Full Text
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. 217 OF 2017
Atul Projects India Pvt Ltd, (earlier known as M/s Atul Builders, A Company registered under the Provision of the Companies Act, 1956, Having its registered office at 5th floor, Trade Avenue, Suren Rd, Off WE Highway, Andheri (East), Mumbai 400 093. …Petitioner
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1. Municipal Corporation of
Greater Mumbai, a statutory Corporation Constituted under the provisions of the Mumbai
Municipal Corporation Act, 1886, having its office at Mahapalika Bhavan, Mahapalika Marg, Mumbai 400 001.
2. Municipal Commissioner, Municipal Corporation of Greater
Mumbai having its office at Mahapalika
Bhavan, Mahapalika Marg, Mumbai 400 001.
3. Chief Engineer, Mumbai, Development Plan, having his
Marg, Mumbai 400 001.
4. Executive Engineer, Mumbai, Development Plan, having his office at 4th floor, Annex Building, Municipal Head Office, Annex
Building, Mahapalika Bhavan, Mahapalika Marg, Mumbai 400 001.
5. State of Maharashtra, Through Urban Development
Department, having its office at
Mantralaya, Mumbai.
6. Principal Secretary, Urban Development Department, having its office at Mantralaya, Mumbai …Respondents
APPEARANCES for the petitioner Mr Ashish Kamat, Senior
Advocate, with Aman
Kacheria, Rahul Sinha & Anjali
Shahi, i/b DSK Legal. for the respondent-
MCGM
Ms Geeta Shastri, with Kunal
Waghmare & Vandana
Mahadik. for the respondent- state
Mr Manish Upadhye, AGP.
DATED : 5th September 2023
ORAL JUDGMENT
1. Rule. The pleadings are complete. Rule is made returnable forthwith and the matter is taken up for hearing and final disposal.
2. The Writ Petition under Article 226 of the Constitution of India seeks the following reliefs: “(a) that this Hon’ble Court be pleased to issue a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of the Constitution of India directing the Respondents:
(i) to quash the order No. CHE/51211/DPWS/H & K dated 21st September 2016 at Exhibit- CC;
(ii) to forthwith sanction Petitioners plans for development of the said plot inter alia modifying the computation of Amenity space by adjusting D.P. Road area of against total Amenity space areas as provided in DC Regulation 57(4)(c)(ii) and Note in respect of D.P. Road and make all consequential changes and grant all consequential benefits including TDR to the Petitioners.
(iii) to forthwith sanction Petitioners’ proposal by modifying computation of Amenity Space by adjusting D.P. Road Area against total Amenity space area for development of the subject plot under DCR 57(4)(c)(ii) and Note II appended thereto in accordance with the Judgment and orders of this Hon’ble Court in Writ Petition NO. 651 of 2013 dated 13th March 2014 in Writ Petition No. 1885 of 2014 dated 27/10/2015. (b) that this Hon’ble Court be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for papers pertaining to the decision of the Respondents in not granting Proposal of the Petitioners seeking adjustment of D.P. Road area against total Amenity Space area for development of the said plot under DC Regulation 57(4)(c)(ii) and Note appended thereto and after examining the validity propriety and legality of such decision quash and set aside the same.”
3. A brief introduction is necessary. The Petitioner, a corporation and earlier a partnership firm, is a builder and developer. It owns a plot of land of 6265.10 sq mts spread over several CTS Nos at village Marol, Taluka Andheri, Andheri (East), Mumbai. As the prayers set out above show, the challenge in the Petition is to the refusal of the Respondents to grant the Petitioner the benefit of ‘setting off’ or adjusting a public amenity reservation against the reservation for a DP Road, both of which are on a part of the Petitioner’s land. The relevant regulation is Development Control Regulation (“DCR”) 57(4)(c)(i) and the Note below it.
4. In support of the submission that precisely such an adjustment or setting off is permissible, Mr Kamat, learned Senior Counsel for the Petitioner, relies chiefly on two reported decisions namely Wadhwa Residency Private Limited and Ors v Municipal Corporation of Greater Mumbai[1] and Runwal Homes Private Limited and Anr v Municipal Corporation of Greater Mumbai and Ors,[2] both of which make specific reference to a DP Road. The third decision cited by Mr Kamat is the order of the Supreme Court in a Special Leave Petition that the MCGM filed against the judgment and order in Runwal Homes.
