# MANEKLAL CHHOTALAL & ORS v. M. G. MAKWANA & ORS

- **Citation:** [1967] 3 S.C.R. 65
- **Court:** Supreme Court of India
- **Decided:** 1967-03-02
- **Case number:** Writ Petition No. 64 of 1966
- **Bench:** K. SuBBA RAo, J. c. SHAH, s. M. SI:KRI, v. RAMASWAMI, C. A. Vaidialingam
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/maneklal-chhotalal-ors-v-m-g-makwana-ors-3986
- **Pages:** 19

## Headnote

Constitution of India, 1950, Arts. 14, 19 and 31; and Seventh Schedule, List II, Entry
18, and List Ill, Entry
20-Competency of State
Legislature to enact Bombay Town Planning Act (27 of 1955)-Act as
amended by Bombay Town Plannin11 (Guiarat Amendment and Validating Provisions) Act (52 of 1963), if violative of fundamental rights.
The. Ahmedabad Municipal Corporation
published, under s. 22 of
the Bombay Town Planning Act, 1954, a declaration of its intent on tO
make a town planning scheme in respect of certain areas which included
the lands of the petitioners. The petitioners subm.tted their objection.•
and suggestions.
A draft Town Planning Scheme was published thereafter under s. 23(1) and the petitioners again subm'tted the same objec.
lions. After considering the objections and suggestions~ the draft scheme
was forwarded to the State Government
under
s. 28 (I). The State
Government sanctiOned the scheme
under s. 28(2) and appointed
a
Town Planning Officer under s. 31 (I). He· issued a public notice inviting objections and suggestions from owners of land and the pet tioners
reiterated their objections.
The Town Planning Officer, thereaf:er, gave
his decision under s. 32 regarding the value of the land originally owned
by the petitioners, the extent of reconstituted land allotted to them,
the
compensation payable to them, the value of the land allotted to them
taking into account the improvements in
the
Scheme
and
the
net
amount payable by the petitioners as their share of the contribution towards the cost of the Scheme.
As a result
of the decision, the petitioners were allotted a much smaller extent of land than they originally
owned and were directed to pay certain sum'S as their share of the contribution.
On appeal under s. 34 the Board of Appeal slightly reduced
the amount payable by the petitioners. The petitioners thereupon filed
a writ petition in this Court and contended that : -~ 1) the State Legislature was not competent to enact the statute, and (2) the provisions of
the Act, by conferring atbitrary powers on the authorities
funcfoning
under the Act., and by depriving the petitioners
of their property, infringed their fundamental rights under Arts. 14, 19(1) (f) and 31.
HELD : (1) The heads of leg'slation
in the Lists of the
Seventh
Schedule to the Constitution should be given a large and liberal interpretat10n unless cut down by the terms of the item itself or by other parts
oJ the Constitution, so that, they may have effect in their widest amplifude.
Therefore. the v2rious aspects dealt with in the Act can be considered to deal with "land" in Entry 18 of List II and the competency of
the State Legislature can be found in that enl!y. (78 F-G; 79 A, C-D, G]
Navinchandra Mafatlal v. Commissioner of Income-tax, Bombay City.
(1955} I S.C.R. 829, Sri Ram Ram Narain Medhi v. State of Bombay,
[1959] Supp. I S.C.R. 489 and Atma Ram v. State of Punjab,
[1959]
Supp. I S.C.R. 748, followed.
66
SUPREME COURT REPORTS
[1967] 3 $.C.R.
The Act is a lei:islation to consolidate
and amend the law for the
making and execution of town planning schemes for the healthy
Gnd
orderly development of the area.
With a view to achieve that purpose, a·
very elaborate procedure and machinery is prescribed in the Act. Therefore, the competency of the State Legislature could also be rested
on
Entry No. 20 of List III, which deals with "Economic and Social Plan·
ning". (79 G-H: 80 HJ
( 2) · The Act and the Rules make very elaborate provisions regarding
the formalities to be gone through, at every stage, by the local authority,
the State Government and other authorities concerned in preparing and
making final the Town Planning Scheme. At all stages, very wide publicity is given to the proposals. Provision has been made for the filing
of objections and suggestions and a duty is cast on the authorities to take
them into account.· The procedure to be adopted by the Town Planning
Officer in the matter of giving his decisions on the various aspects has

## Text

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MANEKLAL CHHOTALAL & ORS.
v.
M. G. MAKWANA & ORS.
March 2, 1967
(K. SuBBA RAo, c. J., J. c. SHAH, s. M. SI:KRI, v. RAMASWAMI
AND C. A. VAIDIALINGAM, JJ.J
Constitution of India, 1950, Arts. 14, 19 and 31; and Seventh Schedule, List II, Entry
18, and List Ill, Entry
20-Competency of State
Legislature to enact Bombay Town Planning Act (27 of 1955)-Act as
amended by Bombay Town Plannin11 (Guiarat Amendment and Validating Provisions) Act (52 of 1963), if violative of fundamental rights.
