Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 3008-3009 of 2010, Judgment Date: Oct 09, 2014

                                                                REPORTABLE


                        IN THE SUPREME COURT OF INDIA

                        CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL  NO. 3008-3009 OF 2010



PUNE MUNICIPAL CORPORATION & ANR.                     ...    APPELLANT (S)


                                   VERSUS


KAUSARBAG COOP. HOUSING SOCIETY.                    ..      RESPONDENT (S)

LTD. & ANR.



                                    WITH


                        CIVIL APPEAL NO. 4580 OF 2010


                               J U D G M E N T


RANJAN GOGOI, J.



The controversy in the present appeals  arises  out  of  the  claim  of  the

respondent-writ petitioner, a housing society, to Transferrable  Development

Rights (TDR) under the relevant Development Control Regulations  (DCR)  i.e.

N-2.4 framed under the Maharashtra Regional  and  Town  Planning  Act,  1966

(for short “the MRTP Act”).  The said claim has been resisted  and  rejected

by the Pune Municipal Corporation and the  State  of  Maharashtra,  the  two

appellants in the appeals under consideration, on the ground that  the  land

in question was not reserved for a public purpose in  the  development  plan

prepared under the MRTP Act and being shown as an existing  garden  therein,

the claim to TDR has no legal basis.   There are additional grounds for  the

rejection, details whereof will be, noticed in the course of  the  narration

to be made hereinafter.  The land in question measured about 3.5  acres  and

was covered by Survey No.12 (Part) located at  Kohdhava  Khurd,  Pune.   The

view of the High Court being in favour of the respondent  (writ  petitioner)

society, the Pune Municipal Corporation and the State  of  Maharashtra  have

filed the two appeals in question.


The core fact that  emerges  from  the  multitude  of  collaterals  and  the

exhaustive pleadings of the parties is that the land in question  was  shown

by the respondent Society itself in the lay out plan submitted by it to  the

Pune Municipal Corporation, as reserved for garden. Acquisition of the  said

land was initiated in the year 1982 (28.01.1982)  under  the  provisions  of

the Land Acquisition Act, 1894 and the same was completed in the  year  1987

whereafter possession of the land was taken  over  on  19.02.1987.   In  the

draft development plan dated 15.09.1982  that  was  prepared  and  published

under the provisions of the MRTP Act, which was  subsequently  approved  and

sanctioned on 05.01.1987, the land was shown  as  an  existing  garden.  The

close proximity of time between the two parallel process is too  significant

to be overlooked. While according  to  the  respondent-writ  petitioner  the

stage and the manner of the inclusion of the land in  the  development  plan

is of no consequence to the issue  arising  i.e.  entitlement  to  TDR,  the

State contends that the land  was  acquired  under  a  non-development  plan

proposal which would not attract the provisions of the MRTP Act.


The High Court took the view that it cannot be understood as  to  how  there

can be a difference between land “which  was  part  of  a  development  plan

reserved by the Government or a part of the development  plan  submitted  by

the petitioner in which the land in question was shown as a garden”.  Laying

emphasis on the relevant  DCR  i.e.                 N-2.4.17(ii),  the  High

Court took the view that no such distinction is disclosed therein and  going

by the language of the DCR the respondent Society was  entitled  to  TDR  as

compensation for the land was not  received  by  it.  The  High  Court  also

noticed the various communications brought on record by the  respondent-writ

petitioner to show  that,  at  different  stages,  the  authorities  of  the

Municipal Corporation as well as those  of  the  State  of  Maharashtra  had

unequivocally indicated the entitlement of  the  respondent-writ  petitioner

to Transferable Development Rights.  The  High  Court  also  held  that  the

directions contained in Government Order dated 03.02.2007 to be contrary  to

DCR N-.2.4.17 which is an instance of exercise  of  statutory  powers  under

the MRTP Act.  The said G.O. dated 03.02.2007 had excluded  the  entitlement

to  Transferable  Development  Rights  once  an  award  had  been  made  and

possession of the land had been delivered as in the present case.


We have heard Shri V.A. Mohta, learned senior counsel and Shri Aniruddha  P.

Mayee, learned counsel appearing for the appellants  and  Shri  Vinod  Bobde

and Shri Shekhar Naphade, learned senior counsels  appearing  on  behalf  of

the respondents.


