1
REPORTABLE
2023 INSC 1080
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.1359 OF 2023
SAYUNKTA SANGARSH SAMITI & ANR. …APPELLANTS
Versus
THE STATE OF MAHARASHTRA & ORS. …RESPONDENTS
J U D G M E N T
SUDHANSHU DHULIA, J.
1. The appellants before this Court have challenged the order
dated 22.10.2021 passed by the High Court of Judicature,
Bombay, which has dismissed the Writ Petition of the appellants.
The petition was for quashing of the order dated 26.10.2020
passed by respondent No. 2 i.e. Slum Rehabilitation Authority,
Maharashtra (hereinafter referred to as ‘SRA’).
2. SRA had proposed a Slum Rehabilitation Scheme for the
slum at CS No. 1(pt) of Lower Parel Division at J.R. Boricha Marg.
The project was for construction of a total built up area of
75854.716 sq. m., where 1765 slum dwellers were to be
rehabilitated. Nine towers i.e. tower nos. A to I, 69 commercial
tenements, 24 recreational tenements, 6 existing amenities, 19
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balwadis, 19 welfare centres and 19 society offices, were in the
construction plan. The construction of all the above towers has
been completed as of now, and 473 slum dwellers have already
been given possession of their tenements in Towers A, B and C.
All the same, the allotment for the remaining towers has been
stalled due to the present dispute and the ongoing litigation
between various stake holders of the project. Hopefully it should
end now.
3. Slums of Mumbai are symbolic of the existing inequalities in
our society. The growth of industries and urban centres
invariably result in migration of rural population to urban
industrial areas areas, in search of employment. The migrants,
displaced poor and the marginalised are forced by circumstances
to form a living space for themselves, which are called slums.
Slums have also been described as a crowded settlement of
temporary household with inadequate facilities and very poor
hygienic conditions. Although, many of the slums in Mumbai
such as ‘Dharavi’, ‘Byculla’ and ‘Khar’ were initially villages, but
they too have mushroomed into slums in the lopsided urban
development.
4. The city of Mumbai has a maximum number of recorded
slums in the country and as per the 2011 census, 42 percent of
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its population stays in slums. Very little attention was paid to the
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slum dwellers in their initial period during the late 19 century
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and early 20 century, during colonial Rule. After the 1896
bubonic plague the Government recognised the need for
improvement in the housing and sanitary conditions, in the city.
This resulted in the formation of Bombay Improvement Trust (for
short ‘BIT’) in 1898, and later Bombay Development Department
(for short ‘BDD’) in the year 1920. BDD in particular, inter alia,
had a mandate to construct low-cost houses for the workers who
were manning the factories and the mills in the city; and for the
workers in ports and railway station as well. All the same, not
much was done by these bodies as far as improvement of living
conditions of the workers in these areas or for providing them
with a decent housing or sanitary conditions.
5. With independence, initially the approach of the authorities
towards slums was also largely focused on clearing the slum
areas, rather than improving their conditions. The Slum Areas
(Improvement and Clearance) Act, 1956 was enacted by the
Parliament for declaring the areas as slum area, and clearing it.
The competent authority could declare an area as a slum area
and would thereafter pass demolition or clearance orders. There
was no purposeful welfare, socially sensitive, provision in the Act
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for redevelopment of the area after its clearance and this was left
to the satisfaction of the competent authority, which may
redevelop an area, subject to his or her satisfaction (see Section
11 of the Act).
6. This approach of the executive and the legislature
subsequently changed with the concept of welfare state taking
hold and the growth of awareness of the inhabitants towards
their rights under the Constitution. The Maharashtra Slum Areas
(Improvement, Clearance and Redevelopment) Act, 1971
(hereinafter referred to as ‘1971 Act’) was enacted which had
provisions for redevelopment of area and other benefits for the
inhabitants. In 1971 Act the purpose of the Act was
“improvement and clearance of slums areas in the State and for
their redevelopment and for the protection or occupiers from
eviction, distress and warra nts; and for matters enacted with the
purposes aforesaid; …………………” . The main authorities in the
1971 Act are the competent authority to be appointed under
Section 3 of the Act and more importantly the Slum
Rehabilitation Authority for implementing slum rehabilitation
scheme. The Slum Rehabilitation Authority or SRA is a creature
of the statute of “1971 Act” and as a body corporate consisting of
following:
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“3-A…………….
