PRAKASH AMICHAND SHAH versus STATE OF GUJARAT

Citation: [1982] 1 S.C.R. 81 · Decided: 24-07-1981 · Supreme Court of India · Bench: A.C. GUPTA · Disposal: Dismissed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

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PRAKASH AMICHAND SHAH 
v. 
STATE OF GUJARAT 
July 24, 1981 
[A.C. GUPTA AND A.P. SEN, JJ.] 
Bombay Town Planning Act, 1954-Sections 32, 33, 34, 65 and 69-Scope of. 
Words and phrases-" injurious affection"-Meaning of. 
The Bombay Town Plan·ning Act, 1954 (which was made applicable to the 
State of Gujarat) provides for the compulsory acquisition of land and payment of 
compensation for the Jand so acquired for the development or re-development 
or improvement of the entire area within the jurisdiction of a local authority 
such as a municipal corporation or a municipality. The To\\'Il Planning Scheme 
prepared under the Act may make provision for laying out new streets or roads, 
allotment or reservation of land for roads, open spaces and such other matters 
not inconsistent with the objects of the Act. Before proceeding to acquire any 
land for town planning purposes, a local authority, by resolution, must decJare 
its intention to make a town planning scheme and publish it in the manner 
prescribed. The draft scheme may contain proposals such as to form a re~ 
constituted plot by the alteration of the boundaries of an original plot, 
to 
form a reconstituted plot by the transfer, wholly or partly, of the adjoining 
land, to allot a plot to any owner dispossessed of a land in furtherance of the 
scheme. Any person affected by the scheme may communicate to the local 
authority concerned any objection relating to such scheme. The scheme is then 
forwarded to the State Government for the requisite sanction. 
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The scheme of the Act envisages the appointment of a Town Planning 
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Officer and constitution of a Board of Appeal. It is the duty of the Town 
Planning Officer to draw up a final scheme in accordance with the draft scheme. 
When the final scheme comes into force all lands required by the local authority 
shall vest absolutely in that authority free from all encumbranc('s and a11 rights 
in the original plots which have been reconstituted shall determine and the 
reconstituted plots shall become subject to the rights settled by the Town 
Planning Officer. 
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Seclion 64 (I) enumerates the sums payable or spent and the expenses 
incurred by the local authority which are to be included in the costs of a town 
planning scheme. 
Under section 65 increment means the amount by which at the date of the 
declaration of intention to make a scheme the market value of a final plot cal-
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culated on the basis as if the improvement contemplated in the scheme had 
stood completed on that date. Provision is made in section 67 to make adjust-
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SUPREME COURT REPORTS 
[1982] ! s.c.R. 
ment between the rights to compensation for loss of land suffered by the owner 
and the liability to make contribution to the finance of the scheme. 
Compensa~ 
tion payable to any owner for loss of lands has to be determined on the basis of 
the market value of the land at the date on which the declaration of intention to 
make a scheme was made. Section 69 contemplates that the owner of any 
property or right which is injuriously affected by the n1aking of a town planning 
scheme shall be entitled to obtain con1pensation from the local authority or from 
any person bona fide or partly from such person as the Town Planning Officer 
may in each case determine. 
Section 32 enumerates duties of the Town Planning Officer and section 33 
provides that except in matters arising out of cluses (v}, (vi), (vii), (ix), (x) and 
(xiii) of section 32 (1) every decision of the Town Planning Officer shall be final 
and conclusive and binding on all persons. An appeal from the decision of the 
Town Planning Officer under the six clauses mentioned in section 33 lies to the 
Board of Appeal. 
The Surat Municipal Corporation declared its intention to make a town 
planning scheme under section 22 of the Bombay Town Planning Act, 1954. 
The draft scheme published included an area of 1.37 lac square meters of which 
the appellant was the lessee. 
Dissatisfied with the compensation awarded to him by the Town Planning 
Officer the apportionment of the compensation between the lessor and lessee and 
the propriety of reserving such a large area of land for the scheme the appe1Jant 
preferred an appeal under section 34 read with section 32 (1) of the Act to the 
Board of Appeal. The Board rejected the appeal as being not maintainable on 
the ground that the Act did not provide an appeal from a decision of the Town 
Planning

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