The. Ahmedabad Municipal Corporation
published, under s. 22 of
the Bombay Town Planning Act, 1954, a declaration of its intent on tO
make a town planning scheme in respect of certain areas which included
the lands of the petitioners. The petitioners subm.tted their objection.•
and suggestions.
A draft Town Planning Scheme was published thereafter under s. 23(1) and the petitioners again subm'tted the same objec.
lions. After considering the objections and suggestions~ the draft scheme
was forwarded to the State Government
under
s. 28 (I). The State
Government sanctiOned the scheme
under s. 28(2) and appointed
a
Town Planning Officer under s. 31 (I). He· issued a public notice inviting objections and suggestions from owners of land and the pet tioners
reiterated their objections.
The Town Planning Officer, thereaf:er, gave
his decision under s. 32 regarding the value of the land originally owned
by the petitioners, the extent of reconstituted land allotted to them,
the
compensation payable to them, the value of the land allotted to them
taking into account the improvements in
the
Scheme
and
the
net
amount payable by the petitioners as their share of the contribution towards the cost of the Scheme.
As a result
of the decision, the petitioners were allotted a much smaller extent of land than they originally
owned and were directed to pay certain sum'S as their share of the contribution.
On appeal under s. 34 the Board of Appeal slightly reduced
the amount payable by the petitioners. The petitioners thereupon filed
a writ petition in this Court and contended that : -~ 1) the State Legislature was not competent to enact the statute, and (2) the provisions of
the Act, by conferring atbitrary powers on the authorities
funcfoning
under the Act., and by depriving the petitioners
of their property, infringed their fundamental rights under Arts. 14, 19(1) (f) and 31.
HELD : (1) The heads of leg'slation
in the Lists of the
Seventh
Schedule to the Constitution should be given a large and liberal interpretat10n unless cut down by the terms of the item itself or by other parts
oJ the Constitution, so that, they may have effect in their widest amplifude.
Therefore. the v2rious aspects dealt with in the Act can be considered to deal with "land" in Entry 18 of List II and the competency of
the State Legislature can be found in that enl!y. (78 F-G; 79 A, C-D, G]
Navinchandra Mafatlal v. Commissioner of Income-tax, Bombay City.
(1955} I S.C.R. 829, Sri Ram Ram Narain Medhi v. State of Bombay,
[1959] Supp. I S.C.R. 489 and Atma Ram v. State of Punjab,
[1959]
Supp. I S.C.R. 748, followed.
66
SUPREME COURT REPORTS
[1967] 3 $.C.R.
The Act is a lei:islation to consolidate
and amend the law for the
making and execution of town planning schemes for the healthy
Gnd
orderly development of the area.
With a view to achieve that purpose, a·
very elaborate procedure and machinery is prescribed in the Act. Therefore, the competency of the State Legislature could also be rested
on
Entry No. 20 of List III, which deals with "Economic and Social Plan·
ning". (79 G-H: 80 HJ
( 2) · The Act and the Rules make very elaborate provisions regarding
the formalities to be gone through, at every stage, by the local authority,
the State Government and other authorities concerned in preparing and
making final the Town Planning Scheme. At all stages, very wide publicity is given to the proposals. Provision has been made for the filing
of objections and suggestions and a duty is cast on the authorities to take
them into account.· The procedure to be adopted by the Town Planning
Officer in the matter of giving his decisions on the various aspects has
been indicated in s. 32 and in the Rules made under the Act. Principles
have also been laid down regarding the fixing of the value of the original and the reconstituted plots., and for fixing the amount of contribution
payable by the various owners of land. The contribution was l'ayable
in easy instalments and was towards the cost of the scheme which the
local authority had to incur and was not a tax or fee.
All important
decisions of the Town Planning Officer are appealable to a Board
of
Appeal presided over by a Judicial Officer
of the status of a District
Judge, and the procedure to be adopted by the Board is also clearly
indicated in the Act and Rules.
Therefore, the Act does not vest any
arbitrary or unguided power in the authorities and only imposes reasonable restrictions on the petitioners' right to hold property.
Hence,
the
Act is not violative of Art. 14 and is sa9ed
by Art. 19(5). [71 C-D;
82 A-D, H; 83 A-B, G]
The petitioners have no
doubt lost a large extent of land.
But,
having due regard to the scheme of the Act and the object sought to be
achieved, such results are inevitable.
Moreover, the reconstituted plots.
though of a lesser area have a higher value in view of the various improvements, and so what the petitioners lost in actual area had been
more than sufficiently compensated by the increased value.
Therefore ..
there is no question of any deprivation of property so as to attract Art.
31. [83 D-F]
ORIGINAL JURISDICTION : Writ Petition No. 64 of 1966.
Petition under Art. 32 of the Constitution of India for the
. enforcement of fundamental rights.
B. Sen, Tricumla/ J. Patel and 1. N. Shroff, for the petitioners.
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H. D. Banajee, R. Ganapathy Iyer, R. H. Dhebar and S. P.
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Nayyar, for respondents Nos. 1, 3 and 4.
