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M/S. Bombaywala, Nagpur Acting ... vs State Of Maharashtra, Through Its ...
2016 Latest Caselaw 7260 Bom

Citation : 2016 Latest Caselaw 7260 Bom
Judgement Date : 16 December, 2016

Bombay High Court
M/S. Bombaywala, Nagpur Acting ... vs State Of Maharashtra, Through Its ... on 16 December, 2016
Bench: Ravi K. Deshpande
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          IN THE HIGH COURT OF JUDICATURE AT BOMBAY




                                                
                    NAGPUR BENCH, NAGPUR

        MISC. CIVIL APPLICATION (W) NO.1118 OF 2016
                             In




                                               
    WRIT PETITION NO.2695 OF 2015 (DECIDED ON 15-9-2016)


       1. Akbar Malik,




                                       
          Aged about 52 years,
          Occupation - Business,
                              
          At Malik Decor House,
          Abhyankar Road, Sitabuldi,
          Nagpur-440 012.
                             
       2. Atmaram Pinjomal Vajrani,
          Aged about 64 years,
          Occupatio0n - Business,
          At Heera Sweets,
      


          Abhyankar Road,
          Sitabuldi, Nagpur-440 012.
   



       3. Anwar H. Vali,
          Aged about 69 years,





          Occupation - Business,
          At M/s. Altaf H. Vali,
          Near Variety Square, 
          Sitabuldi,  Nagpur-440 012.             ... Applicants

            Versus





       1. M/s. Bombaywala,
          a partnership firm, having its
          place of business at Sitabuldi Main
          Road, Nagpur-440 012,
          acting through and represented
          by its Partner, Shri Govind Gehimal




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           Mirpuri,
           R/o Mound Road, Sadar, Nagpur.




                                                   
      2. M/s. Bala Shoes,
         a partnership firm, having its place of
         business at Sitabuldi Main Road,
         Nagpur-440 012,




                                                  
         acting through and represented by
         its Partner, Shri Ashit Chakravarty,
         R/o Anant Nagar, Katol Road,
         Nagpur.




                                      
      3. M/s. Samrat Garments,ig
         a partnership firm having its
         place of business at Sitabuldi Main
         Road, Nagpur-440 012,
                            
         acting through and represented by
         its Partner, Shri Prasanna Modi,
         R/o Mahal, Nagpur.

      4. Shri Satish Sharma,
      


         Aged adult, Occupation - Business,
         Proprietor, M/s. Kids Point,
   



         a proprietary concern, having its
         place of business at Sitabuldi Main
         Road, Nagpur-440 012, 





         R/o Bajaj Nagar, Nagpur.

      5. Shri Pramod Palkar,
         Aged adult, Occupation - Business,
         Proprietor, M/s. Chafekar Dugdha Mandir,
         a proprietary concern, having its place





         of business at Sitabuldi,
         Main Road, Nagpur-440 012,
         R/o Tilak Nagar, Nagpur.

      6. M/s. Selection House,
         a partnership firm, having its
         place of business at Sitabuldi 




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           Main Road, Nagpur-440 012,
           acting through and represented
           by its partner, Shri Mahendra Jain,




                                                 
           R/o Ladpura, Itwari, Nagpur.

      7. M/s. Rajkamal Readymade Stores,
         a partnership firm, having its place




                                                
         of business at Sitabuldi Main Road,
         Nagpur-440 012, acting through and
         represented by its partner,
         Shri Vimal Kumar Jain,




                                      
         R/o Parwarpura, Itwari, Nagpur.

      8. M/s. Dream Shoppe,
                             
         a partnership firm, having its place
         of business at Sitabuldi Main Road,
                            
         Nagpur-440 012, acting through and
         represented by its Partner, Shri Raju
         Rajkumar Jain, R/o Dhantoli, Nagpur.

      9. M/s. Victory Watch Company,
      


         a partnership firm, having its place
         of business at Sitabuldi, Main Road,
   



         Nagpur-440 012, acting through and
         represented by its Partner,
         Shri Amirali Neemuchwala,





         R/o Mankapur, Nagpur.

      10.Shri Sanju Kipte,
         Aged Adult, Occupation - Business,
         Proprietor, M/s. Vijay News Agency,
         a proprietary concern, having its





         place of business at Sitabuldi Main
         Road, Nagpur-440 012,
         R/o Deonagar, Nagpur.

      11.Dr. Shri Pradeep V. Rajderkar,
         Aged about 48 years,
         Occupation - Medical Practitioner,




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           having his Clinic at Sitabuldi
           Main Road, Nagpur-440 012,
           R/o Hindustan Colony, 




                                                  
           Wardha Road, Nagpur.

      12.M/s. Fashion Bazaar,
         a partnership firm, having its place




                                                 
         of business at Sitabuldi Main Road,
         Nagpur-440 012, acting through and
         represented by its Partner, Shri Madan
         Kalra, R/o Wathoda, Nagpur.




                                      
      13.M/s. Gaysons,       
         a partnership firm, having its place
         of business at Sitabuldi Main Road,
         Nagpur-440 012, acting through and
                            
         represented by its partner, Shri Ravindra
         Shyam Agrawal, R/o Ramdaspeth,
         Nagpur.

      14.Shri Kishore Meshram,
      


         Aged adult, Occupation - Business,
         Proprietor, M/s. Breakfast Juice Centre,
   



         a proprietary concern having its place
         of business at Sitabuldi Main Road,
         Nagpur.





      15.Shri Sadanand Meshram,
         Aged adult, Occupation - Business,
         Proprietor, M/s. Sadanand Snacks and 
         Juice Centre, a proprietary concern,
         having its place of business at 





         Sitabuldi Main Road, Nagpur-440 012,
         R/o Sitabuldi, Nagpur.

      16.M/s. A.S. Balasubramanian,
         Aged about 63 years,
         Occupation - Business,
         Partner, M/s. Vishranti Gruha, 




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           a partnership firm, having its place
           of business at Sitabuldi Main Road,
           Nagpur-440 012, R/o Dharampeth,




                                                   
           Nagpur.

      17.M/s. S. Ramchand,
          proprietary concern, having its place




                                                  
         of business at Sitabuldi Main Road,
         Nagpur-440 012, acting through and
         represented by its authorised representative,
         Shri Mitesh Rambhia, R/o Laxmi Nagar,




                                       
         Nagpur.

