Supreme Court of India
GODREJ & BOYCE MFG. CO. LTD. & ANR.versusTHE STATE OF MAHARASHTRA & ORS.
- Citation
- 2014 INSC 68
- Decided
- 30 January 2014
- Disposal
- Appeal(s) allowed
- Bench
- RAJENDRA MAL LODHA
Holding
A notice under Section 35(3) of the Forest Act must be served to be effective, and an unserved, stale notice does not vest the land as a private forest, precluding demolition of existing structures.
Summary
Godrej & Boyce acquired a 133-acre parcel in Vikhroli, which was declared waste land and cultivated before 1951. The State later issued a show‑cause notice under Section 35(3) of the Indian Forest Act, 1927 (notice No. WT/53) in 1956‑57, but never served it or took possession, while repeatedly granting building permissions. Godrej challenged the classification of the land as a "private forest" under the Maharashtra Private Forests (Acquisition) Act, 1975, arguing that mere issuance of a notice without service cannot vest the land in the State and that the notice had become a dead letter. The Supreme Court held that a notice under Section 35(3) must be served to be effective, that the notice in this case was stale and did not create a private forest, and that the State could not demolish the existing constructions. Consequently, the Court set aside the Bombay High Court's order, quashed the stop‑work notices, and allowed the appeals.
Issues considered
- The mere issuance of a notice under Section 35(3) of the Indian Forest Act, 1927 is sufficient to declare land a "private forest" under Section 2(f)(iii) of the Maharashtra Private Forests (Acquisition) Act, 1975.
- The interpretation of the word "issued" in Section 2(f)(iii) – whether it requires service of the notice.
- Whether a stale or unserved notice constitutes a "pipeline notice" that can vest land in the State.
- Whether the State can demolish constructions on land deemed a private forest after decades of authorized development.
Legislation cited
- Code of Civil Procedure, 1908
- Forest (Conservation) Act, 1980
- Indian Forest Act, 1927s. 35(3), s. 35(4), s. 35(5), s. 35(7)
- Maharashtra Private Forests (Acquisition) Act, 1975s. 24, s. 2(c-i), s. 2(f)(iii), s. 3, s. 5, s. 6
- Salsette Estates (Land Revenue Exemption Abolition) Act, 1951s. 4
- Urban Land (Ceiling and Regulation) Act, 1976
Subjects
Forest ActPrivate Forests Acquisition Actshow‑cause noticeservice of noticepipeline noticeexpropriationland vestingdemolitionstatutory interpretationgood governance
Judgment
(2014] 2 S.C.R. 203
GODREJ & BOYCE MFG. CO. LTD. & ANR. A
v.
THE STATE OF MAHARASHTRA & ORS.
(Civil Appeal No. 1102 of 2014)
JANUARY 30, 2014
B
[R.M. LODHA, MADAN B. LOKUR AND
KURIAN JOSEPH, JJ.]
FOREST ACT, 1927:
c
s.35(3) - Mere issuance of a notice uls.35(3) is not
sufficient for any/and being .,declared a "private forest" within
the meaning of that expression as defined in s.2(f)(iii) of the
Maharashtra Private Forests (Acquisition) Act, 1975 - s.35(3)
is not intended to end the process with the mere issuance of 0
a notice but it also requires service of a notice on the owner
of the forest - The need for ensuring service is also to prevent
damage to or destruction of a forest - In the absence of any
fime period having been specified for deciding a show cause
notice issued u/s.35, it must be presumed that it must be
·decided within a reasonable time - In the instant case, notice E
issued u/s.35(3) after its publication in the Gazette was not
acted upon either under the provisions of the Forest Act as
amended from time to time or under the Private Forests Act
- Admittedly, no attempt was made by the State to take over
possession of the disputed land at any point of time - On the F
contrary, permissions were granted from time to time for
construction of buildings on the disputed land - Under the
circumstances, it cannot be said that any of these disputed
lands were 'forest' within the primary meaning of that word, or
even within the extended meaning given in s.2(c-i) of the G
Private Forests Act - Maharashtra Private Forests Acquisition
Act, 1975 - s.2(c-i), 2(f)(iii).
s.35(3) - Service of notice - Notice was issued to the
203 H
204 SUPREME COURT REPORTS [2014) 2 S.y.R.
A appellant in 1957 but no decision was taken thereon ti/11975,
that is, for about 18 years - This is an unusually long period
and undoubtedly much more than a reasonable time had
elapsed for enabling the State to take a decision on the notice
- Therefore, the said notice must, for all intents and purposes
B be treated as having become a dead letter - The said notice
cannot be described as a 'pipeline notice' since it cannot be
reasonably said that the pipeline extends from 1956-57 up
to 1975 - No citizen can reasonably be told after almost half
a century that he/she was issued a show cause notice (which
c was not serv,ed also) and based on the said notice his land
was declared a private forest about three decades ago and
that it vests in the State - State cannot be allowed to demolish
the massive constructions made thereon over the last half a
century - Basic principles of good governance must be
followed by every member of the Executive branch of the
0
State at all times keeping the interests of all citizens in mind
as also the larger public interest.
MAHARASHTRA PRIVATE FORESTS ACQUISITION.
ACT, 1975: s.2(f)(iii) - Service of notice - Word "issued" in
E s.2(f)(iii) of the Act, 1975 rlw s.35 of the Forest Act, 1927 -
Interpretation of - Held: It must be given a broad meaning in
the surrounding context in which it is used - The scheme of
s.35 of the Forest Act needs to be kept in mind while
considering ''issued" in s.2(f)(iii) of the Private Forests Act -
F A notice uls.35(3) ofthe Forest Act is intended to give an
opportunity to the owner of a forest to show cause why, inter
alia, a regulatory or a prohibitory measure be not made in
respect of that forest - Such a notice pre-supposes the
existence of a forest - The owner of the forest is expected to
G file objections within a reasonable time as specified in the
notice and is also given an opportunity to lead evidence in
support of the objections - After these basic requirements are
met, the owner of the forest is entitled to a hearing on the
objections - This entire procedure obviously cannot be
H followed by the State and the owner of the forest unless the
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 205
MAHARASHTRA & ORS.
owner is served with the notice - s. 2(f)(iii) of the Private Forests A
Act is not intended to apply to notices that had passed their
shelf-life and that only 'pipeline notices' issued in reasonably
close proximity to the coming into force of the Private Forests
Act are 'live' and could be acted upon.
B
INTERPRETATION OF STATUTES: Literal
interpretation or contextual interpretation - Held: Words in a
statute must be interpreted literally - But at the same time if
the context in which a word is used and the provisions of a·
statute inexorably suggest a subtext other than literal, then the C
context becomes important - It is true that ordinary rule of
.construction is to assign the word a meaning which it ordinarily
carries - But the subject of legislation and the context in which
a word or expression is employed may require a departure
from the rule of literal construction.
D
The disputed land was given on perpetual lease in
1835 to FCB. In 1948, Godrej (Petitioner-G) acquired the
said land from NP successor in interest of FCB. The land
was described in the perpetual lease as "waste land". On
-27.8.1951, Salsette Estates (land Revenue Exemption E
Abolition) Act, 1951 was passed which provided that
waste land not appropriated for cultivation vested in the
State. The State claimed that disputed land was not
brought under cultivation before 14.8.1951 and, therefore,
vested in it. Aggrieved, Petitioner-G filed suit. A consent F
decree was passed on 8.1.1962 to the effect that disputed
land was appropriated and brought under cultivation
before 14.8.1951 and was property of Petitioner-G. This
confirmed that the disputed land was waste land and not
forest.
G
In development plans of 1967 and 1971, the disputed
land was shown as residential and was built upon after
municipal sanctions. In 1976, Petitioner-G obtained
sanction under Urban Land (Ceiling and Regulation) Act,
1976 for housing and then built multistoried houses. In H
206 SUPREME COURT REPORTS [2014] 2 S.C.R.
A 1948, the Government amended Forest Act, 1927 taking
out waste land from definition and made inclusive
definition of forest. More amendments were made in 1955
and 1961.
In 2006, Petitioner-G received six stop work notices
8
on the ground that the disputed land was "affected" by
the reservation of a private forest and therefore no
construction could be carried out therein without the
permission of the Government under the Forest
C (Conservation) Act, 1980. Petitioner-G learnt that as per
mutation records, the disputed land vested in the State
and there was a notice no.WT/53 published in the Gazette
on 6.9.1956. Petitioner-G filed writ petitions. The High
Court dismissed the writ petitions.
D The questions which arose for consideration in the
instant appeals were whether the disputed land was at
all a forest within the meaning of section 2(c-i) of the
Private Forests Act; whether mere issuance of a notice
under the provisions of Section 35(3) of the Indian Forest
E Act, 1927 was sufficient for any land being declared a
"private forest" within the meaning of that expression as
defined in Section 2(f)(iii) of the Maharashtra Private
Forests (Acquisition) Act, 1975; whether the word
"issued" in Section 2(f) (iii) of the Maharashtra Private
F Forests Acquisition Act, 1975 read with Section 35 of the
Indian Forest Act, 1927 must be given a literal
interpretation or a broad meaning; and even assuming
the disputed lands were forest lands, can the State be
allowed to demolish the massive constructions made
G thereon over the last half a century.
Allowing the appeals, the Court
HELD: 1. The narrative of the events disclosed that
Notice No. WT/53 after its publication in the Gazette was
H not acted upon either under the provisions llf the Forest
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 207
MAHARASHTRA & ORS.
Act as amended from time to time or under the Private A
Forests Act. Admittedly, no attempt was made by the
State to take over possession of the disputed land at any
point of time. On the contrary, permissions were granted
to Petitioner-G from time to time for construction of
buildings on the disputed land, which permissions were B
availed of by Petitioner-G for the benefit of thousands of
its employees. [para 23] (234-E-F; 235-A]
2. The constitutional validity of the Private Forests
Act (including Section 3 thereof) was challenged in the C
High Court by *Waghmare on the ground of legislative
competence of the State Legislature. The High Court held
that a land owner who had been issued a notice under
Section 35(3) of the Forest Act (but was not heard) has
an opportunity to contend that his or her land is not a
'forest' within the meaning of Section 2(c-i) of the Private D
Forests Act and that the land does not vest automatically
in the State by virtue of Section 3 of the Private Forests
Act. This position was not contested and became final.
The view of the High Court was accepted by the State of
Maharashtra and was not challenged and attained finality. E
. [Paras 24, 25, 27] (235-B, E-F; 237-C]
3. The right to file objections to a notice under
Section 35(3) of the Forest Act came up for consideration
in **Chintamani in which it was noticed that where a final F
notification is issued under Section 35(1) of the Forest
Act (obviously after hearing the objections of the land
owner in compliance with the requirements of Section
35(3) thereof), the entire land of the land owner would
automatically vest in the State on the appointed date, that G
is, 30th August 1975 when the Private Forests Act came
into force. In such a case, the land owner would, ex
hypothesi have an opportunity of showing in the
objections to the notice under Section 35(3) that the land
is not a 'forest' as defined under Section 34A of the Forest
H
208 SUPREME COURT REPORTS [2014] 2 S.C.R.
A Act. If the land owner succeeded in so showing, then
clearly a final notification under Section 35(1) of the
Forest Act could not be issued. But if the land owner did
not succeed in so showing, only then could a final
notification under Section 35(1) of the Forest Act be
B issued. The words "or land" under Section 35(3) of the
Forest Act had been deleted by the Indian Forest
(Bombay Amendment) Act, 1948 and, additionally
therefore, such an objection could validly have been
raised. Consequently, the situation that presented itself
C in **Chintamani was that though a notice was issued to
the land owner under Section 35(3) of the Forest Act
before 30th August 1975, it could not be decided before
that date when the Private Forests Act came into force.
(Such a notice was referred to as a 'pipeline notice').
Clearly, the recipient of a pipeline notice would be entitled ·
0
to the benefit of *Waghmare but apparently have been
overlooked by this Court in **Chintamani. However, to
mitigate the hardship to a pipeline noticee who is not
given the benefit of *Waghmare this Court read Section
2(f)(iii) of the Private Forests Act and observed (perhaps ·
E as a sop to the land owner) that the "Maharashtra
Legislature thought that the entire property covered by
the notice in the State need not vest but it excluded 2
hectares out of the forest land held by the landholder.
That was the consideration for not allowing the benefit
F of an inquiry under Section 35(3) and for not allowing the
notification to be issued under Section 35(1) of the 1927
Act". In this background, this Court narrowly construed
the words "a notice has been issued under sub-section
(3) of section 35 of the Forest Act" occurring in Section
G 2(f)(iii) of the Private Forests Act as not requiring "service
of such notice before 30-8-1975, nor for an inquiry nor for
a notification under Section 35(1 )." In a sense, therefore,
not only is there a difference of views between
*Waghmare and **Chintamani but **Chintamani has gone
H much further in taking away the right of a landholder. It
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 209
MAHARASHTRA & ORS.
is quite clear from a reading of *Waghmare that the A
"means and includes" definition of forest in Section
2(c-i) of the Private Forests Act does not detract or take
away from the primary meaning of the word 'forest'.
