Nagpur Improvement Trust & Ors. v. M/S Bombaywala & Ors.
M. R. SHAH, J. Leave granted in all these Special Leave
Petitions.
1. As common question of law and facts arise in this group of
appeals arising out of theimpugned judgment and order dated 15.09.2016
passed by the High Court of Bombay, Bench at Nagpur passed in Writ
Petition No.2695 of 2015, all these appeals are being disposed of by this
common judgment and order. For the sake of convenience, Civil Appeal
arising out of the SLP© No.32089 of 2016 is treated as lead matter and
the facts in the said appeal are narrated.
2. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 15.09.2016 passed by the Division Bench of the High
Court of Judicature at Bombay, Nagpur Bench, Nagpur passed in
W.P.No.2695 of 2015 by which the Division Bench has allowed the said
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
Writ Petition preferred by the respondents Nos.1 to 18 herein-ori ginal
petitioners Nos.1 to 18 some of the occupants/tenants of the building in
question and by which the Division Bench has set aside the notice dated
24.04.2015 issued by the Nagpur Improvement Trust, the original
respondents-Nagpur Improvement Trust and others have preferred the
present appeals.
3. The facts leading to the present appeals in nutshell are as under.
4. That the Nagpur Improvement Trust Act 1936 (hereinaft er
referred to as the ‘NIT Act’) was enacted on 25.12.1936. That t he
Nagpur Improvement Trust (hereinafter referred to as the ‘N IT’) vide
Board Resolution dated 29.10.1960 framed an improvement Scheme
known as “Abhyankar Road Widening and Buty Mahal Street Scheme”
(hereinafter referred to as “the Scheme”) in respect of 8.7 acres of land
bearing Khasra No.320 and 315 (part) Mouza Sitabuldi, belonging to the
Buty Family. That the same Scheme came to be framed under Section
31 of NIT Act for “creating new or improving the existing me ans of
communications and facilities for traffic”. That, inter alia , a new 15
metres wide road was to be constructed to join Mahatma Gandhi Road
to Abhyankar Road. That the internal roadof 15 metres provided in the
said Scheme is the subject matter of issue in the present matters. That,
the said Scheme came to be published on 29.10.1961 as per Section 39
of the NIT Act. That, the NIT sought approval of the State Government
of the above Scheme. That the State Government sanctioned t he said
Scheme in exercise of powers under Section 44(1) read with Section
45(1)(a) of the NIT Act on 23.09.1964. Accordingly, a Notification to
that effect was also issued under Section 45 of the NIT Act.
4.1 That, thereafter, the Maharashtra Regional Town Planning
Act, 1966 (hereinafter referred to as the “MRTP Act”) came into effect
on 11.01.1967. At this stage, it is required to be noted that, as per the
MRTP Act, any Development Plan made under the said Act had to take
precedence over any Scheme to the contrary. The same shall be discussed
hereinbelow.
4.2 That NIT was appointed as the “Planning Authority” under
the MRTP Act for Nagpur. That, in the year 1967, the Fir st Final
Development Plan for the City of Nagpur under Sections 22 and 31 of
the MRTP Act was prepared and sanctioned. At this stage, it is required
to be noted that, in the said final Development Plan, the above 15 metres
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road which was provided under the Town Planning Scheme under the
NIT Act was not shown in the Development Plan under the MRTP Act.
4.3 That the NIT, in Board meeting dated 05.06.1981 and
31.12.1981, decided to implement the Scheme. That, a Special Land
Acquisition Officer came to be appointed by the State Government for
acquisition of the land and the proceedings of the land acquisition came
to be initiated.
4.4 That a newspaper article was published on 21.06.1981 stating
that the NIT has decided to handover the “ Buty Mahal Development
Scheme ” to the land owners for redevelopment. That, in the year 1983,
a Writ Petition being WP.No.2326 of 1983 was filed by the land owners
before the Nagpur Bench of the Bombay High Court challenging the
acquisition. Initially, the High Court granted an interim sta y on the
acquisition proceedings.
4.5 That, on 07.06.1984, the land owners – Shri Yogeshwar Buty
and Smt. Madhuribai Buty approached NIT to allot a reconstituted plot
or plots bearing Nos.6, 7 and 8 belonging to them. However, the said
request came to be rejected by the NIT on 17.08.1984.
4.6 That, on 13.03.1995, one Smt. Indirabai Buty (land owner)
submitted an application for permission to develop the land stating inter
alia , that; (1) Development of the land would be as per the Development
Plan of the NIT; (2) All the tenants would be accommodated in t he
proposed Scheme; (3) The betterment charges would be paid t o the
NIT. That, the Board of NIT in its meeting held on 11.03.1996 passed a
Resolution wherein it was, inter alia , decided ……………..(1) A plot
was allocated in the matter of Shri YadhurajSanghani; (2) Smt. Indirabai
Buty and others land owners to accommodate in their proposed Scheme,
the tenants in the area of the reconstituted plot and (3) All the petitions in
respect of the subject plot would have to be withdrawn unconditionally.
On the basis of the said Resolution of the NIT dated 11.03.1996 , Writ
Petition No.2326 of 1983 challenging the acquisition was withdrawn by
the land owners.
4.7 In the meantime, in the year 1989, the First Final Development
Plan which was earlier prepared and sanctioned in the year 1986, came
to be revised. Again, the above 15 metres internal road was not depicted
in the revised DP.
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
4.8 It appears that, in the year 1997, NIT addressed letters to the
Urban Development Department requesting the latter to obtain permission
from the Government to relax Rule 5(2) of the NIT (Land Disposal)
Rules, 1983 (hereinafter referred to as the “1983 Rules”) under Rule 26
of the 1983 Rules, to allocate the reconstituted plot in the present Scheme.
That the State Government vide order dated 07.10.1997 issued under
Rule 26 of the 1983 Rules relaxed Rule 5(2) and allotted the reconstituted
plot in Survey Nos.3117, 3119, 3123, 3127, 3120, 3122, 3124 and 3125 in
Khasra No.320 Mouza Sitabuldi, subject to certain conditions including
inter alia that …………(i) The Applicants would accept the
compensation of the land fixed by the Land Acquisition Officer and give
possession of the lands to him; (ii) Development of the land would as
per the Development Plan of NIT; (iii) All the tena nts are to be
accommodated in the Scheme and (iv) That in the interest of tenants the
NIT fixed the plot allotment rate @ 50% of the market value, w ithout
prejudice to Rule 7(3) of the 1983 Rules.