Assailing the order of the High Court, it is  contended  on  behalf  of  the

appellants that under Section 126 of the MRTP Act grant of TDR against  land

acquired under the Land Acquisition Act is not  contemplated  and  grant  of

TDR is permissible only when the land is acquired by  agreement  and  it  is

further agreed that in  lieu  of  compensation,  TDR  will  be  granted  and

accepted.  It is argued that grant of TDR is a matter of  agreement  between

the acquiring authority and the land  owner  and  the  authority  cannot  be

directed to grant TDR if it is not so willing asmuch as a land owner  cannot

be compelled to accept TDR in the event he opts to accept  compensation  for

the land acquired.  The concept of TDR was brought in  by  an  amendment  to

the MRTP Act in the year 1993 whereas the award for acquisition of the  land

of the respondent society  was  passed  in  the  year  1987  and  possession

thereof was taken over on 21.2.1987.  It is contended  that  the  respondent

society whose land was acquired under the Land Acquisition Act  is  entitled

to compensation calculated on the market value of the land as  on  the  date

of the Notification under Section 4 of the Land Acquisition  Act  which  was

published in the year 1982.  The value of the  benefit,  if  TDR  is  to  be

granted at the present stage, would be grossly  disproportionate.   Pointing

out the provisions of the Development Control  Regulations  governing  grant

of TDR, it is contended that DCR N-.2.4.1(A) and 2.4.17 are required  to  be

read harmoniously and not in isolation as has been done by the  High  Court.

Before DCR N-.2.4.17 can be made applicable, the conditions spelt out  under

DCR N-. 2.4.1(A) has to be satisfied, namely,  that  the  land  should  have

been shown as reserved for a public purpose in the development plan.  It  is

pointed out that in the present case it was not so done and  the  land  was,

in fact, shown as an existing garden.  Therefore,  DCR  N-.2.4.1(A)  is  not

applicable thereby ruling out the application of DCR No.2.4.17.  It is  also

pointed out that the land was acquired under  the  provisions  of  the  Land

Acquisition Act under a non-development plan proposal to  which  acquisition

the provisions of Section 126 of the MRTP Act will have no application.   In

so far as the G.O. dated 03.02.2007 under Section 154 of  the  MRTP  Act  is

concerned, the appellants contend that the said G.O. dated 03.02.2007 is  no

way amends DCR No.2.4.17  as  held  by  the  High  Court;  rather  the  said

directions are merely clarificatory and  were  issued  due  to  large  scale

deviations that have taken place in the matter of grant of TDR.


Opposing the aforesaid contentions advanced on  behalf  of  the  appellants,

Shri  Vinod  Bobde  and  Shri  Shekhar  Naphade,  learned  senior   counsels

appearing on behalf of the respondent - cooperative housing society  in  the

two separate appeals have submitted that the object of  the  amendment  made

in the year 1993 (14.10.1993) introducing the concept of TDR was  to  lessen

the financial burden of the State facing the prospect of making  payment  of

huge compensation money for acquisition  of  land  in  connection  with  the

Development Plan.  Learned counsels have pointed out  that  in  the  present

case the land was eventually included in the development plan  prepared  and

approved under the MRTP Act. The manner  of  inclusion  in  the  development

plan i.e. as an existing garden or as reserved for a garden would  not  make

any difference to the claim of TDR.  It is argued that, though offered,  the

respondent had not accepted any compensation and, in fact, had agitated  for

higher compensation under Section 18 of the  Land  Acquisition  Act.   While

the matter was so pending the concept of TDR came to be  introduced  in  the

Act  and  in  the  year  1997  (05.06.1997)  the  modified  DCR  N-2.4   was

introduced.  The respondent society abandoned the reference made by  it  for

higher compensation and initiated proceedings challenging  the  acquisition.

