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The Municipal Corporation Of City ... vs Mukesh Ramful Gupta
2017 Latest Caselaw 10022 Bom

Citation : 2017 Latest Caselaw 10022 Bom
Judgement Date : 22 December, 2017

Bombay High Court
The Municipal Corporation Of City ... vs Mukesh Ramful Gupta on 22 December, 2017
Bench: R.M. Savant
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            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                          CIVIL  APPELLATE JURISDICTION 
                       FIRST  APPEAL NO.2211 OF 2005

The Municipal Corporation of City 
of Thane, a corporate body 
governed by the provisions of 
Bombay Provincial Municipal
Corporation Act, 1949 having
its office at Panchpakhadi,
Thane (W).                                           ....Appellant
                                                     (Orig. Defendant)
         V/s.

Mukesh Ramful Gupta
Adult, Occ: Business,
R/at: Manoj Kunj, 144,
Senapati Bapat Marg,
Bombay-16                                            ....Respondent 
                                                     (Orig. Plaintiff)

Mr. N.R.Bubna, Advocate for Appellant.
Ms. Gauri Godse, Advocate for the Respondent.

                                   ******

                         CORAM :-   R.M.SAVANT & 
                                          SANDEEP K.  SHINDE, JJ.

RESERVED ON :-12TH DECEMBER, 2017.

PRONOUNCED ON :- 22ND DECEMBER, 2017

JUDGMENT: [Per Shri Sandeep K. Shinde, J.]

The Thane Municipal Corporation Original Defendant in

the Suit has preferred this First Appeal against the judgment and

decree dated 10.3.2005 passed by the Civil Judge Senior Division,

Thane in the Special Civil Suit No.647 of 1995.

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2                Facts in brief of the suit are as follows:

Plaintiff is the owner of the suit land bearing Tika No.2

City Survey No.307 admeasuring 222.41 sq.mtrs. and City Survey

No. 308 admeasuring 15.89 sq.mtrs. situated opposite Ashok Talkies

near S.T.Stand, Gokhale Road, Chendani, Thane, known as Gupta

Estate/House (Hereinafter referred to as 'Suit Property/Plot').

The suit property was purchased by the Plaintiff under

registered deed of conveyance on 2.3.1978. It was occupied by the

tenants on monthly rent for business/residential purposes. On

14.12.1987, the Special Land Acquisition Officer, Thane informed

the Plaintiff about a portion of the land, the Corporation intended to

acquire for road widening project. The Thane Municipal Corporation

thus, demolished the part of the building and acquired part of the

suit plot for road widening project. It is the Plaintiff's case that

before demolition of the building, there were several negotiations

and meetings between the landlord, tenants and Municipal officers.

It is the Plaintiff's case that the then Municipal Commissioner Mr.

Chaube promised the landlord that they would sanction plan for

proposed building considering the co-operation solicited by the

landlord and existing tenants and as such, landlord agreed to

accommodate existing tenants in the new proposed building. It is

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the Plaintiff's case that on 29.11.1989 the then Municipal

Commissioner promised to consider plaintiffs' case as a special case

for sanction of FSI and building plan as Corporation wanted

Plaintiff's portion of land for road widening. Plaintiff further pleaded

that the Thane Municipal Corporation provided a suitable temporary

accommodation to the tenants within their property or elsewhere.

3 It is the Plaintiff's case that in view of the road

widening, the Corporation also vacated and shifted some of the

Plaintiffs' old tenants at its own risk and cost. It is the Plaintiff's case

that he obtained vacant possession as building was required to be

partly demolished for carrying out work of construction of road

widening. Plaintiff thus pleaded that the Defendant-Corporation

compelled Plaintiff to execute the agreement with the tenants in the

old building and all such agreements were executed at the instance

of the Corporation. In the circumstances, Plaintiff wanted to

construct new building as early as possible so as to accommodate

old tenants in the new premises. Plaintiff thus had executed

agreements with 11 tenants.