      18.Shri Jagdish Waswani,
                             
         Aged adult, Occupation - Business,
         Proprietor, M/s. Quality Fashions, 
                            
         a proprietary concern, having its place
         of business at Sitabuldi Main Road,
         Nagpur-440 012,
         R/o Jaripatka, Nagpur.
      


      19.State of Maharashtra,
         through its Secretary,
   



         Urban Development Department,
         Mantralaya, Mumbai 400 032.





      20.Nagpur Improvement Trust,
         a statutory body constituted
         under the Nagpur Improvement
         Trust Act, 1936, having its
         office at Station Road, Sadar,
         Nagpur 440 001, through its





         Chairman.

      21.Divisional Officer (West),
         Nagpur Improvement Trust,
         Nagpur, having its office at
         Station Road (West), North
         Ambazari Road,




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           Nagpur-440 033.

      22.Superintending Engineer,




                                               
         Nagpur Improvement Trust,
         Nagpur, having its office at
         Station Road, Sadar, 
         Nagpur 440 001.




                                              
      23.Assistant Director,
         Town Planning,
         Nagpur Improvement Trust,




                                       
         Nagpur, having its office at
         Station Road, Sadar,
         Nagpur 440 001.

      24.Smt. Madhuribai Ramchandrarao Buty,
                            
         Aged Adult, Occupation - Not Known,
         R/o Laxmi Vilas, Jail Road,
         Rahate Colony, Nagpur.

      25.Shri Girish s/o Shri Ramchandrarao Buty,
      


         Aged Adult, Occupation - Not Known,
         R/o Laxmi Vilas, Jail Road,
   



         Rahate Colony, Nagpur.

      26.Shri Yogeshwar s/o Shri Ramchandrarao





         Buty,
         Aged Adult, Occupation - Not Known,
         R/o Laxmi Vilas, Jail Road,
         Rahate Colony, Nagpur.

      27.Shri Aniruddha @ Dilip s/o





         Shri Mukundrao Buty, 
         Aged Adult, Occupation - Not Known,
         R/o Laxmi Vilas, Jail Road,
         Rahate Colony, Nagpur.

      28.Ku. Purnima d/o Shri Vishwanathrao Buty,
         Aged Adult, Occupation - Not Known,




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           R/o Sukh Niwas, 
           Near Ramkrishna Aashram,
           Dhantoli, Nagpur.




                                                  
      29.Shri Pushkar s/o Shri Vishwanathrao Buty,
         Aged Adult, Occupation - Not Known,
         R/o Sukh Niwas, near Ramkrishna




                                                 
         Aashram, Dhantoli, Nagpur.

      30.Goel Ganga Infrastructure & Real Estate
         Private Limited,




                                      
         A Company incorporated and registered
         under the Companies Act, 1956,
                             
         having its Registered Office at
         Bombay Mutual Building, Third Floor,
         Office No.17/18, 148 P.M. Road,
                            
         Fort, Mumbai 400 001; 
         at San Mahu Commercial Complex,
         3rd Floor, 5 Bund Garden Road,
         Pune 411 001 and its local office at
         Plot No.92, Near Golhar Hospital, 
      


         Lendra Park, Ramdaspeth,
         Nagpur 440 012.
   



      31.Shri Jaiprakash s/o Shri Sitaram Goel,
         Aged Adult, Occupation - Business,





         Director, Goel Ganga Infrastructure & 
         Real Estate Private Limited,
         R/o San Mahu Commercial Complex,
         3rd Floor, 5 Bund Garden Road, 
         Pune 411 001 and at Plot No.92,
         Near Golhar Hospital, Lendra Park,





         Ramdaspeth, Nagpur 440 012.

      32.Shri Atul s/o Shri Jaiprakash Goel,
         Aged Adult, Occupation - Business,
         Director, Goel Ganga Infrastructure &
         Real Estate Private Limited,
         R/o San Mahu Commercial Complex,




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            3rd Floor, 5 Bund Garden Road,
            Pune 411 001 and at Plot No.92,
            Near Golhar Hospital, Lendra Park,




                                                        
            Ramdaspeth, Nagpur 440 012.

      33.Shri Ajay Radeshyam Tajpuriya,
         Aged Adult, Occupation - Business,




                                                       
         Director, Goel Ganga Infrastructure &
         Real Estate Private Limited,
         Plot No.N-1, 8 Cross Road, Rani Laxmi
         Nagar, Nagpur 440 032.




                                          
      34.Shyam Wardhane,     
         Aged about 62 years,
         Occupation - Executive Director,
         M.S.E.D.C. Ltd., G-9,
                            
         Prakashgad, Bandra (E),
         Mumbai-51.                                        ... Non-Applicants
      


      Shri   R.L.   Khapre   with   Shri   R.G.   Kavimandan,   Advocates   for 
      Applicants.
   





                    CORAM : R.K. DESHPANDE  & S.B. SHUKRE
                                                         , J
                                                            J  . 
                                                         th
                    Date of Reserving the Order      : 8    December, 2016
                                                                           

                   Date of Pronouncing the Order : 16th December, 2016.





      ORDER (Per R.K. DESHPANDE, J.) :

1. In Writ Petition No.2685 of 2015, which we decided on

15-9-2016 ("the said writ petition"), the challenge was to the

mca1118.16.odt

identically worded individual notices issued to 18 petitioner-

shopkeepers by the NIT on 24-4-2015, calling upon them to vacate

the portion of their shops, leaving 8-meter depth from Sitabuldi

Main Road so as to facilitate demolition and construction of

commercial complex in Khasra Nos.315 (Part) and 320 along with

building permit, revised on 11-12-2014. The notices were issued

under the pretext of implementing the Government Resolution

dated 7-10-1997 and the compromise accepted by the Apex Court

on 8-4-2002 in Special Leave Petition No.4846 of 2002 filed by the

present review petitioners.

2. There was a dispute in the said writ petition as to the

existence of 50 feet (15 meters) wide road ("internal road") joining

Mahatma Gandhi Road on the north to Abhyankar Road on the

west in "Abhyankar Road Widening and Buty Mahal Street Scheme"

("the Scheme", for short) prepared by the Nagpur Improvement

Trust and published under Section 45 of the Nagpur Improvement

Trust Act, 1936 ("NIT Act") (which is equivalent to Section 6

notification under the Land Acquisition Act, 1894) on 23-9-1964.

