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Anupam Shahakari Griha Nirman Samithi Maryadit, Raipur v. State Of Madhya Pradesh And Others

Madhya Pradesh High Court
Aug 25, 1988
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Structured Summary of the Opinion

Factual and Procedural Background

The petitioner is a co-operative housing society registered under the M.P. Cooperative Societies Act, 1960. The society purchased about 25 acres of agricultural land in village Shankar Nagar by registered sale deeds in 1985–86 after obtaining permission under the Urban Land (Ceiling and Regulation) Act, 1976. Respondent 3 (the Town and Country Development Authority / Raipur Development Authority) declared its intention to prepare a town development scheme (notifications are disputed as to dates). A draft town development scheme in respect of village Shankar Nagar was published in the M.P. Gazette in September 1987 (dates in the record: 4-9-1987 and 11-9-1987).

The petitioner applied to respondent 2 (Regional Joint Director) on 2-6-1986 under Section 29 of the M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973 (the "Adhiniyam") for permission to develop the land. Respondent 2 insisted on a "no objection certificate" (NOC) from respondent 3; the petitioner applied to respondent 3 for an NOC on 1-1-1987, and reminders were sent. Respondent 2 did not communicate a decision within sixty days of the application. Respondent 3 refused to issue the NOC by order dated 16-11-1987 on the ground that a draft scheme had been published and, by order dated 20-11-1987, respondent 2 refused permission for development on the ground that the area came within the draft scheme.

The petitioner filed a petition under Article 226 of the Constitution seeking: (a) quashing of respondent 2's order dated 20-11-1987 and respondent 3's order dated 16-11-1987; (b) a declaration that the draft scheme published in the M.P. Gazette dated 11-9-1987 is invalid and non-existent; and (c) a declaration that permission to develop the land is deemed to have been granted under Section 30(5) of the Adhiniyam.

No separate returns were filed by respondents 1 and 2; respondents adopted the return filed by respondent 3. Respondent 3 contended that the draft scheme was published in accordance with the statute and rules (referring to a declaration published on 6-9-1985 and draft published on 4-9-1987), that the petitioner had been refused an NOC because of Section 53 (publication of draft scheme), and raised points about the competence of the petition and the social composition of the society.

Legal Issues Presented

  1. Whether respondent 2's failure to communicate a decision within sixty days of the petitioner's application (Section 30(5) of the Adhiniyam) resulted in a deemed grant of permission for development.
  2. Whether the draft town development scheme published in September 1987 was valid, having regard to the statutory requirement that the draft be published within two years of the declaration of intention to prepare a scheme and the requirement for simultaneous publication in the Gazette and local newspapers (Rule 18(2)).
  3. Whether respondent 3's refusal to issue a no objection certificate amounted to unlawful discrimination in violation of Article 14 of the Constitution, given that NOCs were issued to other societies/individuals in comparable circumstances.
  4. Whether the petition was competent in view of the appointment of an administrator to manage the affairs of the petitioner society (a procedural/representation question).

Arguments of the Parties

Petitioner's Arguments

  • The petitioner contended that Form VII (prescribed under Rule/Niyam) does not require an NOC from the Town and Country Development Authority to accompany an application for permission; thus respondent 2 wrongly insisted on an NOC and delayed decision-making.
  • Because respondent 2 did not communicate a decision within sixty days of receipt of the application on 2-6-1986, permission was deemed granted under Section 30(5) of the Adhiniyam.
  • The draft town development scheme published in September 1987 is invalid because it was not published within two years of the alleged declaration of intention dated 30-3-1985, and publication in local newspapers required by the rules (Rule 18(2)) was delayed (newspaper publication on 7-11-1987), further vitiating the scheme.
  • The petitioner claimed discriminatory treatment (violation of Article 14) because respondent 3 issued NOCs to other societies/individuals despite the declaration of intention.

