2005 JTR(SC) 330
2005 29 AIC 137 ; 2005 AIR(SC) 1530 ; 2005 AIR(SCW) 1408 ; 2005 4 BomCR(SC) 776 ; 2005 2 BomLR 481 ; 2005 2 CivLJ 923 ; 2005 2 JCR(SC) 3 ; 2005 11 JT 19 ; 2005 2 Scale 420 ; 2005 3 SCC 61 ; 2005 2 WLC 226 ; 2005 2 Supreme 298

2005(2) Supreme 298
Supreme Court of India
(From Bombay High Court)
B.P. Singh & Arun Kumar, JJ.
Balakrishna H. Sawant & Ors. —Appellants
versus
Sangli, Miraj & Kupwad City M. Corpn & Ors. —Respondents
Civil Appeal No. 438 of 2000
Decided on 23-2-2005
Counsel for the Parties :
For the Appellants : Dr. N.M. Ghatata, Sr. Advocate, Shivaji M. Jadhav, Himanshu Gupta, Brij Kishore Sah, Advocates.
For the Respondents : V.N. Ganpule, Sr. Advocate,­ S.S. Shinde, Mukesh K. Giri and S.K. Nandy, Advocates.


Act Referred :INDIAN PENAL CODE : S.306
LAND ACQUISITION ACT : .
MAHARASHTRA REGIONAL AND TOWN PLANNING ACT : .

(A) The relevant statutory framework under the Maharashtra Regional and Town Planning Act, 1966, the Indian Penal Code, and the Land Acquisition Act governs the reservation of land for public purposes and the consequences of non-acquisition within stipulated periods. This case specifically examines how a reservation recorded in a Final Development Plan for a high school and playground lapses when the State fails to acquire the land within the prescribed period, and whether such lapsed reservation can be revived or condoned procedurally. The provisions contemplate modifications of a minor nature by the planning authority or direction by the State Government, but do not prevent the eventual lapsing of unimplemented reservations.

(B) Key legal principles include that a reservation in a development plan does not automatically endure in the absence of timely land acquisition, the State may condone delays but cannot circumvent statutory limitation periods, and a municipal corporation's resolution to abandon a land acquisition plan binds the corporation. The court also applied principles of limitation and procedural propriety.

Facts of the case:

The appellant owned land subject to a reservation for a high school and playground under a Final Development Plan. The State took no steps to acquire the land within the stipulated period, and the reservation lapsed. The Municipal Corporation initially supported the lapse, later resolved to abandon the land due to financial constraints and pending litigation, but the Government of Maharashtra rejected the proposal to revoke the resolution. The High Court held that the reservation had not lapsed due to the Corporation's actions and barred the appeal on limitation grounds.

Findings of Court:

The High Court found that the Corporation had taken necessary steps to give effect to the reservation, thereby preventing its lapse, and that the appeal was barred by limitation. The Supreme Court, however, found that the reservation served no purpose and only caused harassment, and that the procedural delays did not override the need for timely action.

Issues:

Whether a reservation in a development plan lapses when the statutory period for land acquisition expires without action, whether a municipal corporation can bind itself to abandon a reservation, and whether the High Court correctly barred the appeal on limitation grounds.

Ratio Decidendi:

A reservation for public land use lapses when the statutory period for acquisition expires and the State fails to act, and a later resolution by the municipal corporation to abandon the land is binding; the appeal must be allowed to avoid harassment and futility.

Result:

The appeal is allowed, the impugned judgment is set aside, the reservation is quashed, and the writ petition is dismissed.

Judgment

B.P. Singh, J.—Heard counsel for the parties.

2. This appeal by special leave is directed against the judgment and order of the High Court of Judicature at Bombay dated 7th April, 1999 passed in writ petition No. 1306/99 whereby the petition preferred by the respondent Municipal Corporation was allowed and the reservation recorded against the land belonging to the appellant herein upheld. It appears that the Final Development Plan contained a reservation for a high school and play ground recorded against the land owned by the appellant herein. The grievance of the appellant was that the State had taken no steps to acquire the land within the stipulated statutory period and, therefore, the reservation had lapsed. The State also took a stand supporting the appellant that the reservation had lapsed and further contended that it had power to condone the delay which it had condoned. However, the High Court found that since the Corporation had taken necessary steps to acquire the land in question so as to give effect to the reservation, the reservation cannot be said to have lapsed. It further held that the application of the appellant was barred by limitation.

3. This Court granted special leave on 18th January, 2000. When we took up this appeal for hearing, it was brought to our notice by counsel appearing on behalf of the respondent Corporation that by its resolution of 20th July, 2002 the Corporation had resolved to the effect that the Corporation does not have sufficient financial resources to construct a high school and play ground on the land in question, and since the matter is pending before this Court the litigation may involve further expenditure. For the aforesaid reasons the Corporation does not need the subject land and for that purpose necessary proceedings at Government level may be initiated. It was also resolved to bring this resolution to the notice of this Court. It appears that subsequently a proposal was sought to be made by the Corporation to recall its resolution of 20th July, 2002. The said proposal is dated 13th May, 2003 but the Government of Maharashtra rejected the proposal and refused to permit the Corporation to revoke the earlier resolution. The communication of the Government of Maharashtra in this regard is dated 18th May, 2004.

4. Under the Maharashtra Regional and Town Planning Act, 1966 a modification of the Final Development Plan of a minor nature can be made by the planning authority. It also enables the State Government to direct the planning authority to make such modification, and on failure of the planning authority to carry out the direction, the State Government may itself notify the proposed modification inviting objections. It was, therefore, submitted before us that the procedural requirements of the Act are such that they are bound to take time.

5. Counsel for the Corporation states that the resolution of July 20, 2002 stands and the respondent Corporation is bound by it and holds itself bound even today, meaning thereby, that the land shown as reserved in the Development Plan is not required by the Municipal Corporation as it does not have the resources to develop the said land and construct a high school and play ground over it. The stand of the State Government even before the High Court was that the reservation had lapsed. It is, therefore, apparent that the reservation will serve no purpose except to cause harassment to the appellant without any corresponding benefit to the respondent Corporation. ­Ultimately, the respondent Corporation may not take any steps to get the land acquired, and in that event, by efflux of time the reservation may again lapse.

6. With a view to avoid all these delays and complications, we quash the reservation in respect of the land in question owned by the appellant and allow this appeal. The impugned judgment and order of the High Court is ­accordingly set aside and the writ petition ­preferred by Respondent Corporation is dismissed.­

There will be no orders as to costs.

Appeal allowed.

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