[Paras 30-33, 47] [238-B-H; 239-A-D; 246-H; 247-A]
B
**Chintamani Gajanan Velkar v. State of Maharashtra
(2000) 3 sec 143 - Partly overruled .
. Banarsi Debi v. /TO (1964) 7 SCR 539; CWT v. Kundan
Lal Behari Lal (1975) 4 SCC 844: 1976 AIR 1150; *Janu
Chandra Waghmare v. State of Maharashtra AIR 1978 C
Bombay 119 - referred to.
4. In the case of Petitioner-G, the admitted position, as
per the consent decree dated 8th January 1962 was that the
disputed land was not a waste land nor was it a forest. In so o
far as the other appeals were concerned, the disputed lands
were built upon, from time to time, either for industrial
purposes or for commercial purposes or for residential
purposes. Under the circumstances, by no stretch of
imagination can it be said that any of these disputed lands E
are 'forest' within the primary meaning of that word, or even
within the extended meaning given in Section 2(c-i) of the
Private Forests Act. [para 51] [248-B-0]
5. The notice said to have been issued to Petitioner-
G being Notice No. WT/53 cannot be described as a F
'pipeline notice'. It cannot be reasonably said that the
pipeline extends from 1956-57 up to 1975. Assuming that
a notice issued in 1956-57 is a pipeline notice even in
1975, the question would, nevertheless, relate to the
meaning and impact of "issued" of Section 2(f)(iii) of the G
Private Forests Act read with Section 35 of the Forest Act.
Undoubtedly, the first rule of interpretation is that the·
words in a statute must be interpreted literally. But at the
same time if the context in which a word is used and the
provisions of a statute inexorably suggest a subtext other H
210 SUPREME COURT REPORTS [2014] 2 S.C.R.
A than literal, then the context becomes important. It is true
that ordinary rule of construction is to assign the word a
meaning which it ordinarily carries. But the subject of
legislation and the context in which a word or expression
is employed may require a departure from the rule of
B literal construction. The scheme of Section 35 of the
Forest Act needs to be kept in mind while considering
"issued" in Section 2(f)(iii) of the Private Forests Act. A
notice under Section 35(3) of the Forest Act is intended
to give an opportunity to the owner of a forest to show
c cause why, inter alia, a regulatory or a prohibitory
measure be not made in respect of that forest. Such a
notice pre-supposes the existence of a forest. The owner
of the forest is expected to file objections within a
reasonable time as specified in the notice and is also
given an opportunity to lead evidence in support of the
0
objections. After these basic requirements are met, the
owner of the forest is entitled to a hearing on the
objections. This entire procedure obviously cannot be
followed by the State and the owner of the forest unless
the owner is served with the notice. Therefore, service of
E a notice issued under Section 35(3) of the Forest Act is
inherent in the very language used in the provision and
the very purpose of the provision. [paras 52-56] [248-D-
H; 249-E-F; 250-A-D]
F 6. Additionally, Section 35(4) of the Forest Act
provides that a notice under Section 35(3) of the Forest
Act may provide that for a period not exceeding six
months (extended to one year in 1961) the owner of the
forest can be obliged to adhere to one or more of the
G regulatory or prohibitory measures mentioned in Section
35(1) of the Forest Act. On the failure of the owner of the
forest to abide by the said measures, he/she is liable to
imprisonment for a term upto six months and/or a fine
under Section 35(7) of the Forest Act. Surely, given the
H penal consequence of non-adherence to a Section 35(4)
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 211
MAHARASHTRA & ORS.
·direction in a Section 35(3) notice, service of such a A
notice must be interpreted to be mandatory. On the facts
.of the case in Petitioner-G, such a direction was in fact
;'.given and Petitioner-G was directed, for a period of six
:months, to refrain from the cutting and removal of trees
;and timber and the firing and clearing of vegetation. B
'.Strictly speaking, therefore, despite not being served with
Notice No. WT/53 and despite having no knowledge of it,
.Petitioner-G was liable to be punished under Section
,35(7) of the Forest Act if it cut or removed any tree or
:timber or fired or cleared any vegetation. [para 57] [250- C
D-H; 251-A]
Jagir Singh v. State of Bihar (1976) 2 SCC 942: 1976.
(2) SCR 809; Black Diamond Beverages v. Commercial Tax
Officer (1998) 1 SCC 458 1997 ( 4) Suppl. SCR 133; R.L
Arora v. State of U.P. (1964) 6 SCR 784; Tata Engg. & D
Locomotive Co. Ltd. v. State of Bihar (2000) 5 SCC 346 2000
(3) SCR 219; Joginder Pal v. Naval Kishore Behal (2002) 5
SCC 397 2002 (3) SCR 1078 - relied on.
Robinson v. Barton-Eccles Local Board (1883) 8 AC 798 E
- referred to.
7. This interplay may be looked at from another point
of view, namely, the need to issue a direction under
Section 35(4) of the Forest Act, which can be only to
prevent damage to or destruction of a forest. If the notice F
under Section 35(3) of the Forest Act is not served on the
owner of the forest, he/she may continue to damage the
forest defeating the very purpose of the Forest Act. Such
an interpretation cannot be given to Section 35 of the
Forest Act nor can a limited interpretation be given to the G
word "issued" used in the context of Section 35 of the
Forest Act in Section 2(f)(iii) of the Private Forests Act.
Finally, Section 35(5) of the Forest Act mandates not only
service of a notice issued under that provision "in the
manner provided in the Code of Civil Procedure, 1908, for H
212 SUPREME COURT REPORTS [2014] 2 S.C.R.
A the service of summons" but also its publication "in the
manner prescribed by rules". This double pronged
receipt and confirmation of knowledge of the show
cause notice by the owner of a forest makes it clear that
Section 35(3) of the Forest Act is not intended to end the
8 process with the mere issuance of a notice but it also
requires service of a notice on the owner of the forest.
The need for ensuring service is clearly to protect the
interests of the owner of the forest who may have valid
reasons not only to object to the issuance of regulatory
C or prohibitory directions, but to also enable him/her to
raise a jurisdictional issue that the land in question is
actually not a forest. The need for ensuring service is
also to prevent damage to or destruction of a forest.
Unfortunately, Chintamani missed these finer details
because it was perhaps not brought to the notice of this
D Court that Section 35 of the Forest Act as applicable to
the State of Maharashtra had sub-sections beyond sub-
section (3). [paras 58, 59, 60] (251-A-G]
8. It is true that a word has to be construed in the
E context in which it is used in a statute. By making a
reference in Section 2(f)(iii) of the Private Forests Act to
'issue' in Section 35 of the Forest Act, it is clear that the
word is dressed in borrowed robes. Once that is
appreciated (and it was unfortunately overlooked in
F Chintamani) then it is quite clear that 'issued' in Section
2(f)(iii) of the Private Forests Act must include service of
the show cause notice as postulated in Section 35 of the
Forest Act. Under these circumstances, to this extent,
Chintamani was incorrectly decided and it is overruled to
G this extent. Assuming that the word 'issued' as occurring
in Section 2(f)(iii) of the Private Forests Act must be
literally and strictly construed, the question would arise
whether it also has reference to a show cause notice
issued under Section 35(3) of the Forest Act at any given
H time (say in 1927 or in 1957) or would it be more
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 213
MAHARASHTRA & ORS.
reasonable to hold that it has reference to a show cause A
notice issued in somewhat closer proximity to the
coming into force of the Private Forests Act, or a 'pipeline
notice'. In the absence of any time period having been
specified for deciding a show cause notice issued under
Section 35 of the Forest Act, it must be presumed that it B
must be decided within a reasonable time. According to
the State, a show cause notice was issued to Petitioner-
G in 1957 (and assuming it was served) but no decision
was taken thereon till 1975 that is for about 18 years. This
is an unusually long period and undoubtedly much more C
than a reasonable time had elapsed for enabling the State
to take a decision on the show cause notice. Therefore,
the show cause notice must, for all intents and purposes
be treated as having become a dead letter and the seed
planted by the State yielded nothing. [paras 61, 65, 67] o
[252-B-G; 253-A-C; 254-A-C]
Ram/ila Maidan Incident, In re (2012) 5 SCC 1 2012 (4)
SCR 971; Mansaram v. S.P. Pathak (1984) 1 SCC 125 1984
(1) SCR 139 - relied on.
E
9. The entire problem may also be looked at from the
perspective of the citizen rather than only from the
perspective of the State. No citizen can reasonably be told
after almost half a century that he/she was issued a show
cause notice (which was probably not served) and based F
on the show cause notice his/her land was declared a
private forest about three decades ago and that it vests
in the State. Basic principles of good governance must
be followed by every member of the Executive branch of
the State at all times keeping the interests of all citizens
in mind as also the larger public interest. The failure of G
the State to take any decision on the show cause notice
for several decades (assuming it was served on
Petitioner-G) is indicative of its desire to not act on it. This
opinion was fortified by a series of events that took place
between 1957 and 2006, beginning with the consent H
214 SUPREME COURT REPORTS [2014] 2 S.C.R.
A decree of 8th January 1962 in Suit whereby the disputed
land was recognized as not being forest land; permission
to construct a large number of buildings (both residential
and otherwise) as per the Development Plans of 1967 and
then of 1991; exemptions granted by the Competent
8 Authority under the Urban Land (Ceiling and Regulation)
Act, 1976 leading to petitioner-G making unhindered but
permissible constructions; and finally, the absence of any
attempt by the State to take possession of the 'forest
land' under Section 5 of the Private Forests Act for a
couple of decades. The subsequent event of the State
C moving an application in Godavarman virtually denying
the existence of a private forest on the disputed land also
indicated that the State had come to terms with reality and
was grudgingly prepared to accept that, even if the law
permitted, it was now too late to remedy the situation.
D This view was emphatically reiterated by the Central
Empowered Committee in its report dated 13th July 2009.
[Paras 67, 68] [254-C-H; 255-A-C]
10. The Bombay Environment Action Group has
E alleged collusion between petitioner-G and other
appellants and the State of Maharashtra to defeat the
purpose of the Private Forests Act. It is difficult at this
distant point of time to conclude, one way or the other,
whether there was or was not any collusion (as alleged)
or whether it was simply a case of poor governance by
F the State. The fact would remain that possession of the
disputed land was not taken over or attempted to be
taken over for decades and the issue was never raised
when it should have been. To raise it now after a lapse
of so many decades is unfair to Petitioner-G, the other
G appellants, the institutions, the State and the residents of
the tenements that have been constructed in the
meanwhile. [Paras 69, 70] [255-C-D, G-H; 256-A-B]
11. Section 2(f)(iii) of the Private Forests Aft is not
intended to apply to notices that had passed their shelf-life
H and that only 'pipeline notices' issued in reasonably close
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 215
MAHARASHTRA & ORS.
proximity to the coming into force of the Private Forests A
Act were 'live' and could be acted upon. The fact that the
Private Forests Act repealed some sections of the Forest
Act, particularly Sections 34A and 35 thereof is also
significant. Section 2(f)(iii) of the Private Forests Act is in a
sense a saving clause for pipeline notices issued under B
Section 35(3) of the Forest Act but which could not, for want
of adequate time be either withdrawn or culminate in the
issuance of a regulatory or prohibitory final notification
under Section 35(1) of the Forest Act, depending on the
objections raised by the land owner. Looked at from any c
point of view, it does seem clear that Section 2(f)(iii) of the
Private Forests Act was intended to apply to 'live' and not
stale notices issued under Section 35(3) of the Forest Act.
[Paras 71, 73] [256-C, F-G; 257-A-B]
12. The next question is whether at all the unstated D
decision of the State to take over the so-called forest land
can be successfully implemented. What the decision
implies is the demolition, amongst others, of a large
number of residential buildings, industrial buildings,
commercial buildings, Bhabha Atomic Energy Complex E
and the Employees State Insurance Scheme Hospital and
compulsorily rendering homeless thousands of families,
some of whom may have invested considerable savings
in the disputed lands. What it also implies is demolition
of the municipal and other public infrastructure works F
already undertaken and in use, clearing away the rubble
and then planting trees and shrubs to 'restore' the 'forest'
to an acceptable condition. No party should be allowed
to take the benefit or advantage of their own wrong and
a patent illegality cannot be cured. An unauthorized G
construction, unless compoundable in law, must be
razed. In question are the circumstances leading to the
application of the principle and the practical application
of the principle. More often than not, the municipal
authorities and builders conspiratorially join hands in H
216 SUPREME COURT REPORTS [2014] 2 S.C.R.
A violating the law but the victim is an innocent purchaser
or investor who pays for the maladministration. In such
a case, how is the victim to be compensated or is he or
she expected to be the only loser? If the victim is to be
compensated, who will do so? These issues have not
B been discussed in the decisions cited by the Bombay
Environment Action Group. The application of the
principle laid down by this Court, therefore, depends on
the independent facts found in a case. The remedy of
demolition cannot be applied per se with a broad brush
c to all cases. The State also seems to have realized this
and that is perhaps the reason why it moved the
application that it did in Godavarman. [paras 74, 75, 80)
[257-C-H; 258-A-B; 259-C-D)
Hindustan Petroleum Corpn. Ltd. v. Darius Shapur
D Chenai (2005) 7 SCC 627; State of M.P. v. Vishnu Prasad
Sharma (1966) 3 SCR 557; Khub Chand v. State of
Rajasthan (1967) 1 SCR 120 - relied on.