5. It is not in dispute that the Petitioner has partly completed its proposed project and obtained several permissions such as a part Occupancy Certificate (“OC”) dated 2nd July 2018, an amended approval dated 15th January 2020 and a Commencement Certificate (“CC”) dated 20th July 2020. This CC, a copy of which is at Exhibit “C” at page 27 of the Interim Application, shows a note by the Municipal Corporation of Greater Mumbai (“MCGM”) that development permissions have been granted to the Petitioner ‘pending the delivery of possession of a 5% amenity space’ and, accordingly, ‘to the of extent 50% of that amenity space that is yet to be handed over, the MCGM permission is restricted’.
6. There is no dispute that the Petitioners project is registered with the Maharashtra Real Estate Regulation Authority or that there is no pending dispute before that authority regarding any amounts collected by the Petitioner. The complaint by the Petitioner is that despite the Petitioner having met all MCGM stipulated terms and conditions, i.e., to maintain an area equivalent to 5% of the amenity space unencumbered, by its order dated 20th June 2022 the MCGM 1 2014 SCC OnLine Bom 354: (2014) 4 Bom CR 845. Decided on 13th March 2014. 2 2015 SCC OnLine Bom 6573, decided on 29th October 2015. has refused to grant to the Petitioner an OC claiming that the 5% amenity space has not been handed over.
7. Respondent No. 1 is the MCGM represented by Ms Shastri. She relies on a MCGM circular dated 24th August 2016 to contend that Regulations 56 and 57 of the DCR were proposed to be modified. The answer from the Petitioners is that the amendments in that circular were not notified as sanctioned. The principal argument from Ms Shastri is that while granting permissions, the MCGM as a planning authority is bound to follow the mandate inter alia of Section 46 of the Maharashtra Regional and Town Planning Act, 1966 (“MRTP Act”). The section reads thus: “46. Provisions of Development plan to be considered before granting permission- The Planning Authority in considering application for permission shall have due regard to the provisions of any draft or final plan or proposal, published by means of notice submitted or sanctioned under this Act.”
8. It is, therefore, Ms Shastri’s submission and which is generally correct, that even if there is a proposed draft modification or proposal, regard must be had to it by the planning authority. This branch of the law is well settled and requires no elaboration.
9. The second submission that she makes is that the relevant date is the date of grant of permission, i.e., that reference must be had to the Development Control Regulations or Regime as they existed on the date of grant of the Regulation. She cites well-known authorities in that regard to which we will turn briefly.
10. This is the jurisprudential conflict that we are called upon to address. We turn now to a brief outline of the relevant facts.
11. The Petitioner’s land was categorised in the special industrial (or ‘I-3’) zone. On 2nd July 2004, the Petitioner through its architects made an application to the MCGM to develop the land as a residential complex. On 24th January 2007, the MCGM approved the Petitioner's request and granted permission to develop the property for residential use. Condition 9 of this permission letter required the delivery of what was called a setback area of 587.09 sq mts. There was a planned 18.[3] mts width DP road and this setback was apparently required to meet that public purpose. Once the DP Road was aligned, only an area of 276 sq mts was affected as contrasted with original demand for 587.09 sq mts.
12. Three years later, on 15th February 2010, MCGM wrote to the Principal Secretary, Urban Development Department (“UDD”) of the State of Maharashtra and sought a clarification as to whether the reservation of the DP Road could be ‘adjusted’ against the amenity open space following a notification dated 14th May 2007 issued in regard to DCR 62(3) of the Development Control Regulations, 1991 (“DCR 1991”). Exhibit “G” at page 64 of the Petition leaves no manner of doubt that the reference is to this amenity open space requirement and the Petitioner’s architect’s letter. Exhibit “F” at page 62 must be seen in this context. This is a communication from the Chief Engineer Development plan of the MCGM to the Petitioner’s architect. Paragraph 9 of that communication says that the 5% amenity space and the setback area admeasuring 263.65 sq mts and 587.09 sq mts respectively are to be kept free of encumbrances. Both were to be handed over to MCGM in lieu of TDR/FSI before commencing any work beyond 50% of the net plot area in accordance with the prevalent policy. It is in this context that the MCGM sought a clarification from the UDD. It referenced a State Government modification Notification and a footnote to it which related to conversion from industrial zone to residential/commercial zone. The State Government notification said that— if the area under the DP reservation was more than the required area of the public amenity space as per the regulation, then the provision for a public amenity space was not necessary. What the MCGM needed clarified was whether the required amenity open space could be adjusted against the DP Road. The MCGM’s letter to the State Government says so specifically in the unnumbered fourth paragraph at page 65.
