Bombay High Court
THOMAS MORE PEREIRAversusTHE STATE OF MAHARASHTRA AND ORS.
- Decided
- Disposal
- Allowed
Holding
The repeal of the Urban Land (Ceiling & Regulation) Act, 1976 nullifies any pending proceedings and the State’s vesting of surplus land where possession was not taken before the repeal, thereby restoring the land to the petitioner.
Summary
The petition under Article 226 sought a declaration that, following the repeal of the Urban Land (Ceiling & Regulation) Act, 1976, all proceedings under that Act concerning the petitioner’s 20,948.40 sq m of surplus land should lapse and the land should no longer vest in the State. The land had been declared surplus in 1977, vested in the Government under Section 10(3) of the 1976 Act, and allotted to the Pune Area Housing Development Board, but possession was never taken due to various stays and appeals. The State argued that the vesting remained valid despite the repeal, while the petitioner contended that the Repeal Act’s saving clause only protects land whose possession has been taken by the State. The Court examined Section 10 of the 1976 Act and Sections 3 and 4 of the 1999 Repeal Act, concluding that the saving provision does not preserve vesting where possession was not effected before the repeal date of 29 Nov 2007. Relying on the precedent in Voltas Ltd. v. Addl. Collector, the Court held that the State cannot enforce possession or claim ownership of such land post‑repeal. Consequently, the petition was allowed, the interim rule made absolute, and the related civil application was dismissed.
Issues considered
- Whether the repeal of the Urban Land (Ceiling & Regulation) Act, 1976 extinguishes pending proceedings concerning surplus land that was declared vested in the State but not possessed.
- Whether Section 3 of the Urban Land (Ceiling & Regulation) Repeal Act, 1999 saves the vesting of such land in the State when possession was not taken before the repeal.
- Whether the State retains the power to take possession or determine compensation for the land after the repeal.
Legislation cited
- Urban Land (Ceiling & Regulation) Act, 1976 — s. 10(3), 10(5), 10(6), 11, 12, 13, 14, 20, 21, 33, 34, 6(1), 8(3), 8(4), 9
- Urban Land (Ceiling & Regulation) Repeal Act, 1999 — s. 3, 4
Subjects
- urban land ceiling
- repeal legislation
- vested land
- possession
- Article 226 writ
- surplus land
- saving clause
- state ownership
- land acquisition
Judgment
WAKLE
MANOJ
JANARDHAN
Digitally signed by
Manoj 201-WP-5381-2005.doc
WAKLE MANOJ
JANARDHAN
Date: 2026.04.09
10:34:52 +0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.5381 OF 2005
Thomas More Pereira
16-Bund Garden Road,
Pune-411001 …..Petitioner
Vs.
1. The State of Maharashtra
2. Additional Collector &
Competent Authority, Pune
3. The Secretary,
Housing & Special Assistance,
Govt. of Maharashtra, Mantralaya
Mumbai-400 032.
4. Maharashtra Housing & Area
Development Authority
duly constituted under the provisions
of Maharashtra Housing & Area
Development Act, 1976, having its
office at Griha Nirman Bhavan,
Bandra (E), Mumbai- 400 051. …..Respondents
WITH
CIVIL APPLICATION NO.38 OF 2022
IN
WRIT PETITION NO.5381 OF 2005
Maharashtra Housing & Area Development Authority,
Pune, Griha Nirman Bhavan,
Agarkar Nagar, Pune- 411001 …..Applicant
Vs.
Thomas More Pereira
16-Bund Garden Road,
Pune-411001 …..Respondent
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__________________________________________
Mr. Chirag Balsara a/w Adv. Sean Wassoodew & Ashna Shah, for the
Petitioner.
Ms. Kavita N. Solunke, Add. GP a/w S.L. Babar, AGP for the Respondent
Nos.1 to 3.
Mr. Nitin P. Deshpande a/w Ms. Anjali Shinde, Ms. Rachna Harpale &
Mr. Santosh Kurade, for the Respondent No.4.
__________________________________________
CORAM : A. S. GADKARI AND
SHYAM C. CHANDAK, JJ.
RESERVED ON : 16th FEBRUARY, 2026
PRONOUNCED ON : 8th APRIL, 2026
JUDGMENT:- (PER SHYAM C. CHANDAK, J.)
1) Instant Petition has been filed under Article 226 of the
Constitution of India. The subject matter of this Petition is the land
admeasuring total 20,948.40 Sq.Mts. from Bund Garden Road C.T.S.