Initially, the Nagpur Improvement Trust ("NIT"), which

mca1118.16.odt

is the acquiring body and also the local authority constituted under

the provisions of the NIT Act itself took the stand in the said writ

petition that there existed no such internal road in the Scheme, but

subsequently it was admitted by filing an affidavit, and this fact is

also not disputed in the present petition for review.

3. The petitioners in the said writ petition, though challenged

the entire action, conceded to the position that if the Scheme is

implemented with the provision for internal road which gave some

of the shopkeepers facing to the road, they shall not have any

objection. This was opposed by the respondents in the said writ

petition. It was the stand taken by the respondents therein,

including the NIT, which is also the planning authority constituted

under the provisions of the Maharashtra Regional and Town

Planning Act, 1966 ("MRTP Act"), that in the first development

plan brought into force on 3-6-1976 and revised on 4-5-1989 and

7-1-2000, the internal road was not shown in the Scheme and by

virtue of Section 39 of the MRTP Act, the provision of internal road

subsisting in the Scheme published under Section 45 of the NIT Act

automatically came to an end and, therefore, the petitioners in the

mca1118.16.odt

said writ petition could not insist for such internal road in the final

layout plan sanctioned on 15-5-2012 and the building permit

granted on 27-6-2012 and revised on 11-12-2014, to challenge the

notices impugned. We did not consider in the said writ petition,

the other provisions in the sanctioned layout and plan with the

building permit.

4.

In the said writ petition, we have decided the question of

the locus of the petitioners and the delay caused in filing the

petition apart from the following two questions, which were framed

for the decision :

"(1) Whether mere absence of proposal of "Internal road" in the final development plan under

sub-section (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?, and

(2) Whether the impugned notices of demolition,

mca1118.16.odt

based upon final layout plan sanctioned on 15-5-2012 and the building permit granted on

27-6-2012 and revised on 11-12-2014, need to be set aside for want of Internal road, which was the part of the Scheme sanctioned under Section 44 of the NIT

Act?"

We have held that the petitioners have established their locus, there

was no delay in filing the petition, and the questions framed are

answered by holding that (i) mere absence of proposal of internal

road in the final development plan under sub-section (6) of

Section 31 of the MRTP Act and its existence in the Scheme

published under Section 45 of the NIT Act, cannot be termed as

"violation" or "modification", as contemplated by Section 39 of the

MRTP Act, and (ii) the impugned notices based upon the final

layout plan sanctioned on 15-5-2012 and the building permit

granted on 27-6-2012 and revised on 11-12-2014 need to be set

aside for want of internal road, which was the part of the Scheme

sanctioned under Section 44 of the NIT Act.

5. The operative portion of the judgment delivered by us in

mca1118.16.odt

the said writ petition is reproduced below :

"89. In the result, we allow this petition and pass

order as under :

(1) All the notices of demolition dated 24-4-2015

issued by the Nagpur Improvement Trust, at Annexure-W

(Collectively) to the petition, are hereby quashed and set aside.

(2) We leave it open for the Nagpur Improvement

Trust to issue fresh notices of demolition to the petitioners after the sanctioned layout plan

dated 15-5-2012, the building permit granted 27-6- 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 23-6-1964.

90. Rule is made absolute in above terms. No order as

to costs."

mca1118.16.odt

6. Shri R.L. Khapre, the learned counsel for the review

petitioners, submits that the judgment delivered by this Court in

the said writ petition is challenged by the NIT and others by filing

different special leave petitions, one of being Petition for Special

Leave to Appeal (C) No.32089 of 2016, in which the Apex Court

has passed an order on 25-11-2016 as under :

"

List the matters on 7th February, 2017.

The respondents shall maintain the status quo as on today, with regard to possession.

We may further clarify that as of now the

impugned judgment of the High Court would be binding inter-parties only."

Shri Khapre submits that the clarification given by the Apex Court

that the impugned judgment of the High Court would be binding

inter-parties only, was at the instance of the review petitioners and

pursuant to it, the present review petition has been filed. We do

not find any reason to doubt such statement made before us.

mca1118.16.odt

7. This review petition was listed before us initially for the

first time on 2-12-2016, and after hearing Shri Khapre for review

petitioners for quite some time, we adjourned the matter to 8-12-

2016 with a clear understanding that this Court shall hear the

review petitioners not only on the maintainability of this review

petition, but also on the merits of their claim for recall of the

judgment delivered by this Court in the said writ petition.

8. This review petition was accordingly listed before us for

admission and hearing on 8-12-2016. Shri Khapre for the review

petitioners urged that unless the said judgment is recalled, the

review petitioners cannot be called upon to argue the matter on

merits, as it would amount to post-decisional hearing, which

cannot be a substitute to a pre-decisional hearing. For this

purpose, he has relied upon the following decisions of the Apex

Court.

(1) Prabodh Verma and others v. State of U.P. and others, reported in AIR 1985 SC 167.

(2) Institute of Chartered Accountants of India v.

L.K. Ratna and others, reported in

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AIR 1987 SC 71 - [Para 17].

(3) H.L. Trehan and others v. Union of India and

others, reported in AIR 1989 SC 568.

(4) Asit Kumar Kar v. State of W.B. and others, reported in AIR 2009 SC (Supp) 282.

9. It is not necessary for us to consider and deal with the

aforesaid decisions of the Apex Court, for the reason that the

review petitioners were not parties to the writ petition, which we

have decided, and the Apex Court has made it clear that our

judgment would be binding inter-parties only. We, therefore,

clearly expressed in the open Court that we are going to examine

the rights of the review petitioners independently, and if we find

that the interest of the review petitioners is required to be

protected in any manner, then nothing can prevent us from taking

a view - even contrary to one which we have already taken in the

said writ petition, but if we do not find the merit in the contentions

raised, then the decision rendered by us in the said writ petition

shall obviously bind the review petitioners also. We also made it

clear to Shri Khapre that we shall not restrict his arguments to the

principles of review or recall of the judgment, but shall consider

mca1118.16.odt

the contentions raised on their own merits. We also asked

Shri Khapre to formulate the written propositions on facts and law

both in advance so that all the points on merits can be dealt with

independently. Accordingly, such written propositions are given to

us in the pursis dated 8-12-2016, which is marked as "X" for

identification.