13. Between 11th August 2009 and 9th November 2011, the MCGM issued various permissions and sanctions to the Petitioner including an Intimation of Disapproval or IOD, the usual negatively worded building permission, and the CC. In November of that year, MCGM accepted the Petitioner’s application for an alignment of the already once realigned 18.[3] meter DP Road which affected a portion of Petitioner’s plot. Ultimately, on 7th June 2013 the MCGM issued a possession receipt. This covered 276 sq mts and possession of this was admittedly delivered to the MCGM.
14. There now follow a series of what Mr Kamat calls opinions obtained by the MCGM and which he says are directly and diametrically opposite to the stand that it has taken in the Petition. Among these is the opinion of the legal department. There are also opinions of a Senior Counsel and so on. This unfortunately — and possibly needlessly — opens up an entirely different avenue of inquiry as to whether opinions obtained by one party can, should, or may properly be used in a litigation by the opposite party, but we propose to let this pass. We will not be basing any part of our judgment today on what a particular opinion obtained by the MCGM said or did not say. As far as we are concerned, no judgment of a court can be determined on the basis of an opinion obtained by one side or the other. At best, therefore, this may be what is popularly known amongst Senior Counsel throughout the country as a ‘talking point’, but little beyond that. What is of relevance is how MCGM conducted itself because this is clearly not a solitary case. It is by no means the only such case that has come before the Court nor is it the only such case that came to the MCGM at all.
15. This is of some consequence because, as Mr Kamat puts it, an inconsistent approach between those similarly placed leads us into a straightforward Article 14 challenge. We believe he is correct therefore when he draws our attention to Exhibit “L” at page 80 of the Petition. This is in relation to another property. The architect in question, one Shirvatkar, made an application and MCGM prepared a note for a legal opinion precisely on this question of whether an amenity open space could be adjusted against the Development Plan Regulation under DCR 57(4)(c).
16. At this stage, therefore, we need to turn to that DCR 57 for its precise wording. This DCR speaks of a special industrial or I-3 zone. It reads thus: “57. Special Industrial Zone (1-3 Zone): (1) General conditions governing the uses permitted in an 1-3 Zone—The Special Industrial Zone (1-3 Zone) includes any building or part of a building which is used for the storage, handling, manufacturing or processing or highly combustible or explosive materials or products which are liable to burn with extreme rapidity of which may produce poisonous fumes or explosions; for storage, handling, manufacturing or processing which involve highly corrosive, toxic or various alkalis, acids or other liquid, or chemicals producing flames, fumes and explosive, poisonous, irritant or corrosive gases; or for the storage, handling or processing of any material producing explosive mixtures of dust or which result in the division of matter into fine particles capable of spontaneous ignition. Examples of buildings in this class are those used for: (a) … (b) … (c) … (d) … (2) … (3) … (4) … (a) … (b) …
(c) With the previous approval of
Commissioner, any open land or lands or industrial lands in the Special Industrial Zone (1-3 Zone) (including industrial estate), excluding lands of cotton textile mills, may be permitted to be utilized for any of the permissible users in Residential Zone (R-1 zone) or the Residential Zone with shop line (R-2 Zone) or for those in the Local Commercial Zone (C-1 Zone) subject to the following:
(i) The conversion of Industrial Zone to
Residential / Commercial Zone in respect of closed industries shall not be permitted unless NOC from Labour Commissioner, Maharashtra State, Mumbai stating that all legal dues have been paid to the workers or satisfactory arrangement between management and workers have been made, is obtained. Provided that where conversion has been permitted on the basis of this Certificate, occupation certificate will not be given unless a no dues certificate is granted by Labour Commissioner. However, in respect of any open land in the industrial zone, where industry never existed, NOC from Labour Commissioner is not required. The layout or sub-division of such land shall be approved by the Commissioner, who will ensure that 5% land for public utilities and amenities like electric, sub-station, bus-station, sub-post office, police out post and such other amenities, as may be considered necessary, will be provided therein.