No.13/2, Pune (“the land” for short) in relation to which proceedings has
been initiated under the provisions of the Urban Land (Ceiling &
Regulation) Act, 1976 (hereinafter referred to as the “the Act”). During
pendency of said proceedings, the Act came to be repealed by the Urban
Land (Ceiling & Regulation) Repeal Act, 1999. Consequently, the
controversy in this Petition has been narrowed and therefore this Court is
called upon to adjudicate this Petition only in relation to prayer clause “ a
(iii)” which reads as under :-
“a (iii) that this Hon'ble Court be pleased to declare that
as a consequence of the repeal of the Urban Land (Ceiling &
Regulation) Act, 1976, further proceedings pursuant to the
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order made by the State Government on 6 th August, 2005 as
well as further proceedings under the provisions of the
principal Act in relation to the land of the Petitioner mentioned
in the declaration made under Section 10(3) of the principal
Act lapses and those lands no longer vest in the State
Government.”
2) Record indicates that, Rule and interim relief has been granted
on 28.09.2011.
3) Heard Mr. Balsara, learned counsel for Petitioner, Ms. Solunke,
the learned Addl.G.P. for Respondent-State and Mr. Deshpande, learned
counsel for the Respondent No.4. Perused the entire record. Respondent
Nos.2 and 4 have filed their separate replies and opposed the Petition.
4) Facts giving rise to this Petition are that, on the commencement
of the Urban Land (Ceiling & Regulation) Act, 1976 (hereinafter referred to
as the “the Act”), Petitioner’s mother had filed a statement before the
Competent Authority under Section 6 (1) of the Act on 10.09.1976.
Simultaneously, two sons of the deceased mother viz., the Petitioner and his
brother also filed their returns under the Act which were clubbed together
for disposal.
4.1) On 20.09.1977 the Competent Authority issued draft statement
under Section 8(3) of the said Act. The mother and her two sons filed their
objections resisting that draft statement. On 22.12.1977 the Competent
Authority dismissed the objections and issued an Order under Section 8(4)
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of the said Act and directed final statement to be issued under Section 9 of
the Act without any change in the draft statement. Out of the said land,
total 13,410.88 Sq.Mts. land was declared as surplus. On 22.01.1979
Application under Section 20 filed by the deceased mother on the ground of
undue hardship came to be rejected. On 24.02.1979 the surplus land was
allotted by the Competent Authority to Pune Area Housing Development
Board on payment of Rs.77,200/- as occupancy price. The said excess land
has still not been vested in the Government under Section 10(3) of the Act.
4.2) On 07.03.1979, the deceased mother filed an Appeal under
Section 33 of the Act against the Order dated 22.12.1977 passed under
Section 8(4). On 09.03.1979 the Collector and the Appellate Authority
rejected the said Appeal on the grounds of laches. On 12.03.1979
Notification under Section 10(3) of the said Act was published and
thereunder the surplus land was vested in the Government.
4.3) On 29.03.1979 the deceased mother filed an Application under
Section 21 of the Act for exemption on the basis of a scheme of construction
for Low Income Group Housing which was within the time limit permitted
by the Government. On 29.03.1979 itself the deceased mother filed Writ
Petition No.877 of 1979 before this Court challenging the Notification
under Section 10(3) of the Act. Therein, a stay was granted on the next day.
The said Writ Petition came to be dismissed on 24.09.1982. Therefore, Civil
Appeal No.3331 of 1982 alongwith Misc. Petition No.27301 of 1982 was
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filed in the Hon’ble Supreme Court on 08.10.1982, challenging the
Judgments of this Court dated 24.09.1982 and for grant of stay respectively.
Vide Order dated 05.11.1982, stay was granted by the Apex Court.
4.4) On 14.03.1987 the deceased mother submitted a further
scheme under Section 20(1)(a) of the Act, being Scheme No.A-225 for
construction of houses for weaker Sections of the society which is still
pending with the State Government. On 08.07.1996 the exemption
Application made under Section 21 of the said Act was rejected by the
Commissioner, Pune Division and the Competent Authority.
4.5) On 25.07.1996 the Hon’ble Supreme Court dismissed the Civil
Appeal No.3331 of 1982 filed against the Court Order dated 24.09.1982
and upheld the Notification under Section 10(3) of the said Act. In the said
decision, in paragraph 6, the Hon’ble Supreme Court has observed thus :-
“The Power of examination and exemption would
arise only when the Government becomes the
owner and the erstwhile owner seeks to obviate the
hardship under Section 20 or to sub serve the
housing scheme of weaker sections under Section
21 as envisaged there under. There at, the
Government is required to consider whether the
proposals made by the erstwhile owner for
undertaking the scheme as envisaged under
Section 21 of hardship as envisaged under Section
20 for exemption would merit consideration.”