(1)……………..
(2) Every Slum Rehabilitation Authority shall
consist of a Chairman, a Chief Executive
Officer and fourteen other members, all of
whom shall be appointed by the State
Government.”
Slum areas are defined under Section 2(ga) of the 1971 Act as
follows:
“Slum area means any area declared as such
by the Competent Authority under sub-section
(1) of Section 4 [and includes any area
deemed to be a slum area under Section 4-A”
Section 4 and 4A of the 1971 Act is regarding declaration of slum
areas, which are as follows:
“ 4. Declaration of slum areas .— [(1) Where the
Competent Authority is satisfied that—
(a) any area is or may be a source of danger
to the health, safety or convenience of the
public of that area or of its neighbourhood, by
reason of the area having inadequate or no
basic amenities, or being insanitary, squalid,
overcrowded or otherwise; or
(b) the building in any area, used or intended
to be used for human habitation are—
(i) in any respect, unfit for human habitation;
or
(ii) by reasons of dilapidation, overcrowding,
faulty arrangement and design of such
buildings, narrowness or faulty arrangement
of streets, lack of ventilation, light or
sanitation facilities or any combination of
these factors, detrimental to the health, safety
or convenience of the public of that area,
the Competent Authority may, by notification
in the Official Gazette, declare such area to be
a slum area. Such declaration shall also be
published in such other manner (as will give
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due publicity to the declaration in the area) as
may be prescribed.]
(2) In determining whether buildings are unfit
for human habitation for the purposes of this
Act, regard shall be had to the condition
thereof in respect of the following matters, that
is to say, —
(a) repairs;
(b) stability;
(c) freedom from damp;
(d) natural light and air;
(e) provision for water-supply;
(f) provision for drainage and sanitary
conveniences;
(g) facilities for the disposal of waste water;
and the building shall be deemed to be unfit
as aforesaid, if, and only if, it is so far
defective in one or more of the said matters
that it is not reasonably suitable for
occupation in that condition.
(3) Any person aggrieved by a declaration
made under sub-section (1) may, within thirty
days after the date of such declaration in
the Official Gazette, appeal to the Tribunal.
[No such appeal filed after the expiry of thirty
days as aforesaid shall be entertained.]
(4) When an appeal is presented under sub-
section (3), the Tribunal shall, by a public
notice published in a newspaper in the
Marathi language circulating in the local area
in which the slum area is situated and also
displayed at some conspicuous place in the
slum area, call upon the residents of the slum
area to file their objections, if any, to the
appeal within a period of fifteen days from the
date of publication of such public notice in the
newspaper as aforesaid, either by themselves
or through any association of residents in the
slum area of which they are members.
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(5) On expiry of the period of fifteen days as
aforesaid the Tribunal shall fix a day for
hearing the appeal and inform the appellant
about the same by letter under certificate of
posting and the residents of the slum area by
displaying the notice of hearing at some
conspicuous place in the slum area and upon
hearing the appellant, and the residents or
representative of their association in the slum
area, if present, or on considering the written
objections, if any, made by such residents or
association, if absent, the Tribunal may,
subject to the provisions of sub-section (6),
make an order either confirming, modifying or
rescinding the declaration: and the decision of
the Tribunal shall be final.
Explanation.—For the purposes of sub-section
(4) and this sub-section, the, expression “any
association of residents in the slum area”
means a society, if any, of such residents
registered under the Societies Registration Act,
1860 (21 of 1860) or under the Maharashtra
Co-operative Societies Act, 1960 (Mah. XXIV of
1961).
(6) While deciding the appeal the Tribunal
shall ignore the works of improvement
executed in such slum area by any agency of
the Government or any local authority after
the declaration thereof as such slum area by
the Competent Authority under sub-section
(1).]
[ 4-A. Certain slum improvement areas deemed
to be slum areas .—(1) Any declaration made
under Section 26 of the Maharashtra Slum
Improvement Board Act, 1973 (Mah. XXIII of
1973), declaring any area to be slum
improvement area, and in force immediately
before the date of commencement of the
Maharashtra Slum Areas (Improvement,
Clearance and Redevelopment)
(Amendment)Act, 1976 (Mah. XX of 1970),
(herinafter in this section referred to as “the
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said date”) shall, on and from the said date,
be deemed to be a declaration made under
Section 4 of this Act declaring the same area
to be a slum area for the purposes of this Act.