(ii) In such layouts or sub-divisions having areas more than 2 ha, but less than 5 ha 20 per cent land for public utilities and amenities like electric, sub-station, bus-station, sub-post office, police out post, garden, playground, school dispensary and such other amenities shall be provided. In such layout or sub-division each more than 5 ha. in area, 25% land for public utilities and amenities like electric, sub-station, bus-station, sub-post office, police out post, garden, playground, school dispensary and such other amenities shall be provided. Provided that at least 50% of the amenity space shall be designated as open space reservation. These areas will be in addition to the recreational space as required to be provided under regulation No. 23.
(iii) The required segregating distance as prescribed under these regulations shall be provided within such land intended to be used for residential or commercial purposes.
(iv) Such residential or local commercial development shall be allowed within the permissible FSI of the nearby residential or commercial zone.
(v) Provision for public utilities, amenities and open space shall be considered to be reservation in the development plan and Transferable Development Rights as in Appendix VII or FSI of the same shall be available for utilization on the remaining land. Provided that public utility and amenity plots shall not be developed as per Regulation 9. Note:
I. Conversion from industrial zone to residential / commercial zone shall be applicable to the part area of land holding subject to the condition that total area of the entire land holding shall be considered for deciding the percentage of and to be reserved of the said part area of land for public amenity spaces, as per the said Regulation. However, necessary segregating distance shall be provided from industrial use.
II. In the layout, where Development Plan has provided any reservations:
III. Out of the total floor area proposed to be utilized for residential development, 20% of the same shall be built for residential tenements having built up area up to 50 sq.mt.” (Emphasis added)
17. Although there is then a reference to various opinions including of a Senior Counsel, we proceed straight away to page 96 of the Petition. This is a note that was prepared by the MCGM in regard to architect Shirvatkar’s application. His representation is noted at page 96. Paragraph 6 at page 97 deals with layout and amenity space. There is an area statement that is given. Then in paragraph 7 at page 100, there is a reference to the DCR provision including DCR 57(4)(c) and DCR 57(4)(c)(ii). The Note that we have extracted above is quoted. The remarks from the departments concerned are then covered in paragraph 8 and the opinion in paragraph 9. At page 103, there are specific questions in items 2 and 3 of the table at page 103 and then the corresponding answers, as shown below.
2) Whether this office can adjust the area of D.P Road of entire layout of residential Zone and Industrial Zone against the required amenity space of 25% In view of the views/remarks of the undersigned of point No. 1, you can adjust the area of D.P. Road of entire layout of residential zone and industrial zone against the required amenity space of 25%.
3) Whether this office can adjust the area of D.P. road and R.G. which is in possession of MCGM against the required amenity space of 25% In view of point Nos. 1 and 2, you can adjust the area of D.P. Road and R.G. which is in possession of MCGM against the required amenity space of 25%. “Legal department of MCGM in its opinion/report has mentioned that “Regulation 57(4)(c)(ii) Note II contemplates set off for the requirement of public amenity space of 25% against any reservation and in view of the fact that, D.P. Road can be designated as a reservation by virtue of section 22(d) read with section 126 of MRTP Act. It cannot be disputed that, the provisions contemplated in the Development Plan for D.P. Road is a reservation on the subject property. Since the Regulation 57(4)(c) of the DCR 1991 contemplates for providing public amenities which necessarily includes road and further such road can be designated on the D.P. Plan as a reservation and such reservation is allowed to be set off under Regulation 57(4)(c) Note II of DCR. It is further stated that, in this proposal the area under Development Plan reservation is 27806.90 sq.mt. The required area of Public Amenity spaces is 24731.33 sq.mt. The area under Development Plan reservation is more than the required area of public amenity spaces, then the provision for public amenity spaces is not necessary as per provisions of Note II under clause 57(4)(c) of DCR 1991 by giving I to R permission.” (Emphasis added)
18. So far, this tells us that the question of adjusting an amenity space reservation against a DP Road reservation was not new or peculiar to the Petitioner’s present case. It had come to the MCGM before. Opinions had been taken. We are not concerned with the contents of those opinions. It is enough to note that the MCGM, guided by those opinions, accepted the position as a matter of administrative or executive action, to set off the amenity space reservation against the surrender of land for a DP Road. It did so not on the basis of some ad hoc or discretionary exercise of jurisdiction but specifically on a consideration of DCR 57(4)(c) and specifically DCR 57(4)(c)(ii) and Note II.
19. The note in that DCR relates to conversion from industrial zones to residential or commercial zones. Clause II of that Note speaks about reservations in the layout where such reservations are shown on the development plan. Sub-note A then says that if the area under the DP reservation is less than the required area of the public amenity space as per the regulation then only the difference in the area is to be provided in the public amenity space. If the DP reservation is more, then the provision for a public amenity space is not necessary.
