{"id":179900,"date":"2009-09-17T00:00:00","date_gmt":"2009-09-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-sigtia-constructions-vs-state-of-maharashtra-ors-on-17-september-2009"},"modified":"2019-04-04T09:40:44","modified_gmt":"2019-04-04T04:10:44","slug":"ms-sigtia-constructions-vs-state-of-maharashtra-ors-on-17-september-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-sigtia-constructions-vs-state-of-maharashtra-ors-on-17-september-2009","title":{"rendered":"M\/S.Sigtia Constructions &#8230; vs State Of Maharashtra &amp; Ors on 17 September, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Bombay High Court<\/div>\n<div class=\"doc_title\">M\/S.Sigtia Constructions &#8230; vs State Of Maharashtra &amp; Ors on 17 September, 2009<\/div>\n<div class=\"doc_bench\">Bench: D.K. Deshmukh, Rajesh G. Ketkar<\/div>\n<pre>                                       1\n\n\n\n\n                   IN THE HIGH COURT OF JUDICATURE AT BOMBAY\n\n\n\n\n                                                                             \n                       ORDINARY ORIGINAL CIVIL  JURISDICTION\n\n\n\n\n                                                     \n                    WRIT PETITION NO.1036 OF 2007\n\nM\/s.Sigtia Constructions Pvt.Ltd.                    .. Petitioner\n\n\n\n\n                                                    \n           V\/s\nState of Maharashtra &amp; Ors.                          .. Respondents\n                                   ALONGWITH\n                          WRIT PETITION NO.1075 OF 2007\n\n\n\n\n                                          \nRamchandra Mahadev Jagtap &amp; Ors.\n                              ig                           .. Petitioners\n           V\/s\nThe Cheif Executive Officer,\nSlum Rehabilitation Authority &amp; Ors.                       .. Respondents\n                            \n                                WRIT PETITION NO.1589 OF 2007\n            \n\n\nKeya Developers and Construction Private Ltd.              .. Petitioners\n         \n\n\n\n           V\/s\nThe Chief Executive Officer,\nSlum Rehabilitation Authority &amp; Ors.                       .. Respondents\n\n\n\n\n\n                           WRIT PETITION NO.2720 OF 2008\n\nChandrakant Sitaram Mane                                   .. Petitioners\n\n\n\n\n\n         V\/s\nSlum Rehabilitation Authority                              .. Respondent\n\n \n\n\n\n\n                                                     ::: Downloaded on - 09\/06\/2013 15:05:16 :::\n                                        2\n\n\n\n\nAppearances:\n\n\n\n\n                                                                             \n                                                     \nIn Writ Petition No.1036 of 2007:\n\nMr.Aspi Chinoy, Senior Advocate with Mr.Himanshu Kode i\/by M\/s.Shaunak \n\n\n\n\n                                                    \nSatpute &amp; Co.for the Petitioner.\n\nMr.Ravi Kadam, Advocate General with Mr.G.D.Utangale i\/by M\/s.Utangale \n&amp; Co.for Respondent Nos.4 and 5.\n\n\n\n\n                                          \nMr.Rajeev Narulla, Advocate i\/by M\/s.Jhangiani Narulla &amp; Associates for \n                             \nRespondent No.7.\n\nMr.Janak  Dwarkadas,   Senior Advocate   with  Mr.J.P.Sen  i\/by  M\/s.Kanga &amp; \n                            \nCo.for Respondent No.8.\n            \n\n\nIn Writ Petition No.1075 of 2007:\n         \n\n\n\nMr.F.Devitre,   Senior   Advocate   with   Mr.H.N.Thakore   i\/by   M\/s.Thakore \nJariwala and Associates for the Petitioners.\n\n\n\n\n\nMr.Ravi Kadam, Advocate General with Mr.G.D.Utangale i\/by M\/s.Utangale \n&amp; Co.for Respondent No.1.\n\nMr.Janak  Dwarkadas,   Senior Advocate   with  Mr.J.P.Sen  i\/by  M\/s.Kanga &amp; \n\n\n\n\n\nCo. for Respondent No.3.\n\nMr.C.U.Singh,   Senior   Advocate   with   Ms.Gunjan   Shah   i\/by   M\/s.Shaunak \nSatpute &amp; Co.for Respondent No.4.\n\n\n\n\n                                                     ::: Downloaded on - 09\/06\/2013 15:05:16 :::\n                                          3\n\n\n\n\n                                                                               \n                                                       \nIn Writ Petition No.1589 of 2007:\n\n\n\n\n                                                      \nMr.Janak  Dwarkadas,   Senior Advocate   with  Mr.J.P.Sen  i\/by  M\/s.Kanga &amp; \nCo. for the Petitioners.\n\nMr.Ravi Kadam, Advocate General with Mr.G.D.Utangale i\/by M\/s.Utangale \n\n\n\n\n                                            \n&amp; Co.for Respondent No.1.\n                              \nMr.Vinod   Bobde,   Senior   Advocate   with   Mr.Sunil   Goel,   Mr.Sachin   Kadam \ni\/by M\/s.Shaunak Satpute &amp; Co. for Respondent No.3.\n                             \nMr.K.K.Singhvi, Senior Advocate for Respondent No.4.\n            \n         \n\n\n\nIn Writ Petition No.2720 of 2008:\n\nMr.S.U.Kamdar,   Senior   Advocate   with   Ms.Alpana   Ghone   and   Mr.Khaitan \n\n\n\n\n\ni\/by M\/s.Anoop Khaitan &amp; Co.for the Petitioners.\n\nMr.J.G.Reddy, Advocate for Respondent No.1.\n\nMr.Himanshu Kode, Advocate with Mr.Anant Upadhyay i\/by M\/s.Shaunak \n\n\n\n\n\nSatpute &amp; Co.for the Applicants in Chamber Summons No.3 of 2008.\n\n\n\n\n                                                       ::: Downloaded on - 09\/06\/2013 15:05:16 :::\n                                               4\n\n\n\n\n                                                 CORAM : D.K.DESHMUKH &amp;\n\n\n\n\n                                                                                      \n                                                                R.G.KETKAR, JJ.\n<\/pre>\n<p>                                                   DATE   : 17th September, 2009.\n<\/p>\n<p>JUDGMENT:      (Per R.G.Ketkar, J.)<\/p>\n<p>    1. All these petitions challenge the order  dated February 6, 2007 passed <\/p>\n<p>      by   the   Chief   Executive   Officer,   Slum   Rehabilitation   Authority   (for <\/p>\n<p>      short &#8220;SRA&#8221;). The controversy in all these petitions relates to the grant <\/p>\n<p>      of   Letter   of   Intent   (for   short   &#8220;LOI&#8221;)   for   implementation   of   Slum <\/p>\n<p>      Rehabilitation   Scheme   (for   short   &#8220;Scheme&#8221;)   on   a   plot   bearing   CTS <\/p>\n<p>      Nos.439   to   442,   443,   444   (part),   447,   451,   452,   453A   and   454A <\/p>\n<p>      situate   at   village   Vile-parle,     Taluka   Andheri,   Mumbai   Suburban <\/p>\n<p>      District  (for  short  the  &#8220;said   plot&#8221;)    of the  proposed   Premnagar  Co-\n<\/p>\n<p>      operative   Housing   Society   (for   short   &#8220;Society),   therefore   all   these <\/p>\n<p>      petitions can be conveniently  disposed of by a common order.      Writ <\/p>\n<p>      petition No.1036 of 2007  is instituted by M\/s.Sigtia Constructions <\/p>\n<p>      Private   Limited   (for   short   &#8220;M\/s.Sigtia&#8221;).  Writ   petition   No.1075   of <\/p>\n<p>      2007  is   instituted   by   Mr.Ramchandra   Mahadev   Jagtap   and   nine <\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                               5<\/span><\/p>\n<p>       Others (for short hereinafter referred to as&#8221;Jagtap &amp; Ors.&#8221;) who are <\/p>\n<p>       eligible   slum   dwellers   and   are   residents   of   the   said   plot.      Writ <\/p>\n<p>       Petition No.1589 of 2007  is instituted by M\/s.Keya Developers and <\/p>\n<p>       Construction   Private   Limited   (for   short   hereinafter   referred   as <\/p>\n<p>       &#8220;M\/s.Keya Developers&#8221;). Writ Petition No.2720 of 2008 is instituted <\/p>\n<p>       by Mr.Chandrakant Sitaram Mane (hereinafter referred to as &#8220;Mane&#8221;), <\/p>\n<p>       challenging the order dated February 6, 2007 passed by the SRA, as <\/p>\n<p>       also for directions to the SRA to choose one of the two competing <\/p>\n<p>       builders and developers in compliance with the directions of the Apex <\/p>\n<p>       Court in its order dated November 7, 2006.   It is interesting to note <\/p>\n<p>       that Mr.Mane did not  implead M\/s.Sigtia and M\/s.Keya Developers as <\/p>\n<p>       also the Society in the petition.\n<\/p>\n<p>    2. The   controvery   in   all   these   petitions   arise   in   the   following <\/p>\n<p>       circumstances:-\n<\/p>\n<p>             Under the General Body Resolution dated October 19, 2000 the <\/p>\n<p>       proposed   society   appointed   M\/s.Sigtia   as   developer   and   Mr.Bipin <\/p>\n<p>       Khatri   as   an   Architect   for   rehabilitation   of   the   slum   known   as <\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                          6<\/span><\/p>\n<p>    Premnagar situate at Vile Parle on the said plot. The said plot belongs <\/p>\n<p>    to   the   Municipal   Corporation   of   Greater   Mumbai   (MCGM).   By <\/p>\n<p>    notification   dated   May   24,   2001   published   in   the   Maharashtra <\/p>\n<p>    Government   Gazette   on   August   2,   2001,   the   Additional   Collector <\/p>\n<p>    (Encroachment)   and   the   Competent   Authority,   Mumbai   Suburban <\/p>\n<p>    District declared Premnagar Co-operative Housing Society (proposed), <\/p>\n<p>    S.V.Road, Vile-parle (W), Mumbai as slum area  under Section 4 of the <\/p>\n<p>    Maharashtra   Slum   Areas   (Improvement,   Clearance   and   Re-\n<\/p>\n<p>    development) Act, 1971 (for short hereinafter referred to as &#8220;Act&#8221;).\n<\/p>\n<p>    The general body of the Society passed a resolution on September 8, <\/p>\n<p>    2001   noting   that   Mr.Vinodbhai   Sigtia   (Director   of   M\/s.Sigtia)   took <\/p>\n<p>    efforts in declaring their area as slum area and the Resolution Nos.5 <\/p>\n<p>    and 6 of October 19, 2000 were reaffirmed.  Agreement was executed <\/p>\n<p>    between the slum dwellers on the suit plot being the party of one part <\/p>\n<p>    and M\/s.Sigtia being the party of other part on September 15, 2001.\n<\/p>\n<p>    Clause 4   of the Agreement deals with the &#8216;Appointment&#8217; and reads <\/p>\n<p>    thus:\n<\/p>\n<blockquote><p>                &#8220;Subject to acceptance by the SRA, the party of   other part<br \/>\n                will be treated as a developer to develop the property as <\/p>\n<p><span class=\"hidden_text\">                                                        ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                                7<\/span><\/p>\n<p>                    per SRA&#8221;.