4 Plaintiff submitted plan and specifications of the suit

property to the Defendant-Corporation through his architect and the

Corporation sanctioned the said plans and specifications vide permit

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VP 88/341/TMC/TDD/704 dated 20.12.1991 and also issued

commencement certificate of the same date 20.12.1991 (Hereinafter

called as the 'Sanctioned Plans' and the said 'Commencement

Certificate' respectively).

5 That as per the said Sanctioned Plans and as per the

prevailing Development Control Rules of the Thane Municipal

Corporation (Hereinafter referred to as 'D.C.Rules'), Plaintiff was

permitted to use FSI 1:2. The said FSI 1:2 was sanctioned for the

suit property because the same was in gaothan. In support of the

claim that the suit property was in gaothan land, the Plaintiff had

submitted to Corporation title documents along with certified copies

of extract of the property card, enquiry register, site plans, etc.

obtained from City Survey Officer, Thane. It is the Plaintiff's case

that in the extract of the property register card, there was remark in

the column of the tenure that the suit property was termed as 'C'

(Mafi) i.e. Gaothan". Plaintiff further pleaded that as per Section

122 of the Maharashtra Land Revenue Code, 1966 which

corresponds to Section 126 of the Bombay Land Revenue Code,

1879, tenure 'C' and the Mafi are of gaothan.

6 It is the Plaintiff's case that on the basis of aforesaid

documents, the Corporation also confirmed that suit property was

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gaothan land and, therefore, as per the prevailing D.C.Rules, FSI 1:2

was available in respect thereof and accordingly, plans were

sanctioned.

7 It is the Plaintiff's case that prior to granting sanction

and approval to the plans submitted by the Plaintiff, Corporation

had already sanctioned plans in respect of several similar other

building proposals to which FSI 1:2 was permitted to be used on the

basis of documents similar to one stated hereinabove. That upon

obtaining sanction and approval from the Corporation, Plaintiff gave

notice of commencement of construction of the new building to the

Corporation and commenced the work of construction as per the

said notice of commencement.

8 It is the Plaintiff's case that on 15.5.1993, the

Corporation had issued a notice of stoppage of construction work

followed by two notices dated 4.10.1993 and 24.2.1995 under

Section 51 of the Maharashtra Regional Town Planning Act, 1956

and 258 of the Bombay Provincial Municipal Corporation Act, 1949.

These were the show-cause notices whereby the Plaintiff was called

upon to show cause as to why construction permission granted by

the Corporation should not be revoked. These two notices were

replied by the Plaintiff on 22.3.1995.

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9                It is the Plaintiff's case that the Respondent-Corporation 

had called upon him to submit revised plan on the basis of FSI 1.33

for its sanction and approval. It is the Plaintiff's case that the said

notice was issued by the Corporation in terms of the directions

issued by the State on 23.4.1993 under Section 154 of the M.R.T.P.

Act assuming and presuming that the plot of land on which building

was permitted to be constructed was not ear-marked in Gaothan in

the development plan of the then Thane Municipal Council.

10 It is the Plaintiff's case that notice dated 15.5.1993 (Suit

Notice) was issued by the Corporation as per the direction from the

Urban Development Department issued under Section 154 of the

MRTP Act, 1966. The said notice was challenged by the Plaintiff by

filing Special Civil Suit No.647 of 1995 in June, 1995. In the said

suit, the Plaintiff sought relief of declaration that the said suit notice

bearing no.TMC/TDD/537 dated 15.5.1993 was illegal, malafide,

inoperative in law and the same may be quashed.

11 Besides, Plaintiff also sought declaration that the

Corporation was not entitled to direct the Plaintiff to submit revised

plan. He also sought a declaration of his entitlement to continue

with the plan sanctioned on 20.12.1991. The Plaintiff also sought

relief of perpetual injunction. The Plaintiff also sought a declaration

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that on the principle of promissory estoppel, the Corporation is

stopped from denying that the suit property is gaothan and FSI 1:2

which was lawfully admissible for the development of the suit plot.