20. Indeed, independently of what the MCGM was advised and what it actually did, and leaving aside for a moment the decisions that Mr Kamat relies on, we believe that on its own this note is wholly logical. It would otherwise make no sense at all to have a ‘double reservation’ in the manner that is now being suggested in this particular case.
21. Accordingly, on 14th October 2014, the Petitioner’s architect made an application (copy at Exhibit “O” at page 105) to Respondent No. 4, the Executive Engineer of the MCGM, for permission to adjust the DP Road reservation against the open amenity space requirement. On 7th January 2015, the Petitioner wrote to the Chief Engineer of the MCGM requesting that it be permitted to adjust 5% amenity space on the basis of DCR 57 specifically invoked. A reminder followed on 27th January 2015. Copies of these documents are at Exhibit “P” at page 107 and Exhibit “Q” at page 109 respectively.
22. This unsettled state of affairs led the Petitioner to file Writ Petition (L) No. 1685 of 2015 and on this Petition on 29th June 2015, this Court made an order directing the MCGM to consider the Petitioner’s application made on 14th October 2014 and in January 2015 within six weeks. The Petitioner sent a copy of this order on to the MCGM.
23. This met with the usual bureaucratic response that we are never able to understand because on 12th April 2016 the MCGM said that since the Petitioner’s Writ Petition was pending it could not process the application. This is simply bizarre because the order of the Court required the MCGM to consider that application and we entirely fail to see how the MCGM could have said that because the High Court had not disposed of the Writ Petition, therefore it could not follow an order of the High Court itself. In any case, confronted with this, the Petitioner did the next best thing — it withdrew its earlier Writ Petition. In light of this, the Petitioner wrote to the MCGM on 23rd May 2016 asking it to now consider its application for an adjustment of the 5% open space amenity against the DP Road.
24. We come now to 21st July 2016. On this date MCGM published a notice stating that the State of Maharashtra intended to modify DCR 57 and therefore suggestions and objections were invited. A copy that notification of 21st July 2016 is at page 198. This is the notice by which suggestions and objections were invited to the proposed modifications inter alia DCR 57(4)(c). This Notification is central to Ms Shastri’s case, and we will consider this shortly. At page 201, we find the relevant portions of the 21st July 2016 UDD notification.
25. On 19th August 2016, the Petitioner sent its objections to the proposed modification.
26. We are not concerned with an internal note that the MCGM may have made on the Petitioner’s application.
27. On 21st September 2016, the Executive Engineer rejected the Petitioner’s application. The reason given was that the application was not in consonance with the 24th August 2016 circular issued by the MCGM. A copy of that circular is at Exhibit “FF” at page 212 and rather than return to it at a later stage, we believe that it is necessary to see it immediately.
28. The circular says that recently the UDD had published a notice proposing a modification inter alia to 57(4)(c), a reference to the 21st July 2016 modification notification Then the circular says that policy guidelines would be followed thereafter, i.e., after the circular, for allowing residential or commercial use on land situated in general industrial and special industrial zone land inter alia under DCR 57(4)(c). Item 4 of the table in that circular relates to OCs to all buildings. It says that these applications are to be processed as per the notification dated 21st July 2016 of the State Government.
29. We pause briefly to note is the sequence in which Ms Shastri has positioned her case. She accepts that prior to the impugned rejection adjustment or set offs had been granted (in other cases). But, she says, there was then a proposed modification of the applicable DCR 57(4)(c). The State Government had invited suggestions and objections by its notice dated 21st July 2016 and had set out the proposed modifications. This was therefore a draft modification. The MCGM for its part issued a circular only saying that OCs (with which we are concerned) would, as a matter of guideline, follow the proposed draft modification under the UDD notification of 21st July 2016. In her submission this would have to be read with Section 46 of the MRTP Act and her submission is simplicity itself: “What choice did the MCGM have in the matter?” she asks. “We could hardly ignore Section 46. Nor could we ignore the UDD draft modification or our own circular.” If all these are put together, she submits, then the application that the Petitioner made had to be rejected.