\n<\/p><\/blockquote>\n<p>       Clause 5 thereof provides for &#8216;Consent&#8217; and reads thus:\n<\/p>\n<p>                  &#8220;Slum-dwellers hereby agree and give consent to participate<br \/>\n                  in SRA as per DCR (10), Appendix IV&#8221;.\n<\/p>\n<p>       Clause   6(i)  casts   obligation   on   developer   to   appoint   suitable <\/p>\n<p>       architect. Clause 7(i) casts obligation on the slum dwellers to confirm <\/p>\n<p>       that they have not entered into any writing or arrangement for Slum <\/p>\n<p>       Rehabilitation Scheme of the said slum, with any other person except <\/p>\n<p>       with the party of the  other part.  Clause 12  thereof states that the <\/p>\n<p>       agreement   is  an   irrevocable   consent   given   by   the   slum   dwellers   in <\/p>\n<p>       favour of the party of the other part for implementation of the SRS <\/p>\n<p>       and an Agreement and consent to participate in  SRS.\n<\/p>\n<p>    3. It   is   the   case   of   M\/s.Sigtia   that   their   Architect   submitted   proposal <\/p>\n<p>       alongwith Annexure I, II and III complete in all respects to the SRA on <\/p>\n<p>       September 11, 2002. After ensuring the completeness of the proposal <\/p>\n<p>       submitted, the computerised File Number is allotted to the Scheme.\n<\/p>\n<p><span class=\"hidden_text\">                                                               ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             8<\/span><\/p>\n<p>    The Assistant Engineer, SRA, found M\/s.Sigtia&#8217;s proposal in order and <\/p>\n<p>    accordingly gave computerised No.K-W\/MCGM\/0008\/20021003 and <\/p>\n<p>    directed     payment   of   scrutiny   fees   for   Annexures   I,   II   and   III   as <\/p>\n<p>    required by clause 11 of the Guidelines. It is the case of M\/s.Sigtia <\/p>\n<p>    that the proposal submitted by them was accepted in terms of clause <\/p>\n<p>    11 thereof and accordingly scrutiny fee of Rs.19,750\/- was paid by <\/p>\n<p>    them. On October 10, 2002, the draft Annexure II was forwarded by <\/p>\n<p>    the   Deputy   Collector,   SRA,     to   the   Additional   Collector <\/p>\n<p>    (Encroachment), who is designated as a sole competent authority for <\/p>\n<p>    deciding   eligibility   for   verification   and   certification   of   Annexure   II.\n<\/p>\n<p>    The affidavit-cum declaration was given by individual slum dwellers <\/p>\n<p>    with their spouse on November 26, 2002 declaring that they will give <\/p>\n<p>    cooperation   to   the   Architect   and   M\/s.Sigtia.     Individual   tripartite <\/p>\n<p>    agreement   was   entered   into   between   the   Society,   M\/s.Sigtia   and <\/p>\n<p>    individual slum dwellers  with  their spouse  on November 26, 2002.\n<\/p>\n<p>    Clause   (xv)   of   the   said   agreement   recorded   that   for   executing   the <\/p>\n<p>    work,  an irrevocable power of attorney was given to M\/s.Sigtia. The <\/p>\n<p>    Additional   Collector   (Encroachment),   2nd  Respondent   herein   after <\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                            9<\/span><\/p>\n<p>    visiting   the   site   and   verifying   the   documents,   certified   Annexure   II <\/p>\n<p>    wherein it is noted that out of 565 protected\/ eligible structures, 438 <\/p>\n<p>    slum dwellers had given consent to M\/s.Sigtia for the scheme which <\/p>\n<p>    was more than 77% as against required 70% as per clause 2 of the <\/p>\n<p>    Guidelines.     On   February   24,   2004   the   Finance   Controller   of   SRA <\/p>\n<p>    approved   M\/s.Sigtia&#8217;s   Annexure   III   and   certified   that   they   are <\/p>\n<p>    financially  sound  for  implementing    the   Scheme.    On  February  26, <\/p>\n<p>    2004 the society gave an undertaking on solemn affirmation that it is <\/p>\n<p>    satisfied with the performance  of M\/s.Sigtia and they would continue <\/p>\n<p>    with them and the Architect till the project is completed. The Society <\/p>\n<p>    executed   irrevocable     power   of   attorney   in   favour   of   M\/s.Sigtia <\/p>\n<p>    confirming earlier irrevocable power of attorney dated April 23, 2002.\n<\/p>\n<p>    It recorded that due to sustained efforts of the Directors of M\/s.Sigtia, <\/p>\n<p>    a lot of progress was achieved and the Society was awaiting issuance <\/p>\n<p>    of LOI. While the SRA was in process of issuing the LOI to M\/s.Sigtia, <\/p>\n<p>    Mr.Jagtap   &amp;   Others   instituted   Writ   Petition   No.988   of   2004   in   this <\/p>\n<p>    Court on March 29, 2004, questioning among others (i) the election <\/p>\n<p>    of the office bearers of the Society, (ii) Annexure II issued in favour of <\/p>\n<p><span class=\"hidden_text\">                                                           ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                            10<\/span><\/p>\n<p>      the Society, (iii) 70% consent of Slum dwellers in favour of M\/s.Sigtia <\/p>\n<p>      and (iv) Technical and financial competence of M\/s.Sigtia.\n<\/p>\n<p>    4. The   SRA   issued   supplementary   Annexure   II   on   April   16,   2004 <\/p>\n<p>      excluding portion of land covered by the Playground Reservation and <\/p>\n<p>      hutments situate thereon from the earlier Annexure II, in view of the <\/p>\n<p>      orders   passed   by   this     Court   in   the   proceedings   restraining   the <\/p>\n<p>      utilisation   of   green     spaces   for   SRA   projects.     As   per   this <\/p>\n<p>      supplementary Annexure II, there are total 943 structures on the said <\/p>\n<p>      plot   of   which   442   are   censussed\/protected.       These   are   eligible <\/p>\n<p>      structures     for   allotment   under   the   Scheme.     It   is   the   case   of <\/p>\n<p>      M\/s.Sigtia   that   a   scrutiny   report   was   prepared   by   the     Executive <\/p>\n<p>      Engineer, SRA on May 7, 2004 enclosing therewith draft LOI and was <\/p>\n<p>      submitted to CEO, SRA for his approval. Copy of this was marked to <\/p>\n<p>      Chief Officer, Maharashtra Housing and Area Development Authority <\/p>\n<p>      (MHADA), among other officers. In Writ petition No.988 of 2004 by <\/p>\n<p>      order dated July 1, 2004 this Court directed the SRA to submit the <\/p>\n<p>      report regarding  financial  and  technical  capability of M\/s.Sigtia for <\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                            11<\/span><\/p>\n<p>       implementing the Scheme.   On July 28, 2004 the CEO of SRA, after <\/p>\n<p>       hearing all the parties in the said petition, submitted a report to this <\/p>\n<p>       Court. In the said report it was concluded that M\/s.Sigtia has financial <\/p>\n<p>       and   technical   expertise   and   has   complied   with   both   conditions   of <\/p>\n<p>       Annexure III. Report also recorded submissions made by the Advocate <\/p>\n<p>       on behalf of the Society before the SRA that the Society was satisfied <\/p>\n<p>       with the progress of the project undertaken by M\/s.Sigtia. On August <\/p>\n<p>       21, 2004, the Executive Enginer III of SRA resubmitted the draft LOI <\/p>\n<p>       to the CEO of the SRA for his approval  after the Chief Minister&#8217;s stay <\/p>\n<p>       order   was   vacated.     On   September   15,   2004   the   CEO   made <\/p>\n<p>       endorsement to the following effect:\n<\/p>\n<blockquote><p>                   &#8220;The High Court had asked CEO SRA for certain opinion.\n<\/p><\/blockquote>\n<blockquote><p>                   We are aware that the Scheme is subjudice.  It will be better<br \/>\n                   if we await the judgment of the Hon&#8217;ble High Court&#8221;.\n<\/p><\/blockquote>\n<p>    5. By   judgment   and   order   dated   March   11,   2005   this   Court   finally <\/p>\n<p>       disposed   of   Writ   Petition   No.988   of   2004.   This   Court   recorded <\/p>\n<p>       submissions  made  on behalf of the  petitioners therein to  the  effect <\/p>\n<p>       that   the   Committee   Members   of   the   Society   in   collusion     with <\/p>\n<p><span class=\"hidden_text\">                                                           ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           12<\/span><\/p>\n<p>    M\/s.Sigtia   defrauded   the   residents   of   the   Society;   that     the   office <\/p>\n<p>    bearers  of the Society were not elected by the General Body; that no <\/p>\n<p>    General Body meetings were held by the Society, nor the  election of <\/p>\n<p>    the   Managing   Committee   was   held.     The   Court   also   noted   the <\/p>\n<p>    submissions  made on behalf of the petitioners therein that 70% of the <\/p>\n<p>    eligible slum dwellers have not supported the Scheme.  On the other <\/p>\n<p>    hand, on behalf of the Society it was submitted that it had taken all <\/p>\n<p>    the   necessary   precaution   and   after   considerable   efforts   ultimately <\/p>\n<p>    approached the SRA and are now waiting anxiously for allotment of <\/p>\n<p>    tenements. This Court recorded that the SRA was satisfied that the <\/p>\n<p>    requisite   70%   occupiers   of   the   slum   area   have   come   forward   and <\/p>\n<p>    reposed confidence in M\/s.Sigtia. Even the apprehension raised by the <\/p>\n<p>    petitioners therein about the capacity and capability of M\/s.Sigtia was <\/p>\n<p>    taken care of by calling upon the CEO of SRA to once again verify <\/p>\n<p>    and submit report. The Court also directed M\/s.Sigtia to deposit an <\/p>\n<p>    amount of Rs.2.50 crores as Interest Free Security Deposit so as to <\/p>\n<p>    ensure   the   implementation   of   the   Scheme.     Thus   all   the   requisite <\/p>\n<p>    measures for protecting the interest of the eligible slum dwellers were <\/p>\n<p><span class=\"hidden_text\">                                                           ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           13<\/span><\/p>\n<p>      taken and ultimately this Court dismissed the writ petition.\n<\/p>\n<p>    6. As noted earlier, on September 15, 2004 the CEO of SRA made an <\/p>\n<p>      endorsement that since the matter is subjudice  before this Court they <\/p>\n<p>      would await the judgment. Even after the disposal of the writ petition <\/p>\n<p>      No.988 of 2004 on March 11, 2005, the SRA   did not issue the LOI <\/p>\n<p>      though   all   the   requisite   formalities   were   completed.   