4.9 That the NIT passed a Board Resolution on 23.10.1997 to
implement the altered Scheme in terms of G.O. dated 07.10.1997. That
the Special Land Acquisition Officer, NIT passed an A ward dated
16.12.1997 in respect of the land admeasuring 5677 sq.ft bearing Khasra
No.320 Sitabuldi,Nagpur. That, pursuant to the Award declared by the
Land Acquisition Officer, possession of the land was taken by the Land
Acquisition Officer and handed over to NIT. It appears tha t, out of
271552.60 sq.ft of the land, only 114079.36 sq.ft was acquired by NIT
and the rest of the lands remained with the land owners.
4.10 That the Final Development Plan in terms of Section 31 of
the MRTP came to sanctioned in the year 2001.
4.11 That pursuant to the G.O. dated 07.10.1997, the process of
widening of the Abhyankar road was initiated and notices were issued
for demolition of shops. At that stage, Writ Petition No.798 of 2002 was
filed by some of the Abhyankar Road tenants challenging the demolition
notices issued by the NIT to the tenants in the process of road widening.
The said Writ Petition came to be dismissed by the High Court by judgment
and order dated 22.02.2002. The matter was carried before this Court.
Before this Court, a compromise was reached between the pet itioners
of W.P.No.798 of 2002 and land owners and NIT. By order da ted
08.04.2002, SLP© No.4846 of 2002 was disposed of in terms of the
compromisearrived at between the land owners, the tenants (only on
1009
writ petitioners) original petitioners to W.P.No.725 of 2002), wherein
inter alia the following conditions were specified:
• The Landlord shall construct a multi-storeyed building on the
reconstituted plot that was to be allotted to him by the NIT.
• The Tenant and Landlord shall within a period of one week
from the filing of the compromise petition would vacate such
area out of the property covered in the instant proceedings in
their possession as is required for widening of the Abhayankar
Road.
The compromise also provided, NIT to allot one single reconstituted
plot and redevelopment of suit property to be carried out in accordance
with the Development Plan of Nagpur City and all tenants to be rehoused
post development.
4.12 That thereafter, on the request made by the owners, the
Resolution was passed by the NIT dated 23.10.2003 to allot a si ngle
reconstituted plot admeasuring 10602.09 sq.mts as undivided share and
the same was offered to the Buty family. That thereafter, the Government
by letter dated 12.11.2003 allotted the reconstituted plot to the owners.
From the letter dated 12.11.2003, it appears that the land for road will be
provided as per the Development Plan and that the benefic iaries will
have to make land available for road widening and parking.
4.13 It appears that thereafter the NIT represented to th e State
Government vide Representations dated 16.08.2005 and 29.03.2006
purportedly under Section 37(1) of the MRTP Act in order to incre ase
the width of the Abhyankar Road from 12 metres to 24 metres and for
converting the reconstituted plot from residential to commercial in order
to accommodate the tenants running commercial shops.
4.14 It appears that thereafter on 02.08.2006, the owners entered
into a development agreement with one of the petitioners herein – M/s
Goel Ganga Infrastructure & Real Estate Pvt. Ltd. For deve loping the
property bearing Khasra No.320.
4.15 That thereafter the State Government passed an order dated
22.06.2007 under Section 37(1) of the MRTP Act permitting the change
of use in respect of Khasra No.320 and 315 (Part) from residenti al to
commercial. It appears that the permission was also granted by the State
to widen the Abhyankar Road to 24 metres in place of 12 metres.
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
4.16 It appears that thereafter the provisional sanction was granted
by NIT on 22.04.2008 to the drawing/building map to the layout plan
submitted by developer for the construction of a commercial complex.
It appears that thereafter vide letter dated 18.08.2009, the NIT issued a
letter to the land owners allotting a single reconstituted plot admeasuring
114079.36 sq.mts to the land owners, subject to the conditions mentioned
in the said letter. That thereafter, on 10.02.2010, a l ease deed was
executed between the NIT and the land owners in res pect of the
reconstituted plot subject to the terms and conditions mentioned in the
allotment letter dated 18.08.2009. It appears that thereafter on
15.05.2012, the NIT sanctioned the Final Layout Plan in respect of the
reconstituted plot as per the D.C.R. of Nagpur City. That th e building
plan also came to be sanctioned on 27.06.2012 in accordance with the
D.C.R. of Nagpur City.That, on 10.12.2014, building permit and
commencement certificates were issued by the NIT subje ct to certain
conditions specified therein. That a revised building pla n was also
sanctioned by the NIT on 11.12.2014 subject to the conditions mentioned
therein.
4.17 That thereafter on 24.04.2015, the NIT issued notices to the
tenants asking them to vacate a portion of their shops so as to enable
construction as per the layout plan.
4.18 The aforesaid notices gave rise to filing of Writ Petit ion
No.2695 of 2015 before the High Court of Bombay, Nagpur Bench. In
the said Writ Petition, the Respondents Nos.1 to 18 herein the origi nal
writ petitioners prayed interalia for an order quashing the notices issued
by the NIT on 24.04.2015. That the said petition was opposed by the
original writ petitioners as well as the NIT. It appears that thereafter the
original writ petitioners filed an application being C.A.No.1615 of 2015
in W.P.No.2695 of 2015 praying for amendment to the prayers in the
writ petition and allow them to challenge the sanctioned pla n dated
27.06.2012 and the revised plan dated 11.12.2014. The said amendment
was opposed by the original land owners and the developers. However,
thereafter High Court allowed the said Amendment application.