Purshottam Tricumdas, Vithalbhai Patel, 0. C. Mathur, J.B.
Dadachanji and Ravinder Narain, for respondent no. 2.
D. R. Prem and S. P. Nayyar, for the intervener.
The Judgment of the Court was delivered by
Vaidialingam, J.
In this writ petition, under Art. 32 of the
Constitution, the petitioners challenge the constitutional validity
H
CHHOTALAL v. MAKWANA (Vaidialingam, J.)
67"
A of the Bombay Town Planning Act, 1954 (Bombay Act XXVII
of 1955) (hereinafter called the Act), as originally framed, and
also after its amendment, by the Bombay Town Planning {Gujarat
Amendment and Validating Provisions) Act, 1963 (Gujarat Act
LU of 1963) (hereinafter called the Amending Act). They also,
challenge and seek to have quashed, all action and proceedings
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that have been taken by the respondents, tinder the Act, in relation ·
to the Town Planning Scheme, No. 19 (Memnagar), Ahmedabad.
The circumstances under which the petitioners have come to
this Court may be briefty indicated.
The petitioners, who are
stated to be members of a Hindu Undivided Family,
owned
certain extent of lands in two areas viz .• Usmanpur Section and
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Wadej Section. In the former, they claim to have owned lands
bearing survey numbers 41/1, 41/2, 42, 51/l, 51/2 and 43,
referred to as plot nos. 22 and 22-A, measuring 56, 164 sq. yds.
· In Wadej Section, again, they owned 14,520 sq. yds, in survey
nos. 106, 3/1, 106/4, referred to as plot no. 195. Both these
Sections are within the jurisdiction of the second
respondent
D herein, the Ahmedabad Municipal Corporation.
The second respondent, by resolution No. 475, d_at~d August
20, 1959, declared its intention to make a Town Planning Scheme
No. 19 (Memnagar), under s. 22(1) of the Act, in respect of
certain areas of land, which included ·the· above-mentioned lands
of the petitioners. The said declaration was published in the
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Bombay Government Gazette, dated
September 3, 1959.
A
notification was issued on November 16, 1959, stating that the
second respondent was preparing a Draft Town Planning Scheme,
and stating that interested persons may appear before the Town
Planning Committee, on December 2, 1959, at 4 p.m., for the
purpose of having the proposals contained in the Scheme explained
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to the public and to elicit suggestions from the public with regard
to those proposals.
The petitioners
appeared before the said
Committee, on
December 2, 1959, and raised certain objections, and also offered
some suggestions for modifying the Scheme. Written objections
were also submitted by the petitioners, on or about January 9,
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1960, to the Town Planning Committee. The petitioners pointed
out that in Usmanpur and Wadej Sections they owned lands to
the exte~t, a~proximately, of 70,180 sq. yds., but in the proposals
as contamed m the Draft Scheme, they were expected to get only
19,087 sq. yds. and, as such, they stood to lose nearly 12 % of
~ir lands, They also pointed out that they had been made
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1\able to pay a heavy contribution of Rs. 30,137 /-. The petitioners suggested that the loss to each land-owner should be
equitably distributed under the Scheme and that they should be·
allotted lands of equal extent.
·
SUPREME COURT REPORTS
[1967) 3 S.C.R.
On June 13, 1960, a Draft Town Planning Scheme was prepared, under s. 23 ( 1) of the Act, and it was published in the
Guiarat Government Gazette, dated June 23, 1960. The p.:titioners, again, submitted the same objections and
suggestions,
which they had placed for consideration, before the Town Planning Committee.
After considering the objections and suggestions made by the petitioners, the second respondent forwarded
the Draft Town Planning Scheme to the third respondent, the
State of Gujarat, under s. 28 ( 1) of the Act. The third respond~nt,
again, sanctioned the said Draft Scheme, under s. 28(2) of the
Act and also appointed a Town Planning Officer, under s. 31 ( 1)
of the Act.
Subsequently, there was a change in the personnet
of the Town Planning Officer, originally appointed.
Ultimately,
the Town Planning Officer issued a public notice in October 1961,
inviting objections and suggestions from owners of lands in respect of the Draft Town Planning Scheme,
which was being
considered by him
The petitioners, again, filed objections in November 1961,
before the said Town Planning Ollicer, and here also they reiterated the same objections and suggestions which they had placed
before the Town Planning Committee at the earlier stage, and
before the second respondent, later.
In the Draft Scheme prepared by the second respondent, and
sanctioned by the State of Gujarat, the petitioners' lands,
viz ..
survey nos. 41/1, 41/2, 51/1, 51/2 (being plot no. 22) and
survey no. 43 (being plot no. 22A) were shown as item no. 18,
and lands, survey nos. 106, 3/1 and 106/4 (plot no. 195) were
shown as item no. 163. The Town Planning Officer i>sued notices
in April and June 1962, to the petitioners. In the first notice, it
was mentioned that the petitioners were being allotted new plots,
nos. 32, 34 and 43, measuring 19,087 sq. yds as against plots
nos. 22 and 22-A, measuring 56, I 64 sq. yds. It was also stated
that the value of the original plots nos. 22 and
22-A, was
Rs. 37,556/-
and of the new plots nos.