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4.6) On 07.08.1996 the deceased mother of the Petitioner filed
Appeal under Section 33 of the said Act with Respondent No.1 challenging
the Order dated 08.07.1996 and sought for stay. As stated in the Petition,
Respondent No.3 gave oral instructions to the Competent Authority not to
take possession. Accordingly, since 1996 no possession of the surplus land is
taken, although there was no formal stay thereon.
4.7) Respondent No.2 served a notice dated 14.08.1998 on the
Petitioner thereby intimating that possession of the surplus land would be
taken on 19.08.1998, at 1:00 p.m. On 17.08.1998 the Petitioner applied to
Respondent No.3 to bring him on record in the Appeal filed by the deceased
mother as her legal heir and also prayed to stay the dispossession. On
18.08.1998 the Petitioner filed the Writ Petition No.4446 of 1998 praying
inter alia that injunction may be issued restraining the Respondents from
taking possession of the land mentioned in the notice dated 14.08.1998
during the pendency of the said Appeal filed on 07.08.1996 and also for 15
days from the date of service of an adverse Order upon the Petitioner, if any,
passed in the said Appeal and for ad-interim injunction. The ad-interim
injunction was granted by this Court.
4.8) By the Order dated 31.08.1998 this Court disposed off the Writ
Petition No.4446 of 1998, thereby restraining the Respondents from taking
possession of the lands mentioned in the said notice dated 14.08.1998
during the pendency of the said Appeal and also for 15 days from date of
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service of an adverse Order upon the Petitioner, if any, passed in the said
Appeal. Thereafter no notice for hearing of the said Appeal was received
from Respondent Nos.1 & 3 nor adverse Order was passed in that Appeal
till date. On 12.08.2005, at 18:00 hours, the Petitioner received phone call
from Respondent No.2’s office when he was informed that Order for taking
possession of the surplus lands has been passed; that, the officers of the
Respondents will be coming on the site on 17.08.2005 for executing the
said Order, and that, the Petitioner should remain present on that day to
hand over the possession. In this background present Petition is filed.
5) Mr. Balsara, the learned Counsel for the Petitioner submitted
that, the aforesaid Appeal filed on 07.08.1996 is yet not decided. The
Application dated 15.04.1987 submitting a scheme under Section 20(1)(a)
of the Act is also pending. Be that as it may. Till date, possession of the land
in question has not been taken over by the Respondents and therefore the
Petitioner continues to be in possession of said land. Since the Act of 1976
has been repealed in the state of Maharashtra with effect from 29.11.2007,
therefore all proceedings initiated under the said Act of 1976 and pending
before any Court on the date of implementation of the repealing Act, shall
abate. Consequently, the Respondents have been statutorily barred from
taking possession of the subject matter land. Hence, Petition may be
allowed in terms of the prayer clause “a (iii)”.
6) In reply, Ms.Solunke, the learned Add. GP for Respondent
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Nos.1 to 3 and Mr. Deshpande, the learned counsel for Respondent No.4
have submitted that, from time to time, necessary actions were taken by the
Respondents to take the possession of the land in question. Meanwhile, the
Notification under Section 10(3) and notice under Section 10(5) of the Act
were issued. Ms.Solunke and Mr. Deshpande submitted that although the
ULC Act came to be repealed on 29.11.2007, it is of no consequence.
Because, on issuance of the said Notification, the surplus land was vested in
the Government. The land has been already allotted to Respondent No.4 –
the Pune Area Housing & Department for the public purpose and occupancy
price of the land is paid by the said authority. However, the possession of
the said land could not be taken because of stay Orders passed in the Writ
Petitions filed in this Court and certain proceedings filed before the
Appellate/Revisional authority under the Act. Said Petitions/challenges
were against the scheme of the Act. Therefore, the Respondents are not
blamable for not taking the possession of the land and frustrating the
purpose of the Principal Act. As such, there is no merit in the Petition and
Petition is liable to be dismissed.
7) We have considered these submissions advanced by the learned
Advocates.
8) A Controversy like in this Petition had come before this Court
in Voltas Limited & Anr. vs. Addl. Collector and Competent Authority &
Ors., reported in 2008 (5) Bom. C.R. 746, cited by Mr. Balsara, the learned
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counsel. The question, therefore, that had arose for consideration was
“whether by reason of repeal of the Act, all proceedings under the principal
Act in regard to the petitioners’ land declared as surplus vacant land, have
abated and whether the land of the petitioner has reverted to the
petitioners.”