The Plaintiff also sought injunction pending the suit to restrain the

Corporation from enforcing the suit notice by prohibitory injunction

from interfering with work of construction of new building. The

Plaintiff also sought mandatory injunction for grant of occupancy

certificate and permission to occupy the premises in the new

building including part occupation.

12 The Corporation filed its Written Statement and

contended that;

(i) From 1.10.1982, the Thane Municipal

Council area and surrounding area got merged into a

Corporation known as Thane Municipal Corporation

and provisions of the Bombay Provincial Municipal

Corporation Act, 1949 were made applicable thereto;

(ii) That on 21.12.1982, the State Government

had issued directions under Section 154 of the MRTP

Act and directed the Corporation to adopt Standardised

Building Bye-laws and Development Control Rules, in

place of D.C.Rules, 1974 and further directed to take

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steps under Section 37(i) of the MRTP Act;

(iii) The Corporation in view of the directions

passed resolution on 1.7.1985 to initiate minor

modifications to the Development Control Rules of

1974.

(iv) That vide resolution dated 2.5.1988, the

Corporation resolved to accept the amended

Development Control Rules, 1985 (For short 'Amended

D.C.Rules of 1985) and submitted the same with minor

modifications and submitted the same for minor

modifications to the Government for sanction in July,

1988;

(v) Corporation in the meantime, pending the

sanction of the said D.C.Rules of 1985 anticipating the

Government sanction adopted policy decision to bring

the said Rules in operation.

(vi) As per the sanctioned Development Control

Rules, 1985 for lands shown as Gaothan in 1974's

Development Plans, the permissible FSI was 1.33 and

in all other cases FSI permissible was 1.



                                                                                Shivgan



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            (vii)         That since Plaintiff's property was outside the 

area ear-marked as Gaothan under development plan of

1974, the suit property is entitled to consume FSI 1 and

not 1:2.

13 In short, It is the Defendant's contention that in view of

instructions issued by the State on 23.4.1993 under Section 154 of

the MRTP Act, since the suit property was not falling within the

gaothan area as shown in the Development Plan 1974 of Thane

Municipal Council area, sanctioned FSI 1:2 was incorrect and as

such, suit property is entitled to consume FSI 1. Thus, taking

recourse to the directions issued under Section 154, it is contended

by the Corporation that their action to direct the Plaintiff to re-

submit the plan with FSI 1 cannot be faulted with. It appears that

the Corporation by taking recourse to the aforesaid instructions also

directed the Plaintiff to stop the construction work and, therefore,

the suit notice cannot be faulted with and as such justified its action.

14 It appears from the record that pending the suit, the

Plaintiff had filed an application for interim relief. That vide order

dated 2.4.1996 the learned Civil Judge Senior Division restrained

the Corporation from implementing the suit notice dated 15.5.1993

in respect of construction which was in existence on 17.5.1993 as

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particularised in its notice dated 4.10.1993 till the decision of the

suit.

15 The learned Judge after appreciating pleadings and the

evidence placed on record by the parties, decreed the suit partly

vide judgment dated 10.3.2005 and declared the suit notice as bad

in law, inoperative and unexecutable. The learned Judge further

declared that the Corporation was not entitled to direct the Plaintiff

to submit revised plan/proposal on the basis of FSI 1 for its sanction

and approval for construction of a new building in the suit property.

The learned Judge was pleased to direct the Corporation to issue

occupancy certificate and also restrained it from interfering or

demolishing any part of building constructed by the Plaintiff on the

suit property.

16 Heard the learned counsel for the Appellant and the

learned counsel for the Respondent. Perused the records and

proceedings.

17               Point, we are required to answer is:

     (i)     Whether the judgment and decree passed by the Trial 

Court in the subject suit inter-alia declaring the suit notice

dated 15.5.1993 as illegal, inoperative and unexecutable is

legal, valid and proper ?

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18 Before adverting to the facts of the case, it may be

stated that development plan of the erstwhile Thane Municipal

Council along with Development Control Rules had been sanctioned

by the Government vide Notification dated 3.10.1974 . In terms of

Development Control Rules of 1974, permissible FSI for area falling

in Gaothan was 1: 1.33 and for the rest 1:1. On 16.7.1980, the

Government by Notification of the same date, prescribed

standardised building bye-laws and development control rules for

the areas within the jurisdiction of various Municipal Corporations.

