Bombay High Court High Court

Shri Damodar Laxman Navare vs State Of Maharashtra on 8 July, 2010

Bombay High Court
Shri Damodar Laxman Navare vs State Of Maharashtra on 8 July, 2010
Bench: P. B. Majmudar, R. M. Savant
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    mmj
                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY




                                                                                
                      IN ITS CIVIL APPELLATE JURISDICTION
                         WRIT PETITION NO.6300 OF 2009




                                                        
    1.    Shri Damodar Laxman Navare

    2.    Shri Yeshwant Laxman Navare




                                                       
    3.    Shri Raghunath Laxman Navare

    4.    Shri Govind Laxman Navare

    5.    Shri Moreshwar Laxman Navare




                                                 
          All adults, Indian Inhabitant,
          residing at Navare Bungalow,

          (East) Thane
                               
          Shiv Mandir Road, Ambernath
                                                              ..Petitioners

                Versus
                              
    1.    State of Maharashtra  
          Through Urban Development
          Department, Mantralaya,
            

          Mumbai, copy served through
          Government Pleader, High Court
         



          Appellate Side, Bombay

    2.    The Deputy Collector and
          Competent Authority (ULC)
          Ulhasnagar Urban Agglomeration





          having his office at 4th floor,
          Collectorate, Thane

    3.    The Chief Executive Officer,
          Ambernath Municipal Council





          having its office at Ambernath
          Thane

    4.    Town Planner Ambernath
          Municipal Council, having its
          office at Ambernath, Thane




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    5.       Sub-Registrar of Assurances at
             Kalyan and Ulhasnagar having




                                                                                                
             its office at Nagar Palika Office,
             Tehsil Karyalaya, Gandhi Road,
             Ulhasnagar - 5 and at 




                                                                        
             Opp. Shiv Temple, Ambernath (East)                               ..Respondents.
              
              




                                                                       
    Shri Y.S.Jahagirdar Sr. Counsel a/w Shri A.A.Joshi with Shri Sateyen Vora, Smt 
    Tanvi   Gandhi   with   Shri   Prashant   Ghelani   and   Ms.   Pratiti   Naphade   i/b   M/s. 
    Markand Gandhi & Co. for the Petitioners

    Shri   N.V.Walawalkar   Sr.   Counsel   with   Shri   S.N.Patil   AGP   with   Shri   Devidas 




                                                        
    Keluskar AGP for Respondent State
                                     
    Shri Virendra Pethe i/b Shri B.D.Joshi for Respondent Nos.3 & 4 


                                            Coram:           P.B.MAJMUDAR AND
                                    
                                                             R.M. SAVANT, JJ.

8th July, 2010

ORAL JUDGMENT (Per Shri R.M.Savant J.)

1. Rule, made returnable forthwith by the consent of the parties and

heard.

2. The Petitioners who claim to be the owners of certain lands in

Thane District, by way of this Petition filed under Article 226 of the Constitution

of India, principally challenge the letters dated 11-2-2009 and 18-6-2009 Exhibit

L and M respectively. By letter dated 11-2-2009, the authorities mentioned

therein i.e. the Municipal Council, Kalyan and Dombivali Municipal Corporation,

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the Sub-Registrar, Kalyan and the Chief Officer of the Ambernath Nagar Palika,

were directed not to sanction the plans and to register the documents presented

for registration by the Petitioners in respect of the flats constructed on the land

owned by the Petitioners. By letter dated 18-6-2009, the Petitioners were

informed that they would have to pay an amount of Rs.56,97,263/- as penalty for

extension of time that will be granted for completing the scheme sanctioned

under Section 20.

3.

Shorn of unnecessary details, the facts necessary to be cited for

adjudication of the above Petition can be stated thus:

4. The Petitioners herein claim to be the owners of land bearing Survey

No.26/4. 36/15, 36/17, 36/19, 37, 39/2 and 178 of Village Khol Khutiwali,

District Thane ad-measuring about 85945 sq.mtrs. The said land was declared as

surplus by a virtue of order passed under Section 8(4) of the ULCR ACT 1976

(for brevity’s sake referred to as the said Act,) by the Additional Collector and

Competent Authority, by order dated 19-4-1982. It appears that the Petitioners

pursuant to the said 8(4) order applied for exemption under Section 20(1) of the

said Act.