30. Her emphasis in particular is on Clauses A and B of Item II of the note in the UDD modification notification of 21st July
2016. We reproduce the whole of the note from page 201. Note:
II. In the event of DP having provided a reservation/reservations on a plot desiring conversion from Industrial Zone to Residential / Commercial Zone, the following shall apply: a. If the area under DP reservation to be handed over to MCGM (excluding the areas under DP roads/ road setback) is less than the required area of public amenity space as per this Regulation, only the additional land area shall be provided for public amenity spaces. b. If the area under DP reservation to be handed over to MCGM, (excluding the areas under DP roads / road setback), is more than the required area of public amenity spaces as per this Regulation, then the provision for public amenity spaces is not necessary. c. In case of plot area under conversion is less than 2000 sq.mt. Land component either 10% amenity space in the form of open land or 5% built up space shall considered for the purpose of amenity space as per note (a) and (b) above.”
31. Ms Shastri’s effort is to say that by the proposed draft modification an exclusion was sought to be introduced, i.e., the area under DP Road was to be excluded. This meant that there could be no adjustment of the 5% open amenity space against the area under the DP Road. So long as this remained in draft, in Ms Shastri’s submission, there was no question of allowing that adjustment.
32. We will return to a consideration of the argument shortly. We have only noted it at this stage because the notification and the circular occur at this point in the chronological narrative.
33. To very briefly complete this portion of it, on 28th July 2020, MCGM issued a CC. This had its note that development permissions had been granted to the Petitioner pending the delivery of possession of 5% amenity space. On the same day, there was a building report prepared by the MCGM regarding compliance with the CC conditions. This is included in the Interim Application that is before us.
34. We proceed immediately to the three orders to which Mr Kamat has invited our attention.
35. The first judgment of Wadhwa Residency Private Limited & Ors v Municipal Corporation of Greater Mumbai & Ors[3] was by Division Bench (Anoop V Mohta J and AA Sayed J, as he then was) 3 2014 SCC OnLine Bom 354: (2014) 4 Bom CR 845. on 13th March 2014. It opens with the observation that a property development was frustrated because there was an inordinate delay in granting permission to the petitioners to change and utilise a railway reservation as an amenity under the DCRs. Sections 37 and 46 of the MRTP Act were noted. Then, DCR 57 was set out. The Division Bench observed that DCR 57 permitted changes from an industrial to a residential or commercial zone. The Division Bench relied on the decision of the Supreme Court in Oswal Agro Mills Limited v Hindustan Petroleum Corporation Ltd and Ors.[4] The Division Bench said that the Regulations did not require prior permission or sanction from the State Government.
36. Mr Kamat submits that paragraph 10 of the judgment shows that case was exactly on all fours with the present one. Paragraph 10 at pages 126 and 127 of the paper book reads thus: “10. On 15.02.2010, the Mumbai Municipal Corporation addressed a letter to the Principal Secretary, Urban Development Department seeking clarification whether the area of 15.24 meters wide Railway Reservation which is proposed to modify the new DP Road by Urban Development Department where 37(1) and also 37(1A) is already issued by Urban Development Department and also suggestions/objections in this respect have been invited by D.D.T.P can be adjusted against Amenity open space required as per modification Regulations 57(4)(c) of DC Regulations 1991 Notification dated 14 May, 2007; and whether DP Road can be treated as reservation and can be adjusted against Amenity open space.”
37. Clearly, there was a case of adjusting reservations. Then in paragraph 15 at page 129 the Division Bench observed: “15. The Respondents have already granted permission by communication dated 24.02.2010 for development in question. However, no benefits of adjustment of reservation against amenities as required are granted to the Petitioners, under DC Regulation 57(4)(c)(ii) and Note appended thereto. The Petitioners, therefore, challenge arbitrary, unreasonable and discriminatory action of Respondents by this petition in March 2013.”
38. The Division Bench observed that the relief that the petitioner before it sought had been granted to another party. The Court held that the reliefs sought were within the purview of the policy. It interpreted ‘any reservation’ to mean and include all reservations. There, the issue was of a railway reservation. The Court held that once the railway reservation was a reservation as contemplated in law, an adjustment was permissible inter alia under Note II (extracted above). The Petition was accordingly allowed.
