Case: BALAJI ASSOCIATES THROUGH ITS PARTNERS Vs. THE STATE OF MAHARASHTRA

the Act, given to the municipal authorities, was increased from 6 months to 12 months by an Amending Act in 2009 (Mah. Act No. 16 of 2009); further, this time period was increased from 12 months to 24 months in 2015 (Mah. Act No. 42 of 2015 w.e.f 29.08.2015). From the aforesaid amendments, it can be noted that the legislative intent was to provide sufficient time for the Municipalities to acquire the land as per the Developmental Plan needed for effective town planning. 17. In any case, the respondents herein have admitted that the fresh proposal was forwarded from the office of respondent no. 3 on 16.12.2016, and the same is currently being processed through the Office of Land Acquisition Officer, Amaravati. From the aforesaid narration, there is no gain saying that the appellant has been denied its right to enjoy benefits of its possession by this protracted litigation. Mere forwarding of the proposal, would not be sufficient under Section 127 (1) of the Act, as the concerned provision distinguishes between step of acquisition of land from step for acquisition of land. 18. In this context, we may refer to the case of Shrirampur Municipal Council, Shrirampur vs. Satyabhamabai Bhimaji Dawkher and Ors., 2013 (5) SCC 627 , wherein a three Judge Bench of this Court has observed that- 42. We are further of the view that the majority in Girnar Traders (2) 1 had rightly observed that steps towards the acquisition would really commence when the State Government takes active steps for the acquisition of the particular piece of land which leads to publication of the declaration under Section 6 of the 1894 Act. Any other interpretation of the scheme of Sections 126 and 127 of the 1966 Act will make the provisions wholly unworkable and leave the landowner at the mercy of the Planning Authority and the State Government. 43. The expression no steps as aforesaid used in Section 127 of the 1966 Act has to be read in the context of the provisions of the 1894 Act and mere passing of a resolution by the Planning Authority or sending of a letter to the Collector or even the State Government cannot be treated as commencement of the proceedings for the acquisition of land under the 1966 Act or the 1894 Act. By enacting Sections 125 to 127 of the 1966 Act, the State Legislature has made a definite departure from the scheme of acquisition enshrined in the 1894 Act. But a holistic reading of these provisions makes it clear that while engrafting the substance of some of the provisions of the 1894 Act in the 1966 Act and leaving out other provisions, the State Legislature has ensured that the landowners/other interested persons, whose land is utilized for execution of the Development plan/Town Planning Scheme, etc., are not left high and dry. This is the reason why time limit of ten years has been prescribed in Section 31(5) and also under Sections 126 and 127 of the 1966 Act for the acquisition of land, with a stipulation that if the land is not acquired within six months of the service of notice under Section 127 or steps are not commenced for acquisition, reservation of the land will be deemed to have lapsed. Shri Naphades interpretation of the scheme of Sections 126 and 127, if accepted, will lead to absurd results and the landowners will be deprived of their right to use the property for an indefinite period without being paid compensation. That would tantamount to depriving the citizens of their property without the sanction of law and would result in violation of Article 300A of the Constitution. 1. Girnar Traders (2) v. State of Maharashtra, (2007) 7 SCC 555 (emphasis supplied) In line with the observations of this Court, we hold that the authorities have not taken sufficient steps towards acquisition in this case. As the 24 months time period stipulated under the law has elapsed, therefore the necessary procedures under Section 127 (1) of the Act, stand satisfied for de-reserving the disputed land. 19. The respondents have finally argued that the fulfilment of requirements under Section 127 (1) of the Act does not automatically de-reserve the land, rather its a discretion, under sub-section 2 of Section 127 of the Act, bestowed on the Government to choose the land to be de-reserved and publish the same in the Official Gazette. Such mandatory reading of the sub-section 2 of Section 127 of the Act, would give unfettered power in the hands of the State to pick and choose. This Court needs to effectively balance the power of eminent domain and the constitutional right of property, which mandates a rational reading of the law, wherein the declaration in the Official Gazette is only consequential and the State needs to follow, if the conditions under sub-section 127 (1) stands satisfied. The usage of On lapsing of reservation, allocation or designation of any land under sub-section (1) in the sub-section 2 of Section 127, clearly points towards the aforesaid interpretation. Moreover, the usage of shall, also indicates the imperative nature of the sub- section, which makes the Government duty bound to publish the same. [refer Labour Commr. M. P. v. Burhanpur Tapti Mill Ltd. & Ors., AIR 1964 SC 1687 ] In this case, we are of the opinion that the requirement under Section 127 (1) are fully satisfied. 20. Our attention has been drawn to certain adverse remarks passed by the High Court against the advocate, who appeared before it for the appellant herein, as contained in line numbers 1 to 7 and 76 to 79 of paragraph 5 of the impugned judgment. In our considered opinion, such adverse remarks were uncalled for, un-necessary and therefore, the same stand expunged from the record. 21. In the light of the aforesaid observations, the inevitable conclusion is that the reservation of the appellants land in question has lapsed and the land has become available to the appellant to be developed as otherwise permissible.