5. By an order dated 19-6-1990, the State Government granted exemption to

the extent of land ad-measuring 5298.86 sq.mtrs. which exemption initially was

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for a period of 8 years. It appears that the Petitioner thereafter sought

development permission from Kalyan Dombivali Municipal Council as it was then

known which granted the Intimation of Disapproval (IOD) on 15-4-1995 and

Commencement Certificate dated 18-4-1995 for construction of the buildings. The

Petitioners thereafter obtained NA permission for non agricultural use of the land.

In terms of the development permission, the Petitioners commenced construction

and till the filing of the present Petition, had constructed three buildings

consisting of 42 flats and 18 shops which were sold to third parties. Thereafter,

certain facts have intervened which in our view are not germane for a decision in

the above matter. However on 25-11-2005, the said exemption order dated

19-6-1990 was cancelled by the Additional Collector and Competent Authority, on

account of the non compliance of the said order within the stipulated time. On

such cancellation, the Petitioners filed an Appeal under Section 34 of the said Act,

which Appeal came to be numbered as Appeal No.364 of 2005 before the

Additional Commissioner, Konkan Division. The said Appeal was allowed by the

Additional Commissioner by his order dated 24-4-2006 and the matter as regards

the cancellation came to be remanded back to the Additional Collector and

Competent Authority. On such remand, the Additional Collector and Competent

Authority, by his order dated 14-11-2006 recommended to the Respondent No.1

the extension of time to implement the scheme. Accordingly, by letter dated

15-11-2006, the Additional Collector and Competent Authority forwarded a

report to the State Government i.e. Respondent No.1 recommending the

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extension. Whilst the said process was in motion, a Notification came to be issued

under Section 10(1) of the said Act on 17-11-2007 followed by the Notification

under Section 10(3) dated 19-11-2007 in respect of the lands in question. In so

far as the acquisition was concerned, the matter has rested there. Thereafter on

27-11-2007, the Petitioners were informed by letter dated 16-11-2007 of the

Respondent No.1 that the recommendation of the Respondent No.2 has been

accepted. By the said letter, it was further informed that the Respondent No.1 i.e.

State Government is proposed to levy fine for grant of extension for completion of

the scheme. The said letter disclosed that the extension was to be granted only on

payment of the penalty levied. Thereafter a defining event in the form of the said

Act, being repealed in so far as the State of Maharashtra is concerned, came into

operation on 29-11-2007. The Petitioners had thereafter filed a Writ Petition

being Writ Petition No.9266 of 2007 challenging the Notification under Section

10(1) and 10(3) of the said Act, which Writ Petition came to be allowed by a

Division Bench of this Court by judgment and order dated 11-6-2008 and the said

Notifications came to be quashed and set aside, on the ground that the Repeal Act

having come into force the proceedings have abated. However in so far as the

issue regarding the scheme under Section 20 was concerned, the matter was left

open by the Division Bench for the Petitioners to agitate the same in appropriate

proceedings. This is how the Petitioners have filed the instant Petition.

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6. The above Petition has been appearing for admission from time to

time. By order dated 30-7-2009, the Petitioners were granted ad-interim relief in

terms of prayer clause (d) and (e) subject to the Petitioners depositing the

amount mentioned in Exhibit M i.e. the amount of Rs.56,97,263/-. The Petitioners

have accordingly deposited the said amount which we are now informed is lying

in deposit in this Court.

6. As indicated above, the challenge in the present Petition is to the

two letters Exhibit L and M to the Petition. In so far as letter dated 11-2-2009,

Exhibit L to the Petition is concerned, by the said letter a directive has been issued

to the two planning authorities within whose jurisdiction the lands in question fall

the directive is to the effect that the plans submitted by the Petitioners should not

be approved unless so intimated by the Respondent No.1.

The directive to the sub-Registrar is to the effect that his office should not

register any document presented by the Petitioners for registration unless so

intimated by the Respondent No.1. In our view considering the provisions of the

said Act we do not see any such power being vested in the authorities in the said

Act. The issue as to whether such directives could be issued to the Sub-Registrar

by the authorities in exercise of powers under the said Act had also come up for

consideration before a Division Bench of this Court in Writ Petition No.1955 of

2007 and companion Petitions in the matter of Sundarsons & ors. Vs. State of

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Maharashtra & Ors., the Division Bench by Judgment and Order dated 26-6-2008

reported in 2008(6) MLJ page 332 has held that the Collector is not empowered

to give directions to the authorities to the extent issued as the Collector has no