39. Wadhwa Residency was followed by a Division Bench of this Court in Shree Sai Baba Municipal Market Vyapari Welfare Association v Municipal Corporation of Greater Mumbai and Ors, delivered on 18th September 2014.[5]
40. Mr Kamat’s next waypoint is the decision of the Division Bench (of the same composition) on 29th October 2015 in Runwal Homes Private Limited & Anr v Municipal Corporation of Greater 5 2014 SCC OnLine Bom 1259: (2014) 6 AIR Bom 359. Decided on 18th September 2014. Mumbai & Ors.[6] This too was a case of an adjustment of reservations and reference was made to the previous judgment of this Court in Wadhwa Residency. Runwal Homes was also a case of a DP reservation. Paragraph 23 of the judgment makes an important observation that the MCGM could not ‘discriminate against’ the petitioner by denying the benefits of adjustment of the DP reservation against the amenity space to the extent of the DP Road. This tells us that the policy is (or was) not to insist on the amenity space, but to allow the setting off.
41. Mr Kamat then refers to the order of the Supreme Court of 11th January 2016 in an Special Leave Petition (Civil) NO. 46 of 2016 filed by the MCGM in the Runwal Homes case. The Special Leave Petition failed. Keeping this in mind, Mr Kamat’s submission is that there is no question of denying the Petitioner the benefit of an adjustment. The proposed modification remained in that form, as a draft, and was never finally sanctioned. DCR 1991 has since been replaced by DCPR 2034 at least for the city of Mumbai. It is inconceivable, Mr Kamat submits, that by a proposed modification inviting suggestions and objections a sanctioned development plan could be thrown in to disarray in perpetuity. It is even more inconceivable that subordinate legislation such as the DC Regulations could be further modified in the manner not contemplated by statute by simply inviting suggestions and objections, and leaving it at that, with the planning authority issuing a circular, lower in echelon, to refuse precisely the kind of adjustments that not only had the MCGM previously allowed, but which had come before the Court and which the Court had determined were required to be allowed as a matter of law.
42. He also submits that it is unthinkable that a judgment of a Court, let alone one that has attained finality on the dismissal of a Special Leave Petition, could be set at naught by the simple device of issuing a notification proposing a draft modification notification and never actually sanctioning it. This is precisely the sum and substance of the MCGM’s argument. It amounts to saying that DCR 57(c)(4) as it exists on the statute book is now nullified and wiped out by a proposed modification that was never brought into force, that remained in draft, and in respect of which the MCGM issued an internal guidance circular. How this process can be used to undo the effect of binding judgments of the Court is never explained.
43. Ms Shastri’s answer to this is to say that the judgments in Wadhwa Residency and Runwal Homes both predate the UDD notification of 27th July 2016 and the subsequent MCGM circular. Apart from the arguments that we have noted above, she refers to certain decisions of the Supreme Court for the proposition that the application has to be considered in light of the law as it stands on the date of the grant of permission.
44. The first decision she cites is Howrah Municipal Corporation & Ors v Ganges Rope Co Ltd & Ors[7] of the Supreme Court. The first submission is that merely applying for permission does not create any vested right in the party making the application. The second argument is that sanction has to be granted on the basis of building rules prevalent at the time of grant of the sanction, not at the time of the application for the sanction. In Howrah Municipal Corporation and Ors, the Supreme Court held there is no right to demand the application of the regime as it stood on the date of the application.[8]
45. The Howrah Municipal Corporation Court relied on the decision of the Supreme Court in Usman Gani J Khatri of Bombay v Cantonment Board & Ors.[9] That was a case involving construction proposed in the Pune Cantonment Board area. The petitioners all claimed to be entitled to the building regulations or restrictions as they existed at an earlier point in time (when the permissible area to be constructed was more). The petitioners did not submit revised building plans. The Cantonment Board pointed out that the earlier and more lenient regime had resulted in undue benefits to builders. It insisted that the new, and more stringent, controls should govern. As a finding of fact, the Supreme Court found that some builders had put up constructions that did not conform to the later restrictions. It negatived the plea of the builders to be allowed to follow the earlier restrictions. In paragraph 28, the Supreme Court held that the scheme of building regulations or restrictions in force at the relevant time, i.e., the later and the more stringent set of restrictions would apply.
8 And merely because a particular party had approached a Court, this would not give it any special right or vested right to apply an earlier provision.
46. The Supreme Court followed and applied the ratio in Usman Khatri in State of West Bengal v Terra Firma Investment & Trading Pvt Ltd. 10
47. Mr Kamat’s answer is that this submission by Ms Shastri is not just over simplistic, but it is utterly facile. It amounts to saying that a corporation can simply delay the grant of permission and wait indefinitely until the law changes to ensure that an application is refused. This is not the purport of any of the judgments cited by Ms Shastri. A telling circumstance is in the Usman Khatri case where the Petitioner before the High Court and the Supreme Court wanted to derive an additional benefit on the basis of a previous development control regime and failed to make an application under the revised, later regulations. This was impermissible.
