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Civil Property & InheritanceSupreme Court of India

Nargis Jal Haradhvala v. State of Maharashtra and others

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 5989 of 2007)Decided 6 Jan 2015
Civil Appeal No. 5989 of 2007
Justice M.Y. Eqbal · Justice Abhay Manohar Sapre

Background

The appellant had been granted an exemption under Section 20 of the Urban Land (Ceiling and Regulation) Act, 1976 for a Mumbai plot, on condition that a percentage of the permissible floor space be surrendered as flats to Government-nominated allottees. Over the years, the applicable quota was revised by a corrigendum (from 30% to 20%) and the appellant disputed whether a further reduction to 10% (via an unauthenticated circular) applied, while the State said she had executed an indemnity bond in 1998 agreeing to surrender more flats within five years. When she surrendered only 7 of the required flats, the authorities threatened criminal prosecution and the Bombay High Court dismissed her challenge to the demand.

Decision Breakdown

The Supreme Court found no authenticity in the 1992 circular that the appellant relied on to claim her quota had been reduced to 10%, and held that the binding figure was the 20% fixed by the 1990 corrigendum, reinforced by her own 1998 indemnity bond agreeing to surrender the balance area. Since she had handed over only 7 flats against the 20% requirement, the Court calculated she still owed 11 more flats. It allowed the appeal in part, set aside the High Court's order, modified the Additional Commissioner's 2006 order, and directed the appellant to sell 11 more flats within four months to Government-nominated allottees who must belong to the weaker section of society, while declining to take action regarding the earlier 7 flats that had already been improperly sold to non-weaker-section nominees.

Lesson Learnt

When a statutory exemption comes with surrender conditions, the party's own later undertakings (like an indemnity bond) and the authenticated government corrigendum will be treated as binding over an unauthenticated circular relied upon to claim a lower obligation: informal documents without proper authentication carry little weight against formally issued and acknowledged conditions.

Nargis Jal Haradhvala v. State of Maharashtra and others – Legal Case Shots | LegalAware