On that date, Respondent-Corporation had not come into existence

as it was subsequently established on 1.10.1982 for the areas falling

within the jurisdiction of erstwhile Municipal Council. The State of

Maharashtra in exercise of the authority under Section 154 of the

MRTP Act read with Section 37 issued directions to the Corporation

by its memorandum dated 21.12.1982 to adopt the said

Standardised Building Bye-laws and Development Control Rules to

be made applicable to the area within the jurisdiction of Thane

Municipal Corporation in place of Development Control Rules of

1974 sanctioned earlier along with Development Plan and to follow

the procedure prescribed under Section 37 of the MRTP Act. The

Corporation in pursuance of the directions resolved to initiate minor

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modifications under Section 37(1) of the MRTP Act to replace

sanctioned Development Control Rules of 1974 by Standardised

Building Bye-laws and Development Control Rules. Corporation vide

its resolution dated 2.5.1988 resolved to accept the amendment to

the original text of Draft Development Control Rules and submitted

minor modification to the Government for sanction along with

amendment. The said minor modification proposal was submitted to

the State for sanction on 29.7.1988. On 19.6.1993, the State

sanctioned Development Control Rules, 1985.

19 That before sanctioning the Draft Development Control

Rules 1985 on 23.4.1993, the State in exercise of the authority

under Section 154 issued certain directions regarding admissible

FAR in gaothan area. These directions were issued pending

consideration of the Draft Development Control Regulations

submitted by the Respondent -Corporation to the Government. That

the following directions were issued on 23.4.1993:

"22 While the minor modification proposal was pending for sanction by the State Government, on 21st December. 1991, Respondent No. 2- Corporation published the revised Draft Development Plan in terms of Section 26 of the M.RT.P. Act.

On 23rd April, 1993, certain directions were issued by the Government under Section 154 regarding

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admissible F.A.R. in Gaothan area. The directions were issued pending consideration of the Draft Development Control Regulations submitted by Respondent No. 2- Corporation to the Government. The directions issued by the State Government have been annexed as Exhibit'J'. from which it appears that the following directions were issued :- (emphasis supplied)

"(a) Till the Draft Development Control Regulations submitted to Government by the Thane Municipal Corporation in 1988 are finally sanctioned, the Municipal Corporation shall follow the provisions of sanctioned Development Control Regulations for 'Goathan Areas'.

(b) The 'Gaothan Area' shall be taken as only that area which is shown on the map of the sanctioned Development Plan of Thane Municipal Council Area.

(c) As regards the development permissions granted by the Municipal Corporation after 1988 for the areas outside the Gaothan Area as shown on the sanctioned Development Plan of Thane Municipal Council, permission for further development is to be withheld and no Occupation Certificates are to be issued until further orders.

(d) In case of plots where commencement certificate has been issued with additional F.S.I, for Gaothan, the Municipal Corporation may initiate action under Section 51 of the M.R.T.P. Act, 1966 and revoke permissions after following procedure prescribed under the law.


                                                                                   Shivgan



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(e) Till the Revised Development Control Regulations are finally sanctioned by Government, Municipal Corporation of Thane shall follow the stricter provisions of 4 rules, viz., sanctioned rules of 1974, Standard Bye- laws sent by Government in 1981. rules published Under Section 37 in 1985 and Draft Revised D.C.R. published in Dec., 91.

(f) Due permission from the Railway Authority would be needed where Development Permission is to be granted by the side of railway properties. In the absence of the suitable regulations in the present Development Control Rules, the Thane Municipal Corporation may follow the Development Control Regulations prescribed in Development Control Regulations for Greater Bombay, 1991."

20 Directions dated 23.4.1993 were partially modified by

the State on 19.6.1993 and directed that in cases where the Thane

Municipal Corporation had sanctioned development permission with

F.A.R. equivalent to 2.00 after May, 1988 in accordance with the

resolutions passed by the said Corporation in June, 1988 excess

F.A.R. over and above 1.33, so allowed shall not exceed 2.00 or the

F.A.R. actually consumed on 23.4.1993, whichever is less.