After  the said challenge was negatived,  the  respondent  society,  in  the

year 2003, lodged a claim for grant of TDR under  DCR  N-2.4.17  (ii)  which

though  initially  was  responded  favourably  was  eventually  rejected  by

placing reliance on the Government Order dated 03.02.2007.   It  is  further

contended that DCR      N-.2.4.17 is  a  stand  alone  provision  and  under

clause (ii) of the said DCR the respondent society is entitled to its  claim

of TDR under the MRTP Act though the  land  had  been  acquired  under  Land

Acquisition Act.  In this regard, it has been specifically pointed out  that

possession of the land was taken from the society in the year 1987 which  is

within 12 years prior to 30th September, 1993  as  contemplated  in  DCR  N-

2.4.17 (ii).  Admittedly, no compensation has been received.  It is  further

submitted that the Government Order dated 03.02.2007 purports to  amend  the

DCR which cannot be so  done  without  following  the  procedure  prescribed

under Section 37 of the MRTP Act.  The fact that  in  similar  circumstances

TDR had been granted to other land owners has also been pointed out  by  the

learned counsels appearing on behalf of the respondent housing society.


In so far as the provisions of Section 126(1) (a) (b) and (c)  of  the  MRTP

Act is concerned, Shri  Vinod  Bobde,  learned  counsel  appearing  for  the

respondent society in C.A. No.3008-3009  of  2010  has  submitted  that  the

availability of TDR to cases of land acquired  under  the  Land  Acquisition

Act after invoking the provisions of Section 126(1)  (c)  of  the  MRTP  Act

will not be open  to  be  raised  either  by  the  State  or  the  Municipal

Corporation once the DCR, particularly DCR N-2.4.17 (ii), had  been  enacted

and brought into force to confer Transferrable Development Rights  for  land

acquired under the provisions of the aforesaid Section  126(1)  (c)  of  the

Act by following the process laid down in the Land  Acquisition  Act.   Shri

Bobde has pointed out that once Regulations have been  framed  contemplating

grant of TDR to  such  land  subjected  to  acquisition  under  Section  126

(1)(c), the Government cannot turn around and refuse to be bound by its  own

norms much less challenge the same.  It  is  further  pointed  out  by  Shri

Bobde that any such plea on the part of the State is not  competent  in  law

and the State cannot seek a decision on the validity of its  self  professed

norms of governance.  So long as the DCR remains its full legal effect  must

be given effect to.


As the issues raised before us will have to be answered on the basis of  the

true and correct purport and effect of the relevant provisions of  the  MRTP

Act; those of the Development Control Regulation  i.e.  DCR  N-2.4.1(A)  and

2.4.17;  and  the  Government  Order  dated  03.02.2007,  the  same  may  be

extracted at the first instance.


Relevant provisions of the MRTP Act


“22. Contents of Development Plan -


      A Development plan shall generally indicate the manner  in  which  the

use of land in the area of the Planning Authority shall  be  regulated,  and

also indicate the manner in which the development of land therein  shall  be

carried out. In particular, it shall provide so far as may be necessary  for

all or any of the following matters, that is to say,-

(a)…………..

(b)………....

(c)………….

(d)……………

(e)……………

(f)……………..

(g)……………..

(h)……………..

(i)…………….

(j)………………

(k)……………….

(l)………………….


 (m)  -  provisions  for  permission  to  be  granted  for  controlling  and

regulating the use and development of land  within  the  jurisdiction  of  a

local authority including imposition of fees, charges and premium,  at  such

rate as may be fixed by the State  Government  or  the  Planning  Authority,

from time to time, for grant of an additional Floor Space Index or  for  the

special permissions or  for  the  use  of  discretionary  powers  under  the

relevant  Development  Control  Regulations,  and  also  for  imposition  of

conditions and restrictions in regard to the open  space  to  be  maintained

about buildings, the percentage of building area for a plot,  the  location,

number, size, height, number of  storeys  and  character  of  buildings  and

density of population allowed in a specified area, the use and  purposes  to

which buildings or specified areas of land may or may not  be  appropriated,

the sub-division of plots the discontinuance of objectionable users of  land

in any area in reasonable periods, parking space and loading  and  unloading

space for any building and the sizes of projections and advertisement  signs

and boardings and other matters as may be considered necessary for  carrying

out the objects of this Act.”