Out   of   nine <\/p>\n<p>      petitioners in Writ Petition No.988 of 2004, Nazir Khan filed Special <\/p>\n<p>      Leave Petition, being SLP(C) No.11318 of 2005 before the Apex Court <\/p>\n<p>      on May 13, 2005 against the decision of this Court dated March 11, <\/p>\n<p>      2005  in Writ Petition  No.988  of  2004.  On July  18,   2005 the  Apex <\/p>\n<p>      Court issued notice and granted stay to this Court&#8217;s order dated March <\/p>\n<p>      11, 2005.  The said SLP was withdrawn on September 26, 2005.  Four <\/p>\n<p>      other petitioners out of the petitioners in Writ Petition No.988 of 2004 <\/p>\n<p>      filed SLP No.19848 of 2005 and obtained interim stay on September <\/p>\n<p>      19, 2005 from the Apex Court. In view of this stay order, M\/s.Sigtia <\/p>\n<p>      could not take any further steps towards the implementation of the <\/p>\n<p>      Scheme.   It appears that in that SLP the Society filed an application <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             14<\/span><\/p>\n<p>       being I.A.No.5 praying for issuance of direction to the SRA to consider <\/p>\n<p>       and sanction the Scheme prepared by the Society alongwith M\/s.Keya <\/p>\n<p>       Developers. It further appears that the said I.A.was dismissed.   The <\/p>\n<p>       SRA had filed affidavit in SLP No.19848 of 2005 on January 4, 2006 <\/p>\n<p>       interalia contending that it had not taken cognizance of letter dated <\/p>\n<p>       June 6, 2005 of the Society alleging that the development agreement <\/p>\n<p>       in favour of M\/s.Sigtia was terminated.   Eventually, SLP No.19848 of <\/p>\n<p>       2005 was dismissed as withdrawn on April 13, 2006.\n<\/p>\n<p>    7. During   pendency   of   SLP   19848   of   2005,   on   behalf   of   the   Society <\/p>\n<p>       notices dated April 26, 2005 and June 6, 2005 purporting to revoke <\/p>\n<p>       the development agreement and the power of attorney executed in <\/p>\n<p>       favour of M\/s.Sigtia were given.    This was replied by M\/s.Sigtia on <\/p>\n<p>       June 15, 2005 questioning the authority of the persons purporting to <\/p>\n<p>       terminate and revoke the said development agreement and power of <\/p>\n<p>       attorney. Since the SRA was not taking further steps of issuance of the <\/p>\n<p>       LOI   M\/s.Sigtia made a representation to the State Government on <\/p>\n<p>       June   10,   2005.     Before   the   Principal   Secretary   of   the     Housing <\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                            15<\/span><\/p>\n<p>      Department, Government of Maharashtra, the Chief Executive Officer <\/p>\n<p>      of the  SRA, representatives of the Society and the representatives of <\/p>\n<p>      M\/s.Sigtia among others were present. After carefully considering the <\/p>\n<p>      documents presented before him and after hearing all the parties,  the <\/p>\n<p>      Principal Secretary   passed an order on June 20, 2005 directing the <\/p>\n<p>      SRA to issue LOI with further directions to the CEO   of SRA as also <\/p>\n<p>      M\/s.Sigtia   to   ensure   compliance   of   the   order   of   this   Court   dated <\/p>\n<p>      March 11, 2005 passed in Writ Petition No.988 of 2004.  This order is <\/p>\n<p>      not questioned by anybody till date.\n<\/p>\n<p>    8. As noted earlier, the second SLP was dismissed as withdrawn on April <\/p>\n<p>      13,   2006.   After   dismissal   of   the   SLP   and   vacation   of   the   stay, <\/p>\n<p>      M\/s.Sigtia wrote to the SRA on April 25, 2006 offering to deposit Rs.\n<\/p>\n<p>      2.5 crores as Interest Free Security Deposit as directed by this Court <\/p>\n<p>      on March 11, 2005.  M\/s.Sigtia requested the SRA to issue LOI. It is at <\/p>\n<p>      this stage the Writ Petition No.1277 of 2006 was filed in this Court by <\/p>\n<p>      Jagtap and nine others against the CEO of SRA being the Respondent <\/p>\n<p>      No.1,   and   the   Society   being   the   Respondent   No.2,   M\/s.Keya <\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             16<\/span><\/p>\n<p>      Developers   being   the   Respondent   No.3   and   the   MCGM   being   the <\/p>\n<p>      Respondent NO.4.  M\/s.Sigtia were not made party in this proceeding.\n<\/p>\n<p>      One of the prayers in that petition was to the following effect:-\n<\/p>\n<blockquote><p>                 &#8220;(a)   to   issue   writ   of   certiorari     or   any   other   writ,<br \/>\n                 order\/direction   in   the   nature   of   certiorari   against   the<br \/>\n                 Respondent No.1   (CEO of SRA)   to consider the proposal<br \/>\n                 submitted by Respondent No.3 (M\/s.Keya Developers) and <\/p>\n<p>                 to issue letter of intent (LOI) for redevelopment of the said<br \/>\n                 property in favour of Respondent No.3.\n<\/p><\/blockquote>\n<p>    9. It is relevant to note here that before the Apex Court the SRA had <\/p>\n<p>      made   an   affidavit   on   January   4,   2006   in   SLP   No.19848   of   2005 <\/p>\n<p>      solemnly affirming that it had not   taken cognizance of letter dated <\/p>\n<p>      June   6,   2005   issued   by   the   Society   purporting   to   terminate   the <\/p>\n<p>      development agreement in favour of M\/s.Sigtia.   The SRA however <\/p>\n<p>      did   not   point   out   before   this   Court   that   M\/s.Sigtia   were   necessary <\/p>\n<p>      party.  It further appears that the SRA also did not file any affidavit in <\/p>\n<p>      that petition.   On May 4, 2006 this Court (F.I.Rebello and Anoop V.\n<\/p>\n<p>      Mohta, JJ.) disposed of the said writ petition by passing  order to the <\/p>\n<p>      following effect:-\n<\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              17<\/span><\/p>\n<blockquote><p>               &#8220;In the ordinary     course we would not have entertained this<br \/>\n               petition   when   there   is   a   society   who   is   responsible   for   the <\/p>\n<p>               development.     However,   on   behalf   of   Respondent   No.2   the<br \/>\n               learned   counsel   makes   a   statement   that   they   had   already <\/p>\n<p>               communicated to Respondent No.1 to appoint Respondent No.3<br \/>\n               as developer. The Respondent No.1 to call the parties in terms<br \/>\n               of   the   judgment   of   this   court   and   after   hearing   the   parties <\/p>\n<p>               dispose of the application of Respondent No.2 according to law,<br \/>\n               within a period of six weeks from today.&#8221;\n<\/p><\/blockquote>\n<p>    10.We   must   record   the   consensus   among   all   the   learned   counsel <\/p>\n<p>       appearing   for   the   parties   that   the   judgment   referred   in   the   above <\/p>\n<p>       order, is the judgment dated March 11, 2005 passed by this Court in <\/p>\n<p>       Writ   Petition   No.988   of   2004.     Even   otherwise,   this   fact   becomes <\/p>\n<p>       abundantly clear from the perusal of the order of the Hon&#8217;ble Apex <\/p>\n<p>       Court dated November 7, 2006.\n<\/p>\n<p>    11.Jagtap   &amp;   others   preferred   SLP   No.10281   of   2006   before   the   Apex <\/p>\n<p>       Court against the order dated May 4, 2006 passed by this Court in <\/p>\n<p>       Writ Petition No.1277 of 2006.  Even before the Apex Court M\/s.Sigtia <\/p>\n<p>       were not made party and once again it appears that the SRA did not <\/p>\n<p>       point out  before the Apex Court that M\/s.Sigtia  were necessary party <\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              18<\/span><\/p>\n<p>      particularly when the order dated May 4, 2006 passed by this Court in <\/p>\n<p>      Writ   Petition   No.1277   of   2006   required   SRA   to   call   the   parties   in <\/p>\n<p>      terms of the judgment of this Court and after hearing the parties to <\/p>\n<p>      dispose of the application of M\/s.Keya Developers. Even the SRA did <\/p>\n<p>      not   point   out   to   the   Apex   Court   that   there   was   no   proposal   of <\/p>\n<p>      M\/s.Keya Developers complete in all respects pending with the SRA.\n<\/p>\n<p>      On June 27, 2006 the Apex Court directed the SRA to issue LOI in <\/p>\n<p>      favour of M\/s.Keya Developers. In the order the Apex Court recorded <\/p>\n<p>      grievance of the petitioner before it that despite no legal impediment, <\/p>\n<p>      SRA was not issuing the LOI in favour of M\/s.Keya Developers despite <\/p>\n<p>      the  request made by the  Society. According to the petitioners, before <\/p>\n<p>      the   Apex   Court,   it   was   merely   giving     replacement   of   previous <\/p>\n<p>      developers M\/s.Sigtia who had not even started the project even after <\/p>\n<p>      almost eight years and whose agreement with the Society had come to <\/p>\n<p>      an end by efflux of time.\n<\/p>\n<p>    12.When M\/s.Sigtia acquired knowledge of the Apex Court order dated <\/p>\n<p>      June 27, 2006 it made an application on June 30, 2006 for recalling <\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           19<\/span><\/p>\n<p>    of  the said order and also an application for impleadment in the SLP <\/p>\n<p>    No.10281 of 2006.  In this application the SRA made an affidavit on <\/p>\n<p>    July 7, 2006 reiterating that it had not taken cognizance of the letters <\/p>\n<p>    dated   April   27,   2005   and   June   6,   2005   purporting   to   terminate <\/p>\n<p>    M\/s.Sigtia&#8217;s appointment as developers. By judgment and order dated <\/p>\n<p>    November 7, 2006 the Apex Court recalled its earlier order dated June <\/p>\n<p>    27, 2006.   It was held that M\/s.Sigtia was necessary party to Writ <\/p>\n<p>    Petition No.1277 of 2006 as well as SLP No.10281 of 2006. The Apex <\/p>\n<p>    Court   recorded   that   the   order   dated   June   20,   2005   passed   by   the <\/p>\n<p>    Principal Secretary, Home Department, was not challenged by anyone <\/p>\n<p>    before any  forum.  The  order dated  March  11,  2005 passed  by this <\/p>\n<p>    Court in Writ Petition No.988 of 2004 had attained finality and that as <\/p>\n<p>    on   April   13,   2006   there   was   no   proposal     of   M\/s.Keya   Developers <\/p>\n<p>    before the SRA.  