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]The statutory provision is clear and categorical. Section 127 (1), mandates that for an owner whose land is reserved, allotted or designated, in terms of final regional plan or developmental plan, needs to serve a notice to inform the municipality and seek its response concerning its interest in acquiring the land, if he wants his property to be de-reserved. As provided under the Section, the time limit to serve such notice accrues from the end date of stipulated period of ten years. Once such notice is served, the municipality has 24 months to acquire or take steps for acquisition of land. If municipality does not take the required measures in accordance with the aforesaid provision, then the land would be de-reserved and the owner can develop the same in accordance with law. Under sub-section 2 of Section 127 of the Act, the Government is required to publish the de-reserved plots in the Official Gazette15. In our considered opinion, the writ courts, usually, should not indulge themselves in such factual findings. However, this case has been dragged too long and any further delay would unduly affect the right to enjoy property and benefits thereof. In any case, this case turns on the aspect of admission on the part of the respondents, that the second notice was received on 02.09.2015. There is no gain saying that the respondents have not denied that their own General Body Meeting Resolution has accepted that the date of receival was 02.09.2015. In this context we need to accept the same. We may note that the High Court has ignored the aforesaid aspect, to rely exclusively on the acknowledgment. In the afore-stated circumstances, reliance on the acknowledgment would not be safe. Having come to this understanding, we can conclude that the second notice can be said to have reached the Municipality on 02.09.2015, after the expiry of the stipulated periodWe may note that the aforesaid time period of 24 months under Section 127 of the Act, given to the municipal authorities, was increased from 6 months to 12 months by an Amending Act in 2009 (Mah. Act No. 16 of 2009); further, this time period was increased from 12 months to 24 months in 2015 (Mah. Act No. 42 of 2015 w.e.f 29.08.2015). From the aforesaid amendments, it can be noted that the legislative intent was to provide sufficient time for the Municipalities to acquire the land as per the Developmental Plan needed for effective town planning17. In any case, the respondents herein have admitted that the fresh proposal was forwarded from the office of respondent no. 3 on 16.12.2016, and the same is currently being processed through the Office of Land Acquisition Officer, Amaravati. From the aforesaid narration, there is no gain saying that the appellant has been denied its right to enjoy benefits of its possession by this protracted litigation. Mere forwarding of the proposal, would not be sufficient under Section 127 (1) of the Act, as the concerned provision distinguishes between step of acquisition of land from step for acquisition of land18. In this context, we may refer to the case of Shrirampur Municipal Council, Shrirampur vs. Satyabhamabai Bhimaji Dawkher and Ors., 2013 (5) SCC 627  , wherein a three Judge Bench of this Court has observed that-42. We are further of the view that the majority in Girnar Traders (2) 1 had rightly observed that steps towards the acquisition would really commence when the State Government takes active steps for the acquisition of the particular piece of land which leads to publication of the declaration under Section 6 of the 1894 Act. Any other interpretation of the scheme of Sections 126 and 127 of the 1966 Act will make the provisions wholly unworkable and leave the landowner at the mercy of the Planning Authority and the State Government43. The expression no steps as aforesaid used in Section 127 of the 1966 Act has to be read in the context of the provisions of the 1894 Act and mere passing of a resolution by the Planning Authority or sending of a letter to the Collector or even the State Government cannot be treated as commencement of the proceedings for the acquisition of land under the 1966 Act or the 1894 Act. By enacting Sections 125 to 127 of the 1966 Act, the State Legislature has made a definite departure from the scheme of acquisition enshrined in the 1894 Act. But a holistic reading of these provisions makes it clear that while engrafting the substance of some of the provisions of the 1894 Act in the 1966 Act and leaving out other provisions, the State Legislature has ensured that the landowners/other interested persons, whose land is utilized for execution of the Development plan/Town Planning Scheme, etc., are not left high and dry. This is the reason why time limit of ten years has been prescribed in Section 31(5) and also under Sections 126 and 127 of the 1966 Act for the acquisition of land, with a stipulation that if the land is not acquired within six months of the service of notice under Section 127 or steps are not commenced for acquisition, reservation of the land will be deemed to have lapsed. Shri Naphades interpretation of the scheme of Sections 126 and 127, if accepted, will lead to absurd results and the landowners will be deprived of their right to use the property for an indefinite period without being paid compensation. That would tantamount to depriving the citizens of their property without the sanction of law and would result in violation of Article 300A of the Constitution1. Girnar Traders (2) v. State of Maharashtra, (2007) 7 SCC 555  In line with the observations of this Court, we hold that the authorities have not taken sufficient steps towards acquisition in this case. As the 24 months time period stipulated under the law has elapsed, therefore the necessary procedures under Section 127 (1) of the Act, stand satisfied for de-reserving the disputed land19. The respondents have finally argued that the fulfilment of requirements under Section 127 (1) of the Act does not automatically de-reserve the land, rather its a discretion, under sub-section 2 of Section 127 of the Act, bestowed on the Government to choose the land to be de-reserved and publish the same in the Official Gazette. Such mandatory reading of the sub-section 2 of Section 127 of the Act, would give unfettered power in the hands of the State to pick and choose. This Court needs to effectively balance the power of eminent domain and the constitutional right of property, which mandates a rational reading of the law, wherein the declaration in the Official Gazette is only consequential and the State needs to follow, if the conditions under sub-section 127 (1) stands satisfied. The usage of On lapsing of reservation, allocation or designation of any land under sub-section (1) in the sub-section 2 of Section 127, clearly points towards the aforesaid interpretation. Moreover, the usage of shall, also indicates the imperative nature of the sub- section, which makes the Government duty bound to publish the same. [refer Labour Commr. M. P. v. Burhanpur Tapti Mill Ltd. & Ors., AIR 1964 SC 1687  ] In this case, we are of the opinion that the requirement under Section 127 (1) are fully satisfied20. Our attention has been drawn to certain adverse remarks passed by the High Court against the advocate, who appeared before it for the appellant herein, as contained in line numbers 1 to 7 and 76 to 79 of paragraph 5 of the impugned judgment. In our considered opinion, such adverse remarks were uncalled for, un-necessary and therefore, the same stand expunged from the record21. In the light of the aforesaid observations, the inevitable conclusion is that the reservation of the appellants land in question has lapsed and the land has become available to the appellant to be developed as otherwise permissible.