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OSWAL AGRO MILLS LTD. versus HINDUSTAN PETROLEUM CORPORATION LTD. AND OTHERS

Citation: [2013] 17 S.C.R. 447 · Decided: 10-12-2013 · Supreme Court of India · Bench: G.S. SINGHVI · Disposal: Dismissed

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Judgment (excerpt)

(2013] 17 S.C.R. 447 
OSWAL AGRO MILLS LTD. 
v. 
HINDUSTAN PETROLEUM CORPORATION LTD. AND 
OTHERS 
(Civil Appeal No.10933 of 2013) 
DECEMBER 10, 2013 
[G.S. SINGHVI, H.L. GOKHALE AND 
RANJANA PRAKASH DESAI, JJ.] 
A 
B 
Town Planning -
Maharashtra Regional and Town 
C 
Planning Act, 1966 - s. 37(1 AA) - Development Control 
Regulations (OCR) for Greater Mumbai, 1991 - OCR 
57(4)(c), 16 and 64 - Change of land user- Conversion from 
industrial zone to residential/commercial zone - Proposed 
construction of residential-cum-commercial complex of D 
appellant in the vicinity of the Refinery run by respondent no. 1 
- Objections to the construction, from point of view of the 
safety and security of the refinery, and of the would-be 
occupants of the housing complex, as well as their health -
High Court allowed writ petition filed by respondent no.1 and 
E 
quashed sanction accorded by the competent authority of the 
Municipal Corporation of Greater Mumbai for change of user 
and construction of residential and commercial complex and 
directed the Municipal Commissioner to reconsider the 
application of appellant keeping in view the objections raised 
by the Police Department, Ministry of Petroleum, Ministry of 
F 
Environment and Intelligence Bureau and the Security Control 
Regulations - Propriety - Held (per majority): Proper -
Respondent no. 1 could not be faulted for constructions 
permitted by respondent no.2-Municipal Corporation - Merely 
because some constructions were permitted at some distance 
G 
from the refinery of respondent no. 1, does not justify further 
high-rise constructions in the vicinity - Two wrongs do not 
make one right - Respondent no. 1 lodged their objections, 
447 
H 
448 
SUPREME COURT REPORTS [2013] 17 S.C.R. 
A and Municipal Authorities were required to consider the same 
but they did not - Public interest cannot be sacrificed at the 
altar of commercial interests - Security threat clearly placed 
on record, as also the possible danger to the health of the 
occupants of the buildings already constructed and to be 
B constructed as well - No fault found with the judgment of High 
Court. 
Dispute arose with respect to the proposed 
construction of the residential-cum-commercial complex 
of the appellant in the vicinity of the Refinery run by the 
C first respondent Hindustan Petroleum Corporation Ltd. 
('HPCL'). The area in question was earlier designated as 
a Special Industrial Zone, and commercial-cum-residential 
activities were not permitted therein. However, 
subsequently, the appellant had been permitted the 
D change of user (conversion from industrial zone to 
residential/commercial zone) by the Municipal 
Corporation of Greater Mumbai. 
The High Court allowed the writ petition filed by 
E respondent No.1-Hindustan Petroleum Corporation Ltd. 
(HPCL) and quashed the sanction accorded by the 
competent authority of the Municipal Corporation of 
Greater Mumbai for change of user and construction of 
residential and commercial complex and directed the 
F Municipal Commissioner to reconsider the application 
made by the appellant keeping in view the objections 
raised by the Police Department, Ministry of Petroleum, 
Ministry of Environment and Intelligence Bureau and the 
Security Control Regulations issued by the State of 
Maharashtra under Section 37 (1AA) of the Maharashtra 
G Regional and Town Planning Act, 1966. Hence the 
present appeal. 
The principal submission on behalf of the appellant 
was that they had been granted the change of user 
H (conversion from industrial zone to residential/ 
OSWAL AGRO MILLS LTD. v. HINDUSTAN 
449 
PETROLEUM CORPORATION LTD. 
commercial zone) by the Municipal Corporation of Gredter 
A 
Mumbai, under its permission, and since this permission 
was as per OCR 57(4)(c) of the Development Control 
Regulations (OCR) for Greater Mumbai, 1991 framed 
under the Maharashtra Regional and Town Planning Act, 
1966 which allowed such a change of user with the 
B 
previous approval of the Municipal Commissioner, it 
should not be interfered with. The change of user was 
defended by the Municipal Corporation also. 
The first respondent, on the other hand, raised two-
fold contentions viz. that from the point of view of the 
C 
safety and security of the refinery, and of the occupants 
who will be residing in this housing complex, as well as 
their health, this development ought not to be permitted. 
It was their submission that such a construction would 
be contra

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