Holding

Section 37(2) gives the State Government unfettered power to sanction a planning amendment with or without modifications, and Development Control Rules possess statutory force, so the added wording is valid and promissory estoppel does not apply.

Summary

The Promoters & Builders Association of Pune challenged a modification to Pune's Development Control Rules (DCR) wherein the State Government, while sanctioning the Municipal Corporation's proposal under Section 37(2) of the Maharashtra Regional Town Planning Act, 1966, inserted the words "from the very said plot" into Rule 2.4.11. The High Court struck down the addition, invoking the need for a public notice under Section 37(1) and the doctrine of promissory estoppel. On appeal, the Supreme Court held that Section 37(2) expressly empowers the State to sanction a proposal with or without changes, and that DCR have the force of law, rendering promissory estoppel inapplicable. Consequently, the addition was valid and the review petitions seeking to overturn the earlier judgment were dismissed for lack of material error.

Issues considered

The State Government's authority under Section 37(2) to alter a Municipal Corporation's proposed amendment without following the public notice and hearing procedure of Section 37(1).
The validity of inserting the words "from the very said plot" into Rule 2.4.11 of the DCR.
Whether the doctrine of promissory estoppel can be invoked against a statutory rule.
The maintainability of a review petition against the Supreme Court's earlier judgment.

Legislation cited

Constitution of Indias. Article 137
Maharashtra Regional Town Planning Act, 1966s. 158, s. 37

Subjects

Development Control RulesTransfer of Development RightsMaharashtra Regional Town Planning ActSection 37Promissory estoppelReview petitionStatutory interpretationMunicipal lawFloor Space IndexPlanning authority

Judgment

").- PROMOTERS & BUILDERS ASSOCIATION OF PUNE A
V.

PUNE MUNICIPAL CORPORATION AND ORS.

MAYll,2007

[G.P. MATHUR AND RV. RA VEENDRAN, JJ.] B

Maharashtra Regional and Town Planning Act, 1966-ss. 37 and 158-
"
-..(_ Development plan of Pune-Directive to Pune Municipal Corporation to
amend Development Control Rules of Pune-Proposal for modification of
Rules-State Government sanctioned proposal of modification with certain
c
changes-Power of State Government to amend Rules-Held : Language of
s 37 (2) is very clear-It empowers State Government to sanction the proposal
of Municipal Corporation regarding modification of Development Control
Rules with or without any changes as it deem fit- Development Control Rules
having same force as that of statute, as such promissory estoppel not D
applicable-Thus, review of order of Supreme Court not sustainable-
·~
However, sanction given for construction in excess of 0.4 1VR will not be
.., treated in violation of Clause (b) of DCR 24.1 I-Maharashtra Develpoment
Control Rules, I967-Rule N 2.4.11 (a) and (b)-Constitution of India,
1950- Article 137-Interpretation of statutes.
E
Constitution of India, 1950-Article 137-Review petition-When-
permissible-Stated.

In the Regulations of Greater Bombay a concept of Transfer of
Development Rights was introduced to facilitate acquisition of land for public
purposes. The State of Maharashtra issued a directive under Section 37 (1) F
of the Maharashtra Regional Town Planning Act 1966 to the respondent Pune
-f
Municipal Corporation to amend Development Control Rules of Pune city on
the same lines as applicable in Greater Bombay. The proposal for modifications
in the Rule N.2.4.11 was that "FSI of receiving plot shall be allowed to be
exceeded by not more than 0.4 in respect of D.R. available in respect of the G
reserved plot and upto a further 0.4 in respect of D.R. available in respect of
the lands surrendered for road widening or construction of new roads are
prescribed. It was forwarded to the State Government. State Government while
~ sanctioning made changes in Rule N.2.4.11 from the Bombay Development
459 H
460 SUPREME COURT REPORTS [2007] 6 S.C.R.