K. Ramadas Shenoy v. Chief Officer (1974) 2 SCC 506;
E M.I. Builders v. Radhey Shyam Sahu (1996) 6 SCC 464;
Pleasant Stay Hotel v. Palani Hills Conservation_ Council
(1995) 6 SCC 127; Pratibha Coop. Housing Society Ltd. v.
State of Maharashtra (1991) 3 SCC 341; Santoshkumar
Shivgonda Patil v. Balasaheb Tukaram Shevale (2009) 9
F SCC 352 2009 AIR 2471; CIT v. Bababhai Pitamberdas
(HUF) 1993 Supp (3) SCC 530 - referred to.
13. Looking at the issue from point of view of the
citizen and not only from the point of view of the State
or a well meaning pressure group, it does appear that
G even though the basic principle is that the buyer should
beware and therefore if the appellants and purchasers of
tenements or commercial establishments from the
appellants ought to bear the consequences of
unauthorized construction, the well-settled principle of·
H
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 217
MAHARASHTRA & ORS.
caveat emptor would be applicable in normal A
circumstances and not in extraordinary circumstances as
these appeals present, when a citizen is effectively led up
the garden path for several decades by the State itself.
The instant appeals do not relate to a stray or a few
instances of unauthorized constructions and, therefore, B
fall in a class of their own. In a case such as the present,
if a citizen cannot trust the State which has given
statutory permissions and provided municipal facilities,
whom should he or she trust? Assuming the disputed
land was a private forest, the State remained completely c
inactive when construction was going on over acres and
acres of land and .of a very large number of buildings
thereon and for a few decades. The State permitted the
construction through the development plans and by
granting exemption under the Urban Land (Ceiling and 0
Regulation) Act, 1976 and providing necessary
infrastructure such as roads and sanitation on the
disputed land and the surrounding area. When such a
large scale activity involving the State is being carried on
over vast stretches of land exceeding a hundred acres,
it is natural for a reasonable citizen to assume that E
whatever actions are being taken are in accordance with
law otherwise the State would certainly step in to prevent
such a massive and prolonged breach of the law. The
silence of the State in all the appeals led the appellants
and a large number of citizens to believe that there was F
no patent illegality in the constructions on the disputed
land nor was there any legal risk in investing on the
disputed land. Under these circumstances, for the State
or the Bombay Environment Action Group to contend
that only the citizen must bear the consequences of the G
unauthorized construction may not be appropriate. It is
the complete inaction of the State, rather its active
consent that has resulted in several citizens being placed
in a precarious position where they are now told that their
investment is actually in unauthorized constructions H
218 SUPREME COURT REPORTS [2014] 2 S.C.R.
A which are liable to be demolished any time even after
several decades. There is no reason why these citizens
should be the only victims of such a fate and the State
be held not responsible for this state of affairs; nor is
there any reason why under such circumstances this
B Court should not come to the aid of victims of the
culpable failure of the State to implement and enforce the
law for several decades. In none of these cases is there
an allegation that the State has acted arbitrarily or
irrationally so as to voluntarily benefit any of the
c appellants. On the contrary, the facts show that the
appellants followed the due legal process in making the
constructions that they did and all that can be said of the
State is that its Rip Van Winkleism enabled the appellants
to obtain valid permissions from various authorities, from
0 time to time, to make constructions over a long duration.
The appellants and individual citizens cannot be faulted
or punished for that. These appeals raised larger issues
of good administration and governance and the State
has, regrettably, come out in poor light in this regard.
E [paras 81 to 84) [259-E-H; 260-A-H; 261-A-B]
Case Law Reference:
AIR 1978 Bombay 119 Referred to Para 24
(2000) 3 sec 143 Partly overruled Para 29
F
1976 (2) SCR 809 Referred to Para 48
1997 (4) Suppl. SCR 133 Referred to Para 49
(1883) 8 AC 798 Referred to Para 50
G (1964) 6 SCR 784 Relied on Para 54
2000 (3) SCR 219 Relied on Para 54
2002 (3) SCR 1078 Relied on Para 54
H
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 219
MAHARASHTRA & ORS.
1993 supp (3) sec 530 Referred to Para 61 A
(1964) 7 SCR 539 Referred to Para 61
1976 AIR 1150 Referred to Para 61
2012 (4) SCR 971 Relied on Para 64
B
1984 (1) SCR 139 Relied on Para 65
2009 AIR 2471 Referred to Para 65
(2005) 1 sec 627 Relied on Para 72
c
(1966) 3 SCR 557 Relied on Para 72
(1967) f SCR 120 Relied on Para 72
(1974) 2 sec 506 Referred to Para 74
(1996) 6 sec 464 Referred to Para 74 D
(1995) 6 sec 121 Referred to Para 74
(1991) 3 sec 341 Referred to Para 74
CIVIL APPELLATE JURISDICTION : Civil Appeal No. E
1102 of 2014.
From the Judgment and order dated 24.03.2008 of the
High Gout of Bombay in WP No. 2196 of 2006.
.WITH F
Civil Appeal No. 1103 of 2014.
Civil Appeal No. 1104 of 2014.
Civil Appeal No. 1105 of 2014.
G
Civil Appeal No. 1106 of 2014.
Civil Appeal No. 1107 of 2014.
Civil Appeal No. 1108 of 2014.
H
220 SUPREME COURT REPORTS [2014] 2 S.C.R.
A Civil Appeal No. 1109 of 2014.
Civil Appeal No. 1110 of 2014.
Civil Appeal No. 1111 of 2014.
B Civil Appeal No. 1112 of 2014.
Civil Appeal No. 1113 of 2014.
Civil Appeal No. 1114 of 2014.
c Civil Appeal No. 1115 of 2014.
Civil Appeal No. 1116 of 2014.
Civil Appeal No. 1117 of 2014.
D Civil Appeal No. 1118 of 2014.
Civil Appeal No. 1119 of 2014.
Civil Appeal No. 1120 of 2014.
E SLP (C) No. 34691/2011.
Paras Kuhad, ASG, F.S. Nariman, R.F. Nariman, Dr.
Rajeev Dhawan, Meenakshi Arora, Dr. AM. Singhvi, Pravin
Samdani, Ashok K. Gupta, C.U. Singh, Upmanyu Hazarika,
F Shekhar Naphade, Atul Y. Chitale, J.P. Cama, Basava P. Patil,
Madhvi Diwan. Ajay Bhargava, Vanita Bhargava, Karun Mehta,
Priyambada Mishra (for Khaitan & Co.). Shailesh C.
Mahimtura, Jatin Zaveri, Amit Mehta, Neel Kamal Mishra,
Joseph Pookkatt, Girija Balakrishnan, Prashant Kr., Manjula
Srinivasan (for AP&J Chambers), Saurabh Sinha, Joseph
G Pookkatt (for AP & J Chambers), P.K. Manohar, Pallavi Gupta,
Amit Bhandari, Kalyanai Shukla, Satyendra Kumar, Sunil
Fernandes, Shishir Deshpande, Amit Yadav, Devansh A.
Mohta, Sujata Kurdukar, Gaurav Goel, Mahesh Agarwal, Rishi
Agrawala, E.C. Agrawala, Hetu Arora Sethi, Darpan K.M.,
H
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 221
MAHARASHTRA & ORS.
Manish Kumar, Amit Kumar, Rakesh K. Sharma, Amol A
Nirmalkumar Suryawanshi, Arun R. Padneker, Sanjay V.
Kharde, A.P. Mayee, Shubhangi Tuli (for Asha G. Nair), Mohan
Prasad Gupta, S.K. Bajwa, Jitin Chaturvedi, S.N. Terdal,
Sanyukta Mukherjee, Jayati Chitale, Suchitra A. Chitale, Vijay
K. Verma, Tarun Verma, M.N.S. Rao, Bhardwaj S. Iyengar, B
Shailesh Madiyal, Shishir Deshpande, Amit Yadav (for Sujata
Kurdukar), D. Bharat Kumar, Sanooja M., Abhijit Sengupta,
Vinay Navare, Satyajeet Kumar, Abha R. Sharma, Shilpa Singh,
A. Venayagam Balan, Vikas Mehta, Shivaji M. Jadhav, Mahesh
Aggarwal (for E.G. Agrawala), Sharmila Upadhyay, D.N. c
Goburdhan, Prashant Kumar, Anurag Sharma (for AP & J
Chambers) for the appearing parties.
The Judgment of the Court was delivered by
MADAN B. LOKUR, J. 1. Leave granted. D
2. The principal question for consideration is whether the
mere issuance of a notice under the provisions of Section 35(3)
of the Indian Forest Act, 1927 is sufficient for any land being
· declared a "private forest" within the meaning of that expression E
as defined in Section 2(f)(iii) of the Maharashtra Private Forests
(Acquisition) Act, 1975. In our opinion, the question must be
answered in the negative. Connected therewith is the question
whether the word "issued" in Section 2(f) (iii) of the Maharashtra
Private Forests Acquisition Act, 1975 read with Section 35 of
the Indian Forest Act, 1927 must be given a literal interpretation F
or a broad meaning. In our opinion the word must be given a
broad meaning in the surrounding context in which it is used.
3. A tertiary question that arises is, assuming the disputed
lands are forest lands, can the State be allowed to demolish G
the massive constructions made thereon over the last half a
century. Given the facts and circumstances of these appeals,
our answer to this question is also in the negative.
H
222 SUPREME COURT REPORTS [2014] 2 S.C.R.
A 4. This is a batch of 20 appeals and they were argued on
the basis of the facts as in the appeal of Godrej. In each appeal,
the minute details would, of course, be different but the legal
issues are the same and all the appeals were argued by
learned counsel on the basis that the legal issues and questions
B of law are the same. For convenience, we have taken into
consideration the facts in the appeal of Godrej.
Facts
5. Godrej acquired land in Vikhroli in Salsette taluka in
C Maharashtra by a registered deed of conveyance dated 30th
July 1948 from Nowroji Pirojsha, successor in interest of
Framjee Cawasjee Banaji who, in turn, had been given a
perpetual lease/kowl for the land. by the Government of Bombay
on 7th July 1835.
D
6. The land was described in the perpetual lease/kowl as
"waste land" and one of the purposes of the lease was to
cultivate the waste land. We are concerned in this appeal with
an area of 133 acres and 38 gunthas of land bearing Old
E Survey Nos.117,118 and 120 (New Survey Nos. 36 (Part), 37
and 38). For convenience this land is hereafter referred as the
"disputed land".
Consent decree in the Bombay High Court
F 7. On 27th August 1951 the Legislative Assembly of the
State of Bombay passed the Salsette Estates (Land Revenue
Exemption Abolition) Act, 1951. This statute was brought into
force on 1st March 1952. Section 4 of the Salsette Estates Act
provided that waste lands granted under a perpetual lease/kowl
G not appropriated or brought under cultivation before 14th
August 1951 shall vest in and be the property of the State. 1
1. Section 4 - Waste lands, etc .. to vest in Government
(a) All waste lands in any estate which under the terms of the kowl are not
the property of the estate-holder,
H
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 223
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
8. According to the State, the disputed land was not A
appropriated or brought under cultivation before 14th August
1951 and, therefore, it vested in or was the property of the State
by virtue of Section 4 of the Salsette Estates Act.
9. This factual position was disputed by Godrej and to
B
resolve the dispute, Suit No. 413 of 1953 was filed by Godrej
in the Bombay High Court praying, inter alia, for a declaration
that it was the owner of the disputed land in village Vikhroli as
the successor in title of Framjee Cawasjee Banaji; that the
provisions of the Salsette Estates Act had no application to the
disputed land and, that the disputed land had been appropriated
c
by Godrej before 14th August 1951 for its industrial
undertaking.
