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JAYESH DHANESH GORAGANDHI versus MUNICIPAL CORPORATION OF GREATER MUMBAI & ORS.

Citation: [2012] 12 S.C.R. 727 · Decided: 04-12-2012 · Supreme Court of India · Bench: K.S. RADHAKRISHNAN · Disposal: Dismissed

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Judgment (excerpt)

[2012] 12 S.C.R. 727 
JAYESH DHANESH GORAGANDHI 
v. 
MUNICIPAL CORPORATION OF GREATER MUMBAI & 
ORS. 
(Civil Appeal Nos.8708-09 of 2012) 
DECEMBER 4, 2012 
[K.S .. RADHAKRISHNAN AND DIPAK MISRA, JJ.] 
Maharashtra Regional and Town Planning Act, 1966 -
A 
B 
Ch. VII, s.126 - Whether after framing a Town Planning C 
Scheme and the final scheme brought into force, after 
reserving plots for public purposes, providing compensation 
under Chapter V of the Act, can the land owner insist that the 
land be acquired only by following the provisions of Chapter 
VII of the Act, especially uls. 126 - Held: s. 126 can apply only D 
when the scheme is not sanctioned and the amount of 
compensation has not been determined by the Arbitrator -
Therefore, in cases where town planning scheme is already 
sanctioned and the property vests in the State Government 
under s.88(a), the question of resorting to s.126(2) does not E 
arise -
On facts, after completing the procedure under 
Chapter V, compensation was offered and paid to the 
appellant and the appeal preferred by the appellant was also 
dismissed by the Tribunal and therefore further acquisition of 
land u/s.126 does not arise. 
F 
The question that arose for consideration in the 
I 
present appeals was whether after framing a Town 
Planning Scheme and the final scheme- brought into 
force, after reserving plots for public purposes, providing 
compensation under Chapter V of the Maharashtra G 
Regional and Town Planning Act, 1966 ('the MRTP Act'), 
can the land owner insist that the land be acquired only 
by following the provisions of Chapter VII of the MRTP 
Act, especially under Section 126 of the MRTP Act. 
727 
H 
728 
SUPREME COURT REPORTS 
[2012] 12 S.C.R. 
A 
Dismissing the appeals, the Court 
HELD: 1.1. The Town Planning Scheme envisaged 
under the MRTP Act is a code by itself and the provisions 
relating to compensation are inbuilt in the scheme itself. 
8 Provisions of Town Planning scheme provide for 
computation of compensation by the Arbitrator and if a 
party is aggrieved by the determination of compensation 
by the arbitrator, a party has a right of appeal before the 
Tribunal under the provisions of the MRTP Act. On the 
C final scheme being sanctioned by the State Government 
under Section 88(a) of the MRTP Act, the property vests 
free of all encumbrances in the State Government and all 
rights of the original holders in the original plot of land 
stand extinguished, the rights of the parties are those 
governed by the provisions of the said scheme and 
D cannot be dealt with outside the scheme. [Para 35] [757-
F-H; 758-A] 
1.2. The Town Planning Scheme, as per the Act, is 
meant for planned developments of certain local areas 
E depending on various factors in order to make available 
utilities and facilities to the general public in the said area. 
For the purpose of said Town Planning Schemes, various 
facilities, utilities and services are required to be provided 
for which certain lands are required. These Town 
F Planning Schemes are for immediate need of the 
community and not for acquisition on deferred basis and 
therefore these sections under Chapter V provide a 
machinery to prepare and develop the area and 
implement such schemes in praesenti. These schemes 
G are not for future projections but for making available 
resources at the immediate time. In view of these 
circumstances, the lands required for implementation of 
various utilities and facilities, services of any public need 
and requirement would be for a public purpose and 
therefore the same have to be made available the 
H 
JAYESH DHANESH GORAGANDHI v. MUNICIPAL CORP. OF 729 
GREATER MUMBAI 
Government immediately so as to implement the scheme. 
A 
[Para 45) [772-C-F] 
1.3. Once the town planning scheme is finally 
sanctioned under Section 86, compensation is finally 
determined by the Arbitrator, the property vests under B 
Section 88 in the State Government, then there is no 
question of resorting to further acquisition under Section 
126(2) of the Act. The words "town planning scheme" 
used in Section 126(2) is in respect of the town planning 
scheme which is yet to be finalized and sanctioned under C 
Section 86 by the State Government as a final scheme for 
inviting objections under Section 67 of the Act. Provisions 
of Section 126(2) providing for acquisition of land, 
therefore will apply only prior to the town planning 
scheme is finally sanctioned under the provision of 
Section

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