The Apex Court further recorded the submission that <\/p>\n<p>    the development agreement in favour of M\/s.Sigtia came to an end on <\/p>\n<p>    April 25, 2005 by efflux of time. In this context, it was observed that <\/p>\n<p>    clause 2.2 of the development agreement must be read as a whole and <\/p>\n<p>    when so read, it would be clear that the developer (M\/s.Sigtia) was to <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             20<\/span><\/p>\n<p>    start   the   actual   construction   after   issuance   of   the   commencement <\/p>\n<p>    certificate by the authority. Therefore, the period of three years must <\/p>\n<p>    be   construed   to   begin   from   the   date   when   the   commencement <\/p>\n<p>    certificate   is   issued   and   not   from   the   date   of   the   execution   of   the <\/p>\n<p>    agreement. The Apex Court also noted that even the SRA to whom <\/p>\n<p>    letter dated June 6, 2005 was addressed, in its counter affidavit filed <\/p>\n<p>    before the Apex Court in the said proceeding  stated that they did not <\/p>\n<p>    take   notice   of   the   said   letter   of   termination   as   the   letter   was   not <\/p>\n<p>    supported   by   the   relevant   resolution   of   the   Society.   Eventually,   the <\/p>\n<p>    Apex   Court   passed   order   directing   the   SRA   to   call   two   developers <\/p>\n<p>    viz.M\/s.Keya and M\/s.Sigtia, as directed by the order in Writ Petition <\/p>\n<p>    988 of 2004 dated March 11, 2005 and the order dated May 4, 2006 <\/p>\n<p>    in Writ Petition No.1277 of 2006, and disposed off their applications <\/p>\n<p>    for issuing the LOI and to pass appropriate orders in accordance with <\/p>\n<p>    the   Act   and   also   strictly   following   the   procedure   for   submission, <\/p>\n<p>    processing   and   approval   of   the   Scheme   and   to   award   LOI   to   the <\/p>\n<p>    developer   who   satisfies   the   required   qualifications,   conditions, <\/p>\n<p>    regulations and the provisions of the Act. The SRA was also directed <\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           21<\/span><\/p>\n<p>      to consider as to whether the guidelines and other conditions were <\/p>\n<p>      fulfilled by the slum dwellers\/the society\/as well as by the developers <\/p>\n<p>      and   issue   notice   to   the   society   also   and   hear   them   and   pass <\/p>\n<p>      appropriate   speaking   order   within   three   months   from   the   date   of <\/p>\n<p>      passing of that order.\n<\/p>\n<p>    13.Pursunt to these directions   the SRA heard all the concerned parties <\/p>\n<p>      and passed the impugned order on February 6, 2007. In the order the <\/p>\n<p>      SRA recorded findings to the following effect:\n<\/p>\n<p>      (i) By resolution dated May 29, 2005 passed by the General Body of <\/p>\n<p>      the   Society,   M\/s.Keya   Developers   were   proposed   as   the   new <\/p>\n<p>      developers for implementation of the Scheme. However, records of the <\/p>\n<p>      SRA indicate that M\/s.Keya Developers had submitted their proposal <\/p>\n<p>      with the certified Annexure II which had also been submitted earlier <\/p>\n<p>      by M\/s.Sigtia Developers. In the absence of certification of M\/s.Keya <\/p>\n<p>      Developers   Annexure   II   by   the   Competent   Authority   which   was <\/p>\n<p>      required   to   be   submitted   by   M\/s.Keya   Developers   to   the   SRA <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                          22<\/span><\/p>\n<p>    alongwith   their   proposal,   it   would   not   be   possible   to   conclusively <\/p>\n<p>    establish that M\/s.Keya Developers indeed enjoyed support of more <\/p>\n<p>    than 70% of the eligible slum dwellers of the Society.\n<\/p>\n<p>    (ii)The validity of the General Body Resolution dated May 29, 2005 of <\/p>\n<p>    the Society remains to be finally decided since the proceedings are <\/p>\n<p>    pending before this Court,<\/p>\n<p>    (iii)In   view   of   the   termination     of   development   agreement   by   the <\/p>\n<p>    Society on account of efflux of time, both the contending developers <\/p>\n<p>    vis.M\/s.Sigtia Developers and M\/s.Keya Developers had not fulfilled <\/p>\n<p>    necessary   and   sufficient   conditions   to   be   declared   as   competent <\/p>\n<p>    developer since as of date they had not enjoyed undisputed support of <\/p>\n<p>    more than 70% of eligible slum dwellers by way of both (a) General <\/p>\n<p>    Body Resolution of the   Society which is formed for identification of <\/p>\n<p>    the competent developer, (b) Annexure II independently certified by <\/p>\n<p>    the Competent Authority after observations of due procedure and on <\/p>\n<p>    verification   of   individual   consent   cum   agreement   signed   by   the <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              23<\/span><\/p>\n<p>      eligible slum dwellers.\n<\/p>\n<p>    14.On these among other grounds, SRA ultimately held that in the given <\/p>\n<p>      circumstances identification of the competent developer can be done <\/p>\n<p>      diligently   only   through   verification   of   the   individual   consent   cum <\/p>\n<p>      agreement   signed   by   the   eligible   slum   dwellers   followed   by   fresh <\/p>\n<p>      certification   of   Annexure   II     by   the   Competent   Authority   so   as   to <\/p>\n<p>      conclusively  establish   which   developer  enjoys  the   actual  support   of <\/p>\n<p>      more than 70% of the eligible slum dwellers of the Society.\n<\/p>\n<p>    15.We have heard Mr.Aspi Chinoy, learned Senior Counsel appearing on <\/p>\n<p>      behalf   of   the   Petitioners   in   Writ   Petition   No.1036   of   2007   filed   by <\/p>\n<p>      M\/s.Sigtia.   We   have   also   heard     Mr.Vinod   Bobde,   learned   Senior <\/p>\n<p>      Counsel   appearing   on   behalf   of   M\/s.Sigtia   Developers   being   the <\/p>\n<p>      Respondent No.3 in  Writ Petition No.1589 of 2007 filed by M\/s.Keya <\/p>\n<p>      Developers, and Respondent No.4 in Writ Petition No.1075 of 2007 <\/p>\n<p>      filed   by   Jagtap   and   Others.         We   have   also   heard   Mr.Janak <\/p>\n<p>      Dwarkadas, learned Senior Counsel appearing on behalf of M\/s.Keya <\/p>\n<p><span class=\"hidden_text\">                                                               ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              24<\/span><\/p>\n<p>       Developers,   Mr.Rajeev   Narulla,   learned   Counsel   on   behalf   of   the <\/p>\n<p>       Society,   Mr.R.M.Kadam,   learned   Advocate   General   on   behalf   of   the <\/p>\n<p>       SRA,     Mr.F.Devitre,   learned   Senior   Counsel   appearing   on   behalf   of <\/p>\n<p>       Jagtap   &amp;   Others,   and   Mr.S.U.Kamdar,   learned   Senior   Counsel   on <\/p>\n<p>       behalf of Mr.Mane.\n<\/p>\n<p>    16.In   support   of   Writ   Petition   No.1036   of   2007   filed   by   M\/s.Sigtia <\/p>\n<p>       Developers,   Mr.Chinoy,   learned   Senior   Counsel   submitted   that   the <\/p>\n<p>       SRA exceeded its jurisdiction both in law as well as under the scope of <\/p>\n<p>       the   authority   delineated   by   the   order   of   the   Apex   Court   dated <\/p>\n<p>       November 7, 2006.   The order of the SRA is totally contrary to this <\/p>\n<p>       Court&#8217;s   order   dated   March   11,   2005   as   also   contrary   to   the   Apex <\/p>\n<p>       Court&#8217;s   orders   dated   April   13,   2006   and   November   7,   2006.     He <\/p>\n<p>       submitted that it was not open to the SRA to find out as on date who <\/p>\n<p>       has   the   support   of   70%   of   the   eligible   slum   dwellers.     In   his <\/p>\n<p>       submission,   that   exercise   was   already   done   and   M\/s.Sigtia   had <\/p>\n<p>       fulfilled all the conditions and had submitted proposal complete in all <\/p>\n<p>       respects with Annexure I, II, III. Even after disposal of W.P.No.988 of <\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                          25<\/span><\/p>\n<p>    2004 on March 11, 2005 the SRA ought to have issued LOI  when the <\/p>\n<p>    draft LOI was already prepared and the CEO was awaiting judgment <\/p>\n<p>    of this Court in W.P.No.988 of 2004. It was submitted it was not open <\/p>\n<p>    to the SRA now to start de-novo from the stage of Annexure II which <\/p>\n<p>    was duly certified as far back as on January 23, 2003.   Annexure III <\/p>\n<p>    was duly approved  by  the  Finance  Controller of the  SRA  certifying <\/p>\n<p>    that   M\/s.Sigtia   is   financially   sound   for   implementing   the   Scheme.\n<\/p>\n<p>    That apart, pursuant to this Court&#8217;s order in W.P.No.988 of 2004 the <\/p>\n<p>    CEO of  the SRA submitted report on January 28,  2004 once again <\/p>\n<p>    concluding     the   financial   and   technical   expertise   of   M\/s.Sigtia   and <\/p>\n<p>    that M\/s.Sigtia Developers had complied with both the conditions of <\/p>\n<p>    Annexure III. The filing of second Writ Petition No.1277 of 2006 was <\/p>\n<p>    with a malafide intention  and really speaking the petitioners therein <\/p>\n<p>    misled this Court and also the Apex Court. He submitted that now <\/p>\n<p>    even   the   Apex     Court   recorded   that   M\/s.Sigtia   Developers   were <\/p>\n<p>    necessary  party in Writ Petition No.1277 of 2006 as also  necessary <\/p>\n<p>    party   to   the   SLP   No.10281   of   2006.   He   further   submitted   that <\/p>\n<p>    M\/s.Keya Developers did not submit requisite proposal complete in all <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                            26<\/span><\/p>\n<p>    respects before the SRA so that their claim could be considered by the <\/p>\n<p>    SRA.   Even   in   the   order   dated   November   7,   2006   the   Apex   Court <\/p>\n<p>    recorded   that   as   on   April   13,   2006   M\/s.Keya   Developers   did   not <\/p>\n<p>    submit proposal to the SRA. He emphasised that when the SRA was <\/p>\n<p>    about   to   issue   LOI   in   favour   of   M\/s.Sigtia   Writ   Petition   No.988   of <\/p>\n<p>    2004 was filed in this Court. That was dismissed on March 11, 2005 <\/p>\n<p>    and   eventually   after   dismissal   of   SLP,   the   said   judgment   attained <\/p>\n<p>    finality.   