Respondents' Arguments (as recorded)

  • Respondent 3's return stated that the declaration of intention to prepare the draft scheme was published on 6-9-1985 (not 30-3-1985), and the draft scheme was published on 4-9-1987, i.e., within two years of the declaration of intention, thereby complying with the statutory time limit.
  • Respondent 3 argued that once the draft scheme was published, an NOC could not be issued in view of Section 53 and that permission under Section 29 could not be granted.
  • Respondent 3 asserted that the petition might be incompetent because an administrator had been appointed to manage the society's affairs, and questioned the society's representation through its chairman.
  • Respondent 3 also disputed the petitioner's characterization of the society as composed of economically weaker sections, noting prior development by the society of other lands for higher income group housing.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of U.P. v. Singhara Singh, AIR 1964 SC 358 Proposition that where a statutory power is given to do a thing in a particular way, it must be done in that way and no other methods are permissible (mandatory procedure must be followed). The court relied on this principle to emphasize that mandatory procedural requirements for publication (timing and manner) must be complied with; failure to comply vitiates the published draft scheme.
Giriwar Prasad v. Dukhu Lal, AIR 1968 SC 90 Held that omission to publish mandatory notifications in required newspapers (as prescribed by statute) brought about non-compliance with the statutory provision and consequent invalidity of resulting actions (no vesting where statutory publication requirements not met). The court treated this case as analogous authority showing that failure to publish in required newspapers in the prescribed manner/time invalidates statutory notifications or schemes; used to support quashing of the draft scheme for non-compliance with Rule 18(2) and related statutory timing.

Court's Reasoning and Analysis

The court's analysis proceeded in these main steps, reflecting application of statutory provisions, the rules, and relevant precedent:

  1. Statutory framework and form requirements: The court examined Section 29 and Section 30 of the Adhiniyam and Niyam 12 (Form VII). It noted that Form VII specifies documents to accompany an application for permission and does not require an NOC from the Town and Country Development Authority. Therefore, respondent 2's insistence on production of an NOC was not supported by the Act or Form VII.
  2. Deemed permission under Section 30(5): Because respondent 2 failed to communicate a decision on the petitioner's application within sixty days from 2-6-1986, the court held that permission was deemed to have been granted under Section 30(5). The court rejected any extension of the 60-day period on the ground that respondent 2 improperly required a document (NOC) that was not prescribed.
  3. Discrimination and comparators: The court observed that respondent 3 had issued NOCs to two housing societies and one individual despite the existence of a declaration of intention to prepare a town development scheme. The court treated this as invidious discrimination, supporting the petitioner's contention that refusal of an NOC to the petitioner in similar circumstances was arbitrary.
  4. Validity of the draft scheme — timing of publication: The petitioner asserted the declaration of intention was published on 30-3-1985 and hence the draft scheme published in September 1987 was beyond the two-year limit under Section 50(3). Respondent 3, in its return, relied on a declaration dated 6-9-1985 and draft published 4-9-1987. The court nonetheless found defect in the publication process.
  5. Validity of the draft scheme — publication in newspapers: The court identified non-compliance with Rule 18(2), which requires publication in the Gazette and in one or more local Hindi newspapers "to give due publicity" and to intimate availability for inspection. Although the Gazette publication occurred in September 1987, the local newspaper publication was on 7-11-1987, two months later. The court treated this failure to publish simultaneously (or within the required manner) as vitiating the draft scheme.
  6. Reliance on Supreme Court authorities: The court relied on State of U.P. v. Singhara Singh to reinforce the proposition that mandatory statutory procedures must be followed exactly. It also relied on Giriwar Prasad v. Dukhu Lal as an example where failure to publish in newspapers rendered the statutory notification ineffective. These precedents were used to support the conclusion that the draft scheme was invalid for non-compliance with mandatory publication requirements.
  7. Relief and ancillary orders: Applying the foregoing, the court concluded that the draft scheme published in respect of village Shankar Nagar was vitiated and quashed. The court also concluded that the petitioner had a deemed permission to develop the land under Section 30(5). The court ordered refund of the outstanding security amount and made no order as to costs.

Holding and Implications

Holding:

  • The petition is allowed.
  • The draft town development scheme in respect of village Shankar Nagar published in the M.P. Gazette in September 1987 is quashed.
  • It is declared that permission to the petitioner for development of its land is deemed to have been granted under Section 30(5) of the Adhiniyam.
  • The outstanding security amount paid by the petitioner shall be refunded.
  • There shall be no order as to costs.

Implications:

  • The immediate consequence is that the petitioner may proceed on the basis of a deemed permission to develop its land, and the draft scheme as published in September 1987 is treated as invalid insofar as it affects the petitioner's land in village Shankar Nagar.
  • The decision rests on statutory interpretation of Form VII and Sections 29–30 and 50, on strict compliance with procedural publication requirements (Rule 18(2)), and on the principle that mandatory procedures must be followed exactly (as established by cited Supreme Court authorities).
  • This opinion does not purport to set out any broader new precedent beyond the application of existing principles; the court applied established authority to the facts before it and confined relief to the petitioner's circumstances. The opinion does not state that it establishes a novel legal principle.

