatre and the
peripheral area being used for shops/offices purposes. It is
submitted that the object and purpose for providing the
internal road under the Scheme/Street Scheme was for
creating new or improving existing means of communication
and facilities for traffic. It is submitted that the execution of
the Scheme was for (i) providing huge commercial complex
inside the Scheme area to accommodate the tenants apart
from others, (ii) widening of Mahatma Gandhi Road and
Abhyankar Road outside the Scheme area; (iii) providing 50 ft
(15 metres) wide internal road along with others two roads
inside the Scheme area to ease out the traffic and removing
congestion, and (iv) to provide space open to sky for
parking . It is submitted that, therefore, once there was a
Scheme/Street Scheme as sanctioned under Section 45 of
the NIT Act with specific object and purpose, merely because
in the Development Plan prepared under the MRTP Act, there
was no specific reference to the internal road, it cannot be
said that the sanctioned Scheme which was sanctioned
under Section 45 of the NIT Act is not to be implemented,
28
even if the same is not varied or modified under the
provisions of the NIT Act.
7.5 It is submitted that the High Court has rightly observed
and held that unless and until the Scheme is varied or is
modified by the Planning Authority, which in the present case
i.e. NIT, after following the due process under Section 46 of
the NIT Act, the Scheme has to be implemented and anything
including the sanction of the layout plan and/or grant of
building permission which would be in contravention of the
Scheme under NIT Act, are illegal and contrary to the
provisions of the NIT as well as the MRTP Act, and, therefore,
the High Court has rightly quashed and set aside the
demolition notices and has rightly observed that it would be
open for the NIT to issue fresh notices of demolition, after
sanctioned plan, the building permit as well as construction,
if any, carried out are brought in conformity with the Scheme
published under NIT Act on 23.06.1964.
7.6 It is vehemently submitted by the learned counsel that
the impugned judgment and order passed by the High Court
29
is absolutely in furtherance of the object of the Scheme
published under Section 45 of the NIT Act i.e. for better
development and to avoid the traffic congestion. The learned
counsel appearing on behalf of the original writ petitioners
has heavily relied upon the decision of this Court in the case
of Manohar Joshi (supra) reported in (2012) 3 SCC 619, in
support of their submissions that planning involving highly
complex cities depends upon scientific research, study and
experience and, thus deserves due reverence and therefore,
the Scheme which is prepared after due consideration of
necessity for better street planning has to be implemented,
unless the same is varied and/or is modified after following
due procedure as required under the provisions of the NIT
Act.
7.7 It is vehemently submitted by the learned counsel that
as the appellants have as such subsequently implemented
the impugned judgment and order passed by the High Court
by modifying the Scheme which was earlier sanctioned and
prepared under the NIT Act, as permitted by the High Court
and, therefore, now thereafter it is not open for the appellants
30
to challenge the impugned judgment and order passed by the
High Court.
8. Now, so far as challenge to variation/modification of the
Scheme under Section 46 of the NIT Act, which is the subject
matter of the Transfer Petition, it is vehemently submitted by
the learned counsel on behalf of the writ petitioners that the
same is absolutely in breach of the provisions of the NIT Act.
It is submitted that a detail procedure required to be followed
for variation and/or modification of the Scheme as provided
under the NIT Act has not been followed at all. It is
submitted that neither any objections were invited nor any
opportunity was given to the writ petitioners. It is submitted
that, therefore, subsequent variation and/or modification of
the Scheme is absolutely illegal and deserves to be quashed
and set aside. It is submitted that even the same can be said
to be in violation of the principles of natural justice. In
support of the above, the learned counsel appearing on
behalf of the writ petitionersthe tenants has heavily relied
upon the decision of this Court in Scheduled Caste and
31
Weaker Section Welfare Association vs State of
Karnataka reported in (1991) 2 SCC SCC 604.
8.1 By making the above submission, it is requested to
dismiss the appeals and upheld the impugned judgment and
order passed by the High Court and to allow the Transfer
Petition and quash and set aside the variation and/or
modification of the Scheme published under Section 46 of the
NIT Act.