A Control Rules and notified the modified Development Control Rules of Pune
Municipal Corporation. Rule N.2.411 reads as (a) FSI on receiving plots shall
be allowed to be exceeded not more than 0.4 in respect of DR available for the
reserved jJlots, (b) FSI on receiving plots shall be allowed to be exceeded by
further 0.4 in respect of DR available on account to be exceeded by further
0.4 in respect of DR available on account of the land surrendered for the road
B widening or construction of new road from very' said plot." Petitioners filed
Writ Petition against Pune Municipal Corporation and State of Maharashtra
challenging the modified Development Control Rules. High Court allowed the
writ petition holding that it was net possible for the State to add the words _,)
),..
'from the same plot' in the clause 2.4.11 as the same have been added without ~

c being publicized as required by the provision of section 37(1 ). Respondents
filed appeal before this Court which was allowed and order of the High Court
was set aside. Hence the present review petitions.

Petitioner contended in the proposal sent by the respondents-
Corporation after allowing the procedure prescribed in sub-section (1) of s
D 37, the words 'from the very said plot' towards the end of clause (b) in OCR-
2.4.11 were not there; that the State Government while sanctioning the
proposal added the said words which in law it could not do; that the Municipal
Corporation had submitted the proposal after inviting objections and after "'
giving an opportunity of hearing and the proposal so made by the Municipal '
Corporation could not have been modified or altered by the State Government
E
without inviting objections or giving an opportunity of hearing with regard to
changes which it proposed to made and which were ultimately made in the
notification issued by it.

Dismissing the Review petitions, the Court
F
HELD: 1. There is absolutely no ground for review of the judgment and
Order of this Court. [Para 11) [471-A) ~
•
2.1. The language of Sub-section (2) of Section 37 of the Maharashtra
Regional Town Planning Act. 1966 uses the expression " sanction the
G modification with or without such changes, and subject to such conditions as
it may deem fit, or refuse to accord sanction". The language of the Section is
very clear and it empowers the State Government to sanction the proposal of
the Municipal Corporation regarding modification of Development Control
Rules "with or without any changes as it may deem fit". These words are
important and cannot be ignored. They have to be given their natural meaning.
H Therefore, the view taken by this Court in the judgment and order that the
~
,
PROMOITRS& BUILDERS ASSOCIATION OF PUNE >'. PUNE MUNICIPAL COPRN. 461
....,.__ State Government had full authority to make any changes or add any condition A
in the proposal of the Municipal Corporation is perfectly correct In fact, on
i the plain languages of the statute no other view can possibly be taken.
[Para 9[ (469-F-H; 470-C-D[

Union of India v. Hanso/i Devi, [2002[ 7 SCC 273; Nathi Devi v. Radha
Devi Gupta, [2005) 2 SCC 271 and Dr. Ganga Prasad Verma v. State of Bihar, B
[1995) Supp. 1 SCC 192, relied on.

~ 2.2. The Development Control Rules are framed by the State Government
-4... in exercise of power conferred bys. 158 of the Act Consequently they must
be treated as if they were in the Act and are to be of the same effect as if
contained in the Act and are to be judicially noticed for all purpose of c
construction and obligation. If the Development Control Rules have the same
force as that of a statute, then no question of promissory estoppel would arise
as the principle is well settled that there can be no estoppel against a statute.
The view taken earlier by this Court that High Cou11 was not justified in
involving the principle of promissory estoppel, is concurred with. There is D
not even a slightest ground which may cast any doubt regarding the
...,. correctness of the earlier judgment [Para 10) (470-D-F)
)
State of U.P. v. Babu Ram Upadhya, AIR (1961) Supreme Court 751
and State of Tamil Nadu v. Hind Stones, AIR (1981) Supreme Court 711, relied
on. E
2.3 Review is not a routine procedure. A review of an earlier order is
not permissible unless the Court is satisfied that material error, manifest on
the face of the order undermines its soundness or results in miscarriage of
justice. A review of judgment in a case is a serious step and reluctant resort
to it is proper only where a glaring omission or patent mistake or like grave F
error has crept in earlier by judicial fallibility ....The stage of review is not a
'"'f
virgin ground but review of an earlier order which has the normal feature of
finality. [Para 11) [470-G-H; 471-A)

Avtal Singh Sekhon v. Union of India, (1980) Supp. SCC 562 and
G
Devender Pal Singh v. State, [2003) 2 SCC 501, relied on.