(2) Any person aggrieved by the provisions of
sub-section (1) may, within thirty days from
the said date, appeal to the Tribunal function
under this Act.
(3) on such appeal, the Tribunal may make an
order either confirming, modifying or
rescinding the declaration: and the decision of
Tribunal shall be final].”
7. The Maharashtra Regional and Town Planning Act, 1966
(hereinafter referred to as ‘MRTP Act, 1966’) is again an important
piece of legislation with which we are presently concerned. The MRTP
Act, 1966 was enacted in order to have a planned development in the
State of Maharashtra. An amendment was brought in the MRTP Act,
1966, in the year 1995 whereby SRA was given the status of Planning
Authority so far as slums were concerned. The State Government
under the 1966 Act has got powers to frame what is called
Development Control Regulations (DCR) for the purposes of
implementation of any scheme, project, etc which would include
development of a slum. The DCR Regulation under which the present
rehabilitation of slum was to be undertaken was Regulation 33(10) of
DCR, 1991.
The present slum area with which we are concerned is at Lower
Parel Division in J.R. Boricha Marg and is notified as a “slum”
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under the 1971 Act and had 1672 residential tenements. As per
the scheme of SRA more than 70 percent of the eligible hutment
dwellers were members of the federation, i.e., present respondent
no.6 which were to choose its developer and take the scheme
forward under the overall supervision of SRA.
8. In accordance with the procedure given under the DCR, 1991
the majority section of the slum dwellers, in the present case,
who were earlier divided into different independent societies, got
together and formed a society called “Shramik Ekta Co-Operative
Housing Federation” (respondent No. 6, herein), which we here
refer as the “Federation”. The Federation in turn appointed
Lokhandwala Kataria Constructions (respondent No. 5) as its
Developer. SRA consequently issued a Letter of Intent (LoI) on
16.04.2005, in favour of the Developer, approving the proposed
Slum Rehabilitation Scheme, submitted before them.
9. The work for construction of the nine towers commenced but
was stalled shortly afterwards in 2007. Since then, the project
was moving only in fits and starts. This was due to the
interference caused by a minority section of the slum dwellers.
These slum dwellers are also members of the Federation though
have formed a separate minority society for themselves, called
“Sayunkta Sangharsh Samiti” (hereinafter referred to as ‘SSS’),
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which is the present appellant no. 1 before us, and to which we
would refer in a while.
10. Based on the provisions of law regarding redevelopment of a
slum, the procedure for the implementation of a Slum
Rehabilitation Scheme has been summarised and published by
SRA in form of “ Guidelines for the Implementation of Slum
Rehabilitation Schemes in Greater Mumbai” which was published
in September, 1997. The procedure mandates that: “ 70% or more
of the eligible hutment-dwellers in a slum or pavement in a viable
stretch at one place have to show their willingness to join Slum
Rehabilitation Scheme and come together to form a cooperative
housing society of all eligible hutment-dwellers through a resolution
to that effect.”
11. This Court has upheld this procedure in a catena of
Judgments which include Ram Chandra Mahadev Jagpat and
Ors. vs Chief Executive Officer and Others (2006) 11 SCC
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661 ; Pramila Singh Suman vs State of Maharashtra and
2
Others (2009) 2 SCC 729 ; Balasaheb Arjun Torbole and
Others vs Administrator and Divisional Commissioner and
3
Others (2015) 6 SCC 534
1 Para 28
2 Para 18
3 Paras 14 & 15
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12. In 2007, the project being stalled by a minority section of the
Federation, the Developer filed a civil suit before the City Civil
Court, Bombay seeking injunction against the defendant nos.1 to
15 who were inhabitants of the slum, and as per the scheme had
an entitlement for a flat each in the residential complex which
was to be constructed by the developer i.e., the plaintiff, but these
defendants were not letting the Developer make construction of
the nine towers which had to be constructed within a stipulated
time. Defendant no.16 was the federation and the recitals of the
plaint clearly states that defendant no.16 is only a proforma party,
it is actually defendant nos.1 to 15 who were creating
obstructions in the construction of the towers, which the plaintiff
was mandated to construct as per the scheme. To our mind, this
Civil Suit was not even maintainable in view of Section 42 of the
1971 Act, which bars the jurisdiction of Civil Courts in matters
relating to slum development. Section 42 of the 1971 Act reads
as under:
| "42. Save as otherwise expressly provided in this | | |
|---|
| Act, no Civil Court shall have jurisdiction in | | |
| respect of any matter which the Administrator, | | |
| Competent Authority or Tribunal is empowered | | |
| by or under this Act, to determine, and no | | |
| injunction shall be granted by any Court or other | | |
| authority in respect of any action taken or to be | | |
| taken in pursuance of any power conferred by or | | |
| under this Act | ." | |
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13. Be that as it may, the SRA which was in any case a necessary
party to the Civil Suit, was not made a defendant. The reasons
are not difficult to locate. In the absence of SRA, there was no one
to question the maintainability of the suit, as it ultimately ended
in a compromise decree.