10.

Shri Khapre took us through the provisions of

Sections 39, 44, 45, 46, 58 and 59 of the NIT Act, and the

provisions of Section 37(2) and 65 of the MRTP Act. He also

invited our attention to the Government Resolution

dated 7-10-1997, the award passed for acquisition of 1,14,079.36

square feet of land on 16-12-1997 as against the area of

2,71,552.60 square feet of land covered by the notification under

Section 45 of the NIT Act issued on 23-9-1964, and the event of

taking possession of the land by the NIT on 31-12-1997. He also

invited our attention to the notification published under sub-

section (2) of Section 37 of the MRTP Act on 22-6-2007.

11. The basic point urged by Shri Khapre for the review

mca1118.16.odt

petitioners is that the attention of this Court was not invited to the

aforesaid provisions of the NIT Act, the MRTP Act and the effect of

passing the Government Resolution dated 7-10-1997, and the

notification issued under Section 37(2) of the MRTP Act. He

submits that several factual and legal aspects were not brought to

the notice of this Court while deciding the said writ petition, and if

all these provisions and the facts having material bearing on the

issues involved before this Court had been brought to the notice of

this Court, the judgment in the said writ petition would have been

different.

12. What we gather from the arguments of Shri Khapre is that

the review petitioners wanted to oppose the said writ petition

rather than asserting their own independent legal rights, if any.

In fact, what we have done in the said writ petition is to see that

the NIT discharges its statutory obligations to execute the Scheme

as it is in the light of the compromise effected before the Apex

Court on 8-4-2002. The NIT, owners and developers, under the

pretext of following the terms of the Government Resolution

dated 7-10-1997 and the compromise dated 8-4-2002, tried to alter

mca1118.16.odt

the Scheme in colourable exercise of power, which, according to

us, was impermissible in law. This has resulted in granting the

reliefs to the petitioners in the said writ petition. In our view, the

review petitioners have no right to oppose the reliefs claimed in the

original writ petition.

13. Shri Khapre is right in urging that the tenants, who are the

shopkeepers, including the petitioners in earlier writ petition as

well as the review petitioners, ceased to have the tenancy rights in

respect of the land in question, which stood extinguished upon

statutory vesting of the property in the NIT - free from all

encumbrances. The rights of all the tenants flow from the terms of

compromise dated 8-4-2002 accepted by the Apex Court. At the

most, if there is violation of such terms, then the tenants can be

said to have some right which accrued to them. The review

petitioners are not coming before this Court with such a case. On

the contrary, what they are saying is that the terms of compromise

no longer bind them. This hostile attitude towards the terms of

settlement disentitles them to any relief from this Court in this

review petition.

mca1118.16.odt

14. In spite of the aforesaid position, we proceed to deal with

the contentions raised before us on merits. Shri Khapre invited our

attention to Section 46 of the NIT Act to urge that the Scheme

published under Section 45 of the NIT Act can be altered before it

has been completed and, according to him, the acquisition was

complete only upon passing of award in respect of 1,14,079.36

square feet of land on 16-12-1977 and taking possession of it on

31-12-1977. He has pointed out to us that the area of land

acquisition was reduced to 1,14,079.36 square feet in the award, as

against the area of 2,71,552.60 square feet shown in the

notification under Section 45 of the NIT Act. He submits that by

the Government Resolution dated 7-10-1997, there was

reconstitution of plots in the Scheme, which was approved by the

State Government under Section 65 of the MRTP Act and it can

operate as an order under Section 46-A of the NIT Act. He,

therefore, submits that the entire Scheme stood modified by virtue

of the Government Resolution dated 7-10-1997 and issuance of the

notification under sub-section (2) of Section 37 of the MRTP Act

was the another step. He submits that there was hardly any scope

mca1118.16.odt

for this Court to interfere in the notices impugned in the said writ

petition.

15. In order to consider the basic argument of

Shri Khapre, we have to see the provision of Section 27 of the NIT

Act, which deals with the types of improvement schemes, and it is

reproduced below :

"27. Types of improvement schemes.

An improvement scheme shall be of one of the

following types or may combine any two or more of such

types, or of any special features thereof, that is to say,-

                   (a)     a general improvement scheme;





                   (b)     a re-building scheme;
                   (c)     a re-housing scheme;
                   (d)     a street scheme;





                   (e)     a deferred street scheme;
                   (f)     a development scheme;
                   (g)     a housing accommodation scheme;
                   (h)     a future expansion or improvement scheme;
                   (i)     a drainage or drainage including sewage disposal  






                                                                      mca1118.16.odt




                                                                                       
                           scheme."




                                                               

We are concerned with a street scheme under clause (d) of

Section 27 above. A street scheme is governed by Section 31 of

the NIT Act, which is also reproduced below :

"31. Street Scheme.

(1) Whenever the Trust is of opinion that, for the

purpose of-

                          (a)      Providing building sites, or
      


                          (b)      remedying defective ventilations, or
   



                          (c)      creating new or improving existing means  
                                   of communications and facilities for 
                                   traffic, or





                          (d)      affording   better   facilities   for   conservancy  
                                   and drainage,

it is expedient to lay out new streets or alter

existing streets (including bridges, causeways and culverts), the Trust may pass a resolution to that effect, and shall then proceed to frame a street scheme for such area as it may think fit.

(2) A street scheme may, within the limits of the area comprised in the scheme provide for-

mca1118.16.odt

(a) the acquisition of any land which will, in the opinion of the Trust, be necessary for its execution;

(b) the re-laying out of all or any of the lands so acquired, including the construction and re-construction of buildings by the Trust or by any

other person and the laying-out, construction and alteration of streets and thoroughfares;

(c) the draining water-supply, and lighting of

streets and thoroughfares so laid out, constructed or altered;

(d) the raising, lowering, or reclamation of any land vested in, or to be acquired by the Trust for

the purposes of the scheme;

(e) the formation of open spaces for the better ventilation of the area comprised in the scheme;

(f) the acquisition of any land adjoining any

street, thoroughfare, or open space to be formed under the scheme."