21 Having so modified its earlier directions dated

23.4.1993, the State Government, in exercise of its powers under

Section 37(2) of the MRTP Act, sanctioned the Draft Building and

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Development Control Regulations, 1985 subject to the

modifications referred to in the schedule, and for that purpose,

amended the Government notification dated 3.10.1974, as follows:

" The Development Control Rules applicable for the erstwhile Thane Municipal Council sanctioned by the Government Notification, Urban Development and Public Health Department No. TPS- 1272/70693/RPC, dated 3rd October, 1974 shall be replaced by Development Control Regulations sanctioned with modifications by Government, Urban Development Department by Notification No. TPS- 1292/1702/ CR-194/92/UD-12, dated 19th June, 1993 which shall be applicable to the entire area within the jurisdiction of Thane Municipal Corporation with immediate effect.

By the aforesaid Notification dated 19th June, 1993, after Clause N.2.1.1, the following notes were inserted :- "Note 1 :- The extent of area to be treated as "Gaothan", shall be strictly confined to":

(i) that area shown as "Gaothan" in the Development Plan of Thane (for old Municipal Council limits) sanctioned by Government vide Notification No. TPS-1272/70693/RPC, dated 3rd October, 1974, and

(ii) that area shown as "Gaothan" in village Form No. I of Revenue Record and held on Gaothan tenure without payment of N. A. Assessment of villages now included in the limits of Thane Municipal Corporation vide Government Resolution No. TMC-3082/1172/UD-21, dated 1st October, 1982.

Note 2 :-Provided that, in cases (out of'Gaothan'as defined in Note 1 above only) where Thane Municipal Corporation has sanctioned F.S.I, equivalent to 2.00 after May, 1988, in accordance with the Resolution passed by the Corporation in June, 1988, the excess F.S.I, over and above 1.33 shall be allowed. The excess F.S.I, so allowed shall not exceed 2.00 Shivgan

* 16/27 * FA-2211-2005.doc

or the P.S.I, actually consumed as on 23rd April. 1993 whichever is less....."

All these facts noted above find mention in the Notification, Exhibit 'L' dated 19th June, 1993. whereby modification to the Development Control Regulations was sanctioned by the State Government under Section 37 of the M.R.T.P. Act."

22 Mr. Bubna the learned counsel for the Defendant would

submit that in terms of the Development Plan of 1974 of the Thane

Municipal Council, the suit property was not falling in the gaothan

area as ear-marked therein. He would further submit that in terms

of the Development Control Rules of 1974, the suit land was entitled

to consume FSI 1. Mr. Bubna would further submit that the learned

trial Judge has committed a gross error by interpreting, gaothan

area, as what is defined under the Maharashtra Land Revenue

Code, 1879. He would submit that reliance placed by the learned

trial Judge on the revenue entries for classifying and holding the

suit property as gaothan was erroneous. He would submit that scope

and ambit of the MRTP Act is altogether different and as such

classification and tenure of the land in development plan is under

exclusive domain of the planning authority under the MRTP Act. In

other words, the learned counsel for the Defendant contended that

though particular land may be gaothan for purposes of the

Maharashtra Land Revenue Code. 1966 but not necessarily gaothan

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as understood under the Development Plan and Development

Control Rules framed under the MRTP Act of given planning

authority.

23 Mr. Bubna further submitted that directions issued by

the State in exercise of authority under Section 154 of the MRTP Act

are binding on the Corporation. He would submit that pending the

consideration of the Draft Development Control Rules, 1985, on

23.4.1993 directions were issued by the State regarding

admissibility of FAR in gaothan area. Mr. Bubna has brought to our

notice clause (b) of the said directives which read as under:

"'Gaothan Area' shall be taken as only that area which is shown on

the map of the sanctioned development plan of the Thane Municipal

Corporation area". (emphasis supplied)

He would, therefore, submit that admittedly suit land was not

shown in the gaothan area of Development Plan of 1974 and,

therefore, FSI 1:1 was admissible and not even 1.33. On this

premise, Mr. Bubna submitted the suit notice and the directions

calling upon the Plaintiff to submit revised plan cannot be faulted

with. He would further submit that the trial Judge has completely

ignored the directions of the State dated 23.4.1993 which were

otherwise binding on the Corporation under the MRTP Act.

