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Case title: Mrugendra Indravadan Mehta and Ors v. Ahmedabad Municipal Corporation.

Case no: Civil Appeal Nos. 16956-16957 OF 2017

Dated on: May 10th, 2024

Quorum: Justice A.S. Bopanna and Justice Sanjay Kumar.

Facts of the case:

The two appeals arise out of the common judgment dated 18.06.2013 passed by a Division Bench of the High Court of Gujarat at Ahmedabad. The Division Bench allowed the first appeal filed by the Ahmedabad Municipal Corporation and dismissed the cross-objection filed by the respondents. Aggrieved by the same, the said respondents filed the present appeals. The suits were filed against the Corporation seeking compensation of ₹1,63,97,673/- with interest thereon @ 18% p.a. or, in the alternative, allotment of land, i.e., an extent of 974 sq. mts., in any Town Planning Scheme in the western zone of Ahmedabad. The Trial Court, decreed the suit by accepting the alternative prayer to allot an extent of 974 sq. mts. In any Town Planning Scheme in the western zone but rejected the compensation claim of ₹1,63,97,673/- with interest thereon and the plaintiffs were directed to repay the amount of compensation received by them @ ₹25/- per sq. mt. The Corporation preferred the subject first appeal before the High Court while the plaintiffs filed their cross-objection therein. The High Court held that it was not open to the Plaintiffs to claim any damages by accepting the smaller plot and the compensation for the shortfall of 974 sq.mts. without protest.

Issues:

Can a plot owner who surrendered his land pursuant to a Town Planning Scheme, be allotted any land after reconstitution of the plots?

Legal provisions:

Various provisions of Town Planning Schemes Gujarat Town Planning and Urban Development Rules, 1979.

Contentions of the appellant:

The plaintiff/ Appellant father was the owner of original Plot Nos. 144, 150/P and 151/P in Survey Nos., admeasuring 19823 sq. yds./16575 sq. mts. The Corporation prepared Town Planning Scheme No.6, Paldi, where the plaintiffs’ father was required to contribute 21.40% of his lands, i.e., 4247 sq. yds./3552 q. mts., to the Corporation for public purposes. For the remaining extent, the Corporation allotted two separate plots, viz., Plot No. 478, measuring 11686 sq. yds and Plot No. 463, measuring 3890 sq. yds. The vacant possession of Plot No. 478 was delivered to the plaintiffs’ father but the Corporation failed to deliver possession of Plot No. 463 as it was occupied by slum dwellers. The Corporation then prepared a second varied scheme whereunder, Plot No. 463 was taken for the purpose of slum upgradation and the plaintiffs were offered Plot No. 187, measuring 2724 sq. yds thereby reducing the land allotment by 974 sq. mts. The compensation awarded to them for the shortfall of 974 sq. mts. was meagre. The plaintiffs were constrained to file for compensation for the damages as they had suffered huge monetary losses as they could not enjoy the property since 1963 and thus prayed for compensation of ₹1,63,97,673/-

Contentions of the respondent:

The plaintiffs were paid compensation @ ₹25/- per sq. mt. for shortfall of land under the scheme. The plaintiffs accepted possession of Final Plot No. 187 and the compensation, without protest and without challenging the same. The grievance was required to be preferred under Section 54 of the Act of 1976. The plaintiffs could not pray for compensation on the basis of the original Town Planning Scheme for the reason that upon variation of the scheme, the original scheme ceased, and the varied scheme came into existence.

Courts analysis and judgement:

The High Court has set out all the issues framed by the Trial Court in the body of the judgment and was, therefore, fully conscious of all the points that it had to consider in the appeal. Further, we do not find that any particular issue that was considered by the Trial Court was left out by the High Court while adjudicating the appeal. In effect, we do not find merit in the contention that the impugned judgment is liable to be set aside on this preliminary ground, warranting reconsideration of the first appeal by the High Court afresh. When allotment to plaintiff was modified by the second variation of Town Planning Scheme, where the plaintiffs were allotted Plot No. 187 which was of a lesser area but was silently accepted by them and they neither chose to seek implementation of the original scheme, where under they were allotted a larger plot, or challenge the varied 36 scheme, whereby they were given a smaller plot. Having accepted the plot and upon variation of the scheme, the plaintiffs cannot seek to reopen the negligence and delay, on the part of the Corporation. Upon the preparation or variation of a Town Planning Scheme, the rights in the earlier plots of land stands extinguished and rights accrued, if any, becomes extinct then it cannot be the basis for a later cause of action. The plaintiffs did not choose to adduce any evidence in support of their claim for the quantified damages of 1,63,97,673/-. Though it has been contended that the plaintiffs never actually received the compensation for the shortfall of 974 sq. mts. @ 25/- per sq. yd., but pursuant to the judgment of the Trial Court, the plaintiffs deposited the sum of 24,350/-, being the compensation for 974 sq. mts. @ ₹ ₹25/- per sq. mt., as directed by the Trial Court. If they did not receive such compensation, they ought not to have abided by the direction of the Trial Court and deposited that amount. This voluntary act precludes them from contending that compensation was never paid to them and that they had deposited the amount as it was only a paltry sum. The contention of the plaintiffs that the Act of 1976 does not contemplate a second reduction in the reconstituted plot area cannot be accepted as Section 45 of the Act of 1976 deals with reconstitution of plots. In Prakash Amichand Shah and Ahmedabad Green Belt Khedut Mandal, it was held that a plot owner who has surrendered his original land for the purposes of the Town Planning, is not assured of allotment of a reconstituted plot in lieu thereof then in such case, he is entitled only to compensation. Section 71 postulates that in case of variation of the Town Planning Scheme is to be made then the same needs to be published and sanctioned in accordance with the provisions of the Act of 1976, which means that the entire exercise would be undertaken afresh, therefore, further reduction of a plot which is notified in the original Town Planning Scheme is implicit. The plaintiffs, were aware of the fact that Plot No. 187 allotted to them under the second varied Town Planning Scheme No. 6, Paldi, was of lesser area, and was accepted by them without any protest or raising right to a larger area and their conduct of depositing ₹24,350/- thereby implying receipt of the compensation amount foreclosed their right, to either challenge the allotment of a plot of lesser area or to seek more compensation. In this regard, it is noted that Section 54 provides an appellate remedy to the person aggrieved by any decision of the Town Planning Officer. The quantification of compensation was amenable to appellate review but the plaintiffs did not avail the said remedy. The plaintiffs’ main prayer was for quantified compensation, in the alternative, to allot land in the western zone of Ahmedabad. The Plaintiff did not adduce evidence values of the two final plots. The monetary value of two plots depend upon situation, development, proximity and access to the main road or highway, etc., and the same cannot be concluded without adequate proof. The High Court was fully justified in allowing the first appeal filed by the Corporation. There is no need for any interference. Therefore, the appeals are accordingly dismissed.  

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Judgement reviewed by- Parvathy P.V.
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