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Supreme Court of India

LAXMIKANT & ORS.versusSTATE OF MAHARASHTRA & ORS.

Citation
2022 INSC 336
Decided
23 March 2022
Disposal
Appeal(s) allowed

Holding

The statutory timeline for acquisition under Section 126 is sacrosanct and cannot be extended by the court; therefore, the High Court’s direction to acquire the land within an additional year was set aside.

Summary

The appellants owned land that had been reserved for a playground in a Development Plan published in 2002 under the Maharashtra Regional and Town Planning Act, 1966. After the statutory ten‑year period elapsed, they served a notice under Section 127 seeking acquisition, but the authorities failed to act. The High Court declared the reservation lapsed for lack of a Section 126 declaration but gave the State an additional one‑year to acquire the land. On appeal, the Supreme Court held that the Act provides a fixed ten‑year period (plus the one‑year notice period) for acquisition and does not permit the court to extend this timeline; consequently, the direction to acquire within an extra year was contrary to the statute. The Court set aside the High Court’s order and allowed the appeal, confirming that the State cannot be compelled to acquire land beyond the statutory period.

Issues considered

  • Whether the reservation of land under a development plan lapses after the ten‑year period prescribed in Section 126 of the Maharashtra Regional and Town Planning Act, 1966 in the absence of a declaration.
  • Whether a court may validly extend the period for acquisition beyond the statutory timeline provided under Section 126.
  • Whether the State can be directed by a court to acquire land reserved for a public purpose when it has remained inactive beyond the statutory period.

Legislation cited

Subjects

land acquisitiondevelopment planreservation lapsestatutory limitationeminent domainpublic purposeSection 126Maharashtra Regional and Town Planning Actmandamus

Judgment

                           [2022] 3 S.C.R. 297                              297


                       LAXMIKANT & ORS.                                     A
                                   v.
               STATE OF MAHARASHTRA & ORS.
                   (Civil Appeal No. 1965 of 2022)
                          MARCH 23, 2022                                    B
  [HEMANT GUPTA AND V. RAMASUBRAMANIAN, JJ.]
       Maharashtra Regional and Town Planning Act, 1966 – s.126
– Land reserved for public purpose in 2002 – After expiry of ten
years, land owners served notice calling upon the respondents to
                                                                            C
acquire the land but still the land was not acquired – Land owners
filed writ petition before High Court seeking direction to respondent
to treat their land as released from the development plan and that
reservation for playground be declared to have lapsed to the extent
of the land owned by them – High Court held that the reservation of
land in the development plan stood lapsed as no declaration under           D
s.126 was published, however, the Planning Authority was given
one year time to acquire the land reserved – Instant appeal filed by
land owners against the restriction of one year put by High Court
giving additional time to respondents to acquire the land – Held:
Once an embargo has been put on a land owner not to use the land
                                                                            E
in a particular manner, the said restriction cannot be kept open-
ended for indefinite period – The Statute has provided a period of
ten years to acquire the land under s.126 of the Act – Additional
one year is granted to the land owner to serve a notice for acquisition
prior to the amendment by Maharashtra Act No. 42 of 2015 – Such
time-line is sacrosanct and has to be adhered to by the State or by         F
the Authorities under the State – The State or its functionaries cannot
be directed to acquire the land as the acquisition is on its satisfaction
that the land is required for a public purpose – If the State was
inactive for long number of years, the Courts would not issue
direction for acquisition of land, which is exercise of power of the
                                                                            G
State to invoke its rights of eminent domain – In view thereof,
direction to acquire land within a period of one year is in fact
contravening the time-line fixed under the Statute – Consequently,
direction to acquire the land within one year is set aside – Land
acquisition.
                                                                            H
                                  297
298            SUPREME COURT REPORTS                      [2022] 3 S.C.R.