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24               Mr. Bubna   would also submit that the trial Judge has 

committed error by directing the Corporation to issue occupancy

certificate in spite of the fact that the Plaintiff had carried out

construction contrary to Development Control Rules and the

directives of the State and as such, on equitable considerations, the

Plaintiff is not entitled to any relief.

25 Mr. Bubna has relied on the judgment of the Division

Bench of this Court in the case of M.A.Panshikar v. State of

Maharashtra reported in 2002(5) Bombay C.R.318.

26 Ms. Godse the learned counsel for the Plaintiff on the

other hand supported the judgment and decree. She has taken us

through the first directions and modified directions dated 19.6.1993

issued by the State, whereby first directions dated 23.4.1993 were

modified.

She would submit that the Corporation had sanctioned the

plan on 20.12.1991 with FSI 1:2 and, therefore, it cannot be said

that the construction was unauthorised.

27 She has taken us through the modified direction dated

19.6.1993 issued by the State. Ms. Godse submitted that in terms of

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the modified directions contained in Note 1(i), the suit land was not

shown as Gaothan in D.P. of the Thane Municipal Council of 1974;

but in terms of the Clause (ii) of Note 1, it was shown as gaothan in

village Form No.1 of revenue record and held gaothan tenure. She

would further submit that when plans were sanctioned in December,

1991, officers of the Defendant-Corporation had taken note of the

revenue entries to hold suit land as gaothan. She would further

submit that the suit land is now included in the limits of Thane

Municipal Corporation and as such it is to be treated as gaothan.

28 Ms. Godse has invited our attention to Note 2, the same

is re-produced hereunder:

"Note 1 :- The extent of area to be treated as "Gaothan", shall be strictly confined to":

(i) that area shown as "Gaothan" in the Development Plan of Thane (for old Municipal Council limits) sanctioned by Government vide Notification No. TPS- 1272/70693/RPC, dated 3rd October, 1974, and

(ii) that area shown as "Gaothan" in village Form No. I of Revenue Record and held on Gaothan tenure without payment of N. A. Assessment of villages now included in the limits of Thane Municipal Corporation vide Government Resolution No. TMC-

3082/1172/UD-21, dated 1st October, 1982. Note 2 :-Provided that, in cases (out of'Gaothan'as defined in Note 1 above only) where Thane Municipal Corporation has sanctioned F.S.I, equivalent to 2.00 after May, 1988, in accordance with the Resolution passed by the Corporation in June, 1988, the excess F.S.I, over and above 1.33 shall be allowed. The excess

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F.S.I, so allowed shall not exceed 2.00 or the P.S.I, actually consumed as on 23rd April. 1993 whichever is less....."

Ms. Godse submitted that in terms of Note 2, it was provided

in cases where the Corporation had sanctioned FSI equivalent to 2

after 1988 in accordance with Resolution passed in June, 1988 for

excess FSI over and above, FSI 1.33 shall not exceed 2.00 or the FSI

actually consumed on 23.4.1993 whichever is less. She would,

therefore, submit that since the suit land has been treated as

gaothan in terms of note 1 and 2, FSI sanctioned on 20.12.1991

stands confirmed. Ms. Godse would, therefore, submit that though

plan with FSI 1:2 was sanctioned in December, 1991 the instructions

contained in directions dated 19.6.1993 under Section 154 of the

MRTP Act relates back to all plans sanctioned after 1988 and

therefore, instructions in Note 1 and 2 crystalises Plaintiff's case and

thus, judgment and decree passed by the trial Court can be

sustained on the basis of the said Note 1 and 2.