4.19 It appears that, during the course of the hearing, the High
Court by order dated 03.09.2015 in W.P.No.2695 of 2015 directed the
Chairman, NIT to explore the possibility of an amicable settlem ent by
calling the representatives of both the tenants and the dev elopers and
land owners and directed to submit a report to the Court. It appears
1011
that, pursuant to the order dated 03.09.2015, the Chairman, NIT called
all the parties. That thereafter the Chairman, NIT submitted a report on
15.10.2015 stating that no settlement could be arrived at between t he
parties.
4.20 That thereafter, by impugned judgment and order, the High
Court has allowed the Writ Petition and has quashed and set aside the
demolition notice dated 28.04.2015 issued by the NIT. The High Court
has also further observed that it will be open for the NIT to issue fresh
notices of demolition to the writ petitioners after the sanctioned layout
plan dated 15.05.2012, the building permit granted on 27.06.2012 revised
on 11.12.2014 as well as the construction, if any, carried out are brought
in conformity with the Scheme published under Section 45 of the NIT
Act of 23.09.1964. While passing the impugned judgment and order the
High Court has observed and held that the layout plan sanctioned in the
building permit granted are contrary to the provisions of the Sc heme
published and sanctioned under Section 45 of the NIT Act and that the
same suffers from vice of internal mischief.
4.21 That the impugned judgment and order passed by the High
Court dated 15.09.2016 in W.P.No.2595 of 2016 is the subject matter of
the present appeals.
5. It appears that, in the meantime and after the impugned judgment
and order passed by the High Court, the original Scheme sa nctioned
under Section 45 of the NIT Act which provided 15 metres internal road
came to be modified as provided under the NIT Act by deleting 15 metres
internal road. The same came to be published in the Gover nment of
Maharashtra Gazette on 24.04.2017. That the W.P.No.5005 of 2017
was filed by the 18 tenants/shopkeepers before the Na gpur Bench,
Bombay High Court questioning the Resolution passed by the NIT dated
24.04.2017 issued under Section 46 of the NIT Act deleting 15 metres
internal road and another internal road from the Scheme. That a Transfer
Case No.23 of 2018 was filed before this Court praying inter alia for
transfer of W.P.No.5005 of 2017 to this Court. That is how, the Transfer
Case No.23 of 2015 is also listed along with the present group of appeals.
5.1 We have heard the learned counsel appearing for the
respective parties in the transferred Writ Petition No.5005 of 2017 also,
along with the other appeals arising out of the impugned judgment and
order dated 15.09.2016 passed in W.P.No.2695 of 2015.
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
6. Mr. V . Giri, Mr. Mukul Rohtagi and Mr. Dhruv Mehta, learned
senior counsel appearing on behalf of the respective appel lants have
vehemently submitted that the impugned judgment and order passed by
the High Court is contrary to the provisions of MRTP Act and also the
law laid down by this Court in the case of Manohar Joshi vs. State of
Maharashtra &Anr. 2012 (3) SCC 619.
6.1 The learned counsel appearing on behalf of the respective
appellants-original respondents have vehemently submitted that w hile
passing the impugned judgment and order the High Court has not properly
appreciated and considered the relevant provisions of MRTP Act.
6.2 The learned counsel appearing on behalf of the respective
appellants have vehemently submitted that though in the original Scheme
framed under the provisions of the NIT, 1936 there was a provision for
15 metres internal road, thereafter when the MRTP Act cam e to be
enacted and came into force and the Development Plan fram ed and
sanctioned under the provisions of the MRTP Act did not contain any
“internal road” as was there in the Scheme published under Section 45
of the NIT Act, in view of the provisions of the MRTP Act, the
Development Plan overrides the DP Scheme and, therefore, there is no
question of providing any internal road. It is submitted that t he High
Court has not properly appreciated the abovesaid at all.
6.3 It is vehemently submitted by the learned counsel appearing
on behalf of the respective appellants that, as per the law lai d down in
the case of Manohar Josh i (supra), the DP Plan overrides the Scheme;
and anything contrary to the DP Plan in the Scheme shall have to be
varied to bring it in line with the Development Plan sanctioned under the
provisions of MRTP Act. It is submitted that, therefore, the High Court
has materially erred in quashing and setting aside the notices of demolition
which are based upon final layout plan sanctioned on 15.05.2012 and
building permit granted on 27.06.2012, and revised on 11.12.2014, which
were as per the provisions of MRTP Act.
6.4 It is further submitted by the learned counsel appearing on
behalf of the respective appellants that the High Court has materially
erred in misreading and/or misinterpreting the judgment of this Court in
Manohar Joshi (supra) and held that the statutory obligations created
upon the NIT under Section 45 of the NIT Act to execute the Scheme to
the extent it is not in variation or modification of the proposal s in the
1013
Final Development Plan, continues to subsist and can be enforced. It is
vehemently submitted by the learned counsel appearing for the respective
appellants that the aforesaid observations are just contrary to the
observations made by this Court in the case of Manohar Joshi (supra).
It is submitted that in the case of Manohar Joshi (supra) this Court has
specifically observed and held that even if such a variation as directed
under Section 39 of MRTP Act does not take place, the land cannot be
put to use in any way in contradiction with the provisions in the DP Plan.
6.5 It is further submitted by the learned counsel appearing on
behalf of the respective appellants that even the aforesaid finding and
theobservation are contrary to Section 43 of the MRTP Act which provides
that once the declaration of intention to prepare a Development Plan is
presented, no development contrary thereto can be permitted.
6.6 It is further submitted by the learned counsel for the respective
appellants that the High Court has not properly appreciated and considered
the fact that, in view of the subsequent development and the widening
of the existing road, there was no necessity for internal road as provided
in the Scheme under the NIT Act. It is submitted that as such in view of
the subsequent development and widening of the existing road, w hen
subsequently the DP under the MRTP Act was prepared, there was no
provision for 15 metres internal road as provided earlier in the Scheme
under the NIT Act.