9. Now, so far as the Transfer Petition is concerned, and
challenge to the subsequent variation and/or modification of
the Scheme published under Section 46 of the NIT Act is
concerned, the learned counsel appearing on behalf of the
NIT as well as the original land owners and developers have
vehemently submitted that the Scheme is varied/modified
after following due procedure required under the provisions
of the MRTP Act. It is submitted that, as per Section 39 of
the MRTP Act, where a final Development Plan contains
proposals which are in variation, or modification of those
made in a Town Planning Scheme, which has been
sanctioned by the State Government before the
32
commencement of the MRTP Act, the Planning Authority
shall vary such Scheme suitably under Section 92 to the
extent necessary by the proposals made in the Final
Development Plan. It is submitted that Section 92 authorises
the State Government to vary and/or modify the Scheme. It
is submitted that, therefore, if Sections 39 and 92 of the
MRTP Act are conjointly read, it can be seen that the
variation of the Scheme subsequently shall be a formal action
to bring the Scheme in consonance with the Development
Plan. It is submitted that, therefore, when the Development
Plan was sanctioned after inviting the objections etc. the
subsequent variation of the Scheme to bring the Scheme in
consonance with the sanction Development Plan would be
only a formality which is required to be done under Section
92 of the MRTP Act. It is submitted that, therefore
subsequent variation and/or modification of the Scheme
which in the present case would be as per Section 39 and
Section 92 of the MRTP Act would be absolutely in
consonance with the provisions of the MRTP Act as well as
the NIT Act. It is submitted that the provisions of the MRTP
Act and NIT Act are required to be read harmoniously to sub
33
serve the objects and purposes of Sections 39 and Section 92
and other relevant provisions of the MRTP Act.
10. Now, so far as the submission on behalf of the original
writ petitioners that in view of the fact and subsequently the
Scheme came to be varied as permitted by the High Court in
the impugned judgment and order and, therefore, the
judgment and order passed by the High Court can be said to
have been implemented and, therefore, the appellants may
not be permitted to challenge the impugned judgment and
order of the High Court is concerned, it is submitted that
merely because without prejudice and to be on safer side if
the Scheme is varied and/or modified, it cannot be said that
appellants have waived their right to challenge the impugned
judgment and order, more particularly when the High Court
by the impugned judgment and order has set aside the
demolition notices and virtually sought as to know that the
sanctioned layout plan and validly granted the building
permit.
34
11. We have heard the learned counsel appearing on behalf
of the respective parties. What is challenged in the present
batch of appeals is the impugned judgment and order dated
15.09.2016 passed by the Bombay High Court passed in Writ
Petition No.2695 of 2015. On consideration of the impugned
judgment and order passed by the High Court, it appears
that the following two questions fell for determination before
the High Court:
“1. Whether mere absence of proposal of “internal road ”
in the final Development Plan under subsection (6) of
section 31 of the Maharashtra Regional and Town Planning
Act and its existence in the Scheme, published under Section
45 of the Nagpur Improvement Trust Act, can be termed as
‘variation’ or ‘modification’, as contemplated by section 39 of
the MRTP Act?,
1. Whether the impugned notices of demolition, based
upon final layout plan sanctioned on 15052012
and the building permit granted on 27062012 and
revised on 11122014, need to be set aside for want
35
of Internal Road, which was the part of the Scheme
sanctioned under Section 44 of the NIT Act?
11.1 It is required to be noted that initially demolition
notices dated 24.04.2015 were challenged before the High
Court issued by the NIT. At this stage, it is required to be
noted that the said demolition notices were issued
consequent upon the sanctioned layout plan dated
15.05.2012, the building permit granted on 27.06.2012 and
revised on 11.12.2014. Subsequently, by an amendment, the
original writ petitioners challenged the plan sanctioned by
the NIT on 27.06.2012 and the sanction granted to the
revised plan on 11.12.2014. The said amendment was
allowed. The challenge was mainly on the ground that the
sanction granted is illegal and contrary to the Scheme. The
Scheme which was sanctioned in the year 1964 under
Section 45 of the NIT Act provided 15 metres internal road.
