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Jaffar Ali Nawab Ali Chaudhari vs The Municipal Corporation of Greater Mumbai

Supreme Court6 November 2023Rajesh Bindal · Vikram Nath

Ratio decidendi

The rule this decision rests on

Where a person has been in undisputed possession of property for a substantial period (here, from 1976 onwards, as evidenced by census and tax assessment), and a Town Planning Scheme notified by the Municipal Corporation provides for consideration of claims for rehabilitation or compensation by occupants, the Corporation is obliged to consider such claims on their merits in accordance with the scheme, notwithstanding any procedural or limitation objections, provided the occupant makes a genuine prayer for such consideration.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NON-REPORTABLE
IN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO……….. OF 2023(SPECIAL LEAVE PETITION (C) NO. 4441 OF 2020)

JAFFAR ALI NAWAB ALI CHAUDHARI AND OTHERS … Appellant(s)

VERSUS

THE MUNICIPAL CORPORATION OF GREATER MUMBAI … Respondent(s)

JUDGMENT

RAJESH BINDAL, J.

1. Leave granted.

2. The short issue which requires consideration by this Court

in the present appeal is regarding rights of the appellants for

consideration of their claim either for allotment of an alternative site or

compensation for the premises in their use and occupation.

1

3. The undisputed fact which remains or record is that the

appellants were found to be in possession of the property in dispute

from the year 1976 onwards. It was even assessed to tax by the

Municipal Corporation. The litigation started with the issuance of notice

dated 20.02.2001 under Section 314 read with Section 394 of the

Mumbai Municipal Corporation Act, 1888 to Nawab Ali Suleman,

predecessor-in-interest of the appellants. The same was challenged by

filing a Civil Suit1, which was decreed on 27.03.2003 restraining the

Corporation from taking any action against the occupants in pursuance

of notice dated 20.02.2001. Subsequent thereto, fresh notices dated

17.01.2004 and 22.06.2007 were issued to the predecessor-in-interest

of the appellant under Section 89 read with Section 165 of the Act2.

Earlier notice was replied to on 22.01.2004. However, still without

considering the reply filed by stand taken by the predecessor-in-

interest of the appellants in pursuance to notice dated 17.01.2004, an

order was passed on 25.06.2007 under Section 89 of the Act calling

upon him to surrender possession of the plot. The same was challenged

by filing the Civil Suit3. During the pendency of the aforesaid suit,

1 Suit No. 1226 of 2001 2 The Maharashtra Regional and Town Planning Act, 1966 3 Suit No. 2608 of 2007 2 Nawab Ali died, and the appellants were brought on record as his legal

representatives. The suit was decreed by the Trial Court on 29.09.2011

holding notices dated 17.01.2004 and 22.06.2007 and order dated

25.06.2007 illegal. The respondent being aggrieved against the

judgment and decree of the Trial Court preferred appeal before the

High Court4. The appeal was accepted by the High Court. The aforesaid

judgment and decree of the High Court is impugned in the present

appeal.

4. The short argument raised by learned counsel for the

appellants is that in terms of the Town Planning Scheme, as notified on

01.08.1994 and the subsequent circulars issued by the Corporation5

from time to time, the appellants who are in possession of the property

in dispute are entitled to be rehabilitated or paid compensation. The

genuine claim of the appellants is not being considered though

undisputedly they were found to be in possession of the property in

dispute from the year 1976 onwards.

5. The claim of the appellants is sought to be refuted by

learned senior counsel for the Corporation on the plea that the suit filed

4 First Appeal No. 686 of 2018, High Court of Judicature at Bombay 5 Municipal Corporation of Greater Mumbai

3 by the appellants was not maintainable in view of bar as contained in

Section 149 of the Act. There is no error in the order passed by the High

Court. The claim of the appellants is highly belated and may open a

pandora box.

6. After hearing learned counsel for the parties, in our view,

the present appeal deserves to be allowed without going into much

details for the reason that admittedly, the appellants were found to be

in possession of the property in dispute from the year 1976 onwards as

per census certificate dated 24.05.1978. In terms of the Town Planning

Scheme, notified on 01.08.1994 and subsequent circulars, the claim of

any occupant of the property is required to be considered for

rehabilitation or for payment of compensation. The appellants are still

in possession of the property, which is stated to be coming in the

alignment of 60 feet T.D. Road. The only prayer of the appellants is that

their claim for rehabilitation or payment of compensation be

considered in terms of the Town Planning Scheme. The same has not

been considered.

7. Instead of relegating the parties to litigate further, in our

view, the present appeal can be disposed of with a direction to the

Corporation to consider the claim of the appellants in terms of the Town

4 Planning Scheme either for rehabilitation or payment of compensation.

The needful shall be done within a period of three months from the date

of receipt of copy of the order.

8. The appeal is accordingly allowed while setting aside the

impugned order passed by the High Court.

…..……………….J (VIKRAM NATH)

…………………..J (RAJESH BINDAL)

New Delhi November 06, 2023.

5

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