6.7 It is further submitted by the learned counsel that the H igh
Court has not properly appreciated the fact that as such in the
Development Plan prepared under the provisions of MRTP Act, which
was first prepared in the year 1976 and in the subsequent DP, there was
no provision for the internal road and, despite the same, the s ame was
not challenged by the original writ petitioners. It is submitted that even
initially what was challenged in the main writ petition was demol ition
notices. It is submitted that even subsequently also the DP prepared
and sanctioned under the provisions of MRTP Act,which does not contain
any provision for internal road was not under challenge at all . It is
submitted that, therefore, the layout plan came to be san ctioned under
the provisions of the MRTP Act and the building permit was issued under
the provisions of MRTP Act, which came to be challenged subsequently
by way of amendment. It is submitted that in view of the rel evant
provisions of the MRTP Act, the construction has to be made as per the
layout plan and the building permit granted under the provisions of MRTP
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
ACT. It is submitted, that, therefore, the High Court has m aterially
erred in quashing and setting aside the final layout plan a s well as the
building permit solely on the ground that the same is in contravention of
the Scheme published under Section 45 of the NIT Act.
6.8 It is further submitted by the learned counsel for the Appellants
that the High Court has not properly appreciated and consid ered the
stand of the NIT that punctuated lines in the Development Plan only
indicate the boundaries of the Scheme under the control of the NIT and
it has no more significance than this.
6.9 It is further submitted by the learned counsel that the H igh
Court has materially erred in observing that, in the absenc e of any
provisions contrary to the internal road, shown in the Development Plan,it
cannot be said that the provisions of the internal road vanishes
automatically. It is submitted that the High Court has n ot properly
appreciated the fact that as such the Development Plan which has been
prepared in consonance with the provisions of the MRTP Act, specifically
do not provide any internal road, which was earlier provided in the Scheme
under the NIT Act.
6.10 It is further submitted by the learned counsel that even the
Government Resolution dated 07.10.1997 specifically provided and/or
permitted to develop the landin question as per the Develo pment Plan
and not as per the Scheme. It is submitted by learned counsel that while
issuing G .O. dated 07.10.1997,it was specifically noted that the 50 ft. (15
metres) wide road through the land is not provided under the
Development Plan. It is submitted that the aforesaid was even considered
and noted by the NIT. It is submitted that despite the above the High
Court has observed that all throughout the NIT desired to implement the
Scheme.
6.11 It is further submitted by the learned counsel that the High
Court has not properly appreciated the fact that even one consol idated
plot was allotted under the provisions of the MRTP Act and thereaf ter
the layout plan as per the provisions of the MRTP Act was s ubmitted
and got sanctioned and the development permission was obtained to
carry out the construction which was granted as per the DP sanctioned
under the provisions of MRTP Act. It is submitted that the High Court
has materially erred in quashing and setting aside the demolition notices
which as such were consequent upon the sanction of the layout plan
1015
and the grant of the permission. It is submitted that the High Court has
materially erred in quashing and setting aside the sanctioned layout plan
as well as the development permission granted under the provisions of
the MRTP Act. It is further submitted by the learned counsel that the
High Court has, therefore, materially erred in observing and holding that
grant of permission/sanction of layout plan which was in contravention
of the Scheme under the NIT Act was a mischief in law to provide an
unfair advantage to the developers and the owners and it depri ves the
facility of frontage to the tenants on the internal road.
6.12 It is further submitted by the learned counsel that the High
Court has materially erred in not appreciating the fact that only 18 tenants
filed the writ petition and were aggrieved, against which majority of the
tenants accepted the settlement/compromise before this Cou rt. It is
stated that the appellants are ready and willing to provide the same benefit
to the original writ petitioners herein also. It is submitted, however, for
some oblique reason and/or to get some more benefits, only 18 tenants
approached the High Court and filed the writ petition.
6.13 The learned Counsel appearing on behalf of the respective
appellants have vehemently submitted that, on one hand, the High Court
has specifically observed that, in paragraph 86, the High Court has not
set aside and it is also not necessary for the High Court to set aside the
layout plan and the building permit granted by the NIT,the ult imate
observation made by the High Court in paragraph 89(2) would tantamount
to quashing and setting aside the sanctioned layout plan and even t he
building permit.
6.14 Making the above submissions and relying upon the provisions
of NIT Act as well as the MRTP Act and the decision of this Court in
the case of Manohar Joshi (supra), it is requested to allow the present
appeals and quash and set aside the impugned judgment and order passed
by the High Court.
7. The present appeals are vehemently opposed by Ms. Rukhmini
Bobde, learned Advocate appearing for the writ petitioners a nd Ms.
Deepa Kulkarni learned Advocate also.
7.1 The learned counsel appearing on behalf of the original writ
petitioners have supported the impugned judgment and order passed by
the High Court.
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
7.2 It is vehemently submitted by the learned counsel appearing
on behalf of the original writ petitioners that the impugned judgment and
order passed by this High Court is absolutely in consonance wi th the
provisions of the NIT Act as well as the MRTP Act, which is not required
to be interfered by this Court.
7.3 It is vehemently submitted by learned counsel for original writ
petitioners that on true interpretation of the provisions of NIT Act, more
particularly Section 45(3) and 45 of the NIT Act, the High Court has
rightly observed and held that unless and until the Scheme sancti oned
under the NIT Act is varied and/or is modified under the provisions of
the NIT Act, the Scheme shall prevail and shall have to be acted upon.
7.4 The learned counsel appearing on behalf of the original writ
petitioners have emphasised on the object and purpose to provi de 15
metres internal road in the Scheme sanctioned under the NIT Act. It is
submitted that the internal road provided in the Scheme sanctioned under
Section 45 of the NIT Act was a part of Street Scheme s o as to avoid
the traffic congestion. It is submitted that the use of land in question on
the date of such Scheme was initially for residential purposes with internal
road, one cinema theatre and the peripheral area being used for sho ps/
offices purposes. It is submitted that the object and purpose for providing
the internal road under the Scheme/Street Scheme was for creating
new or improving existing means of communication and facilities for
traffic. It is submitted that the execution of the Scheme w as for (i)
providing huge commercial complex inside the Scheme area to
accommodate the tenants apart from others, (ii) widening of Mahatma
Gandhi Road and Abhyankar Road outside the Scheme area; (iii) providing
50 ft (15 metres) wide internal road along with others two roads inside
the Scheme area to ease out the traffic and removing conges tion, and
(iv) to provide space open to sky for parking . It is su bmitted that,
therefore, once there was a Scheme/Street Scheme as sanctioned under
Section 45 of the NIT Act with specific object and purpo se, merely
because in the Development Plan prepared under the MRTP Act, there
was no specific reference to the internal road, it cannot be said that the
sanctioned Scheme which was sanctioned under Section 45 of the NIT
Act is not to be implemented, even if the same is not varied or modified
under the provisions of the NIT Act.