10. The suit was contested by the State by filing a written
statement but eventually the Bombay High Court passed a D
consent decree on 8th January 1962 to the effect that except
for an area of 31 gunthas, all other lands were appropriated
and brought under cultivation by Godrej before 14th August
-1951- and are the property of Godrej. The consent decree reads,
inter alia, as follows:- E
"AND THIS COURT by and with such consent DOTH
FUTHER DECLARE that it is agreed by and between the
parties of the following lands namely
(b) all waste lands in any estate which under the terms of the kowl are the
F
property of the estate-holder but have not been appropriated or brought
under cultivation before the 14th August 1951, and
(c) all other kinds of property referred to in Section 37 of the Code situate
in an estate which is not the property of any individual or an aggregate of
persons legally capable of holding property other than the estate-holder G
and except in so far as any rights of persons may be established in or
over the same and except as may be otherwise provided by any law for
the time being in force, together with all rights in or over the same or
appertaining thereto,
and are hereby declared to be the property of the State and it shall be lawful
to dispose of and sell the same by the authority in the manner and for the
purposes prescribed in Section 37 or 38 of the Code, as the case may be. H
224 SUPREME COURT REPORTS (2014] 2 S.C.R.
A S. No. Area
A.G.A.
15 Part 0-21-0
16 Part 0-10-0
0-31-0
B
in the village of Vikhroli vest in Government under Section
4(c) of the said Act" [Salsette Estates Act].
"AND THIS COURT by and with such consent DOTH
FURTHER DECLARE that it is agreed by and between
c the parties that save and except the lands mentioned
above all other lands in the village of Vikhroli were
appropriated or brought under cultivation before the
fourteenth day of August one thousand nine hundred and
fifty-one and are the property of the Plaintiff.... " '
D
11. These events establish two facts: (i) Even according
· to the State, the disputed land was 'waste land' and not a
'forest'. This is significant since the Indian Forest Act, 1927 did
not apply to 'waste land' (due to the Indian Forest (Bombay
Amendment) Act, 1948) with effect from 4th December 1948.
E (ii) It was acknowledged by the State that the disputed land ·
(even if it was a forest) was appropriated or brought under
cultivation by Godrej before 14th August 1951.
Development Plan for the City of Bombay
F
12. A development plan for the City of Bombay (and
Greater Bombay including Vikhroli) was published on 7th
January 1967 and the next development plan was published in
1991. In both development plans, the disputed land was
G designated as 'R' or 'Residential'. On publication of the first
development plan, Godrej applied for and was granted
permission, on various dates, by the Municipal Corporation of
Greater Bombay to construct residential buildings on the
disputed land. Godrej is said to have constructed four such
H · buildings on the basis of permissi'ons granted from time to time
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 225
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
and these building were occupied for residential purposes by A
its staff.
13. On 17th February 1976 the Urban Land {Ceiling and
Regulation} Act, 1976 came into force. Since the disputed land
was in excess of the ceiling limit, Godrej filed statements {under B
Section 6 of the Act} and sought exemption from the
Competent Authority for utilizing the excess/surplus vacant lands
for industrial and residential purposes {under Section 20 of the
Act). Pursuant to the request made by Godrej, it was granted
exemption by the State Government, as prayed for and subject
to certain conditions which included {both initially and C
subsequently by a corrigendum).the construction of tenements
_for the benefit of its employees to be Lised as staff quarters.
14. Pursuant to the grant of exemption, Godrej applied for
and was granted permission by the Municipal Corporation of D
Greater Bombay to construct multi-storeyed buildings on the
dis~uted land. According to Godrej, over a period of time, it
has constructed more than 40 multi-storeyed residential
buildings {ground+4 and ground+ 7), one club house and five
electric sub-stations. It is said that over a couple of thousand E
·families are occupying these buildings and that further
construction has also been made, pursuant to permission
granted, of a management institute and other residential
buildings.
F
Amendments to the Indian Forest Act, 1927
15. Chapter V of the Indian Forest Act, 1927 relates to the
control over forests and lands not being the property of
government. It was amended {as far as we are concerned) on
three occasions by the State of Bombay or Maharashtra, as G
the case may be. 2
2. Changes brought about by the Government of India (Adaptation of Indian
Laws) Order, 1937 and the Adaptation of Laws Order, 1950 have not been
incorporated in the narration of facts.
H·
226 SUPREME COURT REPORTS [2014] 2 S.C.R.
A 16. The first amendment was by the Indian Forest (Bombay
Amendment) Act, 1948 being Bombay Act No. 62 of 1948. By
this amendment (which came into force on 4th December
1948), the three significant changes that we are concerned with
were: (i) Insertion of Section 34A in the Forest Act3 whereby
B an inclusive definition of "forest" was incorporated for the
purposes of the chapter; (ii) Substitution of Section 35(1) of the
Forest Act4 dealing with protection of forests for special
3. 34A. Interpretation.- For the purposes of this Chapter 'forest' includes any
land containing trees and shrubs, pasture, lands and any other land
C whatsoever which the Provincial Government may, by notification in the
Official Gazette, declare to be a forest
4. Section 35 - Protection of forests for special purposes
(1) The Provincial Government may, by notification in the Official Gazette,-
(i) regulate or prohibit in any forest -
(a) the breaking up or clearing of the land for cultivation;
D (b) the pasturing of cattle;
(c) the firing or clearing of the vegetation;
(d) the girdling, tapping or burning of any tree or the stripping off the
bark or leaves from any tree;
(e) the lopping and pollarding of trees;
E (f) the cutting, sawing, conversion and removal of trees and timber; or
(g) the quarrying of stone or the burning of lime or charcoal or the
collection or removal of any forest produce or its subjection to any
manufacturing process;
(iQ regulate in any forest the regeneration of forests and their protection
from fire;
F
when such regulation or prohibition appears necessary for any of the
following purposes :-
(a) for the conservation of trees and forests;
(b) for the preservation and improvement of soil or the reclamation of
saline or water-logged land, the prevention of land-slips or of the formation
G of ravines and torrents, or the protection of land against erosion, or the
deposit thereon of sand, stones or gravel;
(c) for the improvement of grazing;
(d) for the maintenance of a water supply in springs, rivers and tanks;
(e) for the maintenance increase and distribution of the supply of fodder,
leaf manure, timber or fuel;
H
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 227
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
purposes, including regulatory and prohibitory measures; (iii) A
The words 'waste lands' or 'land' occurring in sub-sections (2)
and (3) of Section 35 of the Forest Act5 were deleted. Therefore,
'waste lands' were taken out of the purview of the Forest Act
(as applicable to the State of Bombay) with effect from 4th
December 1948. B
17. The next amendment was made by the Indian Forest
(Bombay Amendment) Act, 1955 being Bombay Act No. 24 of
1955. The three significant changes that we are concerned with
were: (i) Amendment to Section 35(3) of the Forest Act; 6 (ii)
Insertion of sub-sections (4), (5) and (6) in Section 35 of the
c
(f) for the maintenance of reservoirs or irrigation works and hydro-electric
works;
(g) for protection against storms, winds, rolling stones, floods and
drought; D
(h) for the protection of roads, bridges, railways and other lines of
communication; and
(i) for the preservation of the public health.
5. Section 35 - Protection of forests for special purposes
(2) The State Government may, for any such purpose, construct at its own E
expense, in any forest, such work as it thinks fit.
(3) No notification shall be made under sub-section (1) nor shall any work be
begun under sub-section (2), until after the issue of a notice to the owner
of such forest calling on him to show cause, within a reasonable period
to be specified in such notice, why such notification should not be made
or work constructed, as the case may be, and until his objections, if any,· F
and any evidence he may produce in support of the same, have been
heard by an officer duly appointed in that behalf and have been considered
by the State Government.
6. Section 35 - Protection of forests for special purposes
(3) No notification stiall be made under sub-section (1) nor shall any work be
begun under sub-section (2), until after the issue by an officer authorised G
by the State Government in that behalf of a notice to the owner of such
forest calling on him to show cause, within a reasonable period to be
specified in such notice, why such notification should not be made or work
constructed, as the case may be, and until his objections, if any, and any
evidence he may produce in support of the same, have been heard by an
officer duly appointed in that behalf and have been considered by the State
Government. H
228 SUPREME COURT REPORTS [2014] 2 S.C.R.
A Forest Act; 7 (iii) Insertion of Section 36A (manner of serving
notice and order under Section 36) in the Forest Act. 8
18. The next amendment was by the Indian Forest
(Maharashtra Unification and Amendment) Act, 1960 being
Maharashtra Act No. 6 of 1961. The two changes brought about
8
"VE!re: (i) The words "six months" in sub-section (4) of Section
as of the Forest Act were substituted by the words "one year"; 9
-~i) Sub-sections (SA) and (7) were inserted in Section 35 of
·t·' Section 35 - Protection of forests for special purposes
c (4) A notice to show cause why a notification under subsection (1) should
not be made, may require that for any period not exceeding six months, or
"fill the date of the making of a notification, whichever is earlier, the owner
. or such forest and all persons who are entitled or permitted to do therein
any or all of the things specified in clause (i) of sub-section (1), whether
by reasons of any right, title or interest or under any licence or contract or
otherwise, shall not, after the date of the notice and for the period or until
D the date aforesaid, as the case may be, do any or all the things specified
in clause (i) of sub-section (1 ), to the extent specified in the notice.
(5) A notice issued under sub-section (3) shall be served on the owner of
such forest in the manner provided in the Code of Civil Procedure, 1908,
for the service of summons and shall also be published in the manner
prescribed by rules.
E (6) Any person contravening any requisition made under sub-section (4)
in a notice to show cause why a notification under sub-section (1) should
not be made shall. on conviction, be punished with imprisonment for a
term which may extend to six months or with fine or with both.
8. 36-A. Manner of servjng notice and order under section 36.- The notice
referred to in sub-seCtion (1) of section 36 and the order, if any, made
F placing a forest under the control of a Forest Officer shall be served on the
owner of.such forest in 'the manner provided in the Code of Civil Procedure,
1908, for the se~ice of summons.
9. Section 35 - .Protection of forests for special purposes
(4) A notice to show cause why a notification under subsection (1) should
not be made, may require that for any period not exceeding one year, or till
G the date of the making of a notification, whichever is earlier, the owner or
such forest and all persons who are entitled or permitted to do therein any
or all of the things specified in clause (i) of sub-section (1 ), whether by
reasons of any right, title or interest or under .any licence or contract or
otherwise, shall not, after the date of the notice and for the period or until
the date aforesaid, as the case may be, do any or all the things specified -
H in clause (i) of sub-section (1 ), to the extent specified in the notice.
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 229
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
the Forest Act. 10 A
Notice issued to Godrej
19. Completely unknown to Godrej and not disclosed by
the State in Suit No. 413 of 1953 even till 8th January 1962
when the consent decree was passed by the Bombay High· B
Court, a Notice bearing No. WT/53 had been issued to Godrej
under Section 35(3) of the Forest Act (as amended) and
published in the Bombay Government Gazette of 6th
September 1956 in respect of the disputed land in village
Vikhroli. Godrej subsequently learnt of the notice from a search C
in the records of the Department of Archives. The search
revealed that the notice, as published in the Gazette, bore no
date and according to Godrej, the notice was not served upon
it and, it was submitted, that the notice was never acted upon.
Indeed, subsequent events cast a doubt on whether the notice D
was at all issued to or served on Godrej. Notice No. WT/53
reads as follows:-
Notice.
No.WT/53
E
In pursuance of sub-section (3) of section 35 of the
Indian Forest Act, 1927 (XVI of 1927), read with rule 2 of
the rules published in Government Notification, Agriculture
and Forests Department, No.5133/48513-J, dated the 19th
day of September, 1950, I, J.V. Karamchandani, the
F
Conservator of Forests, Western Circle, hereby given
notice to -
10. Section 35 - Protection of forests for special purposes
(5-A) Where a notice issued under sub-section (3) has been served on
the owner of a forest in accordance with subsection (5), any person
acquiring thereafter the right of ownership of that forest shall be bound by G
the notice as if it had been served on him as an owner and he shall
accordingly comply with the notice, requisition and notification, if any, issued
under this section.
(7) Any person contravening any of the provisions of a notification issued
under sub-section (1) shall, on conviction, be punished with imprisonment
for a term which may extend to six months, or with fine, or with both. H-
230 SUPREME COURT REPORTS [2014] 2 S.C.R.
A The Manager, Godrej Boyce & Manufacture Factory,
at and post Vikhroli, B.S.D.
calling on him to appear within two months from the date
of receipt of this notice before the Divisional Forest Officer,
West Thana, to show cause why the accompanying
B
notification (hereinafter referred to as "the notification")
should not be made by the Government of Bombay under
sub-section (1) of the said section 35 in respect of the
forest specified in the Schedule hereto appended and
belonging to him.
c
2. If the said The Manager, Godrej Boyce and Manufacture
Factory, at and post Vikhroli, B.S.D., fails to comply with
this notice, it shall be assumed that the said The Manager,
Godrej Boyce and Manufacture Factory, at and post
D Vikhroli, B.S.D., has no objection to the making of the
notification.