Appellate Supervisory or Revisional powers over the Registering officer under the

Act. From the point of view of the present controversy the relevant paragraphs of

the said Judgment is paragraph 23, 26 and 28 which are reproduced hereunder:

“23. Part VI of the Registration Act deals with the provisions

of documents dealing with the proceeding relating to the

presentation of documents for documentation. Section 32 lays

down the persons who can present the documents for

registration, section 32A states that a photograph of both the

executing parties has to be fixed. Section 33 lays down that

the Power of Attorney can be given by any person, who

intends to present the document for registration and the

relevant provision for the purpose of deciding the issue in

question are sections 34 and 35. Section 34 empower the

Registering Authority to make an enquiry with the

registration and section 35 lays down in the circumstances

under which registration can be denied. Section 34 and 35

reads as under:-

“34. Enquiry before registration by registering officer – (1)

Subject to the provisions contained in this Part and in sections

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41, 43, 45, 69, 75, 77, 88 and 89, no document shall be

registered under this Act, unless the persons executing such

document, or their representatives, assigns or agents

authorised as aforesaid, appear before the registering officer

within the time allowed for presentation under Section 23, 24,

25 and 26.

Provided that, if owing to urgent necessity or unavoidable

accident all such persons do not so appear, the Registrar, in

cases where the delay in appearing does not exceed four

months, may direct that on payment of fine not exceeding ten

times the amount of the proper registration fee, in addition to

the fine, if any, payable under section 25, the document may

be registered.

(2) Appearance under sub-section (1) may be

simultaneous or at different times.

(3) The registering officer shall thereupon-

(a) enquire whether or not such document was

executed by the persons by whom it purports to have been

executed.

(b) satisfy himself as to the identify of the persons

appearing before him and alleging that they have executed the

document; and

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(c) in the case of any person appearing as a

representative, assign or agent, satisfy himself of the right of

such person so to appear.

(4) Any application for a direction under the proviso to

sub-section (1) may be lodged with a Sub-Registrar, who shall

forthwith forward it to the Registrar to whom he is

subordinate.

(5) Nothing in this section applies to copies of decrees

or orders.

35. Procedure on admission and denial of execution

respectively-

(1)(a) If all the persons executing the document appear

personally before the registering officer and are personally

known to him, or if he be otherwise satisfied that they are

persons they represent themselves to be, and if the all admit

the execution of the document, or

(b)if in the case of any person appearing by a

representative, assign or agent, such representative, assign or

agent admits the execution, or

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(c) if the person executing the document is dead and

his representative or assign appears before the registering

officer and admits the execution, the registering officer shall

register the document as directed in sections 58 to 61,

inclusive.

(2) The registering officer may, in order to satisfy

himself that the persons appearing before him are the persons

they represent themselves to be, or for any other purpose

contemplated by this Act, examine any one present in his

office.

(3) (a) if any person by whom the document purports

to be executed denied its execution or

(b) if any such person appears to the registering officer

to be a minor, an idiot or a lunatic, or

(c) if the person by whom the document purports to be

executed is dead, and his representative or assign denies its

execution, the registering officer shall refuse to register the

document as to the person so denying, appearing or dead :

Provided that, where such officer is a Registrar, he shall

follow the procedure prescribed in part XII:

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43 (provided further that the 44(State Government)

may, by notification in the 45(official Gazette), declare that

any Sub-Registrar named in the notification shall, in respect of

documents the execution of which is denied, be deemed to be

a Registrar for the purposes of this sub-section and of Part

XII.)

From the perusal of section 34 and section 35 it is

apparent that no power has been given to the Collector to give

directions to the Sub-Registrar to refuse registration of the

document. The provisions regarding registration of the

document are enumerated in the Registration Act, 1908. It is a

settled position in law that executive instructions which are

given by the State by exercising its powers under Article 162

of the Constitution of India cannot circumvent a statutory

provision. It has, therefore, now to be seen under which

provisions the said letter/circular dated 19th May 2007 has

been issued by the Collector. The said letter/circular has been

issued by the Collector and is in a cyclostyled form. It

enumerates the various classes of lands belonging to the

Government. If further states that these lands have been

granted to different institutions and individuals on various

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terms and conditions. It further states that these lands cannot

be transferred without Government permission. It further

mentions that these lands are being transferred without

obtaining the Government Permission and as a result of such

unathorised transfer, Government is losing revenue amount in

crores of rupees and thereafter the following direction has

been given:

“Therefore, in future such transfers could not take place

without permission, nor any entry made into Government

records.”