“Section 126. Acquisition of land required for public purposes specified  in

plans  (1)  When  after  the  publication  of  a  draft  Regional  Plan,   a

Development or any other plan or town planning scheme, any land is  required

or reserved for any of the public purposes specified in any plan  or  scheme

under this Act at any time the Planning  Authority,  Development  authority,

or as the case may be,/ any appropriate authority may, except  as  otherwise

provided in Section 113-A,/ acquire the land –


(a)   by an agreement by paying an amount agreed to or,


(b)   in lieu of any such amount, by granting the land-owner or the  leasee,

subject, however, to the lessee paying the lessor  or  depositing  with  the

Planning Authority, Development Authority or Appropriate Authority,  as  the

case may be, for payment to the lessor, an amount equivalent  to  the  value

of the lessor’s interest to be determined by any  of  the  said  Authorities

concerned on the basis of the principles laid down in the  Land  Acquisition

Act, 1894, Floor Space Index (FSI) or Transferable Development Rights  (TDR)

against the area of  land  surrendered  free  of  cost  and  free  from  all

encumbrances, and also further additional Floor Space Index or  Transferable

Development Rights against the development or construction  of  the  amenity

on the surrendered land at this  cost,  as  the  Final  Development  Control

Regulations prepared in this behalf provide, or


(c)   by making an application to the State Government  for  acquiring  such

land under the Land Acquisition Act, 1894.


And  the  land  (together  with  the  amenity,  if  any,  so  developed   or

constructed) so acquired by agreement or by grant of Floor  Space  Index  or

Additional  Floor  Space  or  Transferable  Development  Rights  under  this

Section or under the Land Acquisition Act, 1894, as the case may  be,  shall

vest in the Planning Authority, Development Authority, or as  the  case  may

be, any Appellate Authority.”




Government Order dated 03.02.2007


                                                “Maharashtra Regional & Town

                                                          Planning Act, 1966

                                                 Directive under Section 154

                                                                  About TDR.

                         GOVERNMENT OF MAHARASHTGRA

                        URBAN DEVELOPMENT DEPARTMENT

                        MANTRALAYA, MUMBAI – 400 032.


                          DATED 3rd FEBRUARY, 2007.


                                    ORDER


No. TPS/Sankirna-06/CR-527/06/UD-13:- Whereas the provision of  Transferable

Development Rights (hereinafter referred to as  “the  said  TDR”)  has  been

incorporated in the sanctioned Development Control Regulations  (hereinafter

referred to as “the said DCR”) with a view to reduce  the  financial  burden

of acquisition of lands reserved for  public  purposes  in  the  Development

Plan and for early possession of these lands:


      And  whereas,  sanctioned  Development  Control  Regulations  of  some

Municipal Corporations contain the provision of  rules  regarding  the  said

TDR;


      And whereas, sanctioned the said DCR of  some  Municipal  Corporations

also have provision to grant the said TDR  for  the  lands  acquired  either

under Maharashtra Regional& Town Planning Act,  1966  (hereinafter  referred

to as “the said Act”), Bombay Provincial Municipal Corporation Act,  Private

Negotiation or any other Act  and  possession  of  which  has  already  been

delivered to the Municipal Corporation;


      And whereas, it has come to the notice of  Government  that  the  rule

regarding the grant of TDR such acquired lands have been misinterpreted  and

misused;


      And whereas, once the possession is delivered  after  acquisition  the

rights of the owner are  transferred  to  the  Planning  Authority  and  the

application by the land owner demanding TDR thereafter can  be  said  to  be

made without having any rights in the land;


      After considering the facts and circumstances referred  to  above,  in

exercise of the  powers  conferred  under  Section  154  of  the  said  Act,

Government is pleased to issue directives to all the Municipal  Corporations

as follows:


                                 DIRECTIONS

      All the Municipal Corporations which  have  the  provisions  regarding

grant of Transferable Development Rights  (TDR)  for  the  lands  which  are

acquired under either the MRTP Act, BPMC Act,  Private  Negotiation  or  any

other Act shall initiate modification  proposal  after  following  procedure

laid down under Section 37 of the said Act so as to replace  the  provisions

of this regard by new rules as follows:


NEW RULES:


1)    Transferable Development Rights (TDR) shall not  be  permissible  once

an award has  been  declared  under  the  acquisition  process  and  or  the

possession has already been delivered to  the  Municipal  Corporation  under

any Act.


2)    Municipal Corporation shall punish a notice inviting  suggestions  and

or objections regarding the modification within sixty days from the date  of

issue of this order.