A           Allowing the appeal, the Court
             HELD: Once the Act does not contemplate any further
      period for acquisition, the Court cannot grant additional period
      for acquisition of land. The land was reserved for a public purpose
      way back in 2002. By such reservation, the land owner could not
B     use the land for any other purpose for ten years. After the expiry
      of ten years, the land owner had served a notice calling upon the
      respondents to acquire the land but still the land was not acquired.
      The land owner cannot be deprived of the use of the land for
      years together. Once an embargo has been put on a land owner
      not to use the land in a particular manner, the said restriction
C     cannot be kept open-ended for indefinite period. The Statute has
      provided a period of ten years to acquire the land under Section
      126 of the Act. Additional one year is granted to the land owner
      to serve a notice for acquisition prior to the amendment by
      Maharashtra Act No. 42 of 2015. Such time line is sacrosanct and
D     has to be adhered to by the State or by the Authorities under the
      State. The State or its functionaries cannot be directed to acquire
      the land as the acquisition is on its satisfaction that the land is
      required for a public purpose. If the State was inactive for long
      number of years, the Courts would not issue direction for
      acquisition of land, which is exercise of power of the State to
E     invoke its rights of eminent domain. In view thereof, the direction
      to acquire land within a period of one year is in fact contravening
      the time line fixed under the Statute. [Paras 7, 8, 9][301-B-F]
            Municipal Corporation of Greater Mumbai & Ors. v.
            Hiraman Sitaram Deorukhar& Ors. (2019) 14 SCC
F           411; Bangalore Medical Trust v. B.S. Muddappa & Ors.
            (1991) 4 SCC 54 : [1991] 3 SCR 102 – referred to.
                             Case Law Reference
      (2019) 14 SCC 411               referred to            Para 1
      [1991] 3 SCR 102                referred to            Para 5
G
            CIVIL APPELLATE JURISDICTION : Civil Appeal No.1965
      of 2022.
             From the Judgment and Order dated 06.08.2021 of the High Court
      of Judicature at Bombay, Bench at Aurangabad in Writ Petition No.6266
H     of 2019.
    LAXMIKANT & ORS. v. STATE OF MAHARASHTRA & ORS.                            299


     Shashibhushan P. Adgaonkar, Rana Sandeep Bussa, Gagandeep                 A
Sharma, Omkar J. Deshpande, Ms. Ruchi Rathi, Advs. for the Appellants.
      Aniruddha Joshi, Rahul Chitnis, Sachin Patil, Aaditya A. Pande,
Geo Joseph, Ms. Shwetal Shepal, Shirish K. Deshpande, Ms. Rucha
Pravin Mandlik, Advs. for the Respondents.
          The Judgment of the Court was delivered by                           B

          HEMANT GUPTA, J.
      1. The challenge in the present appeal is to an order dated 6.8.2021
passed by the High Court of Judicature at Bombay, Bench at Aurangabad,
holding that the reservation of land in the Development Plan stands lapsed     C
as no declaration under Section 126 of the Maharashtra Regional and
Town Planning Act, 19661 was published. However, the Planning Authority
was given one year time to acquire the land once reserved relying upon
the judgment of this Court reported as Municipal Corporation of
Greater Mumbai & Ors. v. Hiraman Sitaram Deorukhar & Ors.2.
                                                                               D
       2. A final Development Plan was published under Section 31(6)
of the Act on 2.1.2002 which came into force on 18.2.2002 in respect of
land including the land owned by the appellants such as Latur Reservation
Site bearing No. 217 for playground. The appellants purchased the land
bearing Plot Nos. 1, 2, 9 & 10 admeasuring 1394.05 square meters out
of Survey No. 73, admeasuring 6500 square meters on 21.11.2002.                E
Though the Development Plan was finalized, but the same was never
implemented nor any action was taken for acquisition of the land under
the Land Acquisition Act, 1894. After expiry of ten years, the appellants
issued notice on 16.8.2016 under Section 127 of the Act so as to purchase
the reserved land within one year of the date of the notice. Such notice       F
was acknowledged by the respondent Municipal Corporation on 20/
22.8.2016 to submit measuring plan showing reservation thereon including
the area owned by the appellants.
       3. It was thereafter that the appellants filed a writ petition before
the High Court for a writ of mandamus directing the respondents to
                                                                               G
treat the land of the appellants bearing Survey No. 73 as released from
the Development Plan of Latur Municipal Corporation and that reservation
of Site No. 217 for playground be declared to have lapsed to the extent

1
    For short, the ‘Act’
2
    (2019) 14 SCC 411                                                          H
300                SUPREME COURT REPORTS                         [2022] 3 S.C.R.