When   M\/s.Sigtia   were   about   to   proceed   further     with   the <\/p>\n<p>    implementation of the Scheme, another Writ Petition was filed being <\/p>\n<p>    Writ   Petition   No.1277   of   2006   behind   the   back   of   M\/s.Sigtia <\/p>\n<p>    Developers. In those proceedings, the SRA did not point out to this <\/p>\n<p>    Court or to the Apex Court that M\/s.Sigtia Developers were necessary <\/p>\n<p>    party. This is more so when the SRA did not take cognizance of the <\/p>\n<p>    letters   purporting   to   terminate   the   development   agreement   of <\/p>\n<p>    M\/s.Sigtia   Developers.       In   his   submission,   all   this   litigation   could <\/p>\n<p>    have been avoided  had the SRA pointed out before this Court in Writ <\/p>\n<p>    Petition   No.1277   of   2006   that   M\/s.Sigtia   were   necessary   party.\n<\/p>\n<p>    Mr.Chinoy   was   at   pains   to   point   out   that   SRA   and   M\/s.Keya <\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              27<\/span><\/p>\n<p>      Developers   are   equally   responsible   for   creation   of   litigation.         He <\/p>\n<p>      further submitted that considering the judgment of this Court dated <\/p>\n<p>      March   11,   2005  in  Writ  Petition No.988  of 2004  as also  the  order <\/p>\n<p>      dated May 4, 2006 in Writ Petition No.1277 of 2006 and the judgment <\/p>\n<p>      of the Apex Court dated November 7, 2006 in the I.A.in SLP No.10281 <\/p>\n<p>      of   2006   the   SRA   has   to   consider   the   proposal   of   M\/s.Sigtia <\/p>\n<p>      Developers, after considering the objections of M\/s.Keya Developers, <\/p>\n<p>      the   Society,   Mr.Jagtap   &amp;   Others,   and   Mr.Mane.     He   submitted   that <\/p>\n<p>      since there is no proposal of M\/s.Keya Developers in the eyes of law, <\/p>\n<p>      there is no question of SRA considering their proposal.\n<\/p>\n<p>    17.Mr.Bobde, learned Senior Counsel while supporting the submissions <\/p>\n<p>      advanced by Mr.Chinoy, invited our attention to the guidelines framed <\/p>\n<p>      by SRA.  He submitted that M\/s.Sigtia Developers carried out servey, <\/p>\n<p>      collected   information   of   eligible   slum   dwellers   and   obtained <\/p>\n<p>      certification from the Additional Collector (Enc.) about the eligibility <\/p>\n<p>      of   the   slum   dwellers.   Once   the   Society   appointed   M\/s.Sigtia <\/p>\n<p>      Developers to implement  the Scheme who in turn appointed Architect <\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           28<\/span><\/p>\n<p>    in   consultation   with   the   Society,   the   role   of   the   Society   becomes <\/p>\n<p>    minimal.  The developer so chosen has to act as promoter in terms of <\/p>\n<p>    Guideline No.6. In terms of Guideline No.7 the promoter has to enter <\/p>\n<p>    into the agreement with every individual slum dweller while putting <\/p>\n<p>    up   the   slum   rehabilitation   proposal   to   the   SRA   for   approval.   The <\/p>\n<p>    Architect appointed by the promoter in consultation with the Society <\/p>\n<p>    has to prepare Plans as per the DCR 33 (10).  As per the Guideline No.<\/p>\n<p>    8 it is expected from the Architect to ensure community participation <\/p>\n<p>    in   preparation   of   the   building   plans.   After   completing   all   the <\/p>\n<p>    formalities, Annexure I, II and III were submitted by their Architect to <\/p>\n<p>    the   SRA.   The   designated   Engineer   of   the   SRA   has   to   ensure <\/p>\n<p>    completeness of the proposal submitted and then computerised File <\/p>\n<p>    Number is allotted to the Scheme which conclusively establishes that <\/p>\n<p>    the proposal as submitted was complete in all respects.  After scrutiny, <\/p>\n<p>    the computerised No.K-W\/MCGM\/0008\/20021003 was given to the <\/p>\n<p>    proposal submitted by M\/s.Sigtia Developers, whereas in respect of <\/p>\n<p>    M\/s.Keya   Developers   no   such   computerised   number   was   allotted <\/p>\n<p>    signifying that the proposal, if any, submitted by M\/s.Keya Developers <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                               29<\/span><\/p>\n<p>      was not complete in all respects and consequently was not at all the <\/p>\n<p>      proposal   in   the   eyes   of   law.     He   also   invited   our   attention   to   the <\/p>\n<p>      Circular No.SRA\/4 dated August 27, 1997 and the relevant portion <\/p>\n<p>      thereof reads thus:-\n<\/p>\n<blockquote><p>          &#8220;&#8230;..It   has   therefore,   become   necessary,   that   henceforth,   the<br \/>\n          Developer\/Architect   will   have   to   submit   the   proposal   to   S.R.A., <\/p>\n<p>          complete in all respects so that they will be in a position to receive<br \/>\n          LOI\/Layout   and   IOA   of   1st   (first)   rehabilitation   building <\/p>\n<p>          simultaneously.  The validity period for all three will be reduced to<br \/>\n          three months only, during which time he has to comply with the<br \/>\n          requirements required for starting of work and come forward with <\/p>\n<p>          the request to obtain C.C.u\/s.44  &amp; 45 of M.R. &amp; T.P.Act. Therefore,<br \/>\n          by direction of C.E.O. (SRA) the proposal which is incomplete for<br \/>\n          grant of approval of Layout\/IOA and approval of 1st rehabilitation <\/p>\n<p>          building will not be allowed to be submitted and will be accepted<br \/>\n          only after annexing all the required  documents for issue of above <\/p>\n<p>          approval. A copy of Annexure required for approval of LOI\/Layout<br \/>\n          and IOA is annexed herewith&#8221;\n<\/p><\/blockquote>\n<p>    18.On the basis of the above circular, Mr.Bobde, learned Senior Counsel <\/p>\n<p>      submitted   that   the   proposal   which   is   incomplete   in   the   grant   of <\/p>\n<p>      approval  of the layout\/intimation of approval and the approval of the <\/p>\n<p>      first rehabilitation building is not to be allowed to be submitted.  The <\/p>\n<p>      proposal of M\/s.Keya Developers which was incomplete ought not to <\/p>\n<p><span class=\"hidden_text\">                                                                ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             30<\/span><\/p>\n<p>       have been allowed to be submitted by the SRA.   He also invited our <\/p>\n<p>       attention   to   Appendix   IV   which   are   applicable   for <\/p>\n<p>       redevelopment\/construction of accommodation for hutment dwellers <\/p>\n<p>       through   the   developer\/co-operative   housing   societies,   and   in <\/p>\n<p>       particular clauses 1.6, 1.7, 2.2.  He submitted that in the instant case, <\/p>\n<p>       the proposal of M\/s.Sigtia stood statutorily approved on March 26, <\/p>\n<p>       2004 in terms of clause 2.2 thereof, which reads thus:-\n<\/p>\n<blockquote><p>              &#8220;The   approval   to   the   Project   shall   be   given   by   the   Slum <\/p>\n<p>              Rehabilitation   Authority   within  a  period  of  30   days  from  the<br \/>\n              date of submission of all relevant documents. In the event of a<br \/>\n              failure   by   Slum   Rehabilitation   Authority   to   do   so,   the   said <\/p>\n<p>              approval   shall   be   deemed   to   have   been   given,   provided   the<br \/>\n              Project is in accordance with the provisions in this Appendix&#8221;.\n<\/p><\/blockquote>\n<p>    19.On   the   other   hand,   Mr.Janak   Dwarkadas,   learned   Senior   Counsel <\/p>\n<p>       submitted   that  the   Society   had   legally   terminated   the   development <\/p>\n<p>       agreement   executed   by   the   Society   in   favour   of   M\/s.Sigtia.   The <\/p>\n<p>       General   Body   of   the   Society   had   passed   a   resolution   appointing <\/p>\n<p>       M\/s.Keya Developers as a promoter who in turn, in consultation with <\/p>\n<p>       the Society appointed Architect. M\/s.Keya Developers has necessary <\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           31<\/span><\/p>\n<p>      support of 70% eligible slum dwellers of the Society.   He submitted <\/p>\n<p>      that   M\/s.Keya   Developers   has   entered   into   an   agreement   with   the <\/p>\n<p>      individual   slum   dwellers   and   has   also   necessary   Annexure   II   duly <\/p>\n<p>      certified   by   the   Competent   Authority   viz.the   Additional   Collector <\/p>\n<p>      (Enc).   He   submitted   that   M\/s.Keya   Developers   had   submitted   a <\/p>\n<p>      proposal to the SRA as would be evident from the reply from SRA on <\/p>\n<p>      the query raised under the Right to Information Act to the effect that <\/p>\n<p>      M\/s.Keya Developers had submitted proposal with SRA.  He therefore <\/p>\n<p>      submitted that   in terms of the orders of this Court dated March 11, <\/p>\n<p>      2005   and   May   4,   2006   and   the   order   of   the   Apex   Court   dated <\/p>\n<p>      November 7, 2006 the SRA is required to consider the  proposal  of <\/p>\n<p>      M\/s.Keya   Developers   as   also   the   proposal   of   M\/s.Sigtia.   He   also <\/p>\n<p>      submits that the impugned order dated February 6, 2007 passed by <\/p>\n<p>      the SRA deserves to be quashed and set   aside with the direction to <\/p>\n<p>      the SRA to consider the proposals in terms of those orders.\n<\/p>\n<p>    20.Mr.Rajeev Narulla, learned Counsel for the Society has supported the <\/p>\n<p>      submissions   advanced by Mr.Janak Dwarkadas and contended that <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                            32<\/span><\/p>\n<p>       the   Society   has   passed   valid   resolution   appointing   M\/s.Keya <\/p>\n<p>       Developers as promoter after terminating the development agreement <\/p>\n<p>       executed in favour of M\/s.Sigtia.  Mr.F.Devitre, learned Senior Counsel <\/p>\n<p>       appearing   of   Mr.Jagtap   &amp;   Others     and   Mr.Kamdar,   learned   Senior <\/p>\n<p>       Counsel appearing for Mr.Mane submitted that the impugned order <\/p>\n<p>       dated February 6, 2007 passed by the SRA deserves to be quashed and <\/p>\n<p>       set aside.