GODREJ & BOYCE MANUFACTURING.CO.LTD. versus STATE OF MAHARASHTRA & ORS.

Citation: [2015] 1 S.C.R. 477 · Decided: 21-01-2015 · Supreme Court of India · Bench: V. GOPALA GOWDA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

[2015] 1 S.C.R. 477 
GODREJ & BOYCE MANUFACTURING.CO.LTD. 
A 
v. 
STATE OF MAHARASHTRA & ORS. 
(CIVIL APPEAL N0.1086 OF 2015) 
JANUARY 21, 2015 
[V. GOPALA GOWDA AND R. BANUMATHI, JJ.) 
Maharashtra Regional Town Planning Act, 1966 - s. 127 
B 
- Lapsing of reservation - Appellant's land reserved in the 
Development Plan in the year 1991 for acquisition by the C 
Ministry of Railways for laying additional railway tracks -
Expiry of the period of 10 years specified uls. 127 - Failure 
of respondent no .. 1-State Government to take steps for 
acquisition of thA said land -
Issuance of notice by the 
appellant to the Ministry to acquire the land if needed, else o 
issue clarification to that effect - Also lapse of the period of 6 
months as prescribed u!s. 127 - However, land not de-
reserved - Notification issued by State Governm·ent proposing 
the modification in the Development Plan deleting the 
aforesaid reservation of land and adding reservation for E 
Development Plan Road -
Writ petition by the appellant, 
challenging the Notification - Dismissal of - On appeal, held: 
Reservation of the land in favour of the Railway was deemed 
to be released under the said provision of the MRTP Act -
State Government stated that there was no proposal for F 
acquisition of the land in the Railways in the near future - Land 
reserved for the purpose uls. 127 is lapsed and the appellant 
is entitled for developing the land as it likes -
State 
Government is not empowered to delete the reservation of the 
land from Railway use and to modify the same for 
Development Plan Road in the Development Plan after expiry G 
of 10 years and 6 months notice period was over since the 
appellant acquired the valuable statutory right upon the land 
and the reservation of the same for the proposed formation 
of Railway track lapsed long back - Thus, the Notification is 
477 
H 
478 
SUPREME COURT REPORTS 
[2015] 1 S.C.R. 
A bad in law and is quashed - Order passed by the High Court 
is set aside. 
Allowing the appeal, the Court 
HELD: 1.1 The reservation of the land in favour of the 
B Railway was deemed to be released under the said 
provision of the Maharashtra Regional Town Planning 
Act. Thus, the land reserved for the purpose under 
Section 127 of the MRTP Act, is lapsed and the appellant 
is entitled for developing the land as it likes. [Para 16] 
C [485-F; 486-B] 
1.2 The provisions of Sections 127 and 37(1) of the 
MRTP Act make it clear that the State Government is not 
empowered to delete the reservation of the land involved 
0 
in this case from Railway use and to modify the same for 
Development Plan Road in the Development Plan after 
expiry of 10 years and 6 months notice period was over 
as the appellant has acquired the valuable statutory right 
upon the land and the reservation of the same for the 
E proposed formation of Railway track was lapsed long 
back. Further the respondent No. 2-Ministry of Railways 
vide its letter dated 1.11.2004 has stated that there is no 
proposal for acquisition of land for the purpose of which 
it was reserved. [Para 16] [487-A-C] 
F 
1.3 The High Court did not examine the impugned 
notification from the view point of Section 127 of the 
MRTP Act and interpretation of the said provision made 
in the case of *Girnar Traders case, therefore, giving 
liberty to the appellant by the High Court to file objections 
G to the proposed notification is futile exercise on the part 
of the appellant for the reason that once the purpose of 
the land was reserved has not been utilized for that 
purpose and a valid statutory right is acquired by the land 
owner/interested person after expiry of 10 years from the 
H date of reservation made in the Development Plan and 6 
GODREJ & BOYCE MANUFACTURING.CO.LTD. v. 
479 
STATE OF MAHARASHTRA 
months notice period is also expired, the State 
A 
Government has not commenced the proceedings to 
acquire the land by following the procedure as provided 
under Sections 4 and 6 of the repealed Land Acquisition 
Act, 1894. Therefore, the land which was reserved for the 
above purpose is lapsed and it enures to the benefit of 
B 
the appellant. Therefore, it is not open for the State 
Government to issue the impugned notification 
proposing to modify the Development Plan from deleting 
for the purpose of Railways and adding to the 
Development Plan for the formation of Development Plan c 
Road after lapse of 10 years and expiry of 6 months 
notice served upon the State Governmen
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