29 It may be stated that the Defendant-Corporation in its

reply has not placed the modified direction dated 19.6.1993 on

record and therefore, has not brought to our notice the said

modified direction. The learned counsel Mr. Bubna though tendered

the compilation of documents/paper-book has not tendered the

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modified direction which has a bearing on the issue. Hence, we

were proceeding on the basis of the direction issued under Section

154 in its original form, till our attention was drawn by the learned

counsel for the Respondent to the modified direction which is

referred to in the judgment of the Division Bench in

M.A.Panshikar's case (Supra).

30 Mr. Bubna in his rejoinder has taken us through Notes 1

and 2 and submitted even if suit land is treated as gaothan in terms

of Note 1(ii), FSI actually consumed as on 23.4.1993 or FSI in

excess of 1.33 but not more than 2.00 whichever less has been

protected and/or regularised. He would submit that though the

plan was sanctioned with FSI 1:2, as on 23.4.1993, Plaintiff had

consumed negligible FSI and, therefore, the Plaintiff was not

entitled to consume FSI more than what he had consumed upto

23.4.1994 in terms of the modified direction and especially Note 2

thereof.

31 We have gone through the pleadings as well as

directions issued by the State firstly, on 23.4.1993; and 19.6.1993. It

is not in dispute that, the suit land is now included in the limits of

Thane Municipal Corporation. It is also not in dispute that the suit

land was shown as gaothan in village form no.IV of the revenue

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record when the plan was sanctioned by the Corporation on

20.12.1991 and, therefore, it is to be treated as 'Gaothan' in terms

of Clause (ii) Note 1 . It is not in dispute that the Corporation had

sanctioned FSI 1:2 for suit land. On close scrutiny of the directions

and particularly Note No.1(ii) and Note No.2, we hold the suit land

is squarely covered by the instructions in Note 1(ii) and Note 2. In

our view, having regard to the facts as afore-stated, the suit land is

required to be treated as 'Gaothan' and the finding of the trial Court

in that regard cannot be faulted.

32 That on close scrutiny of Note No.2, we disagree with

the submissions of Mr. Bubna, that since the Plaintiff had consumed

negligible FSI on 23.4.1993, excess FSI so allowed stands frozen on

23.4.1993 and thus admissible FSI would be only to the extent of

FSI consumed in construction completed as on 23.4.1993, even if it

is negligible and not more than it. In our view, Note 2 postulates

that if land is answering the description of the instructions in either

of the clauses of Note 1, than, admissible FSI would be 1:2 or FSI

actually consumed on 23.4.1993, whichever was less. (emphasis

supplied) On plain reading of the note, it cannot be said that

admissible FSI would be only to the extent of the construction

completed on 23.4.1993.

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If the contention of Mr. Bubna is accepted then we would be

creating one more category, i.e., case "where FSI was allowed 1:2,

but frozen at the stage of consumption as on 23.4.1993". This

interpretation would be absurd as it would run contrary to the

object and purpose for which directions were issued. In fact, Note

No.2 admits a interpretation that if the construction was over on/or

before 23.4.1993, but had not consumed FSI more than 2 and

leaving FSI balance, then such balance FSI could not be utilised over

the said plot. This interpretation would be in sync with the object

with which the direction was issued. We, therefore, reject the

contention of Mr. Bubna.

33 It may also be stated that the Corporation in its written

statement, has not dealt with all the averments in the plaint. We

have perused the pleadings of the Corporation as well as the

evidence of P.W.1. That save and except the suggestions to the P.W.1

in cross-examination, the Corporation has done nothing. The

Corporation has not brought on record any document to indicate

that in lieu of acquisition of part of the suit land for road widening

project, the Plaintiff was compensated. In fact, it is the Plaintiff's

case that portion of the suit property was acquired by the

Corporation for road widening project and in lieu thereof, there was

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promise by the Corporation to sanction FSI 1:2. The Corporation has

not brought on record any document to show that in lieu of

acquisition of part of suit property, owner thereof was compensated.