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7.5 It is submitted that the High Court has rightly observed a nd
held that unless and until the Scheme is varied or is modified b y the
Planning Authority, which in the present case i.e. NIT, after following
the due process under Section 46 of the NIT Act, the Scheme has to be
implemented and anything including the sanction of the layout plan and/
or grant of building permission which would be in contravention of the
Scheme under NIT Act, are illegal and contrary to the provisions of the
NIT as well as the MRTP Act, and, therefore, the High Cour t has
rightly quashed and set aside the demolition notices and has ri ghtly
observed that it would be open for the NIT to issue fresh n otices of
demolition, after sanctioned plan, the building per mit as well as
construction, if any, carried out are brought in conformity with the Scheme
published under NIT Act on 23.06.1964.
7.6 It is vehemently submitted by the learned counsel that the
impugned judgment and order passed by the High Court is absolutely in
furtherance of the object of the Scheme published under Secti on 45 of
the NIT Act i.e. for better development and to avoid the traffic congestion.
The learned counsel appearing on behalf of the original writ petitioners
has heavily relied upon the decision of this Court in the case of Manohar
Joshi (supra) reported in (2012) 3 SCC 619,in support of their submissions
that planning involving highly complex cities depends upon scient ific
research, study and experience and, thus deserves due reverence and
therefore, the Scheme which is prepared after due considera tion of
necessity for better street planning has to be implemented,u nless the
same is varied and/or is modified after following due p rocedure as
requiredunder the provisions of the NIT Act.
7.7 It is vehemently submitted by the learned counsel that as the
appellants have as such subsequently implemented the impugned judgment
and order passed by the High Court by modifying the Scheme which
was earlier sanctioned and prepared under the NIT Act, as permitted by
the High Court and, therefore, now thereafter it is not open f or the
appellants to challenge the impugned judgment and order passed by the
High Court.
8. Now, so far as challenge to variation/modification of the Scheme
under Section 46 of the NIT Act, which is the subject matter of the
Transfer Petition, it is vehemently submitted by the learned counsel on
behalf of the writ petitioners that the same is absolutely in breach of the
provisions of the NIT Act. It is submitted that a detail procedure required
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
to be followed for variation and/or modification of the Scheme as provided
under the NIT Act has not been followed at all. It is subm itted that
neither any objections were invited nor any opportunity was given to the
writ petitioners. It is submitted that, therefore, subsequent variation and/
or modification of the Scheme is absolutely illegal and des erves to be
quashed and set aside. It is submitted that even the same can be said to
be in violation of the principles of natural justice. In support of the above,
the learned counsel appearing on behalf of the writ petitioners-the tenants
has heavily relied upon the decision of this Court in Scheduled Caste
and Weaker Section Welfare Association vs State of Karnataka
reportedin (1991) 2 SCC SCC 604.
8.1 By making the above submission, it is requested to dismiss the
appeals and upheld the impugned judgment and order passed by the
High Court and to allow the Transfer Petition and quash and se t aside
the variation and/or modification of the Scheme published under Section
46 of the NIT Act.
9. Now, so far as the Transfer Petition is concerned, and challenge
to the subsequent variation and/or modification of the Scheme published
under Section 46 of the NIT Act is concerned, the learned c ounsel
appearing on behalf of the NIT as well as the original land owners and
developers have vehemently submitted that the Scheme is varied/modified
after following due procedure required under the provisions of the MRTP
Act. It is submitted that, as per Section 39 of the MRTP Act, where a
final Development Plan contains proposals which arein variat ion, or
modification of those made in a Town Planning Scheme, which has been
sanctioned by the State Government before the commencement of t he
MRTP Act, the Planning Authority shall vary such Scheme suitably under
Section 92 to the extent necessary by the proposals made in the Final
Development Plan. It is submitted that Section 92 authorises the State
Government to vary and/or modify the Scheme. It is submi tted that,
therefore, if Sections 39 and 92 of the MRTP Act are conjointly read, it
can be seen that the variation of the Scheme subsequentl y shall be a
formal action to bring the Scheme in consonance with the Development
Plan. It is submitted that, therefore, when the Development Plan was
sanctioned after inviting the objections etc. the subsequent variation of
the Scheme to bring the Scheme in consonance with th e sanction
Development Plan would be only a formality which is requ ired to be
done under Section 92 of the MRTP Act. It is submitted that, therefore
1019
subsequent variation and/or modification of the Scheme whic h in the
present case would be as per Section 39 and Section 92 of th e MRTP
Act would be absolutely in consonance with the provisions of the MRTP
Act as well as the NIT Act. It is submitted that the provisions of the
MRTP Act and NIT Act are required to be read harmon iously to
sub-serve the objectsand purposes of Sections 39 and Section 92 and
other relevant provisions of the MRTP Act.
10. Now, so far as the submission on behalf of the original wr it
petitioners that in view of the fact and subsequently the Scheme ca me
to be varied as permitted by the High Court in the impugned judgment
and order and, therefore, the judgment and order passed by th e High
Court can be said to have been implemented and, therefore, the appellants
may not be permitted to challenge the impugned judgment and order of
the High Court is concerned, it is submitted that merely because without
prejudice and to be on safer side if the Scheme is varied and/or modified,
it cannot be said that appellants have waived their right to challenge the
impugned judgment and order, more particularly when the High Court
by the impugned judgment and order has set aside the demolition notices
and virtually sought as to know that the sanctioned layout plan and validly
granted the building permit.