3. I further require that for a period of six months or till the
date of the making of the notification, whichever is earlier,
the said The Manager, Godrej Boyce and Manufacture
E
Factory, at and post Vikhroli, B.S.D. and all persons who
are entitled or permitted to do, therein, any or all of the
things specified in clause (1) of sub-section (1) of the said
section 35, whether by reason of any right, title or interest
or under any licence or contract, or otherwise, shall not after
F the date of this notice, and for the period or until the date
aforesaid, as the case may be, do any of the following
things specified in clause (1) of sub-section (1) of the said
section 35, namely :-
G (a) the cutting and removal of trees and timber
(b) the firing and clearing of the vegetation.
Schedule
H District Thana, taluka Salsette, village Vikhroli
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 231
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
S.No.118; area, 63 acres 23 gunthas, Boundaries:- North- A
Boundary of Pavai; East-Boundary of Haralayi; South-
S.No.117; West-Boundary of Ghatkopur.
S.No.117; area, 36 acres, 35 gunthas, Boundaries:- North-
S. No.118; East-S.No.120; South-S.No.112; West- B
Boundary of Ghatkopur.
S.No.120; area, 33 acres, 13 gunthas. Boundaries:- North-
Boundary of Haralayi; East-Agra Road; South-S.No.115;
West-S.Nos.116, 117."
c
Maharashtra Private Forests (Acquisition) Act, 1975
20. Sometime in 1975 the State Legislature passed the
Maharashtra Private Forests (Acquisition) Act, 1975. The
Private Forests Act came into force on 30th August 1975 when
it was published in the Official Gazette. We are concerned with D
the definition of "forest" and "private forest" as contained in
Section 2(c-i) and Section 2(f) respectively in the Private
1Forests Act. These definitions read as follows:
"2(c-i) "forest" means a tract of land covered with trees E
(whether standing, felled, found or otherwise), shrubs,
bushes, or woody vegetation, whether of natural growth of -
planted by human agency and existing or being maintained
with or without human effort, or such tract of land on which
such growth is likely to have an effect on the supply of F
timber, fuel, forest produce, or grazing facilities, or on
climate, stream flow, protection of land from erosion, or
other such matters and includes,--
(i) land covered with stumps of trees of forest;
G
(ii) land which is part of a forest or lies within it or was part
of a forest or was lying within a forest on the 3oth day of
August 1975;
(iii) such pasture land, water-logged or cultivable or non- H
232 SUPREME COURT REPORTS [2014) 2 S.C.R.
A cultivable land, lying within or linked to a forest, as may be
declared to be forest by the State Government;
(iv) forest land held or let for purpose of agriculture or for
any purposes ancillary thereto;
B (v) all the forest produce therein, whether standing, felled,
found or otherwise;"
"2(f) "private forest" means any forest which is not the
property of Government and includes,--
c (i) any land declared before the appointed day to be a
forest under section 34A of the Forest Act;
(ii) any forest in respect of which any notification issued
under sub-section (1) of section 35 of the Forest Act, is in
D force immediately before the appointed day;
(iii) any land in respect of which a notice has been issued
under sub-section (3) of section 35 of the Forest Act, but
excluding an area not exceeding two hectares in extent as
E the Collector may specify in this behalf;
(iv} land in respect of which a notification has been issued
under section 38 of the Forest Act;
(v} in a case where the State Government and any other
F person are jointly interested in the forest, the interest of
such person in such forest;
(vi} sites of dwelling houses constructed in such forest
which are considered to be necessary for the convenient
enjoyment or use of the forest and lands appurtenant
G thereto;"
21. We are also concerned with Section 3 (vesting of
private forests in State Government}, Section 5 (power to take
over possession of private forests} and Section 6 (settlement
H of disputes} of the Private Forests Act. These provisions read
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 233
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
as follows: A
"Section 3 - Vesting of private Forests in State
Government
( 1) Notwithstanding anything contained in any law for the
time being in force or in any settlement, grant, agreement, 8
usage, custom or any decree or order of any Court,
Tribunal or authority or any other document, with effect on
and from the appointed day, all private forests in the State
shall stand acquired and vest, free from all encumbrances,
in, and shall be deemed to be, with all rights in or over the C
same or appertaining thereto, the property of the State
Government, and all rights, title and interest of the owner
or any person other than Government subsisting in any
such forest on the said day shall be deemed to have been
extinguished. D
(2) Nothing contained in sub-section (1) shall apply to so
much extent of land comprised in a private forest as in held
by an occupant or tenant and is lawfully under cultivation
on the appointed day and is not in excess of the ceiling E
area provided by section 5 of the Maharashtra Agricultural
Lands (Ceiling on Holdings) Act, 1961 (Mah. XXVll of
1061 ), for the time being in force or any building or
structure standing thereon or appurtenant thereto.
(3) All private forests vested in the State Government under· F
sub-section (1) shall be deemed to be reserved forests
within the meaning of. the Forest Act."
"Section 5 - Power to take over possession of private
forests
G
Where any private forest stands acquired and vested in
the State Government under the provisions of this Act, the
person authorised by the State Government. or by the
Collector in this behalf, shall enter into and take over
H
234 SUPREME COURT REPORTS [2014) 2 S.C.R.
A possession thereof, and if any person resists the taking
over of such possession, he shall without prejudice to any
other action to which he may be liable, be liable to be
removed by the use or such force as may be necessary."
"Section 6 - Settlement of disputes
B
Where any question arises as to whether or not any forest
is a private forest, or whether or not any private forest or
portion thereof has vested in the State Government or
whether or not any dwelling house constructed in a forest
c stands acquired under this Act, the Collector shall decide
the question, and the decision of the Collector shall, subject
to the decision of the Tribunal in appeal which may be
preferred to the Tribunal within sixty days from the date of
the decision of the Collector, or the order of the State
D Government under section 18, be final."
. 22. Finally, it may be mentioned that by Section 24 of the
Private Forests Act, Sections 34A, 35 and 36A of the Forest
Act were repealed. 11
E 23. The narrative of the events discloses that Notice No.
WT/53 after its publication in the Gazette was not acted upon
either under the provisions of the Forest Act as amended from
time to time or under the Private Forests Act. Admittedly, no
attempt was made by the State to take over possession of the '
F disputed land at any point of time. On the contrary permissions
were granted to Godrej from time to time for the construction
11. Section 24 - Repeal of sections 34A to 37 of Forest Act
(1) On and from the appointed day, sections 34A, 35, 36, 36A, 368, 36C
and 37 of the Forest Act shall stand repealed.
G (2) Notwithstanding anything contained in sub-section (1), on and from the
date of commencement of the Maharashtra Private Forests (Acquisition)
(Amendment) Act, 1978 (Mah. XIV of 1978), sections 34A, 35, 36, 36A, 368,
36C and 37 of the Forest Act, shall, in respect of the lands restored under
section 22A, be deemed to have been reenacted in the same form and be
deemed always to have been in force and applicable in respect of such
H lands, as if they had not been repealed. ·
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 235
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
of buildings on the disputed land, which permissions were A
availed of by Godrej for the benefit of thousands of its
employees.
Judgment in the case of Waghmare
24. The constitutional validity of the Private Forests Act B
(including Section 3 thereof) was challenged in the Bombay
High Court on the ground of legislative competence of the State
Legislature to enact the statute. This issue was referred to a
Bench of five Judges and the decision of the High Court is
_reported as Janu Chandra Waghmare v. State of C
Maharashtra. 12 During the course of hearing, the Bench also
considered as to "what is it that the State legislature has
intended to include in the expression 'forest produce' for the
purpose of vesting the same in the State Government under
Section 3 of the Act." While answering this question, the High D
Court felt it necessary to "consider the true effect of the artificial
definitions of the two expressions 'forest' and 'private forest'
given in Section 2(c-i) and Section 2(f) read with Section 3 of
the impugned Act".
E
25. In doing so, the High Court held that a land owner who
had been issued a notice under Section 35(3) of the Forest Act
(but was not heard) has an opportunity to contend that his or
her land is not a 'forest' within the meaning of Section 2(c-i) of
the Private Forests Act and that the land does not vest
automatically in the State by virtue of Section 3 of the Private
F
Forests Act. This position was not contested, but conceded by
learned counsel appearing for the State of Maharashtra in the
High Court.
26. The High Court held in paragraph 30 of the Report as G
follows:-
"It is thus clear that Sub-clauses (i), (ii) and (iv) of Section
2(f) deal with declared, adjudicated or admitted instances
12. AIR 1978 Bombay 119. H
236 SUPREME COURT REPORTS [2014] 2 S.C.R.
A of forests. Sub-clause (iii) of Section 2(f) no doubt seeks
to cover land in respect of which merely a notice has been
issued to the owner of a private forest under Section 35(3)
and his objections may have remained unheard till 30-8-
1975 as Section 35 has stood repealed on the coming into
B force of the Acquisition Act. Here also, as in the case of
owners of land falling under Sub-clause (iii) of Section 2(c-
i), his objections, if any, including his objection that his land
cannot be styled as forest at all can be heard and disposed
of under Section 6 of the Acquisition Act, and this position
c was conceded by Counsel appearing for the State pf
Maharashtra. Sub-clause (v) includes within the definition
of private forest the interest of another person who along -
with Government is jointly interested in a forest, while Sub-
clause (vi) includes sites of dwelling houses constructed
in such forest which are considered to be necessary for
D
the convenient enjoyment or use of forest and lands
appurtenant thereto."
It was further held in paragraph 32 of the Report as follows:
E "In the first place, the scheme [of the Private Forests Act]
clearly shows that under Section 3 all private forests vest
in the State Government and since both the expressions -
'forest' as well as 'private forest' - have been defined in the
Act what vests in the State Government is 'private forest'
as per Section 2(f) and in order to be 'private forest' under
F
Section 2(f) it must be 'forest' under Section 2{c-i) in the
first instance and read in this manner the expression 'all
the private forests' occurring in Section 3 will include 'forest
produce.' It is not possible to accept the argument that the
word 'forest' occurring in the composite expression 'private
G
forest' should not be given the meaning which has been
assigned to it in Section 2(c-i) ................. Definitions in
Interpretation Clauses may have no context {though this
may not be true of all definitions) but therefore, all the more
reason, why the word 'forest' in the composite expression
H
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 237
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
'forest-produce' in Section 2(f) should be given the A
meaning assigned to it in Section 2(c-i). Moreover, as
stated earlier, the scheme itself suggests that what vests
in the State under Section 3 are private forests as defined
by Section 2(f) but such private forests must in the first
instance be 'forests' as defined by Section 2(c-i) and read B
in that manner the forest produce would vest in the State
Government along with the private forest under Section 3
of the Act."
27. The view of the High Court has been accepted by the C
State of Maharashtra and has not been challenged and has now ·
attained finality.
28. It is important to note that the High Court was not
concerned with, nor did it advert to the right of a land owner to
object to the notice under Section 35(3) of the Forest Act before D
the Private Forests Act came into force on the ground that his
land was not a forest as defined in or notified under Section
34A of the Forest Act. This will be dealt with below.
Judgment in the case of Chintamani Velkar E
29. The right to file objections to a notice under Section
35(3) of the Forest Act came up for consideration in
Chintamani Gajanan Ve/kar v. State of Maharashtra. 13 In that
case, Chintamani was issued a notice under Section 35(3) of
the Forest Act on 29th August 1975. The notice was served F
on him on 12th September 1975. In the meanwhile, the Private
Forests Act came into force on 30th August 1975. Chintamani
raised a dispute under Section 6 of the Private Forests Act (as
postulated in Waghmare) contending that his land was not a
forest and did not vest in the State in terms of Section 3 of the G
Private Forests Act.
30. The only question that arose for consideration was
whether or not Chintamani's land was a forest within the
13. c2000) 3 sec 143.
238 SUPREME COURT REPORTS (2014] 2 S.C.R.
A meaning of that word as defined in Section 2(c-i) of the Private
Forests Act. That issue had already been decided, as a matter
of fact, by the Maharashtra Revenue Tribunal against
Chintamani and it was held that his land was a forest. The
matter ought to have rested there. However, this Court went into
B a further question, namely, whether the mere issuance of a
notice under Section 35(3) of the Forest Act per se attracted
Section 2(f)(iii) of the Private Forests Act. This Court· noticed
(in paragraph 18 of the Report) that where a final notification
is issued under Section 35(1) of the Forest Act (obviously after
c hearing the objections of the land owner in compliance with the
requirements of Section 35(3) thereof), the entire land of the
land owner would automatically vest in the State on the
appointed date, that is, 30th August 1975 when the Private
Forests Act came into force. In such a case, the land owner
would, ex hypothesi have an opportunity of showing in the
0
objections to the Section 35(3) notice that the land is not a
'forest' as defined under Section 34A of the Forest Act. If the
land owner succeeded in so showing, then clearly a final
notification under Section 35(1) of the Forest Act could not be
E issued. But if the land owner did not succeed in so showing, ,.
only then could a final notification under Section 35(1) of the
Forest Act be issued. It must be recalled, at this stage, that the
words "or land" under Section 35(3) of the Forest Act had been
deleted by the Indian Forest (Bombay Amendment) Act, 1948
being Bombay Act No.62 of 1948 and, additionally therefore,
F such an objection could validly have been raised.