Perusal of the said circular clearly discloses that the

letter does not disclose the source of the power under which it

has been issued. It also does not state either the power which

is vested in the Collector to issue the said letter to the Sub-

Registrar either under the provisions of the Maharashtra Land

Revenue Code or under the Registration Act, 1908, or the

rules framed thereunder. The learned Government Pleader

had strenuously urged before us that these lands are

Government lands under the provisions of the Maharashtra

Land Revenue Code that the Government had power to take

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action against the allottees for breach of terms and conditions

of the allotment order, he invited our attention to various

provisions of the Land Revenue Code. However, it is an

admitted position that none of these provisions empowered

the Collector to issue directions to the Sub-Registrar who is

the Statutory Authority under the Registration Act, 1908 to

desist from registration of a document on account of breach of

any terms and conditions in allotment of land by the

Government to the allottees. The said submission made by

Shri Belose, the learned Government Pleader appearing on

behalf of the State, therefore, cannot be accepted.”

26 The Counsel appearing on behalf of the petitioners has

relied on the judgment of the Madras High Court in the case

of Pandurangan Vs. Sub-Registrar, Reddiarpalayam

Pondicherry and ors. Reported in AIR 2007 Madras page 159.

The learned Single Judge of the Madras High Court has in

paragraph Nos.17 and 18 of its Judgment has observed that :

17. A conjoint reading of sections 34 and 35 of the Act

shows that the scope of the enquiry to be made by the

Registering Officer is limited by the Act, to the factum of

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execution and the identity of the person executing the

document, other than the levy of stamp duty, collection of

registration charges and the completion of procedural

formalities such as attestation etc.

18. When the power of Registering Officer himself is so

circumscribed by the provisions of the Act. It is not open to the

third respondent to issue an instruction to respondents 1 and

2 to withhold the registration of any transaction, as he has no

Appellate, Supervisory or Revisional powers over the

Registering Officer, under the Act.”

We are in respectful agreement with the observations

made by the learned Single Judge of the Madras High Court.

In the present case also, it was not open or the Collector to

issue instructions to the respondent No.3 to withhold

registration of the documents as he has no Appellate,

Supervisory or Revisional powers over the Registering Officer

under the Act.

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28.For the aforesaid reasons, in our view the letter issued by

the Collector dated 19th May 2007 is clearly illegal and

without authority of law.

It is however, made clear that it is specifically clarified

that it would be open for the State Government to take such

steps, if any breach has been committed by the petitioner or

by its Predecessor-in-title in respect of the land allotted to the

Petitioners or its Predecessor-in-title by following due

procedure of law.

Further it is expressly made clear that we have not

decided the question as to whether the petitioners are the

owners of the land as claimed by them or the contentions of

the Government that the petitioners and its Predecessor-in-

title were having B-1 tenure. These questions are kept open

and the Petitioners are liberty to take our appropriate

proceeding for seeking a declaration that the petitioners are

the owners of the land.

The Writ Petitions accordingly are allowed and

respondent No.3 is directed to register the documents which

are presented to him as per the provisions of the Registration

Act in accordance with law. Under these circumstances there

shall be no order as to costs.”

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7. The said legal position has been reiterated by another Division

bench of this Court in the Judgment reported in 2009(1) Bom CR page 275. In so

far as the said Judgment (Supra) is concerned the directions in the said case were

issued to the Planning Authorities under the MRTP Act 1966. The Division bench

in the said case held that there is no absolute power vested in the State

Government under Section 20 or 21 or any other provisions of the ULC Act to

nullify or cancel the order passed or building permit issued by the Planning

Authority under the MRTP Act. The relevant paragraph of the said Judgment is

paragraph 58 which is reproduced hereunder:

“58. Sub-Clause (a) of Clause (2) of the Government

Resolution dt. 8.11.2007 stipulates that where permission

was granted by the Planning Authority for construction of

multistories building in the Special Plot Scheme and the

construction activity has not been commenced prior to

12.4.2007, all such permissions/sanctions given by the

Planning Authority stand cancelled and it is binding on the

scheme holder to implement the Scheme in its original

nature. We once again reiterate that, the State Government

was empowered, under Sections 20 and 21 of the U.L.C. Act,

to formulate the Schemes and impose conditions as it deems

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fit, and in case of breach of conditions, power of withdrawal

of Exemption Certificate was also vested in the State

Government. However, there is absolute no power vested in

the State Government either under Sections 20 and 21 or any

other provisions of the U.L.C. Act to nullify or cancel the

order passed or building permit issued by the Planning

Authority under the MRTP Act. Breach of condition by the

land holder or holder of the scheme did not clothe the State

Government with the jurisdiction to cancel or revoke the

order of the Planning authority, though the State

Government could withdraw the exemption granted under

section 20 or take such action against the scheme holder as

provided under Section 21 of the U.L.C. Act.”