11. We have heard the learned counsel appearing on behalf of the
respective parties. What is challenged in the present batch of appeals is
the impugned judgment and order dated 15.09.2016 passed by the Bombay
High Court passed in Writ Petition No.2695 of 2015. On consideration
of the impugned judgment and order passed by the High Court, it appears
that the following two questions fell for determination before the High
Court:
“1. Whether mere absence of proposal of “ internal road “ in the
final Development Plan under 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 Na gpur
Improvement Trust Act, can be termed as ‘variation’ or
‘modification’, as contemplated by section 39 of the MRTP Act?,
1. Whether the impugned notices of demolition, based upon
final layout plan sanctioned on 15-05-2012 and the building
permit granted on 27-06-2012 and revised on 11-12-2014, need
to be set aside for want of Internal Road, which was the
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
part of the Scheme sanctioned under Section 44 of the NIT
Act?
11.1 It is required to be noted that initially demolition notices
dated 24.04.2015 were challenged before the High Court issued by the
NIT. At this stage, it is required to be noted that the said demolition
notices were issued consequent upon the sanctioned layout plan dat ed
15.05.2012, the building permit granted on 27.06.2012 and revised on
11.12.2014. Subsequently, by an amendment, the original writ petitioners
challenged the plan sanctioned by the NIT on 27.06.2012 and the sanction
granted to the revised plan on 11.12.2014. The said amendment was
allowed. The challenge was mainly on the ground that the sanct ion
granted is illegal and contrary to the Scheme. The Scheme whic h was
sanctioned in the year 1964 under Section 45 of the NIT Act provid ed
15 metres internal road. At this stage, it is required to be noted that the
improvement Scheme known as the “Abhyankar Road Widening a nd
Buty Mahal Street Scheme” was prepared and sanctioned unde r the
provisions of NIT Act in the year 1964. However, thereafter, the MRTP
Act came to be enacted and came into effect subsequent to the enactment
of the NIT Act i.e. with effect from 28.12.1966. From the chronology
of list of events noted hereinabove it appears and it is not in dispute that
the First Final Development Plan under Section 31 of the MRTP Act
came to be sanctioned on 03.06.1976, which do not contain 15 metres
internal road as was there in the Scheme sanctioned under Section 45 of
the NIT Act. Even subsequently also, when the DP was revised in the
year 1989 and thereafter in 2001, the above internal road was not depicted
in the revised DP.That thereafter the Government allotted reconstituted
composite plot under the MRTP Act and original land owners/developers
submitted the layout plan, which came to be sanctioned by the NIT and
even the building permission was granted under the provisions of the
MRTP Act. Therefore, the NIT issued the demolition notices dated
24.04.2015 impugned before the High Court so as to allow/permit th e
original land owners/developers to put up the construction on the land in
question as per the sanctioned layout plan and the building construction
permission. The High Court by the impugned judgment and order has
held that as in the Scheme sanctioned under Section 45 of the NIT Act
15 metres internal road is provided, unless the same is va ried and/or
modified under Section 46 of the NIT Act by the Planning Authority,the
same shall have to be implemented and thereby the High Cour t has
1021
quashed and set aside the notices of demolition dated 24.04.2015 keeping
it open for the NIT to issue fresh notices of demolition to th e original
writ petitioners after the sanctioned layout plan dated 15.05.2012, the
building permit granted dated 27.06.2012 and revised on 11.12.2014 as
well as the construction, if any, carried out are brought in conformity
with the Scheme published under Section 45 of the N IT Act on
23.06.1964.
11.2 Therefore, the short question which is posed for consideration
before this Court is whether, in the facts and circumstances of the case,
when the Development Plan sanctioned under the provisions of MRTP
Act do not provide an internal road from the land in question, still the
Scheme published under Section 45 of the NIT Act which provided 15
metres internal road would be applicable and/or would have to be
implemented, though the Scheme may be contrary to the Development
Plan sanctioned under the provisions of the MRTP Act ?
11.3 To answer the aforesaid question the object and purpose of
MRTP Act, relevant provisions of MRTP Act are required to be referred
to and considered.
11.4 From the statement and object of the MRTP Act 1966, it
appears that the same has been enacted to make provisions for: (1)
planning the development and use of land in regions established for their
purposes and for constitution of Regional Planning Boards therefor; (2)
to make better provisions for the preparation of Development Plan with
a view to ensuring that Town Planning Schemes are made in the proper
manner and the execution is made effective; (3) to provide for the
compulsory acquisition of land required for public purposes in respect of
the plans, and (4) for purposes connected with the matters a foresaid.
The said Act is enacted to make provisions for planning the development
and the use of land in regions established for their purpose and to ensuring
that Town Planning Schemes are made in a proper manner and their
execution is made effective. Therefore, the MRTP Act ca me to be
enacted with aforesaid object and purpose.
11.5 Section 3 of the Act permits the State Government to establish
any area in the State to be a region. A regional plan is s upposed to be
prepared for various subjects which are mentioned in Section 14 of the
Act. The ‘Development Plan’ is defined under Section 2(9) of the Act
as a plan for the development or redevelopment of the ar ea within the
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
jurisdiction of Planning Authority. Section 2(19) defines the “Planning
Authority” to mean a local authority, and it includes some other specified
authorities also. There is no dispute that the Development Plan has to be
prepared “in accordance with the provisions of regional plan” which is
what is specifically stated in Section 21(1) of the Act.”
11.6 Section 39 of the MRTP Act provides for -
Section 39. “ V ariation of town planning scheme by development
plan – where a final development plan contains proposals which
are in variation or modification of those made in a town planning
scheme which has been sanctioned by the State Government
before the commencement of this Act, the Planning Authority
shall vary such scheme suitably under Section 92 to the extent
necessary by the proposals made in the final development plan.”
11.7 We are concerned with the Final Development Plan of 1976
which does not contain the 15 metres internal road from the land in
question as against the 15 metres internal road provided in the final Scheme
of 1964. Thus the Scheme of 1964 prepared and sanctioned the provisions
of the NIT Act to the extent of providing 15 metres internal road can be
said to be not in consonance with the Development Plan sanct ioned
under the provisions of the MRTP Act.
11.8 Section 43 of the MRTP Act provides for restrictions on
development of the land after the date on which the declaration of intention
to prepare the Development Plan for any area is published in the official
gazette except as provided under proviso to Section 43 of the Act.