At this stage, it is required to be noted that the improvement
Scheme known as the “Abhyankar Road Widening and Buty
Mahal Street Scheme” was prepared and sanctioned under
36
the provisions of NIT Act in the year 1964. However,
thereafter, the MRTP Act came to be enacted and came into
effect subsequent to the enactment of the NIT Act i.e. with
effect from 28.12.1966. From the chronology of list of events
noted hereinabove it appears and it is not in dispute that the
First Final Development Plan under Section 31 of the MRTP
Act came to be sanctioned on 03.06.1976, which do not
contain 15 metres internal road as was there in the Scheme
sanctioned under Section 45 of the NIT Act. Even
subsequently also, when the DP was revised in the year 1989
and thereafter in 2001, the above internal road was not
depicted in the revised DP. That thereafter the Government
allotted reconstituted composite plot under the MRTP Act and
original land owners/developers submitted the layout plan,
which came to be sanctioned by the NIT and even the
building permission was granted under the provisions of the
MRTP Act. Therefore, the NIT issued the demolition notices
dated 24.04.2015 impugned before the High Court so as to
allow/permit the original land owners/developers to put up
the construction on the land in question as per the
sanctioned layout plan and the building construction
37
permission. The High Court by the impugned judgment and
order has held that as in the Scheme sanctioned under
Section 45 of the NIT Act 15 metres internal road is provided,
unless the same is varied and/or modified under Section 46
of the NIT Act by the Planning Authority, the same shall
have to be implemented and thereby the High Court has
quashed and set aside the notices of demolition dated
24.04.2015 keeping it open for the NIT to issue fresh notices
of demolition to the original writ petitioners after the
sanctioned layout plan dated 15.05.2012, the building permit
granted dated 27.06.2012 and revised on 11.12.2014 as well
as the construction, if any, carried out are brought in
conformity with the Scheme published under Section 45 of
the NIT Act on 23.06.1964.
11.2 Therefore, the short question which is posed for
consideration before this Court is whether, in the facts and
circumstances of the case, when the Development Plan
sanctioned under the provisions of MRTP Act do not provide
an internal road from the land in question, still the Scheme
published under Section 45 of the NIT Act which provided 15
38
metres internal road would be applicable and/or would have
to be implemented, though the Scheme may be contrary to
the Development Plan sanctioned under the provisions of the
MRTP Act ?
11.3 To answer the aforesaid question the object and
purpose of MRTP Act, relevant provisions of MRTP Act are
required to be referred to and considered.
11.4 From the statement and object of the MRTP Act 1966,
it appears that the same has been enacted to make
provisions for: (1) planning the development and use of land
in regions established for their purposes and for constitution
of Regional Planning Boards therefor; (2) to make better
provisions for the preparation of Development Plan with a
view to ensuring that Town Planning Schemes are made in
the proper manner and the execution is made effective; (3) to
provide for the compulsory acquisition of land required for
public purposes in respect of the plans, and (4) for purposes
connected with the matters aforesaid. The said Act is
enacted to make provisions for planning the development and
39
the use of land in regions established for their purpose and to
ensuring that Town Planning Schemes are made in a proper
manner and their execution is made effective. Therefore, the
MRTP Act came to be enacted with aforesaid object and
purpose.
11.5 Section 3 of the Act permits the State Government to
establish any area in the State to be a region. A regional plan
is supposed to be prepared for various subjects which are
mentioned in Section 14 of the Act. The ‘Development Plan’ is
defined under Section 2(9) of the Act as a plan for the
development or redevelopment of the area within the
jurisdiction of Planning Authority. Section 2(19) defines the
“Planning Authority” to mean a local authority, and it
includes some other specified authorities also. There is no
dispute that the Development Plan has to be prepared “in
accordance with the provisions of regional plan” which is
what is specifically stated in Section 21(1) of the Act.”
11.6 Section 39 of the MRTP Act provides for
Section 39. “Variation of town planning scheme by development plan – where a final development plan contains proposals which are
40
in variation or modification of those made in a town planning scheme which has been sanctioned by the State Government before the commencement of this Act, the Planning Authority shall vary such scheme suitably under Section 92 to the extent necessary by the proposals made in the final development plan.”