32, 34 and 43, was
Rs. 14.315 /-
and that, in consequence, the
petitioners were
entitled to a payment of compensation. under s. 67, in the sum
of Rs. 23,241 /-. The notice further stated that the value of plots
nos. 32, 34 and 43, after taking into account the improvements
in the Scheme, was Rs. 1.35,590/-,
and. after deducting the
price of those plots, without reference to the improvements, viz ..
Rs. 14.315/-,
the
increase,
under s.
65 of the Act, was
R<. 1,21.275/-.
The neti•ioner. were therefore liahle to pay a
contribution; under s. 66, at the rate of 50% on the increment,
viz .. Rs. 60,638/-; and after givirg credit to the petitioners, in
the sum of Rs. 23,241 /-, they were called upon to pay a sum
of Rs. 37.397 /-.
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CHHOTALAL v. MAKWANA (Vaidialingam, I.)
69
The second notice also mentioned that, as against the petitioners' plot no. 195, measuring 14,520 sq. yds., n~ other plot
was being allotted to them and that the compensauon payable
to them m respect of the said plot, without reterencc to the .improvements in the Scheme, was Rs. 7,260/-. By virtue of these
lwo notices, the petitioners were being allotted tresh plots of an
extent of 19,087 sq. yds., and they were called upon to pay a sum
of Rs. 30,133/-, as their share of contribution, and they were
also required . to furnish thei~ objections or. suggestions., wi~in
the time specified.
The peuuoners filed the1r written ob1ecuons
to the proposals contained in the said two notices; and they also
appeared on the dates mentioned in the notices and reiterated
the matters contained in their written objections.
The first respondent herein, the Town Planning Officer, issued
ou January 20, 1965, two communications, stated to be his award,
under s. 32(3) of the Act. In the first of these communications,
the petitioners were informed that in lieu of their plot no. 22,
measuring 37,873 sq. yds., they were allotted Final Plots nos. 52,
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54 and 57, measuring 20,183 sq. yds., and the value, under s.
67, was fixed at Rs. 8,222/-. The petitioners were also informed
that tire calculation of increment of the value of 20,183 sq. yds
allotted to them, under s. 65, was Rs. 1,08,483/- and, at the rate
cf 50%, as per s. 66 of the Act, they were liable to pay a contribution of Rs. 54,241/-. After adjusting the value of the lands,
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o[ Rs. 8,424/, the net contribution payable by the petitioners
was stated to be Rs. 45,817/-.
Similarly, in the second communication, the petitioners were
informed of the allotment of final plot no. 94, measuring 15.375
sq. yds, as against plot nos. 22A and 195 measuring in the agl!regate 32,307 sq. yds. The petitioners were further informed that
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for the loss of 16,932 sq. yds. they would be entitled to compensation under s. 67, in the sum of Rs. 4,622/-. The cidculation of
increment, with reference to improvement in resnect of the final
plots.allotted as per s. 65, was stated to be Rs. 65.344/-. In consequence, the share of contribwion, under s. 66. payable bv the
petitioners at the rate of 50%, was fixed in the sum of Rs. 32.6721-.
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Adjusting the sum of Rs. 4.622/- being the comnensation nav-
~ble to the petitioners. their net liability, as contribution, was fixed
m the sum of Rs. 28,050/-.
• The final po~ition, under these two· notices, was that the petitioners were gettml! land of an extent of 35.558 sQ. vd,;., as against
the original extent of land of 70.180 sq. yds., and they had to pay
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a sum of Rs. 73,867 /- as contribution.
The petitioners preferred anpeals to the Board of Appeal,
under s. 34 .of the Act.
The Board of Appeal reduced the
7Q
SUPRBMB COURT REPORTS
(1967) 3 S.C.R.
increased value of the final plots by giving a general reduction of
60 paise per square yard.
As a result of the appeal, the petitioners had still to pay a contribution of a sum of Rs. 63,199/-,
.apart from losing 34,622 sq. yds., of land. The Town Planning
Officer made consequential changes in his original award, incorporating the decision of the Board and forwarded the final Scheme
to the State Government for its sanction. It is, at that siagc, the
petitioners have come to this Court, seeking the reliefs mentioned
above.
The main contentions raised by Mr. B. Sen, learned counsel
for the petitioners, are: (i) The State LegiSTature was not competent to pass the Act as the subject, dealt with under the Act,
is not covered by any of the entries in List II, or List III, of the
Seventh Schedule to the Constitution.
iii) Even assuming that
the State Legislature could pass the Act in question, nevertheless,
the provisions regarding the levy of contribution towards the cost
of the Scheme and all other matters relating to the working of the
scheme, are unauthorised and unreasonable and that the powers
vested in the Town Planning Officer, and the other authorities,
under the Act, are unguided, arbitrary and uncontrolled
and,
therefore, the provisions of the Act infringe the
fundamental
rights of the petitioners under Arts. 14, 19(1)(f) & (g), and 31
of the Constitution.