Note: This summary is prepared strictly from the content of the provided opinion. No information beyond that opinion has been incorporated.

Show all summary ...

1. This is a petition under Article 226 of the Constitution for quashing of the order of respondent 2 dated 20-11-1987, refusing permission for development of the land, and the order dated 16-11-1987 of respondent 3, refusing to issue no objection certificate to the petitioner-society for development of the land for housing purposes. The petitioner is also seeking a declaration that the draft scheme published in the M.P. Gazette dated 11-9-1987 be declared invalid, and non-existing and a declaration that there is a deemed permission granted to the petitioner to develop the land.

2. The petitioner is a co-operative housing society registered under the M.P. Cooperative Societies Act, 1960. M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973, (hereafter referred to as the 'Adhiniyam') has been enacted to make provision for planning and development and use of land, to make better provision for the preparation of development plans and zoning plans with a view to ensuring that town planning schemes are made in a proper manner and their execution is made effective to constitute Town and Country Planning Authority for proper implementation of town and country development plan. Under Chap. IV, the State Government may, by notification, constitute planning areas for the purposes of the Act and defines the limits thereof. Section 14 enjoins on the Director to prepare a development plan. Such a development plan for the Raipur City was sanctioned by the State Government on or about 9-9-1976. Chapter VI of the Adhiniyam deals with control of development and use of land. Under Section 24 thereof, the overall control of development and use of the land vests in the State Government and subject to rules framed under the Adhiniyam, the overall control of development and use of land in the planning area shall vest in the Director. The State Government by notification, may apply the said rules to any planning area, from such date, as may be specified therein. Under Section 25, the use and development of the land shall conform to the provisions of the development plan, and Section 26 prohibits development of any land without the permission in writing of the Director. Section 27 provides for development undertaken on behalf of the Union or the State Government. Section 28 deals with development by local authority or by any authority constituted under this Act. Under Section 29, any other person intending to carry out any development of any land shall make an application in writing to the Director for permission in such form and containing such particulars and accompanied by such documents, as may be prescribed. Under Section 30, the Director may grant permission unconditionally or conditionally, or refuse permission by stating the grounds for the same. Under Sub-section (5) if the Director does not communicate his decision, whether to grant or refuse, to grant permission, within sixty days from the date of receipt of application, such permission shall be deemed to have been granted to the applicant on the expiry of sixty days. The Regional Joint Director (respondent 2 has been delegated certain powers of the Director, among others, under Sections 29 and 30 of the Adhiniyam. In exercise of the powers conferred by Section 85 of the Adhiniyam, the State Government has framed the M.P. Nagar Tatha Gram Nivesh Niyam, 1975 (hereafter referred to as the 'Niyam'). Chapter VII deals with the constitution of Town and Country Development Authority. Under Section 38, the State Government may, by notification, establish a Town and Country Development Authority by such name and for such area, as may be specified in the notification. The Raipur Development Authority was constituted under Section 38 by notification dated 7-4-1977. Under Section 50(1) the Town and Country Planning Authority may, at any time, declare its intention to prepare a town development scheme. Under Sub-section (3), not later than two years from such declaration, the Town and Country Development Authority shall prepare a town development scheme in draft form and publish it in such form and manner as may be prescribed, together with a notice inviting objections and suggestions. The Town and Country Development Authority has to prepare final scheme after considering all the objections and suggestions. There are restrictions on use of land and land development, under Section 53, as from the date of publication of the declaration to prepare a town development scheme, save in accordance with the development authorised by the Director, Under Section 54, if the Town and Country Development Authority fails to implement the town development scheme within a period of three years from the date of publication of final scheme, it shall, on the expiry of the said period, lapse.