11.7 We are concerned with the Final Development Plan
of 1976 which does not contain the 15 metres internal road
from the land in question as against the 15 metres internal
road provided in the final Scheme of 1964. Thus the Scheme
of 1964 prepared and sanctioned the provisions of the NIT
Act to the extent of providing 15 metres internal road can be
said to be not in consonance with the Development Plan
sanctioned under the provisions of the MRTP Act.
11.8 Section 43 of the MRTP Act provides for restrictions on
development of the land after the date on which the
declaration of intention to prepare the Development Plan for
any area is published in the official gazette except as
provided under proviso to Section 43 of the Act. Section 46
of the MRTP Act provides that the Planning Authority in
41
considering the application for permission for development
shall have due regard to the provisions of any draft or final
plan or proposals published by means of notice submitted or
sanctioned under the MRTP Act. Section 59 of the MRTP Act
provides for preparation of the Scheme under the MRTP Act,
which specifically provides that the Planning Authority may
prepare one or more Town Planning Scheme for the area
within its jurisdiction or any part thereof for the purpose of
implementing the proposals in the Final Development Plan.
As such, we not concerned with Section 59 of the MRTP Act,
as in the present case, the Scheme which provides 15 metres
internal road was prepared and sanctioned under the
provisions of the NIT Act and prior to the enactment of MRTP
Act and, therefore, Section 39 read with Section 92 shall be
applicable.
11.9 Therefore, on conjoint reading of Sections 39, 43,
46 and even Section 59 of the MRTP Act, the Development
Plans prepared and sanctioned under the provisions of the
MRTP Act shall prevail. Therefore, there cannot be any
development and/or construction permitted contrary to the
42
Development Plan prepared and sanctioned under the
provisions of the MRTP Act, though the Scheme prepared
and sanctioned under Section 45 of the NIT Act may permit
such development and/or construction. As such, the
aforesaid view which we are taking is supported by the
decision of this Court in the case of Manohar Joshi (supra).
In the case of Manohar Joshi (supra), after considering the
relevant provisions of the MRTP Act as well as the NIT Act,
this Court has specifically observed and held that when there
is a conflict between the Development Plan prepared and
sanctioned under the provisions of MRTP Act and the Scheme
sanctioned under the provisions of the NIT Act, the DP shall
override the TP Scheme. It is also further observed that even
if the variation, as directed under Section 39 of the MRTP Act
does not take place, the land cannot be put to use, in any
way, in contradiction with the provisions of DP Plan. In the
case of Manohar Joshi (supra) this Court confirmed the
findings recorded by the High Court that the DP Plan
overrides the TP Scheme. This Court did not accept the
submission that the Development Plan and the TP Scheme
43
operate independent of each other and, until the State
Government exercise its power of eminent domain under the
Development Plan, and acquires the land, the land owners
can develop its property as per the user permitted under the
TP Scheme. While not accepting the above submission, it is
observed by this Court that permitting a development
contrary to the provisions of the Development Plan, knowing
fully well that the user under the TP Scheme is at variance in
the Development Plan will make provisions of Sections 39,
42, 46 and 52 of the MRTP Act meaningless. Therefore, the
contrary observation and finding recorded by the High Court
that unless and until the Scheme is varied under Section 46
of the NIT Act as required under provisions of Section 39 of
the MRTP Act, the Scheme sanctioned under Section 45 of
the NIT Act shall subsist and can be enforced, cannot be
sustained and the same deserves to be quashed and set
aside.
11.10 It is required to be noted that though in the
Scheme sanctioned under the provisions of the NIT Act
proposing 15 metres internal road was in operation since
44
23.01.1964, when the MRTP Act came into force and even
thereafter when the First Development Plan was sanctioned
under Section 31 of the MRTP Act for Nagpur in the year
1976 in which there was no proposal for 15 metres internal
road, and even thereafter, twice the Development Plan was
revised first in the year 1989 and again in the year 2001 in
which also there was no provision for the 15 metres internal
road, despite the above, at no point of time, anybody
including the original writ petitioners challenged the
Development Plan under the MRTP Act in which the 15
metres internal road was not shown. Even thereafter also, at
no point of time, and even in the writ petition, the original
writ petitioners challenged and prayed to set aside the
Development Plan in which there was no provision for 15
metres internal road, though the same was mentioned in the
Scheme prepared and sanctioned under Section 45 of the NIT
Act.