\n<\/p>\n<p>    21. During   the   course   of   hearing,   learned   Advocate   General   conceded <\/p>\n<p>       before us that the proposal of M\/s.Keya Developers is not complete in <\/p>\n<p>       all respects. In view of the contention raised by M\/s.Keya Developers <\/p>\n<p>       that they have submitted proposal to the SRA and  the contention of <\/p>\n<p>       M\/s.Sigtia   that   no   such   proposal   is   submitted   by   M\/s.Keya <\/p>\n<p>       Developers, we directed the learned Counsel for the SRA to produce <\/p>\n<p>       the original record for our perusal.   We have ourselves perused   the <\/p>\n<p>       original record and find that under covering letter dated July 16, 2005 <\/p>\n<p>       addressed   by   Mr.Anil   Chavda,   Architect   appointed   by   M\/s.Keya <\/p>\n<p>       Developers,   a   proposal     for   redevelopment   of   the   said   plot   was <\/p>\n<p><span class=\"hidden_text\">                                                           ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                          33<\/span><\/p>\n<p>    submitted, and we find that alongwith that proposal no agreements <\/p>\n<p>    entered into between M\/s.Keya Developers and the individual slum <\/p>\n<p>    dwellers   are   enclosed.   Even   in   the   impugned   order   the   SRA   has <\/p>\n<p>    observed that M\/s.Keya Developers has submitted their proposal with <\/p>\n<p>    certified Annexure II which was also submitted by M\/s.Sigtia. In other <\/p>\n<p>    words the self same Annexure II of M\/s.Sigtia Developers is utilised by <\/p>\n<p>    M\/s.Keya Developers. Considering the Circular dated August 27, 1997 <\/p>\n<p>    extracted   hereinabove,   the   SRA   ought   not   to   have   accepted   the <\/p>\n<p>    incomplete proposal of M\/s.Keya Developers. Even the Apex Court in <\/p>\n<p>    the order dated November 7, 2006 recorded that as on April 13, 2006 <\/p>\n<p>    M\/s.Keya Developers had not submitted a proposal. After satisfying <\/p>\n<p>    ourselves,   we   find   that   as   on   date   the   proposal   of   M\/s.Keya <\/p>\n<p>    Developers is not complete in all respects and cannot be treated as a <\/p>\n<p>    proposal in the eyes of law. We emphasis this fact as in our considered <\/p>\n<p>    opinion the parties to Writ Petition No.1277 of 2006 misled this Court <\/p>\n<p>    in  obtaining  the   order   on  May  4,   2006.   In  fact  the   SRA   being   the <\/p>\n<p>    statutory authority ought to have pointed out to this Court that the <\/p>\n<p>    prayer made in that petition could not have been entertained in the <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           34<\/span><\/p>\n<p>       absence of proposal of M\/s.Keya Developers.   We are further of the <\/p>\n<p>       considered opinion that even the Apex Court was misled by the parties <\/p>\n<p>       before it when it passed the order on June 27, 2006 in SLP No.10281 <\/p>\n<p>       of 2006 directing  issuance  of LOI to M\/s.Keya Developers. The entire <\/p>\n<p>       litigation   from the stage of Writ Petition No.1277 of 2006 onwards <\/p>\n<p>       could have been avoided had the SRA brought these facts before the <\/p>\n<p>       Court.     We are totally disappointed with the manner in which the <\/p>\n<p>       SRA has conducted itself before this Court in Writ Petition No.1277 of <\/p>\n<p>       2006  and  also   before  the  Apex  Court in  SLP  10281  of 2006.     The <\/p>\n<p>       litigation  from Writ Petition No.1277 of 2006 onwards is a creation of <\/p>\n<p>       SRA.\n<\/p>\n<p>    22.The   procedure   for   Submission,   Processing   and   Approval   of     Slum <\/p>\n<p>       Rehabilitation Schemes has been laid down by the State Government.\n<\/p>\n<p>       Clause (1) of this Scheme reads as under:-\n<\/p>\n<p>          &#8220;All slums and pavements whose inhabitants&#8217; names and structures<br \/>\n          appear in the electoral roll prepared with reference to 1st January,<br \/>\n          1995 or a date  prior thereto and who are actual occupants of the<br \/>\n          hutments are eligible for the slum rehabilitation schemes.&#8221;\n<\/p>\n<p>       Perusal of the above clause shows that the slum dwellers whose names <\/p>\n<p><span class=\"hidden_text\">                                                         ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              35<\/span><\/p>\n<p>      appear in the electoral rolls prepared with reference to the date as on <\/p>\n<p>      January 1, 1995 or a date prior thereto, and who are actual occupants <\/p>\n<p>      of the hutments  are eligible for the Slum Rehabilitation Scheme.\n<\/p>\n<p>    23.Clause (2) reads as under:\n<\/p>\n<blockquote><p>         &#8220;70%   or   more   of   the   eligible   hutment-dwellers   in   a   slum   or<br \/>\n         pavement   in   a   viable   stretch     at   one   place   have   to   show   their <\/p>\n<p>         willingness to join slum rehabilitation scheme and come together to<br \/>\n         form   a   co-operative   housing   society     of   all   eligible   hutment-<br \/>\n         dwellers   through   a   resolution   to   that   effect.   The   following <\/p>\n<p>         resolution should be adopted:\n<\/p><\/blockquote>\n<blockquote><p>         (a) Resolution electing a chief promoter.\n<\/p><\/blockquote>\n<blockquote><p>         (b)Resolution     giving   the   chief   promoter   authority   to   apply   for <\/p>\n<p>         reservation of name for co-operative housing society<\/p>\n<\/blockquote>\n<blockquote><p>         (c)To collect share capital (Rs.50\/- per member for slum societies) <\/p>\n<p>         and Rs.1\/- as entrance fee and to open account in Mumbai District<br \/>\n         Central   Co-operative\/Maharashtra   State   Co-operative   Bank   Ltd.<br \/>\n         (any branch).&#8221;\n<\/p><\/blockquote>\n<p>      Perusal   of   clause   (2)   shows   that   atleast   70%   of   such   eligible   slum <\/p>\n<p>      dwellers have to express their willingness to join Slum Rehabilitation <\/p>\n<p>      Scheme and have to come together to form a co-operative housing <\/p>\n<p>      society and all the slum dwellers have to pass a resolution  and elect a <\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                          36<\/span><\/p>\n<p>    Chief   Promoter.     Before   amendment   of   the   guidelines   by   Circular <\/p>\n<p>    dated August 27, 1997 a duty  was cast on the Chief Promoter, officer <\/p>\n<p>    bearers and the members of the proposed society to collect documents <\/p>\n<p>    in relation to the title of the land on which  the slum is situate, as also <\/p>\n<p>    the information about the structure and the slum dwellers   and this <\/p>\n<p>    information has to be filled-in the form,   Annexure II.   Annexure II <\/p>\n<p>    gives details of the land occupied by the slum dwellers, number   of <\/p>\n<p>    and the type of structures such as residential, industrial, commercial <\/p>\n<p>    etc. and the list of eligible and illegible occupants and the consent of <\/p>\n<p>    slum dwellers to join the Scheme. By Circular dated August 27, 1997 <\/p>\n<p>    this procedure has been changed and now even the Architect or the <\/p>\n<p>    Developer can submit Annexure II to the Competent Authority.   The <\/p>\n<p>    relevant   portion   of   the   Circular   dated   August   27,   1997   reads   as <\/p>\n<p>    under:-\n<\/p>\n<p>       &#8220;In   order   to   facilitate   the   disposal   it   has   also   been   decided<br \/>\n       Architect\/Developer or Society hereby may submit Annexure II in <\/p>\n<p>       duplicate, as prepared by them in the prescribed proforma signed<br \/>\n       by   Owner\/Developer\/C.P\/N.G.O.,   a   copy   of   which   will   be<br \/>\n       forwarded to the Competent Authority who issues Annexure II for<br \/>\n       getting it certified.  The proposal will be scrutinized on the basis of<br \/>\n       Annexure-II submitted by the Architect.  However, approval will be<br \/>\n       granted   only   after   receipt   of   certified   Annexure-II   from   the <\/p>\n<p><span class=\"hidden_text\">                                                         ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             37<\/span><\/p>\n<p>         Competent Authority.&#8221;\n<\/p>\n<p>    24.As a result of this amendment of  August 27, 1997 clause (4) of the <\/p>\n<p>      Scheme has also been modified and the relevant portion of that reads <\/p>\n<p>      as under:\n<\/p>\n<p>         &#8220;As a  simplification measure,  this  procedure  is now  discontinued<br \/>\n         and   Annexure-II   format   is   now   required   to   be   filled   up   by   the<br \/>\n         promoter\/co-operative housing society itself for submitting building <\/p>\n<p>         proposal   to   SRA,   so   that   the   scrutiny   of   the   proposal   and<br \/>\n         certification   of   Annexure-II   can   start   simultaneously.   Annexure-II <\/p>\n<p>         needs   to   be   submitted   in   duplicate.   As   a   measure   of   further<br \/>\n         simplification,   Additional   Collector   (Encroachment)   is   being<br \/>\n         designated as the sole Competent Authority for deciding eligibility <\/p>\n<p>         and   for   taking   eviction   action   against   non-participants   in   slum<br \/>\n         rehabilitation scheme.&#8221;\n<\/p>\n<p>      Thus,   now   Annexure   II   can   be   submitted   by   the   Promoter <\/p>\n<p>      i.e.Developer who has been appointed by the Society and the power to <\/p>\n<p>      scrutinize that information contained in Annexure II is now conferred <\/p>\n<p>      on   the   Additional   Collector   (Encroachment)   and   he   is   the   sole <\/p>\n<p>      Competent Authority to hold that enquiry.\n<\/p>\n<p>    25.In the present case, Annexure II was submitted by the Architect of <\/p>\n<p>      M\/s.Sigtia. The Additional Collector after scrutinizing the application <\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           38<\/span><\/p>\n<p>    certified Annexure II submitted by the Architect of M\/s.Sigtia. Perusal <\/p>\n<p>    of clause (7) of the Scheme shows that the Developer\/promoter who <\/p>\n<p>    is   chosen   by   the   Society   has   to   enter   into   agreement   with   every <\/p>\n<p>    eligible slum dweller while putting up the slum rehabilitation proposal <\/p>\n<p>    before   the   Slum   Rehabilitation   Authority   for   approval.   