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MUNICIPAL CORPORATION OF GREATER BOMBAY versus THE INDUSTRIAL DEVELOPMENT AND INVESTMENT CO. PVT. LTD AND ORS.

Citation: [1996] SUPP. 5 S.C.R. 551 · Decided: 06-09-1996 · Supreme Court of India · Bench: K. RAMASWAMY · Disposal: Case Partly allowed

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Judgment (excerpt)

1 
MUNICIPAL CORPORATION OF GREATER BOMBAY 
A 
v. 
THE INDUSTRIAL DEVELOPMENT AND INVESTMENT 
CO. PVT. LTD AND ORS. 
SEPTEMBER 6, 1996 
[K. RAMASWAMY AND S.B. MAJMUDAR, JJ.] 
Land Acquisition : 
B 
Maharashtra Regional and Town Planning Act, 1966: Section 125, 126 C 
and 128. 
Public purpose-Acquisition of land--Change in purpose of land 
user-Effect of-Held : acquisition must have direct connection with public 
purpose for which land was reserved or eannarked-/f public purpose ceased D 
to exist, land got dereserved and acquisition under under S.126 became 
incompetent-{n such an event fresh notification under S.126 was neces-
sary-/nterested person should be vigilant and watchful to seek judicial review 
under Article 226 before acquisition became final and land vested in State 
free from all encumbrances-Once proceedings were complete such challenge E 
could not be entertained-Per Ramaswamy, J: However, land acquired for a 
public purpose may be used for another public purpose-I' er Majmudar, J : 
cha~ge of public purpose of land user must be specifically shown in plan and 
then a fresh proposal under S.126(1) r/w. S. 40(3)(c) should be issued-Bom-
bay Metropolitan Region Development Authority Act, 1974. 
F 
Public purpose-Acquisition of /and-Subsequent change in purpose of 
land user--lnordinate delay in challenge under Art. 226-Notification issued 
under S.126 of Maharashtra Regional and Town Planning Act r/w. S.6 of 
Land Acquisition Act reserving land for public purpose of extension of 
Sewerage Purification Plant-But before acquisition proceedings culminated G 
in award, said land got dereserved and was to be utilised under new plan for 
residential-cum-commercial purposes with no special reservation for 
Municipal Corporation-Thus public purpose envisaged in original notifica-
tion got eclipsed-Held : in such an event fresh notification would be neces-
. sary-/nterested person must be vigilant and watchful to impugn under Article 
226 the original notification before completion of acquisition proceedings. 
H 
551 
A 
B 
552 
SUPREME COURT REPORTS [1996] SUPP. 5 S.C.R. 
Public purpose-Acquisition of land-Scheme of-Held : scheme was 
a comp/et~ code under Maharashtra Regi,onal and Town Planning Act-lt 
was distinct and independent from that under Land Acquisition Act-S. 
126( 1) was a substitute for S.4 of Land Acquisition Act. 
Land Acquisition Act, 1894 : Sections 4 and 6. 
Public purpose-Acquisition of land-Public purpose ceased to 
exist-Held : Per Ramaswamy, J : land acquired may be used for another 
public purpose. 
Land Acquisition-Landlord accepted award and received compensa-
C tion-Challenge of acquisition by sitting tenant-Held : per Ramaswamy, 
!-Tenant could not challenge notification and declaration--Per Majmudar, 
J : in appropriate cases such challenge could be levelled by concerned tenant 
having subsisting interest in land. 
D 
Constitution of India, 1950 : Article 226. 
Public purpose : acquisition of land-Change in land user-Challenge 
of-Delay and !aches-Acquisition proceedings completed, award passed and 
land vested in State free from all encumbrances-field : Proceedings became 
final an4 not open to challenge on ground of violation of statutory require-
E ments such as non-existence of public purpose-Aggrieved person must ap-
proach Court before completion of proceedinw-ft was not the function of 
Land Acquisition Officer to see if notified public purpose existed. 
Writ petitiort--Maintainability of-Delay and /aches-Acquisition of 
land-Notification fo~cquisition proceedings completed and award 
F passed-Thereafter, writ petition filed challengi,ng acquisition-Held : High 
Court should be loathe to quash notification. 
The State Governme111t issued a notification under Section 126(2) of 
the Mahai;ashtra Regional and Town Planning Act, 1966 read with Section Β· 
G 6 of the Land Acquiring Act, 1894 for acquiring lease-hold land of responΒ· 
dents for a public purpose for extension of Water Sewerage Purification 
Plant of the appellant-Corporation as ear-marked in the then Operative 
' 
Sanctioned Development Plan. However, before acquisition proceedings 
qua that the land could culminate into the award, the said land got 
de-reserved for that specified public purpose. With the coming into force 
H 
of the Bombay Metropolitan Region Development Authority Act, 1974 the 
MUNI.CORPN. OF GREAIBR BOMBAYv. JNDL. DEV. AND INVT. CO. PVT. LID.553 
said land was ear-marked for residential-cum-commerc

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