11.11 It is also required to be noted that even the land
owners/developers have got the layout plan sanctioned and
obtained the building permission under the provisions of the
45
MRTP Act. Considering the object and purpose of the MRTP
Act noted hereinabove, it appears that though there was a
provision for internal 15 metres road in the Scheme under
the NIT Act which was sanctioned in the year 1964,
thereafter much development had taken place and there are
changed circumstances. In the Development Plan/revised
Development Plan the existing road came to be widened from
12 metres to 24 metres and, therefore, when the DP was
prepared and sanctioned under the MRTP Act, there was no
proposal for 15 metres internal wide road. As discussed
hereinabove, the Development Plan prepared and sanctioned
under the MRTP Act would override the TP Scheme. As
observed hereinabove, there cannot be any development
and/or construction permitted contrary to the DP Plan under
the MRTP Act. Under the circumstances, the impugned
judgment and order passed by the High Court cannot be
sustained.
11.12 A faint attempt was made on behalf of the original
writ petitioners that, in the DP Plan, there was punctuated
line which can be said to be 15 metres internal road from
46
Abhyankar Road. However, on considering the part plan of
sanctioned Development Plan of Nagpur City sanctioned by
Notification dated 10.09.2001 (upon which the reliance has
been placed by the original writ petitioners), the aforesaid
cannot be accepted. As rightly contended on behalf of the
NIT, the punctuated lines are described as Mouza
Boundary/NIT Scheme Boundary. It is to be noted that even
the High Court noted that there is a conflict between the DP
Plan and the Scheme sanctioned under Section 45 of the NIT
Act.
11.13 Even the findings recorded by the High Court that
the action of the NIT in sanctioning the layout plan and
granting building permit is mischief of law, cannot be
accepted. The layout plans are sanctioned and the building
permit has been granted absolutely in consonance with the
DP sanctioned under the MRTP Act. The demolition notices
were received pursuant to and in furtherance of the building
permit and so as to enable the original land
owners/developers to put up the construction as per the
layout plan sanctioned and the building permit granted.
47
Therefore, the High Court has erred in holding that the action
of the NIT was mischief in law.
11.14 It is required to be noted that, on one hand, the
High Court has specifically observed in paragraph 86 that the
High Court has not set aside and it is also not necessary for
the High Court to set aside the layout plan and the building
permit granted by the NIT, the observations made by the
High Court in paragraph 89(2) would tantamount to virtually
quashing and setting aside the sanctioned layout plan in the
building permit. The sum and substance and the resultant
effect of the observations made by the High Court in
paragraph 89(2), the observation made by the High Court in
earlier part of the judgment virtually restrains the original
land owners/developers not to put up any construction on
the building layout plan and the building permit granted
under the MRTP Act. Therefore, it appears that though not
specifically quashing and setting aside the sanctioned layout
plan and the building permit granted under the MRTP Act,
the High Court has nullified the sanctioned layout plan and
the building permit granted under the MRTP Act.
48
11.15 It is also required to be noted that the dispute is
pending since many years. The land owners/developers
entered into compromise with other similarly situated
tenants. Now, only 18 tenants are opposing the development,
though the land owners/developers have agreed and are
ready and willing to give similar treatment to them also which
would be given to other tenants as agreed before this Court.
It appears that for some reasons and/or to pressurize the
land owners/ developers to give them some more benefits,
the original writ petitioners are opposing the
development/construction. Though the original land
owners/developers are having the building permission and
have got their plans sanctioned under the provisions of MRTP
Act and even after incurring huge expenses, they are not in a
position to put up any further construction because of the
pending litigation. Therefore, the equity would also be in
favour of the appellants as land owners/developers. As, at
this stage, it is required to be noted that even those tenants
with whom the original land owners/developers have entered
into a compromise before this Court have appeared through
49
the Advocate and have stated that they are out of possession
since last more than ten years and therefore, they all have
requested to quash and set aside the impugned judgment
and order passed by the High Court and permit the land
owners/developers to complete the construction.