Now,   on <\/p>\n<p>    reading of the Scheme as amended in 1997 the position that emerges <\/p>\n<p>    is this:-\n<\/p>\n<p>       (i)70% of the eligible slum dwellers come together and decide to <\/p>\n<p>       form a Co-operative Society. They  nominate one of them as Chief <\/p>\n<p>       Promoter.   The   proposed   society,   in   case   it   decides   to   get   slum <\/p>\n<p>       developed through a Developer, they identify the Developer;\n<\/p>\n<p>       (ii)The   Developer   so   nominated   enters   into   an   agreement   with <\/p>\n<p>       every eligible slum dwellers;\n<\/p>\n<p>       (iii)The Developer in consultation with the proposed Co-operative <\/p>\n<p>       Housing   Society   of   the   slum   dwellers,   prepares   a   plan   for <\/p>\n<p>       development     of   the   slum   area   as   per   Development   Control <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                         39<\/span><\/p>\n<p>    Regulation 33 (10) and nominates Architect;\n<\/p>\n<p>    (iv) This Architect or the Developer\/promoter himself collects the <\/p>\n<p>    information required  to be included in Annexure I (as per clause 9 <\/p>\n<p>    of   the   Scheme   Annexure   I   gives   details   about   the   ownership   of <\/p>\n<p>    land,   details   of   plot   area,   details   of   existing   hutments   and   their <\/p>\n<p>    type,   computation   of   tenement   density,   extent   and   type   of <\/p>\n<p>    reservations, amenities, FSI available,  number of tenements to be <\/p>\n<p>    constructed including calculation of TDR etc.), and Annexure II.\n<\/p>\n<p>    (v) Power to scrutinize the information contained in Annexures I <\/p>\n<p>    and II is vested solely in the Additional Collector (Encroachment) <\/p>\n<p>    who scrutinizes Annexure I and II;\n<\/p>\n<p>    (vi)   Power   to   scrutinize   Annexure   III   is   with   the   Slum <\/p>\n<p>    Rehabilitation   Authority.   So   far   as   contents   of   Annexure   III   are <\/p>\n<p>    concerned, it is Rule 10 of the Scheme which is relevant,  which <\/p>\n<p>    reads as under:-\n<\/p>\n<p><span class=\"hidden_text\">                                                         ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                          40<\/span><\/p>\n<blockquote><p>            &#8220;Annexure-III  is prescribed to assess the  financial capability of<br \/>\n            the   promoter.   The   items   contained   in   Annexure-III   are   self<br \/>\n            explanatory. Keeping in view the sensitivity of this information, it <\/p>\n<p>            is kept strictly confidential by SRA.&#8221;\n<\/p><\/blockquote>\n<p>      (vii)  Financial capability of the Promoter\/Developer is to be  certified <\/p>\n<p>      by the Slum Rehabilitation Authority and it is only thereafter that the <\/p>\n<p>      stage of issuing the Letter of Intent comes.\n<\/p>\n<p>    26. In so far as present case is concerned, it is common ground that so far <\/p>\n<p>      as M\/s.Sigtia is concerned, Annexure I, II and III submitted by them <\/p>\n<p>      have been duly scrutinized and certified. A challenge was raised after <\/p>\n<p>      scrutiny of Annexure III in this Court by filing a Writ Petition No.988 <\/p>\n<p>      of   2004.   That   petition   has   been   dismissed.   Therefore,   as   a <\/p>\n<p>      consequence  thereof the  Slum Rehabilitation Authority should have <\/p>\n<p>      proceeded to consider the issuance of Letter of Intent.  Because there <\/p>\n<p>      was delay on the part of the SRA in issuing the Letter of Intent the <\/p>\n<p>      Government was approached and it is an admitted position that the <\/p>\n<p>      Government has issued a direction after hearing the Society and the <\/p>\n<p>      Slum Rehabilitation Authority to issue the Letter of Intent in favour of <\/p>\n<p>      M\/s.Sigtia.   That   order   of   the   State   Government   has   not   been <\/p>\n<p><span class=\"hidden_text\">                                                         ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             41<\/span><\/p>\n<p>      challenged   by   anybody   till   this   date.     Even   in   the   order   of   the <\/p>\n<p>      Supreme   Court   the   Supreme   Court   has   also   noted   that,   that   order <\/p>\n<p>      holds the field. What is pertinent to be noted is that the SRA in its <\/p>\n<p>      order which is impugned in the petition does not even refer to the <\/p>\n<p>      order of the State Government directing the SRA to issue Letter of <\/p>\n<p>      Intent in favour of M\/s.Sigtia. In our opinion, the order of the State <\/p>\n<p>      Government which holds the filed was a relevant document, specially <\/p>\n<p>      when   pursuant   to   the   order   of   the   Supreme   Court   the   SRA   is <\/p>\n<p>      considering the question whether the Letter of Intent is to be issued <\/p>\n<p>      in favour of M\/s.Sigtia or not.\n<\/p>\n<p>    27.So far as judgment of the Supreme Court  dated  November 7, 2006 is <\/p>\n<p>      concerned,   a   careful   reading   of   the   judgment   reveals   that   the <\/p>\n<p>      Supreme Court has recorded following findings:\n<\/p>\n<p>         (i)That the agreement between M\/s.Sigtia and the Society has not <\/p>\n<p>         come to end by efflux of time on April 25, 2005;\n<\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                   42<\/span><\/p>\n<p>    (ii)That the SRA stated before the   Supreme Court that it did not <\/p>\n<p>    take any notice of letters of the Society terminating the agreement <\/p>\n<p>    with M\/s.Sigtia dated April 25, 2005 and June 6, 2005;\n<\/p>\n<p>    (iii)That the order dated March 11, 2005 passed by this Court in <\/p>\n<p>    Writ Petition No.988 of 2004 attained finality;\n<\/p>\n<p>    (iv)Till March 13, 2006 the SRA did not have before it any proposal <\/p>\n<p>    submitted by M\/s.Keya Developers;\n<\/p>\n<p>    (v)That M\/s.Sigtia was necessary party to the writ petition being <\/p>\n<p>    W.P.No.1277 of 2006 before this Court and in the SLP No.10281 of <\/p>\n<p>    2006 before the Apex Court;\n<\/p>\n<p>    (vi)That it is for the SRA to decide whether the alleged termination <\/p>\n<p>    of the agreement between the proposed Society and M\/s.Sigtia has <\/p>\n<p>    any effect  on the entitlement or otherwise of the Letter of Intent to <\/p>\n<p>    M\/s.Sigtia;\n<\/p>\n<p><span class=\"hidden_text\">                                                ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                      43<\/span><\/p>\n<p>    (vii)That   at   the   hearings   held   before   the   Principal   Secretary, <\/p>\n<p>    Government of Maharashtra on June 15, 2005, the representatives <\/p>\n<p>    of the proposed Society did not say anything about the purported <\/p>\n<p>    termination of the agreement between M\/s.Sigtia and the proposed <\/p>\n<p>    Society;\n<\/p>\n<p>    (viii)That   the   order   of   the   Principal   Secretary,   Government   of <\/p>\n<p>    Maharashtra directing issuance of Letter of Intent to M\/s.Sigtia has <\/p>\n<p>    gone unchallenged;\n<\/p>\n<p>    (ix)That the Supreme Court has directed the SRA to call M\/s.Sigtia <\/p>\n<p>    and M\/s.Keya Developers for hearing on the question as to whom <\/p>\n<p>    the Letter of Intent is to be issued in terms of the order of  this <\/p>\n<p>    Court dated March 11, 2005 passed in Writ Petition No.988 of 2004 <\/p>\n<p>    and the order dated May 4, 2006 passed in Writ Petition No.1277 <\/p>\n<p>    of 2006.\n<\/p>\n<p><span class=\"hidden_text\">                                                     ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                             44<\/span><\/p>\n<p>    28.So far as the order of this Court in Writ Petition No.988 of 2004 is <\/p>\n<p>      concerned, as per that order, the scrutiny of Annexures I, II and III of <\/p>\n<p>      the   proposal   submitted   by   M\/s.Sigtia   was   over,   and   the   Slum <\/p>\n<p>      Rehabilitatin   Authority   was   to   consider   the   question   of   issuance   of <\/p>\n<p>      Letter of Intent in favour of M\/s.Sigtia. So far as order dated May 4, <\/p>\n<p>      2006 in Writ Petition No.1277 of 2006 is concerned, that order reads <\/p>\n<p>      as under:-\n<\/p>\n<p>         &#8220;In   the   ordinary       course   we   would   not   have   entertained   this<br \/>\n         petition   when   there   is   a   society   who   is   responsible   for   the<br \/>\n         development.   However,   on   behalf   of   Respondent   No.2   their <\/p>\n<p>         learned   counsel   makes   a   statement   that   they   had   already<br \/>\n         communicated to Respondent No.1 to appoint Respondent No.3 as<br \/>\n         developer by Respondent No.2. The Respondent  No.1  to  call the <\/p>\n<p>         parties in terms of the judgment of this court and after hearing the<br \/>\n         parties, dispose of the application of Respondent No.2 according to <\/p>\n<p>         law, within the period of six weeks from today.&#8221;\n<\/p>\n<p>    29. Perusal of the above quoted order makes it clear that by that order the <\/p>\n<p>      Respondent No.1 in that petition i.e.the SRA has been directed to call <\/p>\n<p>      the parties in terms of the judgment of this Court viz.judgment of this <\/p>\n<p>      Court   dated   March   11,   2005   in  Writ  Petition  No.988  of  2004,   and <\/p>\n<p>      after hearing the parties to dispose of the application of Respondent <\/p>\n<p>      No.2 in that petition in accordance with law.  The Respondent No.2 in <\/p>\n<p><span class=\"hidden_text\">                                                            ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                               45<\/span><\/p>\n<p>      that petition was the proposed Society. Thus it becomes necessary to <\/p>\n<p>      find out what was the direction contained in the order of the High <\/p>\n<p>      Court dated  March 11, 2005 passed in Writ Petition No.988 of 2004.\n<\/p>\n<p>      In   this   regard,   in   our   opinion,   Paragraph   No.20   of   that   order   is <\/p>\n<p>      relevant, which reads as under:-\n<\/p>\n<p>         &#8220;In   the   light   of   the   aforesaid   discussion,   in   our   view,   it   is   not<br \/>\n         necessary to either quash and set aside the scheme or issue further <\/p>\n<p>         directions   as   sought   in   the   petition.   