In the absence of such documents either in the form of award or

otherwise and in the light of the fact that averments in plain were

not denied, possibility of assurance by the Corporation to consider

the case of Plaintiff for granting FSI 1:2 for suit land cannot be

stated to be without substance. It also appears from the plaint that

the old building standing on the suit plot was required to be

demolished since part of the suit land was acquired for road

widening project. It is averred in the plaint that the Corporation had

accommodated some tenants until the completion of the new

building. Thus, cumulative effect of all such events leads us to hold

that there was some assurance by the Corporation to the owner of

the suit land that it would sanction FSI 1:2 for the suit plot as a

special case.

34 Be that as it may, firstly, we hold that the Corporation

ought to have brought to our notice directions dated 19.6.1993

which were altogether missing in the written statement as well as in

the paper-book supplied by Mr. Bubna.

35               The   Trial   Court   answered   the   issue   No.3   in   the 

                                                                                  Shivgan



                                   * 25/27 *              FA-2211-2005.doc

affirmative by holding that the Plaintiff has proved that the suit

property is situated within 'Gaothan' and FSI 1:2 is lawfully

admissible for the development thereof. Though the conclusion

drawn by the trial Judge while answering this issue is correct, we do

not agree with the reasoning of the learned Judge. It cannot be said

that merely because the land is classified as 'Gaothan' under the

Maharashtra Land Revenue Code for the purposes of the

Maharashtra Land Revenue Code, it is to be treated as 'Gaothan'

under the M.R.T.P. Act. We have held that under the M.R.T.P. Act,

the local authority is empowered to classify the land in terms of the

Development Plan irrespective of its tenure under the Land Revenue

Code.

The learned trial Judge while answering the issue no.5 has

held that the principle of promissory estoppel is operative against

law. This finding is equally incorrect and runs counter to the judicial

pronouncements that there cannot be estoppel against statute.

Finding on this issue is, therefore, incorrect and the same is set

aside.

36 It may be stated that the Notification dated 23.4.1993

and 19.6.1993 and another Notification were subject matter of Writ

Petition No.3498 of 2000 and the Division Bench in the judgment of

Shivgan

* 26/27 * FA-2211-2005.doc

M.A.Panshikar (Supra) wherein it was held by the Division Bench

to the following effect :- "By the said Notification, it was provided

that till the time Regulations in respect of development/re-

development of the congested area are sanctioned, along with the

said development plan, Regulations sanctioned by the Government

by Notification dated 19.6.1993 shall be applicable for 'Gaothan'

area." Thus, Notification dated 19.6.1993 providing maximum FSI

to any certain area was permitted till the Final Development Control

Regulations along with the Development Plan were sanctioned.

The challenge to this Notification was turned down by the

Division Bench for having not challenged the same at the

appropriate time in-as-much as it appears that the same was

challenged nearly after seven years. Be that as it may, fact remains

that in respect of the case in hand, the suit land answers all

descriptions of Note 1(ii). Suit land now is included within the

limits of Thane Municipal Corporation. In view of the aforesaid, we

hold FSI 2 was admissible qua the suit land for its development.

37 Though we have upheld the applicability of FSI 1:2 to

the land in question for the reasons stated herein above. In so far as

the directions issued to the Corporation to issue occupancy

certificate to the Plaintiff is concerned, we are unable to sustain such

Shivgan

* 27/27 * FA-2211-2005.doc

a direction for want of jurisdiction as also could not have been

issued in the absence of verification and inspection of the building

by the authorities of the Corporation that as such, we direct the

Plaintiff to submit an application to the Corporation for obtaining

occupation certificate of the building constructed on the suit land.

We further direct the Corporation to process the said application in

in terms of our observations hereinabove and in accordance with

law within a period of three months from today. The rest of the

decree stands confirmed except to the extent of Clause (iv) of the

judgment and order dated 10.3.2005.

38 In the result, the Appeal is partly allowed. Decree be

drawn up accordingly with no order as to costs. The Appeal is

disposed of.

(SANDEEP K. SHINDE, J.)                                  (R.M.SAVANT, J.)




                                                                                Shivgan



 

 
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