31. Consequently, the situation that presented itself in
Chintamani was that though a notice was issued to the land
owner under Section 35(3) of the Forest Act before 30th August
G 1975, it could not be decided before that date when the Private
Forests Act came into force. (Such a notice was referred to as
a 'pipeline notice' by Mr. F.S. Nariman). Clearly, the recipient
of a pipeline notice would be entitled to the benefit of
Waghmare but this seems to have been overlooked by this
H Court in Chintamani. However, to mitigate the '1ardship to a
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 239
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
pipeline noticee who is not given the benefit of Waghmare this A
Court read Section 2(f)(iii) of the Private Forests Act and
observed (perhaps as a sop to the land owner) that the
"Maharashtra Legislature thought that the entire property
covered by the notice in the State need not vest but it excluded
2 hectares out of the forest land held by the landholder. That B
was the consideration for not allowing the benefit of an inquiry
under Section 35(3) and for not allowing the notification to be
issued under Section 35(1) of the 1927 Act".
32. It is in this background that this Court narrowly
construed the words "a notice has been issued under sub- C
section (3) of section 35 of the Forest Act" occurring in Section
· 2(f)(iii) of the Private Forests Act as not requiring "service of
such notice before 30-8-1975, nor for an inquiry nor for a
notification under Section 35(1)." 14
D
33. In a sense, therefore, not only is there a difference of
views between Waghmare and Chintamani but Chintamani
has gone much further in taking away the right of a landholder.
Proceedings in the High Court
E
34. On or about 24th May 2006, Godrej received six stop-
work notices issued by the concerned Assistant Engineer of
the Bombay Municipal Corporation stating that the Deputy
Conservator of Forests, Thane Forest Division, by a letter dated
8th May 2006 had informed that the disputed land was F
"affected" by the reservation of a private forest and therefore
no construction could be carried out therein without the
permission of the Central Government under the Forest
(Conservation) Act, 1980.
G
35. On enquiries made by Godrej subsequent to the
receipt of the stop-work notices, it came to be known that the
Bombay High Court had given a direction on 22nd June 2005
in PIL No. 17/2002 (Bombay Environment Action Group v.
14. Paragraph 19 of Chintamani. H
240 SUPREME COURT REPORTS [2014] 2 S.. C.R.
A State of Maharashtra) on the claim of the petitioner therein that
in the entire State of Maharashtra the land records were
incomplete and a large number of problems were encountered
because of not updating the land records which in any event is
also an obligation on the State. Accordingly, the High Court
B gave a direction granting time to the State of Maharashtra up
to 31st May 2006 to complete the entire land records in the
State and further directed that quarterly reports regarding the
progress of the work be filed before the Registrar General of
the High Court.
c 36. Godrej learnt that this triggered an ex parte mutation
of the revenue records by the State to show that the disputed
land was 'affected' by the provisions of the Private Forest Act.
Godrej also learnt that the Notice No. WT/53 (referred to above)
had been published in the Bombay Government Gazette of 6th
D September 1956, but not served on it. ·
37. On these broad facts, Godrej filed Writ Petition No.
2196 of 2006 in the Bombay High Court praying, inter alia, for
a declaration that the lands owned by it in village Vikhroli are
E not forest land; that the letter dated 8th May 2006 issued by
the Deputy Conservator of Forest as well as six stop-work
notices dated 24th May 2006 be declared as illegal, ab initio
null and void and that the mutation in the revenue records be
also declared illegal.
F 38. During the proceedings in the High Court it came to
be known that about 170 notices similar to notice No. WT/53
had been issued to various parties in 1956-57, including to the
Bhabha Atomic Energy Complex and the Employees State
Insurance Scheme Hospital. However, the lands of Bhabha
G Atomic Energy Complex and the Employees State Insurance
Scheme Hospital were not touched by the State.
39. The writ petition (along with several other similar writ
petitions) was contested by the State and it was submitted inter
H alia that in view of the judgment of this Court in Chintamani,
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 241
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
the disputed land stood vested in the State in terms of Section A
3 of the Private Forests Act. By the impugned order dated 24th
March 2008, the High Court dismissed all the writ petitions.
Among other things, it was held in paragraph 152 of the
impugned judgment:
B
"In the light of the authoritative pronouncement in
Chintamani's case we see no substance in the argument
that the construction activities on the land being in
accordance with the sanctioned plans and approvals so
also the lands being part of the development plan and C
affected by Urban Land Ceiling Act, State's action
impugned in these petitions is without any jurisdiction or
authority in law. All arguments with regard to the user of
the land today has no legal basis. User today is after
development or continuing development. Once
development is on private forest, then, the same could not D
have been permitted or carried out. Mere omission or
inaction of the State Government cannot be the basis for
accepting the arguments of the petitioners."
40. The High Court rejected the contention that "mere E
issuance of a notice under Section 35(3) without any notification
being published in the official gazette within the meaning of
Section 35(1) would not mean that the land is excluded from
the purview of the Private Forest (Acquisition) Act enacted by
the Maharashtra Government." 15 F
It was also held that:
"Once the State Government issues such notice [under
Section 35(3) of the Forest Act], then, the intention is
apparent. The intention is to regulate and prohibit certain G
activities in forest. Merely because such a notice is issued
by it in 1957 and 1958 but it did not take necessary steps
in furtherance thereof, does not mean that the notices have
been abandoned as contended by the petitioners. There
15. Paragraph 123. H
242 SUPREME COURT REPORTS [2014] 2 S.C.R.
A is no concept of "abandonment or disuse" in such case.
Apart from the fact that these concepts could not be
imported in a modern statute, we are of the view that they
cannot be imported and read into statute of the present
nature. Statutes which are meant for protecting and
B preserving forests and achieve larger public interest,
cannot be construed narrowly as contended. The
interpretation, therefore, if at all there is any ambiguity or
scope for construction has to be wider and sub-serving this
public interest so also the intent and object in enacting
c them. The reason for the State Government not being able
to pursue the measures for preserving and protecting the
forest wealth is obvious." 16
Further, it was held that:
D "The Development Plan proposal and designation so also
the user cannot conflict with the character of the land as a
private forest. To accept the arguments of the petitioners
would mean that despite vesting the private forest
continues as a land covered by the development plan and
E being within the municipal limits it loses its character as a
private forest. A private forest is a forest and upon its
vesting in the State Government by virtue of the Private
Forest (Acquisition) Act would remain as such. Therefore,
we see no conflict because of any change in the situation.
Vesting was complete on 30th August, 1975. On 30th
F
August, 1975 the lands with regard to which the notice
was issued under Section 35(3), being a private forest
vested in the State, it was a private forest always and,
therefore, there is no question of the development plan or
any proposal therein superimposing itself on its status." 17
G
41. Feeling aggrieved by the dismissal of the writ petitions
in the Bombay High Court, Godrej and other aggrieved writ
petitioners preferred petitions for special leave to appeal in this
16. Paragraph 126.
H 17. Paragraph 149
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 243
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
Court. A
Proceedings in this Court
42. During the pendency of these appeals, the State filed
I.A. Nos. 2352-2353 of 2008 in W.P. No. 202 of 1995 [T.N.
Godavarman v. Union of India (Forest Bench matters)] in which B
it was prayed, inter alia, as follows:
(1) The lands coming under the provisions of the
Maharashtra Private Forests (Acquisition) Act 1975
which were put to non forestry use prior to 25th c
October 1980 [when the Forest (Conservation)
Act, 1980 came into force] by way of having been
awarded Approval of Plans, Commencement
Certificates, IODS or Non Agriculture Permissions
by the Competent Authorities be treated deleted D
from the category of forests and the non forestry
activity be allowed on such lands without charging
CA, NPV or equivalent non forest land or any
charges whatsoever.
(2) The Collectors of all the districts be directed to pass E
appropriate orders under section 6 or 22A of the
Maharashtra Private Forests (Acquisition) Act,
1975 either on an application or suo motu as
provided for it under the Act, for all the pieces of
lands coming under the provisions of the Act under F
their jurisdiction within 30 days.
(3) For the lands restored under the Act on which
residential complexes have come up/are coming up
wherein Non Agriculture Permissions (N.A.) and G
buildings were fully constructed and completion
certificate and occupation certificate were issued
by the Competent Authorities after 25th October,
1980 but before 18th May 2006 when the "stop
construction work" notices were issued, only H
244 SUPREME COURT REPORTS [2014] 2 S.C.R.
A afforestation charges be collected for afforesting
equivalent forest land. Neither equivalent non forest
land nor the Net Present Value be charged to them,
as these areas are their own private lands."
Significantly, it was stated in the applications as follows:-
B
"26. As stated earlier since the records did not reveal that
these are acquired Private Forests the erstwhile owners
went on selling these lands to several persons who also
in turn went on selling them to the strangers without there
c being any fault on their part. Subsequently developers
purchased these lands and after getting requisite
permissions from the Planning Authority carried on
constructions thereon. Thereafter individuals and members
of the public who wanted accommodation for housing
D probably invested their lifetime savings and/or raising
loans entered into transactions of purchasing the flats
constructed on these lands without their fault. In some of
these areas commercial activities have also come up with
due permission from the Government authorities. In such
E cases, injustice is being alleged by the subsequent
purchasers who claimed to be bonafide purchasers. This
has necessitated the State of Maharashtra to come out with
the present application. Abstract of constructions made on
private forest lands in Mumbai Suburban and Thane City
F makes it very clear that the problem is more severe for the
common man. Errors were also committed while declaring
the lands as having been acquired by the Government
under the Maharashtra Private Forest (Acquisition) Act,
1975. Some of the lands/properties owned by the
Government like Bhabha Atomic Energy complex and
G
Employees State Insurance Scheme hospital also came
to be declared as acquired under the Maharashtra Private
Forest (Acquisition) Act, 1975."
43. The Forest Bench referred the matter to the Central
H Empowered Committee which, in its Report dated 13th July
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 245
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
2009 noted in paragraphs 25 and 26 as follows:- A
"25. It is thus clear that after the issue of notices under
Section 35(3) or Notification under 35(1) of the Indian
Forest Act, no follow-up action was taken by the State
Govt. Even after the Private Forest Act came into force, B
neither physical possession of the land was taken nor were
the areas recorded as 'forest'. A substantial part of such
area falls in urban conglomerations and have been used
for various non-forest purpose including construction of
buildings for which permissions have been granted by the C
concerned State Government authorities. Sale/purchase
and resale have taken place and third party interests have
been generated. People are residing for last 30-40 years
in hundreds of buildings constructed with the then valid
approvals. It was only after the order dated 26.5.2005 of
the Hon'ble Bombay High Court, that these areas are now D
being treated as falling in category of "forest". Many of
such areas are surrounded all around by other buildings
and within metropolitan areas and are no longer suitable
for afforestation or to be managed as 'forest'.
E
"26. In the above complex background, at this belated
stage, it is neither feasible nor in public interest to demolish
the existing buildings/structures, re-locate the existing
occupants/owners and physically convert such area into
forest. The CEC in these circumstances considers that the F
balance of convenience lies in granting permission under
the Forest (Conservation) Act for de-reservation and non-
forest use of such area on a graded scale of payment
depending upon the category/sub-category in which such
land falls."
G
44. The Central Empowered Committee made certain
other recommendations as a result of which Godrej paid an
amount of Rs.14. 7 crores towards NPV and this has been
recorded in the order passed by the Forest Bench in its order
dated 17th February 2010. The relevant extract of the order H
246 SUPREME COURT REPORTS [2014] 2 S.C.R.
A dated 17th February 2010 passed by the Forest Bench reads
as under:-
"Pursuant to the report filed by the C.E.C. regards the
property owned and possessed by the Godrej and Boyce
Mfg. Co. ltd., a sum of Rs.14,71,98,590/-was deposited
B
as NPV and the deposit of this amount has been
confirmed by the learned counsel appearing for the State.
We have passed an interim order of status quo restraining
the petitioners from further construction on the lands and
c also not to create third party rights. That interim order is
vacated. The petitioners are at liberty to go on with the
construction and complete it. The direction of not to create
third party rights is also vacated. This order is subject to
the order, if any, to be passed by MOEF in this regard and
D also subject to the final outcome of this matter.
Learned counsel for the petitioner states that he will not
claim any refund of the amount so deposited."
45. When the present set of appeals came up for hearing
E before this Court on 9th February 2011, the correctness of
Chintamani was doubted by learned counsel on the question
whether the word "issued" as occurring in Section 2(f)(iii) of the
Private Forest Act in the context of "any land in respect of which
a notice has been issued under sub-section (3) of section 35
F of the Forest Act" should be interpreted literally or whether it
postulates service of notice on the landholder. It is under these
circumstances that these appeals were listed before us.