Section 46 of the MRTP Act provides that the Planning Author ity in
considering the application for permission for development shall have
due regard to the provisions of any draft or final plan or proposals published
by means of notice submitted or sanctioned under the MRTP Act. Section
59 of the MRTP Act provides for preparation of the Scheme under the
MRTP Act, which specificallyprovides that the Planning Authority may
prepare one or more Town Planning Scheme for the area wit hin its
jurisdiction or any part thereof for the purpose of imple menting the
proposalsin the Final Development Plan. As such, we not concer ned
with Section 59 of the MRTP Act, as in the present case, the Scheme
which provides 15 metres internal road was preparedand sanc tioned
under the provisions of theNIT Act and prior to the enactment of MRTP
Act and, therefore, Section 39 read with Section 92 shall be applicable.
1023
11.9 Therefore, on conjoint reading of Sections 39, 43, 46 and
even Section 59 of the MRTP Act, the Development Plans prepared and
sanctioned under the provisions of the MRTP Act shall prevail. Therefore,
there cannot be any development and/or construction permitted contrary
to the Development Plan prepared and sanctioned under the provisions
of the MRTP Act, though the Scheme prepared and sanctioned unde r
Section 45 of the NIT Act may permit such developme nt and/or
construction. As such, the aforesaid view which we are taking is
supported by the decision of this Court in the case of Manohar Joshi
(supra). In the case of Manohar Joshi (supra), after considering the
relevant provisions of the MRTP Act as well as the NIT Act,this Court
has specifically observed and held that when there is a conflict between
the Development Plan prepared and sanctioned under the provisions of
MRTP Act and the Scheme sanctioned under the provisions of the NIT
Act, the DPshalloverride the TPScheme. It is also further observed
that even if the variation, as directed under Section 39 of the MRTP Act
does not take place, the land cannot be put to use, in any way, in
contradiction with the provisions of DP Plan. In the case of Manohar
Joshi (supra) this Court confirmed the findings recorded by the H igh
Court that the DP Plan overrides the TP Scheme. This Cou rt did not
accept the submission that the Development Plan and the T PScheme
operate independent of each other and, until the State Government
exercise its power of eminent domain under the Development Plan, and
acquires the land, the land owners can develop its property as per the
user permitted under the TP Scheme. While not accepting the above
submission, it is observed by this Court that permitting a devel opment
contrary to the provisions of the Development Plan, knowing fully well
that the user under the TP Schemeis at variance in the Dev elopment
Plan will make provisions of Sections 39, 42, 46 and 52 of the MRTP Act
meaningless. Therefore, the contrary observation and finding recorded
by the High Court that unless and until the Scheme is varied under Section
46 of the NIT Act as required under provisions of Section 39 of the
MRTP Act, the Scheme sanctioned under Section 45 of the NIT A ct
shall subsist and can be enforced, cannot be sustained and th e same
deserves to be quashed and set aside.
11.10 It is required to be noted that though in the Scheme sanctioned
under the provisions of the NIT Act proposing 15 metres internal road
was in operation since 23.01.1964, when the MRTP Act came into force
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
and even thereafter when the First Development Plan was sanc tioned
under Section 31 of the MRTP Act for Nagpur in the year 1976 in which
there was no proposal for 15 metres internal road, and even
thereafter,twice the Development Plan was revised first in the year 1989
and again in the year 2001 in which also there was no provision for the
15 metres internal road, despite the above, at no point of time, anybody
including the original writ petitioners challenged the Development Plan
under the MRTP Act in which the 15 metres internal road was not
shown.Even thereafter also,at no point of time,and even in the writ
petition, the original writ petitioners challenged and prayed to set aside
the Development Plan in which there was no provision for 15 metres
internal road, though the same was mentioned in the Scheme prepa red
and sanctioned under Section 45 of the NIT Act.
11.11 It is also required to be noted that even the land owners /
developers have got the layout plan sanctioned and obtained the building
permission under the provisions of the MRTP Act. Considering the object
and purpose of the MRTP Act noted hereinabove, it appears that though
there was a provision for internal 15 metres road in the Sch eme under
the NIT Act which was sanctioned in the year 1964, thereaf ter much
development had taken place and there are changed circumstances. In
the Development Plan/revised Development Plan the existing road came
to be widened from 12 metres to 24 metres and, therefore, when the DP
was prepared and sanctioned under the MRTP Act, there was no proposal
for 15 metres internal wide road. As discussed her einabove, the
Development Plan prepared and sanctioned under the MRTP Act would
override the TP Scheme. As observed hereinabove, there cannot be
any development and/or constructionpermitted contrary to the DP Plan
under the MRTP Act. Under the circumstances, the impugned judgment
and order passed by the High Court cannot be sustained.
11.12 A faint attempt was made on behalf of the original writ
petitioners that, in the DP Plan, there was punctuated line which can be
said to be 15 metres internal road from Abhyankar Road. However, on
considering the part plan of sanctioned Development Plan of Nagpur
City sanctioned by Notification dated 10.09.2001 (upon which the reliance
has been placed by the original writ petitioners), the aforesaid cannot be
accepted. As rightly contended on behalf of the NIT, the punctuate d
lines are described as Mouza Boundary/NIT Scheme Boundary. It is to
be noted that even the HighCourt noted that there is a conflict between
1025
the DP Plan and the Scheme sanctioned under Section 45 of the NIT
Act.
11.13 Even the findings recorded by the High Court that the action
of the NIT in sanctioning the layout plan and granting building permit is
mischief of law, cannot be accepted. The layout plans are sanc tioned
and the building permit has been granted absolutely in consonance with
the DPsanctioned under the MRTP Act. The demolition notices were
received pursuant to and in furtherance of the building permit and so as
to enable the original land owners/developers to put up the construction
as per the layout plan sanctioned and the building permi t granted.
Therefore, the High Court has erred in holding that the action of the NIT
was mischief in law.
11.14 It is required to be noted that, on one hand, the High Court
has specifically observed in paragraph 86 that the High Cour t has not
set aside and it is also not necessary for the High Court to set aside the
layout plan and the building permit granted by the NIT, the observations
made by the High Court in paragraph 89(2) would tantamount to virtually
quashing and setting aside the sanctioned layout plan in the building permit.