On behalf of the State, the third respondent, Mr. H. D. Banajce,
learned counsel, has pointed out that the State Legislature w:is
competent to pass the Act in question. In particular, he supports
the competency of the Legislature to enact the measure in question, on the basis of Entries nos. 6 and 18 of List II, and Entry
no. 20 of List III, of the Seventh Schedule. Counsel also points
out that a local authority, with a view to achieve a systematic
and proper planning,
providing
amenities like
water-supply,
drainage, roads, etc., has been empowered to go in for a townplanning scheme.
After
providing for these
amenities, and
allotting sites for public purposes like schools, hospitals, markets,
police-stations etc., the remaining lands are
re-constituted by
changing their boundaries in order to make the areas capable
of being properly
developed.
Re-constituting of the
plots is
absolutely necessary inasmuch as in working out the
Scheme,
some area from an ad.ioining land may have to be added and
some other area from the original holding may have to be taken
away, as may be necessary, and to achieve the purposes for which
a planned development scheme is framed.
As far as possible,
each owner of land is given a new plot, though it may not be of
the same extent or in the same area.
And, in exceptional cases,
when the owner loses a holding altogether, he is awarded compensation.
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CHHOTALAL v. MAKWANA (Vaidialingam, I.)
71
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By reference to the Act and the rules framed thereunder,
counsel pointed out that elaborate provisions have been made as
to how the local authorities, in framing the Scheme, had to flinction, as also how the Town Planning Officer, who works the
Scheme, has to act.
Opportunity had been provided, at every
stage, right from the beginning to the end, counsel points out,
ll to owners of property, like the petitioners, to place their objections
and suggestions.
The petitioners also had taken advantage of
those provisions and had been heard and their objections considered. All the important decisions of tlie ToWll Planning Officer
are made the subject of appeals to a Board of Appeal, of which
the President is ari ex~rienced judicial officer of the status. of a
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District Judge.
Principles had also been laid down by the Act
regarding the fixing of valuation of the original plots and the
reconstituted plots and for fixing the amount of contributien
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payable by parties.
Payment of contribution was to be in easy
instalments.
None of the fundamental rights of the petitioners,
according to Mr. Banajce,' had been affected.
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These contentions of the State have been supported by Mr.
Purshottam
Tricumdas,
learned counsel
appearing
for the
Ahmedabad Municipal CorporatiOn, the second respondent herein.
This will be a convenient stage to refer to the scheme of the
Act and consider the question as to whether the State Legislature
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is competent to enact this legislation, because, if the contentions
of the learned counsel for the petitioner that the State Legislature
had no competence to enact this measure is accepted, no other
questions will arise for consideration.
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There was, originally, an Act called the Bombay Town Planning Act, 1915 (Bombay Act I of 1915), which has been repealed by s. 90(1) of the Act. The object of the 1915 Act is
stated to be 'to provide for the making and execution of townplaning schemes'.
The preamble to the said legislation sta!U
that it was found expedient that the development of certain areas
sbould be regulated with the general object of securing proper
sanitary conditions, amenity and convenience to the persons living
in such areas and in neighbouring areas.
We only refer to the
1915 Act for the limited purpose of showing that the said Act was
conceived with the intention of regulating the development of
certain areas for the purpose of securing proper sanitary conditions etc., to the persons living not only in such areas, but 11lso in
n~ighbouring areas.
The Acl came into force on April l, 1957, and, there is no
co.atroversy, that it has been made applicable to the State of
Gujarat. In some respect the. Act was amended by the Amend-
72
SUPllBMB COUllT llBPOllTS
[t 967] 3 s.c.a.
ing Act of 1963. The Act is a legislation to consolidate and
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amend the law for the making and execution of town planning'
schemes, and, in order to ensure that town planning schemes arc
made in a proper manner and their execution is made effective.
Sub-sections (2), (4), (6) and (9) of s. 2, define the expressions
'development plan', 'local authority', 'plot' and 'reconstituted plot',
In particular, the expression 'reconstituted plot' means a plot which
is in any way altered by the making of a town planning scheme.
Sections 3 to 17, in Chapter II, deal with development plans.
Section 3 makes it obligatory on a local authority to carry out a
survey of the area within its jurisdiction and to prepare and publish, in the prescribed manner, a development plan and to submit
the same to the S.ate Government for sanction,
Sub-section ( 4)
of s. 3 gives power to the State Government to prepare and publish,
in the prescribed manner, a development plan, in the circumstance>
mentioned therein.
Section 4 provides for the local authority
making a declaration of its intention to prepare a development
plan, before carrying out a survey for the purpose of preparing
the. said plan, and a copy of, the said declaration is to be sent to
the State Government
for publication in the Gazette.
It also
provides for the declaration being published in the prescribed
manner and for inviting suggestions from the public within two
months of the date of publication.