The primary question
G 46. The initial question is whether the disputed land is at
all a forest within the meaning of Section 2(c-i) of the Private
Forests Act.
47. It is quite clear from a reading of Waghmare that the
H "means and includes" definition of forest in Section 2(c-i) of the
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 247
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
, Private Forests Act does not detract or take away from the A
primary meaning of the word 'forest'. We are in agreement with
this view.
48. In Jagir Singh v. State of Bihar18 the interpretation of
the word "owner" in Section 2(d) of the Bihar Taxation on
8
Passengers and Goods (Carried by Public Service Motor
Vehicles) Act, 1961 came up for consideration. While
interpreting "owner" which 'means' and 'includes', this Court
held:
"The definition of the term "owner" is exhaustive and C
intended to extend the meaning of the term by including
within its sweep bailee of a public carrier vehicle or any
manager acting on behalf of the owner. The intention of the
legislature to extend the meaning of the term by the
definition given by it will be frustrated if what is intended D
to be inclusive is interpreted to exclude the actual owner."
49. The proposition was more clearly articulated in Black
Diamond Beverages v. Commercial Tax Officer19 wherein this
·Court considered the use of the words 'means' and 'includes'
E
in the definition of "sale price" in Section 2(d) of the W.B. Sales
Tax Act,· 1954. It was held in paragraph 7 of the Report:
"The first part of the definition defines the meaning of the
word "sale price" and must, in our view, be given its
ordinary, popular or natural meaning. The interpretation F
thereof is in no way controlled or affected by the second
part which "includes" certain other things in the definition.
This is a well-settled principle of construction."
50. In coming to this conclusion, this Court referred to a G
passage from Craies on Statute Law2° which in tum referred
18. (1976) 2 sec 942.
19. (1998) 1 sec 458.
20. 7th Edition 1.214.
H
248 SUPREME COURT REPORTS [2014] 2 S.C.R.
A to the following passage from Robinson v. Barton-Eccles Local
Boarc/2 1 :
"An interpretation clause of this kind is not meant to prevent
the word receiving its ordinary, popular, and natural sense
whenever that would be properly applicable, but to enable
B
the word as used in the Act ... to be applied to something
to which it would not ordinarily be applicable."
51. In the case of Godrej, the admitted position, as per the
consent decree dated 8th January 1962 is that the disputed
C land was not a waste land nor was it a forest. In so far as the
other appeals are concerned, the disputed lands were built
upon, from time to time, either for industrial purposes or for
commercial purposes or for residential purposes. Under the
circumstances, by no stretch of imagination can it be said that
D any of these disputed lands are 'forest' within the primary
meaning of that word, or even within the extended meaning
given in Section 2(c-i) of the Private Forests Act.
52. The next question is whether the notice said to have
E been issued to Godrej being Notice No. WT/53 can be
described as a 'pipeline notice'. Again, the answer must be in
the negative in as much as it cannot be reasonably said that
the pipeline extends from 1956-57 up to 1975. Assuming that
a notice issued in 1956-57 is a pipeline notice even in 1975,
the question before us would, nevertheless, relate to the
F meaning and impact of "issued" of Section 2(f)(iii) of the Private
Forests Act read with Section 35 of the Forest Act. This is really
the meat of the matter.
53. Undoubtedly, the first rule of interpretation is that the
G words in a statute must be interpreted literally. But at the same
time if the context in which a word is used and the provisions
of a statute inexorably suggest a subtext other than literal, then
the context becomes important.
H 21. (1883) 8 AC 798.
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 249
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
54. In R.L. Arora v. State of U.P. 22 it was observed that "a A
literal interpretation is not always the only interpretation of a
provision in a statute and the court has to look at the setting in
which the words are used and the circumstances in which the
law came to be passed to decide whether there is something
implicit behind the words actually used which would control the B
literal meaning of the words used in a provision of the statute."
Similarly, in Tata Engg. & Locomotive Co. Ltd. v. State
of Bihaf3 it was held:
"The method suggested for adoption, in cases of doubt as C
to the meaning of the words used is to explore the intention
of the legislature through the words, the context which gives
the colour, the context, the subject-matter, the effects and
consequences or the spirit and reason of the law. The
general words and collocation or phrases, howsoever D
wide or comprehensive in their literal sense are interpreted
from the context and scheme underlying in the text of the
Act."
Finally, in Joginder Pal v. Naval Kishore Beha/24 it was E
held:
"It is true that ordinary rule of construction is to assign the
word a meaning which it ordinarily carries. But the subject
of legislation and the context in which a word or expression
is employed may require a departure from the rule of literal F
construction."
55. Applying the law laid down by this Court on
interpretation, in the context of these appeals, we may be
missing the wood for the trees if a literal meaning is given to G
the word "issued". To avoid this, it is necessary to also
22. (1964) 6 SCR 784.
23. c2000) s sec 346.
24. c2002) s sec 397. H
250 SUPREME COURT REPORTS [2014] 2 S.C.R.
A appreciate the scheme of Section 35 of the Forest Act since
that scheme needs to be kept in mind while considering
"issued" in Section 2(f)(iii) of the Private Forests Act.
56. A notice under Section 35(3) of the Forest Act is
8 intended to give an opportunity to the owner of a forest to show
cause why, inter alia, a regulatory or a prohibitory measure be
not made in respect of that forest. It is important to note that
such a notice pre-supposes the existence of a forest. The owner
of the forest is expected to file objections within a reasonable
C time as specified in the notice and is also given an opportunity
to lead evidence in support of the objections. After these basic
requirements are met, the owner of the forest is entitled to a
hearing on the objections. This entire procedure obviously
cannot be followed by the State and the owner of the forest
unless the owner is served with the notice. Therefore, service
D of a notice issued under Section 35(3) of the Forest Act is
inherent in the very language used in the provision and the very
purpose of the provision.
57. Additionally, Section 35(4) of the Forest Act provides
E that a notice under Section 35(3) of the Forest Act may provide
that for a period not exceeding six months (extended to one
year in 1961) the owner of the forest can be obliged to adhere
to one or more of the regulatory or prohibitory measures
mentioned in Section 35(1) of the Forest Act. On the failure of·
F the owner of the forest to abide by the said measures, he/she
is liable to imprisonment for a term upto six months and/or a
fine under Section 35(7) of the Forest Act. Surely, given the
penal consequence of non-adherence to a Section 35(4)
direction in a Section 35(3) notice, service of such a notice
G must be interpreted to be mandatory. On the facts of the case
in Godrej, such a direction was in fact given and Godrej was
directed, for a period of six months, to refrain from the cutting
and removal of trees and timber and the firing and clearing of
vegetation. Strictly speaking, therefore, despite not being
H served with Notice No. WT/53 and despite having no
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 251
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
knowledge of it, Godrej was liable to be punished under A
Section 35(7) of the Forest Act if it cut or removed any tree or
timber or fired or cleared any vegetation.
58. This interplay may be looked at from another point of
view, namely, the need to issue a direction under Section 35(4) 8
of the Forest Act, which can be only to prevent damage to or
destruction of a forest. If the notice under Section 35(3) of the
Forest Act is not served on the owner of the forest, he/she may
continue to damage the forest defeating the very purpose of
the Forest Act. Such an interpretation cannot be given to C
Section 35 of the Forest Act nor can a limited interpretation be
given to the word "issued" used in the context of Section 35 of
. the Forest Act in Section 2(f)(iii) of the Private Forests Act.
59. Finally, Section 35(5) of the Forest Act mandates not
only service of a notice issued under that provision "in the D
manner provided in the Code of Civil Procedure, 1908, for the
service of summons" (a manner that we are all familiar with)
but also its publication "in the manner prescribed by rules". This
double pronged receipt and confirmation of knowledge of the
show cause notice by the owner of a forest makes it clear that E
Section 35(3) of the Forest Act is not intended to end the
process with the mere issuance of a notice but it also requires
service of a notice on the owner of the forest. ·The need for
ensuring service is clearly to protect the interests of the owner
of the forest who may have valid reasons not only to object to F
the issuance of regulatory or prohibitory directions, but to also
enable him/her to raise a jurisdictional issue that the land in
question is actually not a forest. The need for ensuring service
is also to prevent damage to or destruction of a forest.
60. Unfortunately; Chintamani missed these finer details G
because it was perhaps not brought to the notice of this Court
that Section 35 of the Forest Act as applicable to the State of
Maharashtra had sub-sections beyond sub-section (3). This
Court proceeded on the basis of Section 35 of the ·Indian Forest
Act, 1927 as it existed without being aware of the amendments H
252 SUPREME COURT REPORTS [2014] 2 S.C.R.
A made by the State of Maharashtra and the erstwhile State of
Bombay. This, coupled with the factually incorrect view that two
hectares of forest land 25 were excluded for the benefit of the
landholder led this Court to give a restrictive meaning to "issue".
B 61. In Chintamani this Court relied on the decision
rendered in CIT v. Bababhai Pitamberdas (HUF) 26 to conclude
that a word has to be construed in the context in which it is used
in a statute and that, therefore, the decisions rendered in
Banarsi Debi v. IT027 and CWT v. Kundan Lal Behari La/28 to
the effect that "the word 'issue' has been construed as
C amounting to 'service' are not relevant for interpreting the word
'issued' used in Section 2(f) [of the Private Forests Act]." It is
true, as observed above, that a word has to be construed in
the context in which it is used in a statute. By making a reference
in Section 2(f)(iii) of the Private Forests Act to 'issue' in Section
D 35 of the Forest Act, it is clear that the word is dressed in
borrowed robes. Once that is appreciated (and it was
unfortunately overlooked in Chintamant) then it is quite clear
that 'issued' in Section 2(f)(iii) of the Private Forests Act must
include service of the show cause notice as postulated in
E Section 35 of the Forest Act.
62. We have no option, under these circumstances, but to
hold that to this extent, Chintamani was incorrectly decided and
it is overruled to this extent. We may add that in Chintamani
F the land in question was factually held to be a private forest and
therefore the subsequent discussion was riot at all necessary.
63. Assuming that the word 'issued' as occurring in Section
2(f)(iii) of the Private Forests Act must be literally and strictly
construed, can it be seriously argued that it also has reference
G
25. The correct factual position is that Section 2(f)(iii) of the Private Forests Act
excluded "an area not exceeding two hectares".
26. 1993 Supp (3) sec 530.
27. (196~) 7 SCR 539.
H 20. (1975) 4 sec 844.
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 253
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
to a show cause notice issued under Section 35(3) of the A
Forest Act at any given time (say in 1927 or in 1957)? Or would
it be more reasonable to hold that it has reference to a show
cause notice issued in somewhat closer proximity to the coming
into force of the Private Forests Act, or a 'pipeline notice' as
Mr. Nariman puts it? B
64. In the absence of any time period having been
specified for deciding a show cause notice issued under
Section 35 of the Forest Act, it must be presumed that it must
be decided within a reasonable time". Quite recently, in Ramlila C
Maidan Incident, In re29 it was held: "It is a settled rule of law
that wherever provision of a statute does not provide for a
specific time, the same has to be done within a reasonable time.
Again reasonable time cannot have a fixed connotation. It must
depend upon the facts and circumstances of a given case."
D
65. Similarly, in Mansaram v. S.P. Pathak3° it was held:
"But when the power is conferred to effectuate a purpose, it has
to be exercised in a reasonable manner. Exercise of power in
a reasonable manner inheres the concept of its exercise within
a reasonable time." E
So also, in Santoshkumar Shivgonda Patil v. Balasaheb
Tukaram Shevale31 it was held:
"It seems to be fairly settled that if a statute does not
prescribe the time-limit for exercise of revisional power, it F
does not mean that such power can be exercised at any
time; rather it should be exercised within a reasonable
time. It is so because the law does not expect a settled
thing to be unsettled after a long lapse of time. Where the
legislature does not provide for any length of time within G
which the power of revision is to be exercised by the
29. (2012) 5 sec 1 paragraph 232.
30. (1984) 1 sec 125.
31. c2009) 9 sec 352. H
254 SUPREME COURT REPORTS [2014] 2 S.C.R.
A authority, suo motu or otherwise, it is plain that exercise
of such power within reasonable time is inherent therein."
66. According to the State, a show cause notice was
issued to Godrej in 1957 (and assuming it was served) but no
decision was taken thereon till 1975 that is for about 18 years.
8
This is an unusually long period and undoubtedly much more
than a reasonable time had elapsed for enabling the State to
take a decision on the show cause notice. Therefore, following
the law laid down by this Court, the show cause notice must,
for all intents and purposes be treated as having become a
C dead letter and the seed planted by the State yielded nothing.
67. The entire problem may also be looked at from the
perspective of the citizen rather than only from the perspective
of the State. No citizen can reasonably be told after almost half
D a century that he/she was issued a show cause notice (which
was probably not served) and based on the show cause notice
his/her land was declared a private forest about three decades
ago and that it vests in the State. Is it not the responsibility of·
the State to ensure that its laws are implemented with
E reasonable dispatch and is it not the duty of the State to
appreciate that statute books are not meant to be thrown at a
citizen whenever and wherever some official decides to do so?