3)    After completing the procedure laid down under Section  37(1)  of  the

said Act Municipal Corporation shall submit the said  modification  proposal

to the Government for final sanction.


4)    Pending the approval  to  the  aforesaid  modification  the  new  rule

mentioned hereinabove shall come into force with effect  from  the  date  of

issue of this notification.


                                                 By order and in the name of

                                                    Governor of Maharashtra.

                                                                        Sd/-

                                                          (Nandkishor Patil)

                                              Under Secretary to Government”


      Development Control Regulation

“N.2.4.1 (A). The owner (or lessee) of a plot of land which is reserved  for

a public purpose, or road construction or road widening in  the  development

plan and for additional amenities deemed  to  be  reservations  provided  in

accordance with these Regulations, excepting in the case of an  existing  or

retention user or to any required compulsory  or  recreational  open  space,

shall be eligible for the word of transferable Development Rights (TDRs)  in

the form of Floor Space Index (FSI) to the extent and on the  condition  set

out below.  Such award will entitle the owner of the land,  to  FSI  in  the

form of a Development Right Certificate (DRC) which be        (sic. he)  may

use for himself or transfer to any other person.


N-2.4.17. Grant of TDR in cases where lands are under acquisition:


(i)  Where Land Acquisition has been declared but request was made  for  TDR

to the Special Land Acquisition Officer after 30th September 1993  i.e.  the

date  of  publication  of  these  draft   Development   Control   Regulation

containing TDR concept.


(ii)  Possession of the land has  been  delivered  without  having  received

part or full compensation under either the  Maharashtra  and  Town  Planning

Act, Bombay Provincial Municipal Corporation  Act,  private  negotiation  or

under any Act for the time being in force within  12  years  prior  to  30th

September 1993.”



9.    Though there is some controversy on the basic  facts,  there  is  also

unanimity to show  that  the  acquisition  of  the  land  belonging  to  the

respondent society was initiated by  notification  dated  28.01.1982  issued

under Section 4 of the Land Acquisition Act, 1894.  It is  also  clear  that

on completion of enquiry under Section 5-A  of  the  Land  Acquisition  Act,

declaration under Section 6 was published on 2.1.1985.  Some  further  facts

on which there is no dispute and therefore would require to  be  taken  note

of, are that the draft revised  development  plan  which  was  published  on

18.9.1982  showed  the  land  as  an  existing  garden  and  in  the   final

development plan which was sanctioned on 5.1.1987, the land was again  shown

as  “existing  garden  as  per  approved   layout”.    The   respondent-writ

petitioner, however, contends  that  the  description  of  the  land  as  an

existing garden is  wrong  and  what  should  have  been  mentioned  in  the

development plan is that the land was proposed for a  garden  as  possession

of  the  same  was  still  with  the  respondent-society  on  the  date   of

publication of the final development plan i.e. 5.1.1987. Possession  of  the

land, as noticed, was taken over on 18.2.1987 whereas the  award  under  the

Land Acquisition Act was made on 22.01.1987.


10.   Having considered the matter we are of the view that it  will  not  be

necessary for us to consider the aforesaid perspective  highlighted  by  the

respondent society as the controversy over the entitlement to TDR under  the

relevant DCR is capable of being resolved on a  wholly  different  basis  to

which aspect of the matter we may now turn.


11.   The concept of TDR was introduced for the first time in the  MRTP  Act

in the year 1993 by an amendment of Section 126(1)(a), (b) and  (c)  of  the

MRTP Act.  The modalities for grant of TDR were brought into  force  by  the

amended Development Control Regulation (for short ‘DCR’) N-2.4  with  effect

from 5.6.1997.  In its simplest  form,  the  concept  of  TDR  involves  the

surrender of land reserved for various public purposes  in  the  development

plan free of cost and in exchange thereof grant of TDR entitling the  holder

thereof to construct a built up area equivalent to the  permissible  FSI  of

the land handed over by him on one or more  plots  in  the  zone  specified.

Such rights are transferable.  The object behind  introduction  of  TDR,  as

admitted by the Pune Municipal Corporation in its various publications,  was

to meet the situation faced by the Corporation on being called upon to  make

payment of over Rs.1500 crores to take over different sites measuring  about

600 hectares which had been reserved for different public  purposes  in  the

development plan.