The sum and substance and the resultant effect of the obser vations
made by the High Court in paragraph 89(2), the observation ma de by
the High Court in earlier part of the judgment virtually restrains the original
land owners/developers not to put up any construction on the building
layout plan and the building permit granted under the MR TP Act.
Therefore, it appears that though not specifically quashing and setting
aside the sanctioned layout plan and the building permit granted under
the MRTP Act, the High Court has nullified the sanctioned layout plan
and the building permit granted under the MRTP Act.
11.15 It is also required to be noted that the dispute is pe nding
since many years. The land owners/developers entered into compromise
with other similarly situated tenants. Now, only 18 tenants are opposing
the development, though the land owners/developers have agreed and
are ready and willing to give similar treatment to them also which would
be given to other tenants as agreed before this Court. It appears that for
some reasons and/or to pressurize the land owners/ developers to give
them some more benefits, the original writ petitioners are opposing the
development/construction. Though the original land owners/developers
are having the building permission and have got their plans sanctioned
under the provisions of MRTP Act and even after incur ring huge
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
expenses, they are not in a position to put up any further const ruction
because of the pending litigation. Therefore, the equity would also be in
favour of the appellants as land owners/developers. As, at this stage, it
is required to be noted that even those tenants with whom the original
land owners/developers have entered into a compromise before this Court
have appeared through the Advocate and have stated that they are out
of possession since last more than ten years and therefore, they all have
requested to quash and set aside the impugned judgment and order passed
by the High Court and permit the land owners/developers to comple te
the construction.
11.16 Insofar as the submission made by the learned counsel
appearing on behalf of the original writ petitioners that after the impugned
judgment and order passed by the High Court, the NIT has modified the
Scheme as permitted by the High Court and, therefore, the impugned
judgment and order passed by the High Court is acted upon and, therefore,
the impugned judgment and order passed by the High Court may not be
permitted to be challenged by the NIT and/or the developer is concerned,
the same has no substance. Merely because to avoid any further legal
complication, if the NIT has modified the Scheme that would not preclude
the NIT and/or the original land owners/developers to challe nge the
impugned judgment and order.
11.17 In view of the above submissions and for the reasons stated
hereinabove, the impugned judgment and order passed by the High Court
deserves to be quashed and set aside.
TRANSFERRED CASE © No.23/2018 :
12. Now, so far as the Transferred Case © No.23/201 8 is
concerned, the Writ Petition filed by the original writ petitioners being
Writ Petition No.5005 of 2017 has been transferred to this Court pursuant
to the order passed by this Court dated 03.11.2017. In the petition, the
original writ petitioner have prayed to quash and set aside the Notification
dated 21.04.2017 issued by the NIT and the NIT Resolution No.27/1167
dated 07.03.2017 and Resolution No.17/1165 dated 03.01.2017 by which
the original Scheme of 1964 sanctioned under Section 45 of the NIT Act
has been modified in exercise of power under Section 45 of the NIT Act
and the 15 metres internal road has been deleted.
1027
12.1 It is vehemently submitted on behalf of the original wri t
petitioners that the Notification modifying the Scheme and deleting 15
metres internal road is without following any procedure as required under
the Act and without inviting any objections and even the approval of the
State Government has not been obtained. However, consideri ng the
contents of the counter affidavit filed on behalf of the NIT in which it is
specifically stated that after considering the objections sent by the 15
writ petitioners in Petition No.2017, the Authority unanimously passed a
Board Resolution in exercise of power under Section 46 of th e Act.
Therefore, it cannot be said that no opportunity at all was given t o the
petitioners. The decision to modify the Scheme by deleting 15 metres
internal road has been taken after considering the objections raised by
the writ petitioners. It is required to be noted that Sec tion 39 of the
MRTP Act mandates the Planning Authority to vary the Scheme in line
with the Development Plan sanctioned under the MRTP Act. It is required
to be noted that when the DP was sanctioned, without any proposal for
the 15 metres internal road, first in the year 1976 and thereafte r in the
years 1989 and 2001, the same was after following the due procedure
and the same was approved and sanctioned by the State Governme nt.
Therefore, thereafter, when the Scheme to the extent in conflic t with
the DP Plan has been modified as mandated under Section 39 of t he
MRTP Act, after considering the objections raised by the original writ
petitioners, thereafter, the same cannot be said to be illegal. Therefore,
reading Section 39 of the MRTP Act and the provisions of the NIT Act
harmoniously, the impugned Notification modifying the Scheme and/or
Board Resolution modifying the Scheme deleting 15 metres wide road,
which would now be in line with the Development Plan sanctioned under
the MRTP Act, the same cannot be said to be illegal warranting
interference of this Court. Therefore, challenge to the Notification dated
21.04.2017 issued by the NIT and the respective NIT Resolution
modifying the Scheme deleting 15 metres internal road fails.
13. In view of the above and for the further reasons stated above,
all the respective Civil Appeals except Civil Appeal arising from SLP(C)
No. 38036/2016 are hereby allowed and the impugned judgment and
order dated 15.09.2016 passed by the High Court of Bombay, Bench of
Nagpur passed in Writ Petition No.2695 of 2015 is hereby quashed and
set aside. Civil Appeal arising from SLP(C) No. 38036/2016 (M/s Gaysons
vs. Nagpur Improvement Trust) stands dismissed.
NAGPUR IMPROVEMENT TRUST v. M/S BOMBAYWALA
[M. R. SHAH, J.]
13.1 The Transferred Case © No.23/2018 stands dismissed for
the reasons stated hereinabove.
However, it is observed that to the respective origina l writ
petitioners shall also be given the same treatment as would be available/
given to other tenants as agreed before this Court and/or a s per the
settlement entered into with other tenants.
14. All these appeals except Civil Appeal arising from SLP (C)
No. 38036/2016 are allowed accordingly with the above observations .
Civil Appeal arising from SLP(C) No. 38036/2016 (M/s. Gaysons (M/s
Gaysons vs. Nagpur Improvement Trust) and the Transferred Case stand
dismissed. There shall be no order as to costs.
Devika Gujral Matters disposed of.