It so happens that during the pendency of the suit an MoU
was signed between the plaintiff and appellant-society, which had
as its members, most of the contesting defendants, and the so
called contesting parties agreed to resolve their differences as per
the MOU.
14. The Memorandum of Understanding (hereinafter referred to
as ‘MoU’) dated 23.06.2009, is an interesting piece of document
signed between the developer and the society registered under the
Societies Registration Act, 1860 which is also proposed to be
registered as a charitable trust under the Bombay Public Trust
Act, 1950 (it was till then not registered as a Trust). The society
claimed that it had 770 hutments dwellers as its members. The
MoU is between the developer and the society, to which most of
the defendants in the Civil Suit were members of the society i.e.,
Sayunkta Sangharsh Samiti (hereinafter referred to as ‘SSS’). A
purely private arrangement was thus arrived at between the
developer and the minority members of the hutment dwellers
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whereby the society undertook to enforce self-development
rehabilitation with the cooperation of the developer. Some of the
important terms of the MoU are as under:
| B. | | Samiti i.e. M/s. Sayukta Sangharsh Samiti | |
|---|
| is a charitable organization incorporated with the | | | |
| sold object for the guidance and welfare of the | | | |
| Slum Dwellers occupying the said property. | | | |
| Trustees of the said Samiti are also the | | | |
| occupants of the said entire property. The said | | | |
| Samiti is a non profti making organization. | | | |
| However it will work for the benefti of the said | | | |
| occupants including corpus and other benefits. | | | |
| C. | | Out of about 2000 Hutments about 770 | |
|---|
| Hutments dwellers of the said entire property | | | |
| approached Samiti to undertake the Self | | | |
| Development. List of the said 770 Hutment | | | |
| Dwellers is annexed herewith as Annexure ‘A’ | | | |
| and they are hereinafter referred to as the “Said | | | |
| Occupants”. Hence considering the interest of the | | | |
| said occupants Samiti had decided to enforce Self | | | |
| Development Rehabilitation Scheme and hence | | | |
| suggested the said intention to the Developer. | | | |
| | | |
| D. | | Developers have alternately suggested to | |
| the Samiti to carry out the Self Construction of | | | |
| the rehab building/s for the said occupants | | | |
| which the Samiti has agreed. | | | |
| E. | | The parties have agreed to give | |
|---|
| cooperation to the either party for self | | | |
| construction of rehab building/s by the Samiti for | | | |
| the said occupants and completion of the said | | | |
| Scheme. | | | |
| F. | | The Samiti has also represented that they |
|---|
| hereby undertake to actively assist the Developer | | |
| in continuation, implementation and completion | | |
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| of the said entire Scheme on the said entire | |
|---|
| property.” | |
As we can see it is an entirely private arrangement arrived at
between the Developer on the one hand and some of the hutment
dwellers on the other. SRA has no role to play in it, rather it is an
arrangement at the back of SRA and is in defiance of an already
existing rehabilitation scheme, statutorily sanctioned, which was
surviving.