3. The petitioner's case is that its aims and objects are to provide for its members, who belong to economically weaker sections of the society, plots of land for construction of houses. The society purchased about 25 acres of agricultural land details of which are given in para 2 of the petition, in Patwari Halka No. 110, in village Shankar Nagar, Circle No. 1, Raipur, by registered sale deeds in the year 1985-86 after'obtaining the requisite permission from the competent authority, under the Urban Land (Ceiling and Regulation) Act, 1976. The society was actuated to purchase the said land, since respondent 1, State Government, by its policy decision dated 30-10-1981, decided to encourage housing societies in towns of over two lacs of population that 25% of the available land will be given to the housing societies for construction of houses and if such Government lands are not available, then to acquire land for the societies. Respondent 3 declared its intention to prepare development scheme under Section 50(1) of the Adhiniyam by notification in the M.P. Gazette dated 30-3-1985 for villages Gudiyari, Mowa, Telibandha. Murena, Tikrapara and Shankar Nagar. The draft scheme under Section 53 of the Adhiniyam, in respect of village Shankar Nagar alone was published in the M.P. Gazette dated 11-9-1987. The petitioner then applied to respondent 2, Regional Joint Director, for permission to develop land, on 2-6-1986. The petitioner was told that necessary fees should be deposited, after permission is granted, but on 6-10-1986, the application for permission was filed, since the petitioner did not produce no objection certificate from respondent 3. According to the petitioner, no such certificate is required to be submitted along with the application for permission in Form VII, but, as advised, the petitioner applied for no objection certificate to respondent 3, on 1-1-1987 and reminders were sent on 23-2-1987 and 18-9-1987. However, the petitioner was informed on 16-11-1987 that no such certificate can be issued, as the draft development scheme has already been published, under Section 50(3) of the Adhiniyam. According to the petitioner, the society has been invidiously discriminated and there is violation of its fundamental rights under Article 14 of the Constitution, inasmuch as respondent 3 has issued no objection certificates to two societies and one individual person, after respondent 3 has notified its intention to prepare development scheme on 30-3-1985. Since respondent 2 did not communicate his decision regarding grant or refusal of permission within 60 days of the receipt of the application on 2-6-1986, there was a deemed permission to the petitioner under Section 30(5) of the Act, and the petitioner is entitled to proceed with his development plan of the purchased land. Besides, since the town development scheme in the draft form was not published within 2 years from 30-3-1985, as required under Section 50(3), the draft scheme published on 11-9-1987 was invalid and inoperative. It was also a mandatory requirement under the rules that the draft scheme should also be published in one or two local newspapers, along with the publication in the gazette, but the publication in the local newspaper was after 2 months on 7-11-1987. Therefore, in any case, the draft scheme not being published within two years of 30-3-1985, it is of no avail to respondent 3.

4. No returns have been filed on behalf of respondents 1 and 2, i.e., the State and the Regional Joint Director, but during the course of arguments, the learned Dy. Advocate General, who appeared for all the respondents, contended that respondents 1 and 2 are adopting the return filed by respondent 3. As per return of respondent 3, it declared its intention to prepare the development scheme under Section 50(1) by notification in the M.P. Gazette on 6-9-1985 and thereafter the draft scheme was published, inviting objections and suggestions, in the M.P. Gazette on 4-9-1987, i.e., within two years of its declaration of intention to prepare the draft scheme and as such the draft scheme has been published as per rules. The petitioner has filed its objection on 1-10-1987 and it will be considered under Section 50(5) of the Adhiniyam, before analysing the scheme. Due to oversight, the draft scheme was again published in the gazette on 11-9-1987. The return is silent regarding declaration of intention published in the M.P. Gazette on 30-3-1985, as alleged by the petitioner, but respondent 2 refers to the M.P. Gazette dated 6-9-1985 about declaration of its intention to prepare draft scheme, which means the declaration of intention to prepare the draft scheme was twice published, so also the draft scheme. According to respondent 3, since the draft scheme was published, so no-objection certificate could not be issued to the petitioner, in view of Section 53 the permission was also not granted under Section 29. Respondent 3 also contended that since the administrator has been appointed to manage the affairs of the society, the present petition filed by the Chairman of the Society is not competent. It is also contended that the petitioner-society has already developed 33.65 acres of land for construction of senior HIG, junior HIG, MIG and LIG houses and as such it is not a society of members belonging to weaker sections of the society.