12.   Strictly construed it is the provisions  of  the  Section  126  (1)(a)

read with (b) of the MRTP Act, extracted earlier,  which  contemplate  grant

of  TDR  and  that  too  only  against  land  acquired   by   agreement   as

distinguished from land which is acquired under the Land Acquisition Act  in

exercise of powers under Section 126(1)(c). The latter kind  of  acquisition

i.e.  under the Land Acquisition Act by invoking Section  126(1)(c)  of  the

MRTP Act however stands on a footing that is different  and  distinguishable

from the normal process of acquisition under the  same  Act  i.e.  the  Land

Acquisition  Act.   This  is  because  in  an  acquisition  under  the  Land

Acquisition Act made in exercise of power under  section  126(1)(c)  of  the

MRTP Act, the provisions of Section 4 and Section 5A of  the  L.A.  Act  are

dispensed with and straightway a notification  under  Section  6  is  to  be

issued.  The market value of the land, though sought to  be  acquired  under

the Land Acquisition Act, is pegged  to  the  date  of  publication  of  the

interim or draft development plan, as  may  be,  and  not  to  the  date  of

publication of the notification under Section  4  of  the  Land  Acquisition

Act.  The above is a subtle but vital difference between  the  ordinary  and

‘normal’ process of acquisition under  the  Land  Acquisition  Act  and  the

process of acquisition under the same Act but in exercise  of  powers  under

Section 126(1)(c) of the MRTP Act that needs to be kept in mind.


13.   DCR N-2.4.1(A) gives effect to the  provisions  of  Section  126(1)(a)

and (b) brought in by the amendment to the MRTP Act in  1993.   It  entitles

the owner or a lessee of a plot of land, which  is  reserved  for  a  public

purpose  in  the  development  plan,  to  the  award  of  TDR  in  lieu   of

compensation upon surrender of the land free of cost.  If, DCR No.N-2.4  had

not contemplated any further  situations  for  grant  of  TDR  the  argument

advanced  on  behalf  of  the  appellants   would   have   merited   serious

consideration.  However, DCR N-2.4.17,  extracted  above,  contemplates  two

other situations for grant of TDR.  Under  DCR  N-2.4.17(ii)  in  situations

where possession of land had been delivered without receipt of part or  full

compensation  payable  under  the  MRTP  Act,  Bombay  Provincial  Municipal

Corporation Act, private negotiations or under any Act and  such  event  had

occurred within 12 years prior to 30.9.1993  (date  of  publication  of  the

draft DCR containing the TDR concept) claims for grant of TDR  are  required

to be entertained.   DCR  N-2.4.17  extends  the  frontiers  outlined  under

Section 126(1)(a) and (c) and makes  the  grant  of  TDR  applicable  to  an

extended class of cases wherein acquisition of land is made not  only  under

the MRTP Act but also under other enactments including the L.A.  Act.   Such

an extension appears  to  be  in  consonance  with  the  object  behind  the

introduction of the concept of TDR by the  amendment  of  the  MRTP  Act  of

1993.  Having regard to the clear language  contained  in  DCR  N-2.4.17(ii)

and the object sought to be achieved by the introduction of TDR, we  do  not

see as to how grant of TDR can be confined only  to  cases  of  lands  which

have been reserved in the development plan and not to lands  acquired  under

the Land Acquisition Act  which  land  eventually  becomes  a  part  of  the

finally approved and sanctioned development  plan.   The  above  would  also

lead  to  the  conclusion  that  DCR  N-2.4.17  is  capable   of   operating

independently and is not contingent  on  the  existence  of  the  conditions

mentioned in DRC N-2.4.1(A).


14. The matter needs to be viewed from another perspective.  The  difference

between acquisition under the L.A.  Act  by  resort  to  the  provisions  of

Section 126(1)(c) of the MRTP Act and acquisition dehors the said  provision

of the MRTP Act has already been noted.  If under DCR N-2.4.17, TDR  can  be

granted in cases of acquisition under the  MRTP  Act  obviously  acquisition

under the LA Act upon invocation of Section  126(1)(c)  would  be  included.