The objects of formulating a street scheme, as specified in

clauses (a) to (d) of sub-section (1) of Section 31, are to provide

building sites, or remedying defective ventilations, or creating new

or improving existing means of communications and facilities for

traffic, or affording better facilities for conservancy and drainage.

Such scheme may provide for acquisition of land necessary for its

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execution, construction, re-construction of buildings by the Trust or

by any other person and the laying-out, construction and alteration

of streets and thoroughfares, formation of open spaces for better

ventilation of the area comprised in the scheme, acquisition of any

land adjoining any street, thoroughfare, or open space to be

formed under the scheme, etc., as contained in sub-section (2) of

Section 31 of the NIT Act.

16. This case is concerned with the sanction of a street scheme

by the State Government under Section 44 of the NIT Act. Section

45 of the NIT Act deals with the notification of sanction of

improvement scheme and other regarding vesting of property in

Trust, and it is, therefore, reproduced below :

"45. Notification of sanction of improvement scheme and other regarding vesting of property in Trust.

(1) Whenever the State Government sanctions an improvement scheme, it-

(a) shall announce the fact by notification and, except in the case of a deferred street scheme,

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development scheme, or future expansion or improvement scheme, the Trust shall forthwith

proceed to execute the same;

(b) may order that any street, square, park, open

space or other land, or any part thereof, which is the property of the Government and managed by the Central Government or the State Government,

shall, subject to such conditions as it may impose,

vest in the trust for the purpose of the scheme.

(2) The publication of a notification under sub-section (1) in respect of any scheme shall be conclusive evidence that the scheme has been duly

framed and sanctioned."

In this case, we are not concerned with deferred street scheme,

development scheme or future expansion scheme or improvement

scheme, referred to in sub-section (1)(a) of Section 45 above. We

are concerned with the street scheme only. The effect of granting

sanction to the street scheme under Section 44 is provided under

Section 45 of the NIT Act, reproduced above. Clause (a) of

sub-section (1) of Section 45 creates a statutory obligation upon

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the NIT to forthwith proceed to execute such street scheme. The

publication of notification under sub-section (1) of Section 45 is

the conclusive evidence that the Scheme has been duly framed and

sanctioned, as stipulated in sub-section (2) therein. Any alteration

in the Scheme can be done only under Section 46 of the NIT Act by

following the procedure prescribed under Sections 39, 41 and 43

therein.

17. In paragraphs 51, 52 and 53 of the judgment in the said

writ petition, we have held as under :

" Provisions of the Scheme and the effect of its publication under Section 45 of the NIT Act :

51. After taking survey of the relevant provisions of

the NIT Act as well as the MRTP Act, we would like to crystallize the position for the purposes of deciding the controversy involved in the present case. The Nagpur

Improvement Trust Act, 1936 was brought into force with effect from 1-1-1937, and the NIT is the local authority entrusted with the duty of carrying out the provisions of the NIT Act and it continues to operate as such till this date. On 29-10-1960, the Board of

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Trustees of NIT passed a resolution to frame a Scheme, i.e. "Abhyankar Road Widening & Buty Mahal Street

Scheme" under Section 31 of the NIT Act, invoking acquisition of lands Khasra Nos.320 and 315 (Part) of Mouza Sitabuldi, Nagpur ("land in question") as per

the list and the map enclosed therewith. The existing use of land in question on the date of such Scheme was essentially for residential purposes with Internal road,

one cinema theatre and the peripheral area being used

for shops-cum-office purposes.

52. The objects of the Scheme published under Section 45 of the NIT Act to be achieved in terms of clauses (a) to (d) of sub-section (1) and the matters to

be provided in the Scheme in terms of clauses (a) to (f)

under sub-section (2) of Section 31 of the NIT Act, are reflected in the Scheme. The Scheme provided for the building sites, viz. the shops-cum-office complex

covering the internal area of the Scheme, removing existing ugly and ill-ventilated premises on Mahatma Gandhi Road and Abhyankar Road, parking space open

to sky, etc. It provides for creating new or improving existing means of communications and facilities for traffic by way of Internal road of 50 feet (15 meters) wide to join Mahatma Gandhi Road on the north and Abhyankar Road on the west to circulate the traffic

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from Variety Island at the junction of 50 feet road with Mahatma Gandhi Road and Abhyankar Road to avoid

the congestion, apart from other roads.

53. The said Scheme was sanctioned under

Section 44 and published under Section 45 of the NIT Act on 23-9-1964, creating a statutory obligation upon the NIT to execute the Scheme as it is, unless it is altered

and modified under Section 46 of the said Act.

Shri Sunil Manohar, who led the arguments for the respondents, also stated in response to our query that

the provision of Internal road could not be dispensed with, in the absence of exercise under Section 46 of the NIT Act. It is thus clear that in the absence of the

development plan under Section 31 of the MRTP Act,

the Scheme published under Section 45 of the NIT Act was required to be executed by the NIT as it is, with the provision of Internal road without any change,

alteration or modification."

18. The argument of Shri Khapre is that the attention of this

Court was not invited to Section 46 of the NIT Act dealing with

alteration of improvement scheme after sanction, which is

reproduced below :

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"46. Alteration of improvement scheme after

sanction.

At any time after an improvement scheme has been sanctioned by the State Government and before it has been completed, the Trust may alter it:

Provided as follows:-

(a) If any alteration is likely to increase the

estimated net cost of executing a scheme by more than Rs.50,000 or 5 per cent. of such cost, such

alteration shall not be made without the previous sanction of the State Government;

(b) If any alteration involves the acquisition,

otherwise than by agreement of any land the acquisition of which has not been sanctioned by the State Government the procedure prescribed in the foregoing sections of this Chapter shall, so far

as applicable, be followed as if the alteration were a separate scheme.

(c) if owing to changes made in the course of a scheme, any land not previously liable under

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the scheme to the payment of a betterment contribution subsequently becomes liable to such

payment, the provisions of sections 39, 41 and 43 shall, as far as they are applicable, be followed in any such case."