A copy of the development
plan is to be sent to the State Government and another copy is to
be made available, by the local authority, for inspection by the
public.
Under s. 7, the development plan has to indicate the
manner in which the development and improvement of the area
is to be carried out and regulated, and it shall contain the proposals mentioned in clauses (a) to ( e). The particulars referred
to in s. 8 have to be published and submitted to the State Government, along with the development plan.
Section 9 provides for
the local authority considering any suggestions that may be made
to such development plan, by any member of the public, if those
suggestions are communicated in writing, within two months from
the date of publication.
Section 10 gives power to the State Government, after consulting the Consulting Surveyor, to sanction the
development plan submitted to it· by .the local au•hority, ei•her
without modification or subject to such modification as it consi1ers
necessary.
The sanction of the State Government has to be notified in the Officia 1 G1rette. Section 11 gives power to the local
authority to acquire either by agreement or under the Land Acquisition Act of 1894. anv land designated in the develooment p1an
for a purpose specified in clauses (b) to ( e) of s. 7.
The remaining sections in Chapter Il, deal with matters like placing restriction on an owner doing any work on the land, after publication
of the declaration of intention under s. 4(1 ), and the local authority granting permission to the owners' concerned.
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CHHOTALAL v. MilWANA (Yaidlalingam, 1.)
1.~
Chap,tcr ;m, comprising a.~, 18 to :20, deals with the making
of and the contents of a town planning scheme. Section 18
p~ides for a local authority. subject to the provisions of the Act,
or any other law for the time being in force, making one or more
town planning schemes for the purpose of implementing the proposals contained in the final development plaii. The town planning scheme can provide for any of the matters mentioned in els. 1
(a) to (I) referred to in sub-s. (2) of s. 18. Section 19 relates
to a decision being given by the Town Planning Officer, relating
to disputed ownership of the properties comprised in the scheme,
but it is made clear that any decision given by him, though not
subject to appeal, shall not operate as a bar to a regular suit. It
also makes provision for any decision given on this question by the
Town Planning Officer being; corrected, modified or rescinded in
the event of a Civil Court making an adjudication. Section 20
is an enabling; provision for the purpose of making or executing
any town plallning scheme.
Sections 21 to 30, which occur in Chapter IV, deal with the·
declaration of intention to make. a scheme and the making of a
draft scheme. A Town Planning Scheme, under s. 21, may be
made, in accordance with the provisions of the Act, in respect of
a land which is in the course of development~ or is likely to be
used for building purposes, or is already built upon. Section 22
autho.riscs a local authority to declare its intention to make a town
planning scheme by resolution.
The local authority is to publish
its declaration, within the time mentioned therein; and it is also·
bound to despatch a copy thereof to the State Government, along
with a plan showing the area which ·it proposes to include in the
scheme. Sub-s. ( 4} of s. 22 provides for a copy of the plan being
made available to the public for inspection. Section 23 provides
fer the local authority, in consultation with the Consulting Surveyor, to make a draft scheme within twelve months of its declaration of intention and publish the same in the prescribed manner.
Section 24 gives power to the State Government, in the circumstances mentioned therein, to require a local authority to make and
publish a draft scheme and send it to the Government for approval.
Section 25 specifics the various particulars which a draft scheme
should contain.
Section 26 provides that in the draft scheme, the size and shape
of every reconstituted plot is to be determined in such a manner
as to make it suitable for building purposes. If the plot is already
built upon, it provides that the reconstitution is to ensure that the
building, as far as possible, complies with the provisions of the
scheme as regards open spaces. Sub-section (2) of s. 26 specifics
the nature of proposals, to be found in the draft scheme. In
particular, it provides for a reconstituted plot being fanned by
alteration of the boundaries of the original plot; formation of reu Sup. CI/67--6
SUPREME COURT REPORTS
(1967) 3 S.C.R.
constituted plot by the transfer, wholly or partly, of the adjoining
lands; for allotting a plot to any owner dispossessed of land in
furtherance of the scheme and for transfer of the ownership of a
plot from one person to another. It may be stated, at this stage,
that, as will be seen from sub-cl. ( d) of s. 26 ( 2), the intention
of the Act appears to be that the Town Planning Scheme should,
as far as possible, make the provisions for allotment of plots, to
owners, who arc being dispossessd of their property.
Section 27 relates to filing of objections, within one month
from the date of publication of the draft scheme, and the local
authority being bound to consider those objections and making
suitable modifications, as it thinks fit, before submitting the draft
scheme to the State Government.
Under sub-s. (l) ot s. 28, the
local authority has to forward, within the time mentioned therein, the draft scheme, together with any modifications made by
it, along with the objections that may have been filed by persons
affected by such scheme and make an application to the
Stat~
Government for sanctioning the same.
Sub-s. (2) provides for
the State Government; after making such enquiry as it thinks fit
and, after consulting
the Consulting Surveyor, sanctioning th~
scheme with or without modifications; and the sanction is to be
published in the State Gazette.
Sub-s. (3) makes it obligatory
when the State Government sanctions the scheme, to state in the
notification itself, about the place and time the draft scheme will
be open to the public for inspection.