11.16 Insofar as the submission made by the learned
counsel appearing on behalf of the original writ petitioners
that after the impugned judgment and order passed by the
High Court, the NIT has modified the Scheme as permitted by
the High Court and, therefore, the impugned judgment and
order passed by the High Court is acted upon and, therefore,
the impugned judgment and order passed by the High Court
may not be permitted to be challenged by the NIT and/or the
developer is concerned, the same has no substance. Merely
because to avoid any further legal complication, if the NIT
has modified the Scheme that would not preclude the NIT
and/or the original land owners/developers to challenge the
impugned judgment and order.
11.17 In view of the above submissions and for the reasons
stated hereinabove, the impugned judgment and order
50
passed by the High Court deserves to be quashed and set
aside.
TRANSFERRED CASE © No.23/2018:
12. Now, so far as the Transferred Case © No.23/2018 is
concerned, the Writ Petition filed by the original writ
petitioners being Writ Petition No.5005 of 2017 has been
transferred to this Court pursuant to the order passed by this
Court dated 03.11.2017. In the petition, the original writ
petitioner have prayed to quash and set aside the Notification
dated 21.04.2017 issued by the NIT and the NIT Resolution
No.27/1167 dated 07.03.2017 and Resolution No.17/1165
dated 03.01.2017 by which the original Scheme of 1964
sanctioned under Section 45 of the NIT Act has been modified
in exercise of power under Section 45 of the NIT Act and the
15 metres internal road has been deleted.
12.1 It is vehemently submitted on behalf of the original writ
petitioners that the Notification modifying the Scheme and
deleting 15 metres internal road is without following any
procedure as required under the Act and without inviting any
51
objections and even the approval of the State Government
has not been obtained. However, considering the contents of
the counter affidavit filed on behalf of the NIT in which it is
specifically stated that after considering the objections sent
by the 15 writ petitioners in Petition No.2017, the Authority
unanimously passed a Board Resolution in exercise of power
under Section 46 of the Act. Therefore, it cannot be said that
no opportunity at all was given to the petitioners. The
decision to modify the Scheme by deleting 15 metres internal
road has been taken after considering the objections raised
by the writ petitioners. It is required to be noted that Section
39 of the MRTP Act mandates the Planning Authority to vary
the Scheme in line with the Development Plan sanctioned
under the MRTP Act. It is required to be noted that when the
DP was sanctioned, without any proposal for the 15 metres
internal road, first in the year 1976 and thereafter in the
years 1989 and 2001, the same was after following the due
procedure and the same was approved and sanctioned by the
State Government. Therefore, thereafter, when the Scheme
to the extent in conflict with the DP Plan has been modified
as mandated under Section 39 of the MRTP Act, after
52
considering the objections raised by the original writ
petitioners, thereafter, the same cannot be said to be illegal.
Therefore, reading Section 39 of the MRTP Act and the
provisions of the NIT Act harmoniously, the impugned
Notification modifying the Scheme and/or Board Resolution
modifying the Scheme deleting 15 metres wide road, which
would now be in line with the Development Plan sanctioned
under the MRTP Act, the same cannot be said to be illegal
warranting interference of this Court. Therefore, challenge to
the Notification dated 21.04.2017 issued by the NIT and the
respective NIT Resolution modifying the Scheme deleting 15
metres internal road fails.
13. In view of the above and for the further reasons stated
above, all the respective Civil Appeals are hereby allowed and
the impugned judgment and order dated 15.09.2016 passed
by the High Court of Bombay, Bench of Nagpur passed in
Writ Petition No.2695 of 2015 is hereby quashed and set
aside.
53
13.1 The Transferred Case © No.23/2018 stands dismissed
for the reasons stated hereinabove.
However, it is observed that to the respective original
writ petitioners shall also be given the same treatment as
would be available/given to other tenants as agreed before
this Court and/or as per the settlement entered into with
other tenants.
14. All these appeals are allowed accordingly with the above
observations and the Transferred Case stands dismissed.
There shall be no order as to costs.
…………………..……………………J. (A.K. SIKRI)
…………………………………..……J. (ASHOK BHUSHAN)
…………………..……………………J. (M. R. SHAH)
New Delhi, JANUARY 22, 2019.