15. The towers which the Samiti undertook to construct or to
supervise their construction were towers D, E and F, under the
said MoU which were then to be occupied exclusively by the
members of the Society i.e., SSS. Subsequent to this, the Society
was also registered as a public trust on 21.11.2009. In
September, 2009, the consent terms which were arrived at in the
Court between the developer and defendant nos.1 to 4, 6 to 9 and
16, read as under:
| 2. | | Plaintiffs confirm that they have arrived at |
|---|
| | Memorandum of Understanding dated 23rd |
| | June 2009 with one M/s. Sayukta Sangharsh |
| | Samiti, a Society registered under the |
| | provisions of Maharashtra Cooperative |
| | Societies Act and to be registered as |
| | Charitable trust under the Bombay Public |
| | Trust Act (Proposed) for better and smooth |
| | implementation and completion of Slum |
| | Redevelopment Scheme under DC Rules |
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| 33(10). Hereto annexed and marked as | |
|---|
| Exhibit “A” is a copy of the said Memorandum | |
| of Understanding. | |
| 3. | | Parties confirm that the said Slum | |
|---|
| | Redevelopment Scheme has been approved | |
| | vide LOI dated 16th April 2005 bearing Ref. | |
| | No. SRA/ENG/027/GS/ML/LOI (which may | |
| | be revised from time to time if required) for | |
| | development of the property bearing CS NO.1 | |
| | (Part) and 2 (Part) of Lower Parel Division | |
| | situate at JR Boricha Marg, Bombay – 400 | |
| | 011. | |
| 4. | | Defendant Nos.1 to 4 and 6 to 8 confirm that | |
|---|
| | they are lawfully appointed as Trustees of | |
| | M/s. Sayukta Sangharsh Samiti and have | |
| | been duly authorized by the said Samiti to | |
| | sign the Consent Terms and confirm having | |
| | signed Memorandum of Understanding as | |
| | duly authorized by the said Samiti and is | |
| | final, conclusive and binding upon the said | |
| | Samiti. | |
| 5. | | Parties confirm that the Defendant Nos. 7 and | |
|---|
| | 9 are not members of the Samiti but are only | |
| | will-wishers and supporters of Samiti and | |
| | have therefore willingly agreed to join in this | |
| | Consent Terms. | |
| 6. | | Parties agree that they have agreed to resolve | |
|---|
| | all the disputes and differences among | |
| | themselves as recorded in Memorandum of | |
| | Understanding dated 23.06.2009. | |
| 7. | | Parties agree to adopt, confirm and approve | |
|---|
| | the Memorandum of Understandings which is | |
| | annexed hereto. | |
| 8. | | Parties confirm that the said Memorandum of | |
|---|
| | Understanding is confirmed by themselves in | |
| | their personal capacity and also in their | |
| | capacity as members of the Samiti. | |
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| 9. | | Parties confirm that decree be passed in terms | |
|---|
| | of Consent Terms as against the Defendant | |
| | Nos. 1 to 4 and 6 to 9 and 16 herein. | |
| 10. | | | Parties confirm that the suit may be |
|---|
| continued as against other Defendant Nos.10 | | |
| to 15 as they are not ready and willing to | | |
| cooperate and sign the Consent Terms herein.” | | |
According to the appellants before this Court, the suit was
decreed in terms of the MoU as against defendant nos.1 to 9, as
to what happened for the remaining defendants, it is not clear as
no such order is there on record.
16. Meanwhile, after the aforesaid MoU/Settlement, the
Developer wrote to the SRA on 05.10.2009 stating that the
rehabilitation scheme which was earlier facing problems has been
resolved. It says that earlier the slum dwellers were divided into
different groups and got themselves formed into different societies
who were creating obstructions in the construction, but now an
amicable settlement has been arrived between the parties and the
consent terms/MoU was filed in Civil Suit No.1341 of 2007. The
terms of the MoU are binding between the parties and the project
would be now completed. It further requests that on the
complaint of SRA, the earlier enquiry which was being conducted
against the developer be dropped. It so happens that an enquiry
against the Developer was pending. We are not aware as to the
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fate of this enquiry. Be that as it may, more or less similar
information and request was made by the appellants before SRA
vide its letter dated 28.10.2009.
17. Pursuant to the MoU/Settlement between the developer and
the appellants, the appellants approached SRA to do the
allotment as per the terms of settlement. There are some
exchange of letters between the parties on which much reliance
has been placed by the appellant to show that their request for
allotment of Towers D, E and F was being agreed. This, however,
is not correct, but even assuming there was any such indication
and an assurance by SRA or any of its office bearers in this
regard, the same would be in violation of the law, as we shall
explain in a while.