(emphasis supplied)

8. Hence in the light of the legal position as enunciated by the

Judgments (Supra), we have no hesitation to hold that the directives of the nature

contained in Exhibit L could not have been issued and, therefore, the same are

illegal and ultra vires the powers of the authorities under the said Act. The said

communication Exhibit L dated 11-2-2009 is, therefore, required to be quashed

and set aside and is accordingly quashed and set aside.

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9. In so far as the second challenge of the Petitioners is concerned i.e.

letter dated 18-6-2009 Exhibit M to the Petition, by the said letter the Petitioners

have been called upon to deposit an amount of Rs.56,97,263/- which the

Petitioners have now deposited without prejudice to their rights and contentions

in the above Petition. The said letter also in a way threatens the Petitioners that in

the event, the said amount is not deposited by the Petitioners, the follow up

action will be taken by the authorities including the launching of criminal

prosecution against the Petitioners. It would be worth while to note that the letter

itself is a sequitur to the letter dated 16-11-2007, by which a decision was taken

by the State Government to grant extension of time to the Petitioners to complete

the scheme on condition of penalty that would be levied by the State Government.

By the impugned communication Exhibit M, the Petitioners have been informed of

the amount of penalty that they would have to pay. Therefore, the Petitioners

have in a way challenged the consequential order without challenging the main

order dated 16-11-2007, it would also be pertinent to note that all the orders upto

the order dated 16-11-2007 have been passed when the said Act was very much

in force. Though it is the case of the Petitioners that since they have not complied

with the order granting them extension on the condition of payment of penalty

and, therefore, there is no exemption order in existence today and, the Petitioners

are, therefore, not bound to develop the said property in terms of the exemption

order, in our view, in the facts and circumstances of the present case, it is not

necessary for us to go into the said issue at this stage. As indicated earlier, the

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Petitioners have been informed that unless they pay the amount of penalty

extension would not be granted and if penalty is not paid, the same may be

recovered as arrears of land revenue as well as the Petitioner are threatened with

criminal prosecution. The Petitioners have approached this Court against the said

Exhibit M, in the context of the said Act being repealed. It is the case of the

Petitioners that the Repeal Act would have far reaching consequences for them in

as much as on account of the repeal the scheme cannot be said to be in existence.

10.

Per contra, it is the case of the Respondents that the order dated

17-11-2007 having being passed prior to the Act being repealed and when the Act

was in force is saved by sub Section 3(1)(b) of the Repeal Act as indicated above,

we need not go into the said aspect as in our view it would be necessary for the

State Government to have a fresh look at the matter considering the aforesaid

conspectus of facts. We, therefore, set aside the impugned communication Exhibit

M and direct the State Government to take a fresh decision in the matter in the

light of the Repeal Act 1999 and in the light of the conspectus of facts as narrated

above. Since we have directed the State Government to take a fresh decision, we

have not delved into the merits of the rival contentions and leave it to the parties

to agitate the same before the appropriate forum in appropriate proceedings.

Considering the fact that the scheme is being implemented since the year 1990, it

would be in the interest of the parties if the State Government takes a decision

expeditiously and not later than two months from date.

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11. In so far as the amount of Rs.56,97,263/- deposited by the

Petitioners in this Court, is concerned the Petitioners are permitted to withdraw

the said amount for which, the Learned Senior Counsel appearing for the

Respondents has no objection. The permission to withdraw the amount is not an

expression of any opinion as regards the merits of the case of either of the parties

and the State Government would be free to decide the case on its own merits and

in accordance with law. The State Government, in the light of the consequences

that its decision would have is directed to hear the Petitioners before arriving at

any decision.

12. Rule is accordingly made absolute to the aforesaid extent with

parties to bear its own costs.

    (R.M.SAVANT, J.)                                                 (P.B.MAJMUDAR, J.)






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