Shri Khapre submits that after sanction of the Scheme under

Section 45 of the NIT Act, the State Government decided to alter

the Scheme in exercise of power under Section 46 above, by

issuing the Government Resolution dated 7-10-1997 before

completion of the Scheme and it is thereafter that the award was

passed on 16-12-1977 in respect of acquisition of the reduced area

of 1,14,079.36 square feet as against the total area of 2,71,552.60

square feet, shown in the notification under Section 45 of the NIT

Act. He further submits that the Government Resolution

dated 7-10-1997 was for reconstitution of plots under Section 65 of

the MRTP Act, which has the effect of alteration of the Scheme, as

contemplated by Section 46-A of the NIT Act.

19. Before we deal with the aforesaid arguments, we would

like to note that the Government Resolution dated 7-10-1997 and

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the notices of demolition issued to the review petitioners at that

point of time, were challenged before this Court in Writ Petition

No.798 of 2002. The said writ petition was dismissed by the

Division Bench of this Court on 22-2-2002. The review petitioners

preferred Special Leave Petition No.4846 of 2002, in which a

compromise was entered into between the parties on 8-4-2002,

and accepting it, the Apex Court disposed of the SLP on the very

same date by observing that the compromise is voluntarily and

lawfully arrived at between the parties, and the parties agree to

abide by the terms of the compromise and the tenants and the

landlords agree to vacate the area out of the property in their

possession for the purposes of road widening of Sitabuldi Main

Road-60 feet, Abhyankar Road-80 feet, internal road-50 feet, and

the parking. The review petitioners, who are bound by it, cannot

now urge that the provision of internal road-50 feet (15 meters),

as was agreed to be maintained under the compromise, which is

also binding upon the NIT, should not have been maintained by

this Court in the decision rendered in the said writ petition.

20. Be that as it may, it was not the case even of the NIT

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before us in the said writ petition that there was any proposal for

alteration of the Scheme in terms of Section 46 of the NIT Act

submitted to the State Government. The mandate of internal road

and the effect of changes over a period are dealt with by us in

paragraphs 70 and 71 of the judgment in the said writ petition,

which are reproduced below :

" "Internal road", a soul or basic structure of the Scheme - cannot be altered :

70. In fact, as we see from the features of the Scheme

provided to us by the NIT and the proposals in the

development plan, two roads, viz. - (i) Mahatma Gandhi

Road, and (ii) Abhyankar Road, which existed earlier, are

shown in the development plan. Both the aforesaid roads

are beyond the boundaries of the Scheme. The Internal road

is inside the boundaries of the Scheme area, provided as

thoroughfare to improve the existing means of

communications and facilities for traffic and it does not find

place in the development plan. Thus, the execution of the

Scheme involves four major functions, viz. - (i) providing

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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 feet (15 meters) wide

Internal road along with other two roads inside the Scheme

area to ease out the traffic and removing congestion, and

(iv) to provide space open to sky for parking. We agree with

Shri Subodh Dharmadhikari for the petitioners that the

Internal road constitutes the soul or basic structure of the

Scheme, which cannot be altered or dispensed with. It has,

therefore, to be held that the Scheme containing Internal

road has to be executed as it is, unless it is altered or

modified under Section 46 of the NIT Act.

Whether entire Scheme became non-existent by passage of time and the changes? :

71. After the final development plan was brought into

force, the NIT had passed a resolution on 31-12-1981

on page 685 of the paper-book to implement the said Scheme

by immediately acquiring the lands in question. Such

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decision has been reiterated on 17-8-1984 in the meeting of

the NIT, the minutes of which, are at page 679. In the

affidavit filed by the NIT on 14-2-2002 in response to Writ

Petition No.688 of 2002 filed by the tenants on Abhyankar

Road, a specific stand is taken in para 9, which is reproduced

below :

"9.

ig ... Thus, in these circumstances, the petitioner cannot claim that the construction of the Abhyankar

Road should be done as per the Development Plan. It is submitted that this respondent is executing the

Abhyankar Road Widening and Buty Mahal Street Scheme, in which, the width of Abhyankar Road is

shown as 24 meters. It is further submitted that this road is in the hub of main commercial activity. It is

further submitted that due to traffic congestion, this road is utilized as one way road. That, by widening of this road, it will become two way road in addition to the considerable amount of parking space will also

become available. Thus, in these circumstances, in the larger interest of the public at large, this respondent is implementing the scheme, to which, the consent of the land-owner is already accorded. Moreover, the land-owners themselves have submitted a proposal for

mca1118.16.odt

rehabilitation of all their tenants, who are in occupation of the premises, which is submitted to this

respondent with their signatures. Thus, in these circumstances, all the occupants will not be thrown out of the business, as the land-owners have started

constructing alternative accommodation to accommodate their tenants temporarily. It is further submitted that even many of the occupants

have shown their willingness and started vacating the

shops. ..."

Apart from above, there is ample material available on

record to hold that the NIT continued to execute the Scheme

and it is thus obvious that the NIT was very clear in its mind

to implement the Scheme, even after revision to the

development plan on 7-1-2000. In spite of widening of

Abhyankar Road from 12 meters to 24 meters to

accommodate two-way traffic, the stand of the NIT is clear to

implement the Scheme in larger public interest. It is not the

stand of the NIT that the Scheme no longer subsists or

survives after coming into force of the development plan.

The argument of Shri Sunil Manohar that there is evolution

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of the Scheme over a period from 1960 to 2015, is neither

supported by the NIT nor can be accepted for the reason that

the evolution cannot be de hors the provisions of law. We,

therefore, reject the contention of Shri Sunil Manohar for the

respondents that after coming into force of the development

plan, the said Scheme became non-existent or was completely

eclipsed."

21. The only stand taken by the NIT was that the road and the

parking area shown in the Scheme are not shown in the

development plan, and as per the Government Resolution dated 7-

10-1997, the development has to be as per the development plan.