18. Ultimately the SRA decided vide order dated 21.09.2020 to
allot 712 flats on Tower D, E & F, on the basis of lottery, but then
vide order dated 25.09.2020, the SRA stayed this order. This
order dated 25.09.2020 was challenged by the appellant before
the Bombay High Court in a writ petition which was disposed of
vide order dated 09.10.2020 directing SRA to take a call on
allotments of these flats in Tower D, E & F, by way of lottery. The
SRA in compliance with the said order passed an order on
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26.10.2020 deciding to allot the flats in Tower D, E & F as per the
procedure prescribed vide Circular No. 162 dated 23.10.2015.
19. Aggrieved by this order of SRA, the appellants filed another
Writ Petition (L) No. 8391 of 2020 before the Bombay High Court
with a prayer to set aside the order dated 26.10.2020. The main
ground taken by the appellant was that SRA had to conduct
allotment as per the terms of the MoU dated 23.06.2009 by giving
preferential allotment to the members of the appellant society in
Towers D, E and F. The Bombay High Court dismissed the Writ
Petition on 22.10.2021 which is the order impugned in this Civil
Appeal.
20. The case of the appellant before the High Court was that once
the Developer and the appellant society had come to a settlement
in terms of the MOU dated 23.06.2009 allotment of flats in towers
D, E and F ought to have been made accordingly, with allotments
of these flats only to the members of appellant society. The
appellant, however, failed to show any provision of law on which
this claim was based, particularly when it was a minority society,
which is not even recognised under the law presently applicable,
and was not a part of the SRA scheme. As we have already
referred to the relevant provision of the concerned Regulation
where at least 70% of the settlement dwellers should be on board.
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The members of the present appellant society are admittedly
much less than 70%. The claim of the appellant was based
entirely on the terms of consent arrived between the Developer
and them, which has no basis in law. This is what the Bombay
High Court observed:
11. It clearly appears that the claim of the
petitioner is on the sole basis of the
consent terms which were executed
between the said parties in the civil suit
filed by the developer. As noted above, the
suit between these parties was a matter
strictly between such private parties
which would be completely outside the
scheme of any slum redevelopment being
undertaken and as approved under the
rules by the SRA. It clearly appears that
for such reason, the SRA was not made a
party to the said civil suit. It also cannot
be conceived that a developer enters into
some private arrangement with a parallel
society that too which is of minority of
slum dwellers, can have no bearing on the
execution of a slum scheme under the
rules and regulations of the SRA. Such
arrangement can never be made binding
on the SRA and/or can never restrain the
SRA from implementing its rules,
regulations and circulars which are bind
on any developer and/or a slum society
undertaking the SRA scheme.
12. Any private arrangement between the
petitioner, a society not of the majority
slum dwellers, and the developer in a civil
suit, if is recognized, it would certainly
bring about a complete chaos and
uncertainty in regard to the SRA granting
permissions to a particular slum society
20
and the developer appointed by it, as per
the rules, to undertake the SRA scheme.
Any private arrangement which goes
contrary to the rules and regulations,
governing the SRA scheme cannot be
recognized in law.”
The writ petition was hence dismissed and SRA was directed to
make allotment in accordance with Circular no. 162 dated
23.10.2015.
21. Since the procedure for allotment is at the core of the dispute,
it would be necessary for us to examine the relevant legal
provisions governing the procedure of allotment. Under DCR-
1991, Regulation 33(10), Appendix (IV), Clause 1.8, it is
mentioned as follows:
‘1.8 Hutments dwellers in category having
a differently abled person or female
headed households shall be given first
preference in allotment of tenements.
Thereafter lots shall be drawn for
allotment of tenements from the remaining
tenements to the other eligible hutment-
dwellers before grant of O.C. to rehab
Building.’
