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Civil Property & InheritanceSupreme Court of India

Godrej & Boyce Mftg. Co. Ltd. v. State of Maharashtra & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 1086 of 2015)Decided 21 Jan 2015
Civil Appeal No. 1086 of 2015
Justice V. Gopala Gowda · Justice R. Banumathi

Background

The appellant's land in Vikhroli, Mumbai had been reserved since 1991 in the city's Development Plan for acquisition by the Railways, but the Railways never actually acquired it. After the mandatory 10-year acquisition period under Section 127 of the MRTP Act lapsed, and after the appellant served the statutory notice (to which the Railways replied it had no acquisition plans), the appellant's right to have the reservation lapse and the land released became final. Instead of releasing the land, the State Government later tried to re-reserve the same land for a different public purpose (a road), which the appellant challenged; the Bombay High Court declined to interfere, treating the state's notification as merely "proposed."

Decision Breakdown

The Supreme Court held that once land reservation lapses under Section 127 of the MRTP Act, because the 10-year acquisition period, plus the further 6-month notice period, has expired without acquisition, the owner acquires a vested statutory right to have the land released and to develop it freely. Relying on binding Constitution Bench precedent (Girnar Traders), the Court held the State Government has no power to resurrect or repurpose a reservation on land whose earlier reservation has already lapsed in this manner; the High Court was wrong to treat the State's new notification as merely tentative and non-reviewable at this stage. The Supreme Court therefore allowed the appeal, set aside the High Court's order, and quashed the State's 2008 notification attempting to re-reserve the land for a development-plan road.

Lesson Learnt

Once a statutory reservation on private land lapses because the government failed to acquire it within the legally prescribed time, the owner's right to use that land freely becomes final: the government cannot simply issue a fresh notification to re-reserve the same land for a different purpose to get around that lapse.

Godrej & Boyce Mftg. Co. Ltd. v. State of Maharashtra & Ors. – Legal Case Shots | LegalAware