Supreme Court sets aside Bombay HC’s judgement in land development case

The Supreme Court has set aside a judgement passed by the Bombay High Court in a land development case. The top court cited its earlier judgement in the case of Narayanrao Jagobaji Gowande Public Trust vs State of Maharashtra and others, stating that a clause requiring landowners to hand over part of their land free of cost for public utility purposes cannot be held illegal.

A bench of justices BR Gavai and SVN Bhatti passed the order on September 22, quashing and setting aside the impugned common judgment and order dated July 4, 2019, passed by the High Court. The court was hearing a set of appeals challenging the High Court’s judgment.

Background

In 1992, a Development Plan for the Municipal Council was approved, designating the disputed property as a “Green Zone” or “No Development Zone”. In 2000, a proposal to convert the land from a ‘No Development Zone’ to a ‘Residential Zone’ was published, and objections were invited. In 2004, the government issued a notification converting some land to a ‘Residential Zone’ subject to certain conditions.

The landowners sought permission for development, which was granted. In 2006, an agreement was executed between the landowners and the Municipal Council, assigning and giving possession of some land for public use.

Supreme Court’s observations

The Supreme Court observed that the landowners were aware of the conditions when they purchased the property and entered into transactions with the Municipal Council. It noted that while the ownership of the ‘open space’ would vest in the plot owners, the ‘amenity space’ was required to be handed over to the Municipal Council as a pre-condition for converting the land to a ‘Residential Zone’.

The High Court had partly allowed the writ petition filed by the plot holders, quashing and setting aside some conditions in the government notification. The Supreme Court, however, held that the writ petition should have been dismissed on the grounds of delay and laches.

The court further stated that the High Court was justified in holding that the ‘open space’ should be kept as such for the use of plot holders, but it erred in mixing the ‘amenity space’ with the ‘open space’.

The Supreme Court allowed the appeals and dismissed the writ petition filed by the plot holders.

(With inputs from ANI)

Summary:

• The Supreme Court has set aside a Bombay High Court judgement in a land development case.
• The top court cited its earlier judgement that a clause requiring landowners to hand over part of their land free of cost for public utility purposes cannot be held illegal.
• The court quashed and set aside the High Court’s judgment and order dated July 4, 2019.
• The case pertained to the conversion of land from a ‘No Development Zone’ to a ‘Residential Zone’.
• The Supreme Court observed that the landowners were aware of the conditions when they purchased the property and entered into transactions with the Municipal Council.