Even otherwise, the SRA accepted the proposal for
implementation of the Slum Rehabilitation Scheme submitted by
the Developer under Regulation 33(10) and subsequently issued
the Letter of Intent (LoI) dated 16.04.2005. Clause 42 of the said
LoI provides as follows:
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‘42. That the allotment of rehabilitation
tenements to the eligible slum dwellers in
the scheme, shall be made by drawing
lots in presence of the representative of
the Asst. Registrar of societies (SRA) and
statement of rehab tenements allotted to
the eligible slum families in the
rehabilitation building with corresponding
tenements No. in rehab composite building
and Sr. No. in Annexure-II etc. duly
certified by the concerned society of slum
dwellers and Asst. Registrar (SRA) shall
be submitted before requesting for
occupation permission to the rehab.
tenements.’
The allotment by draw of lots is not an arbitrary order of SRA but
this is the settled procedure, long continuing and in terms of the
law. It is also provided under the Circular No. 162 dated
23.10.2015, that allotment will be done by draw of lots for all the
hutment dwellers.
22. The case of the Appellants, based entirely on the Consent
Terms executed pursuant to the MoU, had little else to say in its
favour. As has rightly been noted by the Bombay High Court, the
consent terms are in the nature of a private agreement. The Civil
Suit was at the behest of the Developer against individual society
members and as we have noted above, SRA was not made a party
to these proceedings. The seemingly ingenious, yet unfair and
even specious method adopted by the Developer in league with
the Appellants to bypass the statutory procedure must be
22
deprecated. Admittedly, there is no provision in law by which the
settlement terms entered into by two private players can be
accepted and followed in violation of the statutory procedure given
in Circular No.162 dated 23.10.2015. We do not agree with the
submissions advanced on behalf of the appellant who only seeks
to enforce a private arrangement arrived at between the Developer
and the appellant in derogation of the procedure laid down by the
SRA.
23. Private agreements cannot be enforced in Slum Rehabilitation
Schemes as against the statutory mandate of the SRA. In the
case of Lokhandwala Infrastructure Pvt. Ltd. and Another v.
State of Maharashtra and others reported in 2011 SCC
OnLine Bom 118, the Bombay High Court had held as follows:
9. A Slum Rehabilitation Scheme which
is implemented under DCR 33(10) read
with Appendix IV does not lie in the
realm of a purely private contractual
agreement. Undoubtedly, the scheme
postulates a co-operative housing
society of slum dwellers. Appendix IV of
DCR 33(10) clarifies that the provisions
will apply to
redevelopment/construction of
accommodation for hutment/pavement
dwellers through
owners/developers/co-operative
housing societies of hutment/pavement
dwellers or by public authorities or by
nongovernmental organisations within
the limits of Brihan Mumbai. The
Scheme regulates the rights of hutment
23
dwellers, the grant of building
permission for a Slum Rehabilitation
Project, rehabilitation and freesale
components in the total floor space
index, the construction of temporary
transit camps, the relaxation in building
and other requirements, development
plan reservations and payments to be
made inter alia to the Slum
Rehabilitation Authority. The
Development Control Regulations, it is
well settled, constitute subordinate
legislation enacted with reference to the
provisions of section 22(m) of the
Maharashtra Regional Town Planning
Act, 1966. Slum Rehabilitation Schemes
have a public law element.
10. The execution of Slum
Rehabilitation Schemes is impressed
with a public character. The lands on
which the Scheme is sought to be
sanctioned and implemented may be
lands belonging to the Municipal
Corporation or to the State of
Maharashtra or, for that matter, its
instrumentalities such as the
Maharashtra Housing and Area
Development Authority. The title to the
land does not vest in the society or in
its members at the stage when the
Scheme is propounded and subjected
for sanction. Where it owns the land,
the Municipal Corporation of Greater
Mumbai is the authority responsible for
issuing a certification of Annexure II
containing the list of eligible occupants
who can participate in the Scheme. The
interest of the Municipal Corporation as
the owner of the land is recognized by
conferring upon the Municipal
Corporation the role of verifying and
authenticating who are the actual and
genuine occupants of the land as on 1
24
January, 1995. Public land is sought to
be utilized in order to further the object
of providing dignified accommodation to
those living in slums. The co-operative
societies of slum dwellers and
developers through whom the Slum
Rehabilitation Scheme is sought to be
implemented facilitate the
implementation of the Scheme. The
agreements or arrangements that may
be arrived at between them cannot be
treated at par with purely private or
contractual agreements entered into in
respect of land belonging to private
individuals. The State as the owner of
the and upon which a slum is situated
has a vital public interest in ensuring
that the object for which the land is
utilized subserves the purpose of
rehabilitation of the slum dwellers. It is
in that context that diverse provisions
are made by the Development Control
Regulations to regulate every stage of
the Slum Rehabilitation Scheme, from
the submission of the proposals, the
evaluation of proposals, scrutiny and
verification, grant of sanctions and the
actual implementation of the Scheme.