In such a situation, reference to  any  other  Act  in  DCR  N-2.4.17  would

include the L.A. Act so as to bring land covered by the  normal  process  of

acquisitions under the L.A.  Act  within  the  fold  of  DCR  N-2.4.17.  The

acquisition  of  the  land  belonging  to  the  respondent  society   would,

therefore, be clearly covered by the provisions of DCR N-2.4.17.


15.   “Making of DCR or amendments thereof  are  legislative  functions.”[1]

The Government Order dated 3.2.2007, though claimed to be  clarificatory  by

the appellants, really, seeks to prohibit the grant  of  DCR  under  DCR  N-

2.4.17 so far as lands in respect of which Award under the Land  Acquisition

Act had been passed or possession of which has been  taken  over.   This  is

contrary to the clear intent  behind  DCR  N-2.4.17.  The  Government  Order

itself acknowledges the necessity of following the procedure  prescribed  by

Section 37 of the MRTP Act before the aforesaid  modification  could  become

effective.  Yet, surprisingly the Government Order goes on  to  state  that,

“Pending approval of the  aforesaid  modification  the  new  rule  mentioned

hereinabove shall come into force with effect from  the  date  of  issue  of

this notification”.  The Government Order in question,  having  been  issued

under Section 154 of the MRTP Act, therefore, cannot  override  the  DCR  N-

2.4.17 as the directions under Section 154 of the MRTP Act would be  in  the

nature of administrative instructions (Laxminarayan R.  Bhattad  and  Others

Vs. State of Maharashtra  and  Another[2]).   Admittedly,  at  the  relevant

point of time, the requisite process under Section 37 of the  MRTP  Act  had

not been completed.


16.   Underlying the arguments advanced on behalf of  the  appellants  is  a

fundamental issue that would require a  brief  mention.   The  present  case

discloses a somewhat disturbing course of action adopted  by  the  State  in

seeking to disown and challenge its own professed  standards  laid  down  in

the form of a DCR by tangentially contending the same to be  incompetent  in

law.  Such a course of action by the State seeking to depart from its  self-

professed norms is neither  permissible  nor  would  the  Court  require  to

consider the same.  The DCR governing the grant of TDR though may have  gone

beyond  what  is  contemplated  under  the  MRTP  Act,  the  State  and  its

authorities cannot  be  permitted  to  request  the  Court  to  collaterally

adjudge the validity of the said norms laid down by the  State  itself.   It

is for the State to effect necessary corrections as deemed  proper  and  not

search for an escape valve through a judicial verdict.   Such  a  course  of

action is jurisprudentially impermissible.  So long as  the  DCR  holds  the

field all executive actions must be within the four corners thereof. We  can

usefully remind ourselves of the  observations  of  Justice  Frankfurter  in

Viteralli Vs. Seaton[3] approved in R.D. Shetty  Vs.  International  Airport

Authority[4] :


“An executive agency must be rigorously held to the standards  by  which  it

professes its  action  to  be  judged.   ..Accordingly,  if  dismissal  from

employment is based on a defined procedure, even though generous beyond  the

requirements that bind the  agency,  that  procedure  must  be  scrupulously

observed…This judicially evolved rule of administrative law  is  now  firmly

established and, if I may add, rightly so.  He  that  takes  the  procedural

sword shall perish with the sword.”




17.    For  the  above-stated  reasons,  the  conclusion  is  obvious.   The

rejection of the claim of the respondent Society to TDR under the  MRTP  Act

read with DCR N-2.4.17 is seriously flawed. We,  therefore,  set  aside  the

same; affirm the order dated 15.9.2009 of the Bombay High Court in the  writ

petition filed by  the  respondent  Society  and  consequently  dismiss  the

appeals  filed  by  the  Pune  Municipal  Corporation  and  the   State   of

Maharashtra.



                                                               ……………………………J.

                                                           [RANJAN GOGOI]




                                                           ..………………..………..J.

                                                            [M.Y.EQBAL]

New Delhi;

October 09, 2014.







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[1]     Pune Municipal Corporation and Anr. Vs. Promoters and Builders

Association and Anr. [(2004) 10 SCC 796]

[2]    (2003) 5 SCC 413

[3]    3.L Ed.2d. 1012

[4]    (1979) 3 SCC 489


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