5. After having heard the parties, we are of opinion that this petition has to be allowed. The petitioner applied to respondent 2 for permission to develop the lands purchased, by registered sale deeds in the year 1985-86, under Section 29 of the Adhiniyam, on 2-6-1986.1 Niyam 12 prescribes that the application shall be in Form VII for permission for development of land. Form VII mentions what documents have to accompany the application for permission. There is no mention of enclosing any no-objection certificate from the Town and Country Development Authority, yet respondent 2 wrongly filed the application on the ground that the petitioner has not furnished "no, objection certificate" from respondent 3. There was also correspondence between the parties and respondent 2 was insisting on production of no objection certificate, and ultimately by order dated 20-11-1987, permission has been refused on the pretext that the area comes within the draft scheme of respondent 3. Under Section 30(5) if respondent 2 failed to communicate his decision regarding grant or refusal to grant permission for development of the land within 60 days, on the expiry of the period, permission shall be deemed to have been granted. As such, the petitioner got a deemed permission on the failure of respondent 2 to communicate his decision within 60 days of the receipt of the application. The period of 60 days is not extended under the proviso to this sub-section, merely because respondent 2 was insisting on production of no objection certificate, when no such certificate was required to be produced under the Act and the rules, nor prescribed in Form No. VII. The petitioner did apply to respondent 3 for issue of no objection certificate on 1-1-1987, but the no objection certificate was refused on 16-11-1987, since respondent 3 had published the draft scheme and it was said no such certificate could be issued in view of Section 53. Respondent 3 declared its intention to prepare town development scheme as back as on 30-3-1985, according to the petitioner, and as back as on 6-9-1985, according to respondent 3, yet respondent 3 issued no objection certificate to one Awaiti Co-operative Housing Society, Raipur, on 20-11-1985 and to one Chhattisgarh Regional Housing Co-operative Housing Society on 30-12-1985; and to an individual, Kewalchand Amalokchand Jain on 14-8-1987. In their cases, respondent 3 did not take the plea that no objection certificate could not be issued in view of the declaration of its intention to prepare the town development scheme under Section 50(1). It is a clear case of discrimination in refusing such a certificate to the petitioner for the adjoining area in similar circumstances.

6. Respondent 3 declared its intention to prepare the town development scheme, as per the gazette notification dated 30-3-1985, according to the petitioner, but by gazette notification dated 6-9-1985, according to respondent 3. Since the town development scheme in draft form was not published within two years of 30-3-1985, publication of the draft scheme in the gazette on 11-9-1987, according to the petitioner, and in the gazette dated 4-9-1987, according to respondent 3, is of no avail and the draft scheme so published is invalid and inoperative. Besides, Rule 18(2) requires that the draft scheme shall be published in the M.P. Gazette and in one or more local Hindi newspapers to give due publicity to intimate that the draft town development scheme has been prepared and is available for inspection. Though the draft scheme was published in the gazette on 11-9-1987/4-9-1987, the publication in the local Hindi paper was only on 7-11-1987. There is non-compliance of Rule 18(2) in not simultaneously publishing the draft scheme in the local Hindi newspaper. The publication in the newspaper was after two months. So the draft scheme is vitiated on this account also. The Supreme Court, in State of U.P. v. Singhara Singh, AIR 1964 SC 358, held that where a power is given to do a certain thing in a certain way, the thing must be done in that way or not at all and that the other methods of performance are necessarily forbidden. The Supreme Court, in Giriwar Prasad v. Dukhu Lal, AIR 19.68 SC 90, held that on facts there was no publication in two issues of two newspapers as required by Section 3(2) and the notification was published in the gazette on 14-11-1951. This omission brought about non-compliance with the mandatory provision of Section 3(2), with the result that Section 4(a) did not become applicable at that time and consequently the estate holder continued to be the proprietor and was not divested of his rights in the estate. The Supreme Court was considering the provisions of Bihar Land Reforms Act, 1950. Under Section 3(1) the State Government may, from time to time, by notification declare that the estates or tenures of a proprietor or tenure-holder specified in the notification, have passed to and become vested in the State. Under Sub-section (2), the notification was to be published in official gazette and at least two issues of two newspapers, having circulation in the State of Bihar. Although there was a publication of the notification in the Gazette, but there was no such publication in two local newspapers which was mandatory and, therefore, the Supreme Court held that there was consequently no vesting under Section 4(a) of the Act.

7. With the result, the petition is allowed and the draft scheme in respect of village Shankar Nagar of Raipur, published under Section 50(3) of the Adhiniyam, published in M.P. Gazette dated 4-9-1987/11-9-1987, is quashed and it is declared that there was a deemed permission granted to the petitioner for development of its land under Section 30(5) of the Adhiniyam. Under the circumstances, there shall be no order as to costs. The outstanding security amount shall be refunded to the petitioner.