Though a dispute between the co-
operative society and its developer has
a private element, it is not as if that a
recourse to private law remedies is the
only available form of redress. The
Slum Rehabilitation Authority as the
authority which is vested with the
power to regulate the implementation of
the Scheme and the owners of the land
such as the Municipal Corporation or,
as the case may be, the State
Government are vital components in the
implementation of the Slum
Rehabilitation Scheme. Their statutory
powers to ensure that the Scheme is not
misused and is utilized to subserve the
25
public purpose underlying the Scheme
is not trammelled by private contractual
arrangements.
(emphasis supplied)
[See also: v.
Susme Builders Private Limited Chief Executive
Officer, Slum Rehabilitation Authority, 2014 SCC OnLine
at Para 109 and v.
Bom 4822 New Janta SRA CHS Ltd. State
at Para 189]
of Maharashtra, 2019 SCC OnLine Bom 3896
24. Moreover, under the Maharashtra Slum Areas (Improvement,
Clearance and Redevelopment) Act, 1971 SRA is the final
authority for implementing a slum rehabilitation scheme. The
Bombay High Court has held in the case of Smt. Usha
Dhondiram Khairnar and Others v. State of Maharashtra
and Others reported in 2016 SCC OnLine Bom 11505 that
slum society or private Developer cannot dictate terms to the SRA
and it must act in terms of its own policies and circulars. The
following was held in Paragraphs 24 and 26:
24. We do not think that the developer
and slumdwellers’ society can dictate
the SRA in such cases and matters. If
that is the designated authority, then, it
must act strictly in terms of its own
policy, circulars, rules, regulations and
the SLUM Act. These are guiding the
SRA and in ensuring that all such slum
dwellers who are languishing in slums
for decades together and if found
eligible are rehabilitated, how the
rehabilitation package evolved for them
26
has to be implemented and worked out,
is entirely left to SRA.
26. We do not allow the SRA to take a
decision like this and contrary to the
principle of natural justice, fairness and
equity. If they now intend to withdraw
the allotment letters issued to the
Petitioners and desire to accommodate
them in some other scheme nearby,
then, that decision cannot be reached or
allowed to be reached in the manner
stated by the SRA before us. Equally,
the SRA cannot at the instance of any
developer/owner or society of slum
dwellers take a decision contrary to its
defined and settled policies, circulars,
rules and regulations. We, therefore,
direct that no such decision as is
intended to be taken now in paragraph
no. 7 shall be taken or reached without
hearing all affected parties and
particularly the Petitioners.
(emphasis supplied)
25. Thus, SRA has to act in terms of its own policies and
circulars without allowing private or contractual interests to
prevail over public policy especially a policy which is welfare
based. Apart from this, it is pertinent to point out that the
Circular No. 162 was issued on 23.10.2015. The appellant society
though has filed two Writ Petitions subsequently in connection
with the procedure for allotment undertaken by the SRA, yet it
has not challenged the validity of Circular No. 162, instead it has
sought to impose its private contractual rights over and above the
27
statutory provisions which as we have seen above, is not
permissible.
26. Consequently, we dismiss this Appeal and uphold the order
dated 22.10.2021 passed by the High Court of Bombay. The order
of status quo on allotment of flats given by this Court on
24.01.2022 is also vacated. The Slum Rehabilitation Authority is
directed to carry out the allotment of flats in accordance with law.
All pending interim applications are disposed of in terms of the
directions contained in the present judgement.
Considering the conduct of the Developer who has evidently
taken a surreptitious route bypassing the statutory procedure,
the SRA would be failing in its duty if it does not seek explanation
from the Developer in this regard and takes suitable action in
accordance with law.
……..............................J.
[ANIRUDDHA BOSE]
.…….............................J.
[SUDHANSHU DHULIA]
New Delhi,
December 15, 2023.