A     of the land owned by the appellants and that the land is available for the
      residential use of the appellants. In the counter affidavit filed by the
      Municipal Corporation, it was inter alia submitted that the proposal was
      submitted to respondent No. 2 i.e., the Collector, Latur to take effective
      steps for acquiring the land bearing Survey No. 73 as the land was
      reserved for playground. The proposal was returned by the Competent
B
      Authority but no effective decision has been taken over the said proposal.
             4. Thus, it was beyond dispute that the land once included in the
      Development Plan under Section 31(6) of the Act was not acquired
      within the period of ten years and within additional period of one year
      after purchase notice was submitted by the appellants on 16.8.2016 and,
C     in fact, not till the writ petition was decided by the High Court. The
      Municipal Corporation is not aggrieved against the declaration granted
      by the High Court of the fact that the reservation of the land stands
      lapsed. It is only the land owner who has come in appeal before this
      Court against the restriction of one year put by the High Court giving
D     additional time to respondents to acquire the land.
             5. This Court in Municipal Corporation of Greater Mumbai
      was examining the reservation of land for a garden in a Development
      Plan in the year 1966 but the same was not acquired even after purchase
      notice was served by the land owner. However, relying upon the judgment
E     of this Court reported as Bangalore Medical Trust v. B.S. Muddappa
      & Ors.3 and some other judgments, it was held that the land reserved for
      public park cannot be permitted to be converted for other public purposes.
             6. We have heard learned counsel for the parties and find that the
      liberty given by the High Court to acquire the land within an additional
F     period of one year is not contemplated by the statute. This Court in
      Bangalore Medical Trust, a Public Interest Litigation, interfered with
      the decision of the Bangalore Development Authority to convert the
      land reserved for public parks for the purposes of construction of a
      hospital. It was in these circumstances that this Court intervened, indicting
      the land reserved for public parks to be used for other purposes.
G
             7. This Court in Municipal Corporation of Greater Mumbai
      held that the authorities have been given a duty to act as a cestui que
      trust (beneficiary of the trust) with respect to public park and had thus
      directed to acquire land under the Right to Fair Compensation and
      3
H         (1991) 4 SCC 54
 LAXMIKANT & ORS. v. STATE OF MAHARASHTRA & ORS.                                 301
               [HEMANT GUPTA, J.]

Transparency in Land Acquisition, Rehabilitation and Resettlement Act,           A
2013 within a period of six months. Such direction was given under
Article 142 of the Constitution of India keeping in view the facts of the
case. Such direction and period for acquisition of land is not a law declared
by this Court which is to be treated as binding precedent for this Court
and the subordinate courts subordinate in terms of Article 141 read with
                                                                                 B
Article 144 of the Constitution. Therefore, once the Act does not
contemplate any further period for acquisition, the Court cannot grant
additional period for acquisition of land. The land was reserved for a
public purpose way back in 2002. By such reservation, the land owner
could not use the land for any other purpose for ten years. After the
expiry of ten years, the land owner had served a notice calling upon the         C
respondents to acquire the land but still the land was not acquired. The
land owner cannot be deprived of the use of the land for years together.
Once an embargo has been put on a land owner not to use the land in a
particular manner, the said restriction cannot be kept open-ended for
indefinite period. The Statute has provided a period of ten years to acquire
                                                                                 D
the land under Section 126 of the Act. Additional one year is granted to
the land owner to serve a notice for acquisition prior to the amendment
by Maharashtra Act No. 42 of 2015. Such time line is sacrosanct and
has to be adhered to by the State or by the Authorities under the State.
       8. The State or its functionaries cannot be directed to acquire the
land as the acquisition is on its satisfaction that the land is required for a   E
public purpose. If the State was inactive for long number of years, the
Courts would not issue direction for acquisition of land, which is exercise
of power of the State to invoke its rights of eminent domain.
       9. In view thereof, the direction to acquire land within a period of
one year is in fact contravening the time line fixed under the Statute.          F
Consequently, the direction to acquire the land within one year is set
aside. The appeal is allowed.

Devika Gujral                                                   Appeal allowed
                                                                                 G




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