In paragraphs 75 and 76 of the judgment in the said writ petition,

we have held as under :

"75. It is surprising that without there being any

proposal, discussion and decision of the NIT on the vital aspect of existence and continuation of Internal road in the Scheme published under Section 45 of the NIT Act, there is a sanction of the layout plan and building permit without the provision of Internal road. We also put a

mca1118.16.odt

specific question to Smt. Bharti Dangre for the NIT, and she fairly conceded that there was neither any such

proposal nor any decision of the NIT thereon. Perusal of the Government Resolution shows that its object is only to grant relaxation under Rule 5(2) of the Nagpur

Improvement Trust (Land Disposal) Rules, 1993 from auctioning the property and to allot reconstituted plots to the land-owners upon certain terms and conditions

stipulated therein, and one of which being to

accommodate all the tenants in the Scheme, which was not there in the earlier Scheme framed by the NIT. The

land was allotted to the owners on 50% premium of the market rate so as to enable the land owners to make the Scheme viable or feasible and to accommodate all the

tenants in it."

"76. In our view, the said Government Resolution cannot be construed to mean that the Scheme published

under Section 45 of the NIT Act containing Internal road no longer survives. The provision of Internal road can be dispensed with only by having recourse to the provision of

Section 46 of the NIT Act and that has not been done in the present case. As pointed out earlier, the NIT is playing dual role - one that of the local authority under the NIT Act, and the other that of the planning authority under the MRTP Act. The reference in the said

mca1118.16.odt

Government Resolution is to the Scheme framed under the NIT Act and not to the development plan under the MRTP

Act. In our view, the direction in the Government Resolution is for development as per the Scheme. At any rate, looking to the purpose of the Government

Resolution, even if the reference is construed as to the development plan, it does not make any difference in view of an interpretation of various provisions."

22.

The Government Resolution dated 7-10-1997 refers to

Rule 5(2) of the Nagpur Improvement Trust Land Disposal Rules,

1983. We reproduce below Rule 5 of the said Rules :

                   "                                 Part III
                                          Manner of Disposal of Land
                   5.        General.





(1) No piece of Government land vested in or managed by the Trust shall be transferred except with the general

or special sanction of the Government given in that behalf.

(2) Except as otherwise provided in sub-rule(1) in Part VI of these rules, all other lands vested in and

mca1118.16.odt

acquired by the Trust shall be disposed of by the Trust by--

(i) holding public auction; or

(ii) inviting tenders by public advertisement; or

(iii) making offers to or accepting offers from any

Government, Local Authority, Public Sector

Undertaking or a body corporate which is owned or controlled by Government;

(iv) inviting applications from persons or bodies of persons who are eligible for allotment of plots under

rule 4, by public advertisement to be published at least

in one leading local newspaper each in Marathi, Hindi and English on the basis of predetermined premium or other considerations or both and deciding these

applications by drawing lots, if necessary, as it may determine, from time to time, in accordance with the rules hereinafter appearing.

(v) Land for public amenities such as for primary school, vehicle stand, public latrine or urinal, public library, reading room, hospital, dispensary or such other purpose may be transferred to the Corporation of

mca1118.16.odt

the City of Nagpur either free of premium and ground rent or at nominal premium and ground rent as the

Trust may determine in each case.

(3) Except as otherwise provided in sub-rule (1) and

in Part VI of these rules, the buildings vested in and acquired by the Trust shall be disposed of by the Trust by--

(i) inviting applications; or

(ii) calling for public tenders; or

(iii) auction;

along with such land and on such terms as may be agreed to by the Trust and the transferee having regard to the use for which the building is intended, by

public advertisement to be published at least in one leading newspaper each in Marathi, Hindi and English on the basis of predetermined premium or other

considerations or both by deciding these applications by drawing of lots, if necessary."

Upon perusing the aforesaid Rule, we do not find that it empowers

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the State Government to alter the Scheme published under

Section 45 of the NIT Act. We are also unable to accept the

contention that issuance of this Government Resolution is an

exercise of the power by the State Government for the purposes of

alteration of Scheme under Section 46 of the NIT Act.

23. It is significant to note that the aforesaid rule operates

only upon the vesting of the land in the NIT. Hence, before issuing

the Government Resolution on 7-10-1997, the lands were treated

as vested in the NIT and it cannot be said that the acquisition was

not complete, as contemplated under Section 46 of the NIT Act.

We have held that the object of issuing this Government Resolution

dated 7-10-1997 is to make all the tenants as partners in the

Scheme published under Section 45 of the NIT Act, and the

approval of the State Government was for disposal of land in

relaxation of Rule 5 of the Nagpur Improvement Trust Land

Disposal Rules, 1983 by the NIT in favour of the land-owners, viz.

Buty Family, by executing a registered lease-deed on 10-2-2010 in

favour of the owners with an understanding that all the

tenants/shopkeepers shall be accommodated in the Scheme to be

mca1118.16.odt

executed under the supervision of the NIT. In the absence of the

Government Resolution dated 7-10-1997, the lease-deed

dated 10-2-2010 and the compromise dated 8-4-2002, all the

tenants could have been legally evicted in exercise of statutory

power by the NIT.

24. So far as the reduction in the area of land acquisition from

2,71,552.60 square feet to 1,14,079.36 square feet in the award

dated 16-12-1997 is concerned, Section 68 of the NIT Act

regarding abandonment of acquisition in consideration of special

payment is relevant and, therefore, it is reproduced below :

"68. Abandonment of acquisition in consideration of special payment.

(1) Wherever in any area comprised in any improvement scheme under this Act the State

Government has sanctioned the acquisition of land which is subsequently discovered to be unnecessary for the execution of the scheme, the owner of the land, or any person having an interest therein may make an application to the Trust, requesting that the

mca1118.16.odt

acquisition of the land not required for the purposes of the scheme should be abandoned on his executing

an agreement to observe conditions specified by the Trust in respect of the development of the property and to pay a charge to be calculated in accordance

with sub-section (2) of section 69 of the Act.

(2) The Trust shall admit every such application if it-

(a) reaches it before the time fixed by the Deputy Commissioner under section 9 of the Land

Acquisition Act, 1894, for making claims in reference to the land, and

(b) is made by any person who has an interest in

the land or holds a lease thereof, with an unexpired period of seven years.

(3) On the admission by the Trust of any such application, it shall forthwith inform the Deputy Commissioner; and the Deputy Commissioner shall

thereupon stay for a period of three months all further proceedings for the acquisition of the land, and the Trust shall proceed to fix the conditions on which the acquisition of the land may be abandoned.

mca1118.16.odt

(4) When an agreement has been executed in

pursuance of sub-section (1) in respect of any land the proceedings for the acquisition of the land shall be deemed to be abandoned.