Needless   to   state   that   the<br \/>\n         scheme is presently at primary stage. Final approvals have not been <\/p>\n<p>         granted on the own showing of SRA. If SRA decides not to issue<br \/>\n         LOI in favour of Respondent No.7, it will always be open for the<br \/>\n         parties to submit a fresh development scheme. For the present, we <\/p>\n<p>         do not find that this is a fit case for interference with the tentative<br \/>\n         decision of the SRA.&#8221;\n<\/p>\n<p>    30. Perusal of the above paragraph 20 shows that after the judgment of <\/p>\n<p>      the   High   Court,   the   SRA   was   to   consider   the   question   of   granting <\/p>\n<p>      approval to the Scheme pending before the SRA. The Scheme pending <\/p>\n<p>      at   that   time   was   the   Scheme   submitted   by   M\/s.Sigtia,   and   the <\/p>\n<p>      question of submission of another Scheme would have arisen if the <\/p>\n<p>      SRA had decided not to issue Letter of Intent in favour of M\/s.Sigtia.\n<\/p>\n<p>      It is thus clear that the   first issue that the SRA was to consider is <\/p>\n<p>      whether M\/s.Sigtia is entitled to issuance of Letter of Intent. No doubt <\/p>\n<p><span class=\"hidden_text\">                                                                ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              46<\/span><\/p>\n<p>    as per the order of the Supreme Court M\/s.Keya Developers will also <\/p>\n<p>    have to be heard on that issue, but there is no question of the issue <\/p>\n<p>    whether   M\/s.Keya   Developers   is   entitled   to   Letter   of   Intent     being <\/p>\n<p>    considered   unless   and   until   the   SRA   comes   to   the   conclusion   that <\/p>\n<p>    M\/s.Sigtia is not entitled to get the Letter of Intent. In other words, <\/p>\n<p>    the   SRA   will   have   to   first   hear   the   parties   on   the   issue   whether <\/p>\n<p>    M\/s.Sigtia   is   entitled   to   Letter   of   Intent.   If   the   SRA   comes   to   the <\/p>\n<p>    conclusion that M\/s.Sigtia is entitled to Letter of Intent, then that will <\/p>\n<p>    be the end of the matter, and the order of this Court  and the order of <\/p>\n<p>    the   Supreme Court will stand complied with. However, in case the <\/p>\n<p>    SRA comes to the conclusion that M\/s.Sigtia is not entitled to issuance <\/p>\n<p>    of   Letter   of   Intent   then   it   will   have   to   take   up   the   issue   whether <\/p>\n<p>    M\/s.Keya   Developers   is   entitled   to   issuance   of   Letter   of   Intent   for <\/p>\n<p>    consideration. The application of M\/s.Sigtia will have to be heard and <\/p>\n<p>    considered first, and it is only thereafter depending on the result of <\/p>\n<p>    that application, that the application of M\/s.Keya Developers can be <\/p>\n<p>    considered, assuming that M\/s.Keya Developers has made any such <\/p>\n<p>    application   because   we   have   recorded   a   finding   above   that   no <\/p>\n<p><span class=\"hidden_text\">                                                               ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              47<\/span><\/p>\n<p>      complete   application   submitted   by   M\/s.Keya   Developers   is   on   the <\/p>\n<p>      original   record.   No   doubt,   while   considering   the   question   whether <\/p>\n<p>      M\/s.Sigtia   is   entitled   to   issuance   of   Letter   of   Intent,   the   question <\/p>\n<p>      whether   the   agreement   in   favour   of   M\/s.Sigtia   has   been   validly <\/p>\n<p>      terminated or not will have be be considered.\n<\/p>\n<p>    31. We have to note here that before us it was clearly submitted that in <\/p>\n<p>      the Scheme which is framed by the State Government the proposed <\/p>\n<p>      Society does not enter into any agreement with the Developer. The <\/p>\n<p>      Developer has to enter into the agreement with the eligible individual <\/p>\n<p>      slum   dwellers,   and   as   the   agreement   between   the   Society   and   the <\/p>\n<p>      Developer is not contemplated there is no question of appointment of <\/p>\n<p>      the Developer coming to an end because of any resolution passed by <\/p>\n<p>      the   proposed   Housing   Society.     It   was   also   submitted   that   in   the <\/p>\n<p>      present case M\/s.Sigtia has in fact entered into   agreement with the <\/p>\n<p>      eligible  individual  slum  dwellers    and   it  is not  anybody&#8217;s  case  that <\/p>\n<p>      those   agreements  have   been  terminated   by  eligible   individual   slum <\/p>\n<p>      dwellers.     It   was   also   argued   that   as   the   eligible   individual   slum <\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              48<\/span><\/p>\n<p>      dwellers     have   entered   into   the   agreement   with   M\/s.Sigtia,   unless <\/p>\n<p>      such   slum   dwellers   terminate   the   agreement   entered   into   by   them <\/p>\n<p>      with M\/s.Sigtia in accordance with law, they cannot enter into similar <\/p>\n<p>      agreement with any other person.       It was also submitted that the <\/p>\n<p>      proposed Housing Society which is yet to be registered does not exist <\/p>\n<p>      independently of its members,   and therefore, no resolution passed by <\/p>\n<p>      such body has any validity, unless and until each and every person <\/p>\n<p>      who   have   decided   to   join   in   the   formation   of   the   Soceity   joins   in <\/p>\n<p>      passing the resolution.  However, we do not propose to go into these <\/p>\n<p>      questions because these question can be raised by the parties if they <\/p>\n<p>      are   so   advised  before  the  SRA,  and  while  deciding  the  question  of <\/p>\n<p>      entitlement of M\/s.Sigtia to the issuance of Letter of Intent the SRA <\/p>\n<p>      will have to decide these issues also.\n<\/p>\n<p>    32.In our opinion, the impugned order dated February 6, 2007 passed by <\/p>\n<p>      the SRA is unsustainable. The approach of the SRA to find out as on <\/p>\n<p>      date who has support of 70% eligible slum dwellers is unsustainable.\n<\/p>\n<p>      In our opinion, that stage was already over and on record there is a <\/p>\n<p><span class=\"hidden_text\">                                                               ::: Downloaded on &#8211; 09\/06\/2013 15:05:16 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           49<\/span><\/p>\n<p>      complete proposal of M\/s.Sigtia Developers.\n<\/p>\n<p>    33.In   our opinion, the impugned order is liable to be quashed and set <\/p>\n<p>      aside.   Accordingly,   the   impugned   order   is   quashed   and   set   aside.\n<\/p>\n<p>      Matter is remanded to the SRA. The SRA to decide the proposal of <\/p>\n<p>      M\/s.Sigtia Developers  in  terms  of  the  order dated  March  11,  2005 <\/p>\n<p>      passed in Writ Petition No.988 of 2004 as also the order  dated May 4, <\/p>\n<p>      2006 passed by this Court in Writ Petition No.1277 of 2006, and the <\/p>\n<p>      order dated November 7, 2006 passed by the Apex Court in SLP No.<\/p>\n<p>      10281 of 2006, and on the basis of the record as it stands today, as <\/p>\n<p>      expeditiously  as  possible,  and   in  any  case  within  a period  of  three <\/p>\n<p>      months from today.   All contentions of the parties are expressly kept <\/p>\n<p>      open. The SRA will consider the contentions of the parties and will <\/p>\n<p>      record reasons and give findings. While considering the proposal of <\/p>\n<p>      M\/s.Sigtia   Developers,   the   SRA   will   consider   the   objections   of <\/p>\n<p>      M\/s.Keya Developers, as also of the Society, Mr.Jagtap &amp; Others and <\/p>\n<p>      Mr.Mane.  If the SRA decides not to issue LOI in favour of M.s.Sigtia <\/p>\n<p>      Developers, it will be open for the parties to submit fresh development <\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:17 :::<\/span><br \/>\n<span class=\"hidden_text\">                                           50<\/span><\/p>\n<p>      Scheme as observed by this Court in paragraph No.20 of the judgment <\/p>\n<p>      and   order   dated   March   11,   2005   in  Writ  Petition  No.988   of  2004.\n<\/p>\n<p>      Rule is made absolute in all the Petitions. However, in the facts and <\/p>\n<p>      circumstances of these petitions, there shall be no order as to costs.\n<\/p>\n<p>    34.At this stage request is made by the petitioners in Writ Petition Nos.\n<\/p>\n<p>      1075\/2007 &amp; 1589\/2007 for staying of the operation of this judgment <\/p>\n<p>      &amp; order.  In our opinion, no useful purpose will be served by staying <\/p>\n<p>      the   hearing   of   the   matter   by   the   Slum   Rehabilitation   Authority.\n<\/p>\n<p>      However, as the parties want to approach the Higher Court,  it will be <\/p>\n<p>      appropriate to direct the Slum Rehabilitation Authority not to make its <\/p>\n<p>      final order for a period of six weeks from today, though it can go on <\/p>\n<p>      with the hearing of the matter in terms of this judgment.\n<\/p>\n<p>                                                       (D.K.DESHMUKH,J.)<\/p>\n<p>                                                          (R.G.KETKAR,J.)<\/p>\n<p><span class=\"hidden_text\">                                                          ::: Downloaded on &#8211; 09\/06\/2013 15:05:17 :::<\/span>\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court M\/S.Sigtia Constructions &#8230; vs State Of Maharashtra &amp; Ors on 17 September, 2009 Bench: D.K. Deshmukh, Rajesh G. Ketkar 1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.1036 OF 2007 M\/s.Sigtia Constructions Pvt.Ltd. .. Petitioner V\/s State of Maharashtra &amp; Ors. .. Respondents ALONGWITH WRIT [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11,8],"tags":[],"class_list":["post-179900","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S.Sigtia Constructions ... vs State Of Maharashtra &amp; Ors on 17 September, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-sigtia-constructions-vs-state-of-maharashtra-ors-on-17-september-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S.Sigtia Constructions ... vs State Of Maharashtra &amp; 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