Chapter V, in which ss. 31 to 43 are to be found, deals
with the Town Planning Officer and the Board of Appeal. Sectbn
31 deals with the appointment of a Town Plan!ling Officer, by
the State Government, within one month from the date, on which
its sanction to the draft scheme is published.
It also provides
for the State Government removing the said officer and appointin·~
another officer, in circurristances mentioned therein.
Section 32
enumerates the duties of the Town Planning Officer.
He i~ to
act in accordance with the prescribed procedure, and decide the
various
matters mentioned in els. (i) to (xiv) of s. 3211 ).
Among other matters, the Town Planning Officer has to fix the
difference between the total values of the original plots and the
total of the values of the plots included in the final scheme; estimate the portion of the sums payable as compensation on each
plot used, allotted or reserved for a public purpose or purpose
of the local authority which is beneficial to the owners and residents within the area of the scheme and partly to the general
public and which are to be included in the cost of the scheme:
estimate the increment to accrue in respect of each plot included
·in the final scheme; calculate the proportion in which the increment of the plots included in the final scheme shall be liable to
contribution to the costs of the scheme; calculate the contribution
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to be levied on each plot included in the final scheme; determine
the amount to be deducted from, or added to, as the case may
be, in the contribution leviable from a person and provide for the
total or partial transfer of any right in an original plot to a reconstituted plot or provide for the extinction of any right in an
original plot.
Section 33 makes the decision of the Town Planning Officer.
rendered under s. 32( 1), final and conclusive, except in matters
arising out of els. (v), (vi), (viii), (ix), (x) and (xiii) of
sub-s. ( 1) of s. 32.
Section 34 provides for decisions given by
the Town Planning Officer, under the clauses as shown above,
being communicated to the party concerned and it gives a right
to any person aggrieved by that decision, to appeal, within on~
month from the date of communication of the decision, to the
Principal Judge of the City Civil Court, Bombay, in Greater
Bombay and elsewhere, to the District Judge.
The appeal is to
be disposed of by a Board of Appeal constituted under s. 35,
according to which it should consist of a President and
two
Assessors, the President being the Principal Judge of the City
Civil Court in Greater Bombay, or such other Judge of the said
Court as may be appointed by the State Government, and elsewhere, the District Judge.
Section 3 5 provides for the · appointment of fit and proper persons as Assessors, who are to sit with
the President to constitute the Board of Appeal to decide an
appeal against the decision of the Town Planning ·officer, under
els. (v), (vi). (viii), <ix), (x) and (xiii) of s. 32(1). Section
40 provides for the Town Planning Officer being required to
modify, or vary his decision in accordance with the decision of
the Board of Appeal and the d~ci<;on of t11e. Board of Appeal
being final and conclusive and binding on all persons.
Section
43 provides for the Town Planning Officer forwarding to the State
Government, the final scheme as varied by him, in accordance with
the decision, if any, of the Board of Appeal, along with his decision, and a copy of the decision of the Board in appeal.
Chapter VI, which comprises ss. 44 to 61, relates to the splitting up of schemes into sections and preliminary schemes. Section
53 lays down the effect of a final scheme, and states that when
it has come into force. all lands required by the local authority.
unless otherwise provided, should vest in the local authority
absolut~ly free from all encumbrances and all rights in the orig!-
nal plots which have been reconstituted being determined and
the reconstituted plots becoming subject to the rights settled by
the Town Planning Officer.
·
Chapter VII conslsts of ss. 62 and 63 and deals with joint
town planning schemes.
ChaptC" VITI. which comorises ss. 64
to 78, deals with finance.
Section 64 refers to what all items
76
SUPREME COURT REPORTS
{1967] 3 S.C.ll.
shall be included in the costs of a town planning scheme. The
difference between the total values of the orginal plots and the
total values of the plots included in the final scheme, which is to
be fixed under s. 32(1).(iii) by the Town Planning Officer, is
to be arrived at in the manner provided in s. 64 ( 1 ) ( f). Broadly,
the estimate that is to be made of the value of the original plots
and the value of the plots included in the final scheme, is to be
on the market value at the date of the declaratjon of intention
to make a scheme, without reference to improvements contemplated in the scheme.
The estimate of the increment that accrued
in respect of each plot included in the final scheme and which
is to be fixed by the Town Planning Officer, under s. 32(l)(viii),
is again to be done in accordance with the provisions of s. 65.
Here again, it will be seen that the estimate that is to be made
is the market value of a plot included in the fuial scheme, as on
the date of the declaration of intention to make a scheme, on the
assumption that the scheme has been completed and the market
value of the said plot on the same date, without reference to the
improvements contemplated in the scheme, has been taken into
account. Section 66 relates to contribution towards costs of the
scheme and the Town Plarining Officer must, have regard to these
provisions when fixing the proportion of contribution of a plot
included in the final scheme under s. 32(l)(ix). Again, in
determining the amount to be deducted from, or added to, the
contribution leviable from a person under s. 3 2 ( 1 )(xi), the provisions _of s. 67 will have to be applied.