(5) The provisions contained in sections 70, 71, 72, 73 and 74 relating to the assessment, interest,

recovery and payment of betterment charge and civil

suits shall apply mutatis mutandis to the assessment, interest, recovery and payment of abandonment

charge and civil suits in respect thereof."

25. The reduction in the area or abandonment of the part of

the land acquired can be done at the time of passing of an award

also, which is apparent from the scheme of the provisions

preceding Section 68 of the NIT Act above. The award in the

present case was passed on 16-12-1997, i.e. after the decision

contained in the Government Resolution dated 7-10-1997. In

terms of Section 68 of the NIT Act, the NIT appears to have

released the portion of the land under acquisition to the land

owners upon certain terms and conditions included in the

mca1118.16.odt

agreement of lease dated 10-2-2010. Be that as it may, what is the

bearing of this event on the question of alteration or modification

of the Scheme published under Section 45 of the NIT Act, has not

been demonstrated. It is after the award was passed on

16-12-1997 and the possession of the land was taken by the NIT,

the compromise before the Apex Court was entered into between

the parties on 8-4-2002, and what we have done in the said writ

petition is to see that the Scheme, as has been settled between the

parties by executing a compromise-deed accepted by the Apex

Court, has to be implemented as it is.

26. The contention so far based upon Section 65 of the MRTP

Act is concerned, the provision thereof need to be seen, and hence

it is reproduced below :

"65. Reconstituted plot

(1) In the draft scheme, the size and shape of every reconstituted plot shall be determined, so far as may be, to render it suitable for building purposes, and where a plot is already built upon, to ensure that the buildings as far as possible comply with the provisions of the scheme

mca1118.16.odt

as regards open spaces.

(2) For the purpose of sub-section (1), a draft scheme may contain proposals--

(a) to form a final plot by reconstitution of an original plot by alteration of the boundaries of the original plot, if necessary;

(b) to form a final plot from an original plot by the transfer wholly or partly of the adjoining lands;

(c) to provide, with the consent of the owners, that two or more original plots each of which is held in

ownership in severally or in joint ownership shall

hereafter, with or without alteration of boundaries be held in ownership in common as a final plot;

(d) to allot a final plot to any owner dispossessed of land in furtherance of the scheme; and

(e) to transfer the ownership of an original plot from one person to another."

The provision applies only where the scheme is framed under the

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MRTP Act by the Planning Authority, which is at the stage of

approval to the draft scheme. In the present case, it is not the

scheme framed under the MRTP Act which is to be implemented,

but the scheme published under Section 45 of the NIT Act which is

required to be implemented. The Scheme was published on

23-9-1964 and at that time even the MRTP Act was not brought

into force. Be that as it may, assuming that by the Government

Resolution dated 7-10-1997 the plot was reconstituted in terms of

Section 65, reproduced above, there is no explanation as to why

the compromise dated 8-4-2002 subsequently entered into

between the parties before the Apex Court should not be given

effect to. It is not the case that the internal road was not shown to

exist in the compromise accepted by the Apex Court. The provision

of Section 65 of the MRTP Act is of no help to the review

petitioners to urge that the Scheme stood modified by virtue of it.

27. So far as the question of change in the development plan

is concerned, a notification under sub-section (2) of Section 37 of

MRTP Act was issued on 22-6-2007 and this aspect is dealt with in

paragraphs 56 and 57 of the judgment in the said writ petition,

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which are reproduced below :

" Whether there is actual inconsistency - to what extent :

56. Inconsistency and variation in the Scheme under

Section 45 of the NIT Act and the development plan under

Section 31 of the MRTP Act became apparent. The Scheme

for shop-cum-office complex was to be executed in the area

meant for residential use and though it was possible prior to

coming into force of the development, it was not possible to

execute such Scheme contrary to the provisions contained in

the development plan. The construction of complex for

commercial purposes was not possible in residential zone.

The option was either to alter the Scheme for residential

purpose or to carry out suitable modification to provide user

for commercial purpose under Section 37 of the MRTP Act in

the development plan."

" Removal of inconsistency :

57. Accordingly, a notification under sub-section (2) of

Section 37 of the MRTP Act was issued on 22-6-2007, and

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the relevant portion of it, is reproduced below :

" "Now therefore, in exercise of the powers conferred under subsection 2 of the section 37 of the said Act, Govt. hereby sanctions the said modification

of the said lands and for that purpose amends the above referred notification dated 7th January, 2000 by inserting the following new entry in its appended schedule of modification.

ig "Abhyankar road passing through the land Kh.No.320, 315 (part) Mouza Sitabardi is widened from 12 mt. To 24 mt. and the area admeasuring 15028.29 sq.mt. of Kh. No.320, 315 (part) Mouza

Sitabardi is deleted from Residential Zone and lands so released included in Commercial Zone and said lands are deleted from Congested boundary as shown on plan". ''

In fact, the aforesaid notification brings out major changes,

viz. - (i) widening of Abhyankar Road from 12 meters to

24 meters (40 feet x 80 feet), (ii) the internal area of the

Scheme is deleted from residential zone and included in the

commercial area, and (iii) the Scheme area is deleted from

congested boundary and released in non-congested area.

Thus, the inconsistency was removed. The proposals in the

development were brought in tune with those in the Scheme

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so that the Scheme is effectively implemented."

28. It is not necessary for us to deal with other aspects of the

matter, which are highlighted in the points of arguments, for the

reason that we have left the issue to be decided by the NIT as to

how and in what manner the sanctioned layout plan and building

permit should be brought in conformity with the Scheme published

under Section 45 of the NIT Act. The significance of the Scheme

and internal road is also highlighted in the report of the Chairman

of NIT, which we have noted in the said judgment. The notices

issued to the original petitioners clearly indicate that to implement

the terms of compromise, the notices of demolition were issued.

Perusal of the compromise shows that the same takes care of all

the situations, and it is for the NIT to see as to how and in what

manner the sanction should be moulded by keeping the provision

of internal road intact while sanctioning the layout plan and

issuing the building permit.

mca1118.16.odt

29. For the reasons stated above, the review petition is

dismissed.

(R.K. Deshpande, J.)

(S.B. Shukre, J.)

Lanjewar, PS

 
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