8.1) On a conjoint reading of Section 10 of the Principal Act of 1976
and the Sections 3 & 4 of the Repeal Act of 1999, the Division Bench of this
Court, in paragraph 15 held that, Section 3 of the Repeal Act is a saving
clause and sub-Section 1 (a) of Section 3 of the Repeal Act saves vesting of
any vacant land under sub-section (3) of Section 10 of the Principal Act,
possession of which has been taken over by the State Government. In other
words, vesting of vacant lands under sub-section (3) of section 10 of the
Principal Act in the State Government, possession of which has not been
taken over, is not saved. Because there is no provision in the Repeal Act
which divest: the State Government of the ownership of the land. The
purpose of enacting Section 3 (1) (a) of the Repeal Act is to save or protect
vesting of vacant lands in the State Government and out of the vacant lands
that might have vested in the State Government by virtue of declarations
made under sub-Section (3) of Section 10 of the Principal Act, only vesting
of those lands in the State Government of which possession has been taken
has been saved. Therefore, by necessary implication it follows that vesting
of those lands in the State Government under sub-section (3) of Section 10
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of the Principal Act of which possession has not been taken has been
repealed or made ineffective.
8.2) On account of vesting of the land in the State Government, the
Competent Authority gets power to make order directing the person who is
in possession of the land to surrender or deliver the possession of the land
to the State Government. If that person does not deliver the possession then
the Competent Authority becomes competent to take possession under sub-
section (6) of section 10 of the Principal Act. However, after 29.11.2007,
the provisions of sub-Section (5) and sub-Section (6) of Section 10 of the
Principal Act are not available to the State Government, therefore, in
relation to that land with respect to which declaration under sub-section (3)
of Section 10 of the Principal Act has been made but possession has not
been taken, the Competent Authority will not be entitled to make an order
directing the person in possession of the land to deliver the possession to
the Government nor the Competent Authority would be entitled to take
possession under sub-Section (6) of Section 10 of the Principal Act on
failure of the person in possession to deliver the possession. Consequently,
the State Government will not be in a position to determine the
compensation of the land under Section 11 of the Principal Act and make
payment to that compensation to the interested persons under Section 14 of
the Principal Act. Section 4 of the Repeal Act keeps the provisions of
Sections 11, 12, 13 and 14 relating to determination of amount and
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payment of amount alive only in relation to the land possession of which
has been taken by the Government. Therefore, it is clear from the provisions
of the Repeal Act that as a result of the Repeal Act neither any proceedings
can continue nor the State Government can claim that the land continued
to vest in it if possession of the land in relation to which declaration under
sub-section (3) of section 10 of the Principal Act has been made, has not
been taken before 29.11.2007.
8.3) In view of the aforesaid observations, the Division Bench
allowed the said Petition thereby restraining the Respondent from taking
possession of the land.
9) In the case in hand, on a careful reading of the Affidavit-in-
Reply filed by Respondent No.2, it is apparent that after dismissal of the
Civil Appeal No.3331 of 1982 on 24.06.1996 by the Apex Court, the
Constituted Attorney of the landowner M/s. Shantilal Mutha and Associates
had filed an Application on 05.08.1996 against the decision of the
Divisional Commissioner dated 08.07.1996 before the Hon’ble Minister,
Housing and Special Assistance Department. Therein, the Government had
issued a stay order dated 05.08.1996 until further orders against the
decision of the Divisional Commissioner. The landowner again filed an
Appeal under Section 34 of the Act on the order of the Commissioner, Pune
Division, on 09.08.1996. In that Appeal, on 20.08.1996 the Government
had issued stay against the Commissioner’s Order until further orders for
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handing over the land to the MHADA and rejection of the scheme under
Section 21 of the Act. It is not clarified in the Affidavit that, as to why the
possession of the said land could not be taken invoking Section 10 (6) of
the Act. Thus, it appears that even after dismissal of the Civil Appeal
No.3331 of 1982 by the Hon’ble Supreme Court, there was sufficient time
with the Respondents to take possession of the said land. However, they
failed to do so. Thus, the facts of the case in hand and the facts in the case
of Voltas (supra) are similar to a large extent. Therefore, the said decision is
applicable to the case in hand.
10) In view of the above, we pass following Order :-
10.1) Petition is allowed in terms of prayer clause a (iii).
10.2) Rule is made absolute in aforesaid terms.
10.3) Consequently, Civil Application No.38 of 2022, does not survive
and is disposed off accordingly.
(SHYAM C. CHANDAK, J.) (A.S. GADKARI, J.)
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