48. It is in this context that Mr Kamat invites attention to the critical dates. Possession of the DP Road was delivered on 7th June
2013. That is the date of the possession receipt. The two reservations of the 5% amenity space and the DP Road obviously predate the delivery of possession of the DP Road. The decisions in Wadhwa Residency and Shree Sai Baba Municipal Market are of 2014. Runwal Homes followed in 2015. In an almost identical situation, an adjustment was granted on 15th May 2014 to another party. The Petitioner’s own application was of 14th October 2014 and was made once again on 7th and 27th January 2015. The High Court order directing a consideration was of 29th June 2015. The UDD draft modification notification at page 198 did not actually come until 21st July 2016. Just a look at the way these dates cascade is, in Mr Kamat’s submission, a complete answer and sufficient reason that the Petition must be allowed. This is not a case of the Petitioner seeking to apply under an old regime. This is a case of the Municipal Corporation failing to grant permission, though clearly allowable under the regulations as they then stood and under binding decisions of the Court, at the relevant time. If anything, the decisions in Usman Khatri and Terra Firma are against the Municipal Corporation: just as a developer or private owner cannot invoke a past and more lenient regime after a new regime has come into force, a Municipal Corporation cannot unreasonably and unduly deny or delay permission under an existing regime and, only after a later set of restrictions comes into being, rely on the latter. Nothing is shown to us to indicate that the relief of setting off sought by the Petitioner could not have been granted even previously. There is no explanation at all for why the permission was not granted when it was made although it had been granted to others, there were High Court judgments to that effect, and every consultant of the MCGM also said that the setting off had to be allowed.
49. Finally, it is his submission based on Article 14 of the Constitution that this conduct of the MCGM is facially and manifestly arbitrary. It cries out for judicial review. He says he hesitates to use any stronger descriptor such as perversity, but there is simply no other way to describe this. There is not only hostile and invidious discrimination where likes have not been treated alike, but the equal protection of laws and equality before the law have both been denied to this Petitioner. Viewed from any perspective, therefore, in his submission, there is simply no answer to the Petition.
50. It is not necessary, therefore, to proceed to any other argument of a more intricate nature whether founded under Article 19 or Article 300A of the Constitution of India. All that the Petitioner seeks is an application of the law as it stood, and as it was in fact applied, by the Municipal Corporation in applicable cases and as it was held had to be applied by not one but three separate Division Bench judgments of this Court. We believe Mr Kamat is correct: it is entirely impermissible for the MCGM to escape its obligations in this manner. Indeed, the entire construct presented to us by Ms Shastri itself raises a quite significant dilemma. If that line of argument is to be accepted, it means that a sanctioned final development plan can effectively be modified almost from beginning to end by the simple device of issuing a draft proposed modification, never actually sanctioning the modification, but requiring the planning authority to have regard to it while granting permissions. This would make a complete mockery of the planning process. Correctly read, what Section 46 says is that a draft modification must be taken into consideration while it is legitimately still in the form of a draft, i.e., it is going through the process required to either finally sanction the modification or to withdraw it. Section 46 does not contemplate a situation where a draft is introduced and then left hanging in the form of a draft for all time to come. That would be a thoroughly unreasonable reading of the statutory provision and might well lead to, in a given case, this provision having to be read down or even struck down. It is not his intention, Mr Kamat says, to go that distance in this particular case. Fortunately, it is not even required. But Ms Shastri’s reading of Section 46 in this context does certainly render vulnerable the Section itself if this interpretation is to be adopted. On the other hand, the interpretation commended by Mr Kamat, whether this is viewed through the lens of any of the well-established principles of statutory interpretation such as purposive construction or the mischief rule, is that the Court will strive to uphold the vires and constitutional validity of a particular section if plainly read this can be done. No interpretation should be permitted as would leave to a vulnerability or a patent absurdity. Nor should ambiguity be introduced where the plain language provides a clear line of interpretation free of all ambiguity.
51. Consequently, having regard to the facts and circumstances of the case and the settled law, we make Rule absolute now in terms of prayer clauses (b) and a(i), a(ii) and a(iii) (in that order, since, obviously, a certiorari must precede a mandamus). There will be no order as to costs. (Kamal Khata, J) (G. S. Patel, J)