Basic principles of good governance must be followed by every
member of the Executive branch of the State at all times
F keeping the interests of all citizens in mind as also the larger
public interest.
68. In our opinion, the failure of the State to take any
decision on the show cause notice for several decades
(assuming it was served on Godrej) is indicative of its desire
G to not act on it. This opinion is fortified by a series of events
that have taken place between 1957 and 2006, beginning with
the consent decree of 8th January 1962 in Suit No. 413 of 1953
whereby the disputed land was recognized as not being forest
land; permission to construct a large number of buildings (both
H residential and otherwise) as per the Development Plans of
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 255
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
1967 and then of ~ 991; exemptions granted by the Competent A
Authority under the Urban Land (Ceiling and Regulation) Act,
1976 leading to Godrej making unhindered but permissible
constructions; and finally, the absence of any attempt by the
State to take possession of the 'forest land' under Section 5 of
the Private Forests Act for a couple of decades. The B
subsequent event of the State moving an application in
Godavarman virtually denying the existence of a private forest
on the disputed land also indicates that the State had come to
terms with reality arid was grudgingly prepared to accept that,
even if the law permitted, it was now too late to remedy the c
situation. This view was emphatically reiterated by the Central
Empowered Committee in its report dated 13th July 2009.
69. In its written submissions, the Bombay Environment
Action Group has alleged collusion between Godrej and other
· appellants and the State of Maharashtra to defeat the purpose D
of the Private Forests Act. It is stated that prior to the said Act
coming into force, the Secretary in the Revenue and Forests
Department of the State Government had written to the Collector
on 27th August 1975 enclosing a copy of the said Act and
informing that under Section 5 thereof, the Range Forest E
Officers and the Divisional Forest Officers will be authorized
to take possession of the private forests from the land owners.
It is stated that the letter was issued to enable the Collector to
coordinate with the Divisional Forest Officers to ensure that the
large private forests are taken over physically as early as F
possible. Subsequently, by another letter {variously described
as dated 3rd February 1977, 14th February 1977 and 3rd
February 1979) the Secretary in the Revenue and Forests
Department advised the Conservator of Forests to go slow with
the taking over of possession of private forests in Thane, Kulaba G
and Ratnagiri districts.
70. It is difficult at this distant point of time to conclude, one
way or the other, whether there was or was not any collusion
(as alleged) or whether it was simply a case of poor
H
256 SUPREME COURT REPORTS [2014] 2 S.C.R.
A governance by the State. The fact remains that possession of
the disputed land was not taken over or attempted to be taken
over for decades and the issue was never raised when it should
have been. To raise it now after a lapse of so many decades
is unfair to Godrej, the other appellants, the institutions, the
B State and the residents of the tenements that have been
constructed in the meanwhile.
71. Given this factual scenario, we agree that Section
2(f)(iii) of the Private Forests Act is not intended to apply to
notices that had passed their shelf-life and that only 'pipeline
C notices' issued in reasonably close proximity to the coming into ·
force of the Private Forests Act were 'live' and could be acted
upon.
72. In Hindustan Petroleum Corpn. Ltd. v. Darius Shapur .
o Chenai32 this Court dealt with the provisions of the Land
Acquisition Act and held that the legislation being an
expropriatory legislation, it ought to be strictly construed since
it deprives a person of his/her land. In this decision, reliance
was placed on State of M.P. v. Vishnu Prasad Sharrna 33 and
E Khub Chand v. State of Rajasthan. 34 The same rationale would
apply to Section 2(f)(iii} of the Private Forests Act since it seeks
to take away, after a few decades, private land on the
ostensible ground that it is a private forest. Section 2(f)(iii) of
the Private Forests Act must not only be reasonably construed
F but also strictly so as not to discomfit a citizen and expropriate
his/her property.
73. The fact that the Private Forests Act repealed some
sections of the Forest Act, particularly Sections 34A and 35
thereof is also significant Section 2(f)(iii) of the Private Forests
G Act is in a ser:ise a saving clause for pipeline notices issued
under Section 35(3) of the Forest' Act but which could not, for
32. c2005) 1 sec 627.
33. (1966) 3 SCR 557.
H 34. (1967) 1 SCR 120.
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 257
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
want of adequate time be either withdrawn or culminate in the ·A
issuance of a regulatory or prohibitory final notification under
Section 35(1) of the Forest Act, depending on the objections
raised by the ·1and owner. Looked at from any point of view, it
does seem crear that Section 2(f)(iii) of the Private Forests Act
was intended to apply to 'live' and not stale notices issued under B
Section 35(3) of the Forest Act
The second question:
74. The next question is whether at all the unstated
decision of the State to take over the so-called forest land can
be. successfully implemented. What the decision implies is the C-
demolition, amongst others, of a large number of residential
buildings, industrial buildings, commercial buildings, Bhabha
Atomic Energy Complex and the Employees State Insurance
Scheme Hospital and compulsorily rendering homeless
thousands of. families, some of whom may have invested D
considerable savings in the disputed lands. What it also implies
is demolition of the municipal and other public infrastructure
works already undertaken and in use, clearing away the rubble
and then planting trees and shrubs to 'restore' the 'forest' to an
acceptable condition. According to learned counsel for the E
State, this is easily achievable. But it is easier said than done.
According to the Bombay Environment Action Group a patent,
incurable illegality has been committed and the natural
consequences (demolition) must follow. Reliance was placed,
inter alia, on K. Ramadas Shenoy v. Chief Office/'35, M.I. F
Builders v. Radhey Shyam Sahu36, Pleasant Stay Hotel v.
Palani Hills Conservation Counci/37 and Pratibha Coop.
Housing Society Ltd. v. State of Maharashtra 38 to suggest that
no party should be allowed to take the benefit or advantage of
their own wrong and a patent illegality cannot be cured.
G
75. The broad principle laid down by this Court is not in
35. (1974) 2 sec 506.
36. (1996) 6 sec 464.
37. (1995) 6 sec 121.
38. (1991) 3 sec 341. H.
258 SUPREME COURT REPORTS [2014] 2 S.C.R.
A doubt. An unauthorized construction, unless compoundable in
law, must be razed. In question are the circumstances leading
to the application of the principle and the practical application
of the principle. More often than not, the municipal authorities
and builders conspiratorially join hands in violating the law but
B the victim is an innocent purchaser or investor who pays for the
maladministration. In such a case, how is the victim to be
compensated or is he or she expected to be the only loser? If
the victim is to be compensated, who will do so? These issues
have not been discussed in the decisions cited by the Bombay
C Environment Action Group.
76. In so far as the practical application of the principle is
concerned, in Shenoy permission was granted to convert a
Kalyana Mantap-cum-Lecture Hall into a cinema hall. A reading
of the decision suggests that no construction was made and it
D is not clear whether any money was actually spent on the
project. The question of compensation, therefore, did not arise.
77. M.I. Builders was an extreme case in which partial
demolition was ordered since the agreement between the
Lucknow Nagar Mahapalika and the builder was not only
E unreasonable for the Mahapalika, but atrocious. In paragraph
59 of the Report, this Court said,
"The agreement defies logic. It is outrageous. It crosses
all limits of rationality. The Mahapalika has certainly acted
in a fatuous manner in entering into such an agreement."
F
It was further held in paragraph 71 of the Report that,
"The agreement smacks of arbitrariness, unfairness and
favouritism. The agreement was opposed to public policy.
It was not in public interest. The whole process of law was
G subverted to benefit the builder."
78. Pleasant Stay Hotel was a case of deliberately flouting
the law. The Hotel was granted sanction for the construction of
two floors but despite the rejection of its revised plan, it went
ahead and constructed seven floors. This Court noted that,
H therefore, five floors had been constructed illegally and
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 259
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
unauthorisedly. Under these circumstances, and subject to A
certain clarifications, the demolition order passed by the High
Court was upheld. Payment of compensation in a case of
knowingly and deliberately flouting the law does not arise.
79. In Pratibha the eight unauthorized floors were B
constructed in clear and flagrant violation and disregard of the
FSI. The demolition order had already attained finality in this
Court and thereafter six of the unauthorized floors had been
demolished and the seventh was partially demolished. This
Court found no justification to interfere with the demolitions. C
Again, the issue of compensation does not arise in such a
situation.
80. The application of the principle laid down by this Court,
therefore, depends on the independent facts found in a case.
The remedy of demolition cannot be applied per se with a D
broad brush to all cases. The State also seems to have realized
/this and that is perhaps the reason why it moved the application
that it did in Godavarrnan.
81. Looking at the issue from point of view of the citizen E
and not only from the point of view of the State or a well
meaning pressure group, it does appear that even though the
basic principle is that the buyer should beware and· therefore if"
the appellants and purchasers of tenements or commercial
establishments from the appellants ought to bear the
F
consequences of unauthorized construction, the well-settled
principle of caveat emptor would be applicable in normal
circumstances and not in extraordinary circumstances as these
appeals present, when a citizen is effectively led up the garden
path for several decades by the State itself. The present
appeals do not relate to a stray or a few instances of G
unauthorized constructions and, therefore, fall in a class of their
own. In a case such as the present, if a citizen cannot trust the
State which has given statutory permissions and provided
municipal facilities, whom should he or she trust?
H
260 SUPREME COURT REPORTS [2014] 2 S.C~R.
A 82. Assuming the disputed land was a private forest, the
State remained completely inactive when construction was '
going on over acres and acres of land and of a very large
number of buildings thereon and for a few decades. The State
permitted the construction through the development plans and
B by granting exemption under the Urban Land (Ceiling and
Regulation) Act, 1976 and providing necessary infrastructure
such as roads and sanitation on the disputed land and the
surrounding area. When such a large scale activity involving the
State is being carried on over vast stretches of land exceeding
c a hundred acres, it is natural for a reasonable citizen to assume
that whatever actions are being taken are in accordance with
law otherwise the State would certainly step in to prevent such
a massive and prolonged breach of the law. The silence of the
State in all the appeals before us led the appellants and a large
number of citizens to believe that there was no patent illegality
0
in the constructions on the disputed land nor was there any legal
risk in investing on the disputed land. Under these
circumstances, for the State or the Bombay Environment Action
Group to contend that only the citizen must bear the.
consequences of the unauthorized construction may not be
E appropriate. It is the complete inaction of the State, rather its
active consent that has resulted in several citizens being placed
in a precarious position where they are now told that their .
investment is actually in unauthorized constructions which are
liable to be demoli~hed any time even after several decades.
F There is no reason why these citizens should be the only victims
of such a fate and the State be held not responsible for this
state of affairs; nor is there any reason why under such
circumstances this Court should not come to the aid of victims
of the culpable failure of the State to implement and enforce
G the law for several decades.
83. In none of these cases is there an allegation that the
State has acted arbitrarily or irrationally so as to voluntarily
benefit any of the appellants. On the contrary, the facts show
H that the appellants followed the due legal process in making·
GODREJ & BOYCE MFG. CO. LTD. v. STATE OF 261
MAHARASHTRA & ORS. [MADAN B. LOKUR, J.]
the constructions that they did and all that can be said of the A
State is that its Rip Van Winkleism enabled the appellants to
obtain valid permissions from various authorities, from time to
time, to make constru,ctions over a long duration. The appellants
and individual citizens cannot be faulted or punished for that.
B
84. These appeals raise larger issues of good
administration and governance and the State has, regrettably,
come out in poor light in this regard. It is not necessary for us
to say anything more on the subject except to conclude that
even if the State were to succeed on the legal issues before C
us, there is no way, on the facts and circumstances of these
appeals, that it can reasonably put the clock back and ensure
that none of the persons concerned in these appeals is
prejudiced in any manner whatsoever.
Conclusion: D
85. Accordingly, for the reasons given, all these appeals
are allowed and the impugned judgment and order of the
·Bombay High Court is set aside in all of them and the notices
impugned in the writ petitions in the High Court are quashed.
E
Orders in Interlocutory Applications
Civil Appeals arising out of SLP (C) Nos.25747/2010 and
25748/2010 '
F
86. Delay condoned.
SLP (Cl No.34691/2011
87. Permission to file the special leave petition is declined.
However, the petitioner is at liberty to take such appropriate G
action as is now permissible under·the law.
H
262 SUPREME COURT REPORTS [2014] 2 S.C.R.
A Civil Appeals arising out of S.L.P. (C) Nos. 10677 of 2008, _
10760 of 2008, 11509 of 2008 and 11640 of 2008
88. Applications for impleadment/intervention stand
allowed.
B Civil Appeals arising out of S.L.P. (Cl Nos. 10760 of 2008
and 11509 of 2008
89. Applications for modification of the order dated 5th
May, 2008 in these appeals and the applications for directions
c in all other appeals are disposed of in terms of the judgment
pronounced.
D.G. Appeals allowed.
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