The total or partial
transfer of right in an original plot to a reconstituted plot, as well
as the extinction of any right in an original plot, which has to be
decided by the Town Planning Officer, under s. 32(l)(xii), must
be in accordance with the provisions of s. 68.
Section 71 provides for payment of compensation to the
owner of an original plot who is not provided with a plot in the
final scheme or if the contribution to be levied from him under
s. 66 is less than the total amount to be deducted therefrom under
any of the provisions of the Act.
Section 73 provides for payment. by the local authority, by adjustment of account, of payments due to be made to any person.
Chapter IX deals with various miscellaneous matters.
Section
87 provides for rules being made by the State Gove~ent for
carrying out the purposes of the Act; and, under sub-section (2)
the State Government has got the power to mak.\' rules jn respect
of the various matters mentioned in _clauses (a) to (w).
The Act was amended, with retrospective effect, by the
Amending Act of 1963.
Section 3 of the Amending Act has delet~d ~he original clause
(I ) of s. 18 and substituted a new clause tn its place. Clause
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( i) in the proviso to sub-s. (l) of s. 66, has been substituted by
a new. clause. That relates as to how exactly the cost of the
scheme is to be met. Section 7 of the Amending Act validates
certain actions taken and things done and, in particular, cl. (a)
of this section provides that the validity of a Town Planning
Scheme already 11111ctioned or continued as sanctioned, cannot be
called in question merely on the ,ground that a development plan,
in respect of the area to which the Town Planning Scheme relates,
has not been prepared, published or sanctioned before the Town
Planning Scheme was sanctioned or continued.
One of the contentions advanced before us, by learned counsel
for the petitioners, was that the Town Planning Scheme which is
under attack'., has been framed without previously complying with
the provisions of Chapters Il and III of the Act and, therefore, the
entire proceedings are illegal and void.
But this contention, in
our opinion, has not been, rightly, pursued further, in view of the
retrospective nature of the Amending Act. No doubt, according
to the petitioners, the Act as well as the Amending Act, are both
void because the Legislature had no competency to enact these
statutes.
That is a different aspect, which will be dealt with by us
presently.
Under s. 87 of the Act, the State Government has framed rules
on November 15, 1955; called the Bombay Town Planning Rules,
1955, hereinafter called the Rules. It is only necessary to run
through some of the material provisions of these rules.
Rule 3 relates to the publication of the declaration, under s. 4.
Rule 4 deals with the publication of the development plan. Rule
12 relates to publication of the declaration under s. 22. Rule 13
deals with the meeting of owners of land and formulating of tentative proposals. · Rule 14 deals with the publication of draft
schemes under s. 23. Rule 17 enumerates the various particulars
to be incorporated in a draft scheme, apart from the particulars
specified in els. (a) to (g) of s. 25. Rule 21 deals with the procedure to be.followed by the Town Planning Officer.
Rule 23 deals
with the procedure to be adopted by the Board, on appeal.
Rule
3 3 deals with the manner of serving notices; and r. 34 deals with
proceedings of local authorities.
We have only broadly referred to some of the rules.
A
perusal of the rules clearly shows that elaborate provisions have
been made for giving as wide a publicity, as possible, at all stages,
to the public and to owners of. land, who may be affected by the
scheme.
They provide for objections being filed, and their being
beard by the authorities concerned. The rules also deal, elaborately with various other matters relating to the scheme, dealt with
by the Act.
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SUPREME COURT REPORTS
[ 1967] 3 s.c.R.
The first question that arises for consideration is regarding the
competency of the State Legislature to enact the statute in question.
According to Mr. Sen, learned counsel for the petitioners, the Act
provides for transfer of rights, from one person, in a plot originally
owned by him, to another person to whom it may be allotted under
the Act.
The Act also provides for extinguishment of rights of
the original owner in the plots concerned. These are, according
to learned counsel, not covered by any of the entries either in List
lI or List Ill of the Seventh Schedule to the Constitution. Again,
it is pointed out, that the Act requires owners of the plots to pay
compensation which is really, so to say, ir tax levied by the State
on capital assets, for which also there is no power to be found in
any of the Entries in List II or List III.
The State seeks to justify the competency of the Legislature,
relying upon the Entries Nos. 6 and f8 of List II and Entry No.
20 of List III, of the Seventh Schedule.
Having due regard to the scheme of the Act as well as the
provisions contained in it, in our opinion, the competence of the
State Legislature to enact the same can be rested either on Entry
No. 18 of List II, or on Entry No. 20 of List III, of the Seventh
Schedule.
Entry No .. 1 s of List II is as follows :-
"Land, that is to say, rights in or over land, land
tenures including the relation of landlord and tenant, and
the collection of rents; transfer and alienation of agricultural land; land improvement and agricultural loans;
colonization."
The legislation, in question, can be broadly stated to be a leitislation in regard to land.
As pointed out by this Court in Sri Ram
Ram Narain Medhi v.