3. In the fourth categories the Municipal Corporation gave sanction for
construction in excess of 0.4. TDR and even completion certificates were
issued for serial nos. 1. to 3. Having regard to the submission on behalf of
Pone Municipal Corporation, the constructions enumerated in category nos. H
462 SUPREME COURT REPORTS (2007] 6 S.C.R.

A 1 to 4 will not be treated to be in violation of clause (b) of D.C.R.-2.4.11
(Para 12, 13 and 14f (473-A; 473-B, C, F)

CIVIL APPELLATE JURISDICTION: Review Petition (Civil) No. 1809 of
2005.

B IN

C.A. No. 3800 of2003.
)
From the Final Judgment and Order dated 05.05.2004 of this Hon'ble )..
Court in C.A. No. 3800 of2003.
c WITH

R.P. (C) No. 1856-1857 of2005 •
in C.A.No. 3804 of2003.
D U.U. Lalit and V.A. Bobde, Sr. Adv., Satyajit Saha, Prasenjit Keswami,
V.D. Khanna, Nitin S. Tambwekbar, B.S. Sai and K. Rajeev for the Appellant.
~

Mukul Rohatagi, Sr. Adv., Markarand D. Adkar, Vijay Kumar, Ravindra (

Keshavrao Adsure and V.N. Raghupathy for the Respondents.
E The Judgment of the Court was delivered by

G.P. MATHUR, J. I. These are review petitions seeking review of the
judgment and order dated 5.5.2004 passed by this Court in Civil Appeal
No.3800 of2003. We will give the facts of Review Petition No.1809 of2005,
F which is the leading case.

2. The Maharashra legislature enacted Maharashtra Regional Town '!:"
Planning Act, 1966 (for short 'the Act') for planning and development of the
cities, constitution of Regional Planning Boards and to make provision for the
preparation of development plans with a view to ensuring that Town Planning
G Schemes are made in a proper manner and their execution is made effective
and for ancillary purposes. Chapter III of the Act deals with development
plans. Under the Scheme of the Act, Development Control Rules are framed
separately for each city keeping in view the peculiar requirements of each
'city/town. The dispute here pertains to Development Control Rules (for short
'DCR') for Pune which has been constituted as a corporation under the
H
PROMOTERS k BUil.DERS ASSOCIATION OF PUNE '· PUNE MUNICIPAL COPRN. (G.P. MATHUR. JI 463

~ Bombay Provincial and Municipal Corporation Act, 1949 (for short 'BPMC A
Act'). Pune Municipal Corporation is also the planning authority under the
provisions of the Act for the city of Pune. A concept of Transfer of
Development Rights (for short 'TOR') was introduced in the Regulations of
Greater Bombay and the object of introducing such concept was to facilitate
acquisition of land for public purposes. The concept of TDR operates in the
following manner :-
B

"The owner or the lessee of the plot of land will hand over the
possession of the reserved land to the plaMing authority and as
against such handing over, such owner or the lessee will be granted
"development right certificate" so as to enable such owner to construct
built up area equivalent to permissible FSI of the land acquired in one
c
or more other plots and in the zones specified. Such one or more plots
are termed as "receiving plots''.

3. The State of Maharashtra issued a directive under Section 37(1) of
the Act to the Pune Municipal Corporation on 8. 7.1993 to amend Development D
Control Rules of Pune city. The Pune Municipal Corporation then issued a
'1- notification in the Gazette on 30.9 .1993 by which the process of modification
.., was initiated and it was notified that the modification would be on the same
lines as applicable in Greater Bombay. One of the proposed modifications was
in Rule N.2.4.11 which was as under :
E
"FSI of receiving plot shall be allowed to be exceeded by not more
than 0.4 in respect of D.R. available in respect of the reserved plot and
upto a future 0.4 in respect of D.R. available in respect of the lands
surrendered for road widening or construction of new roads as
prescribed."
F
After prescribed procedure had been completed, the Corporation
--!
forwarded the proposed modification to the State Government. The State
Government then issued a notification under Section 37(2) of the Act on
5.6.1997 sanctioning the proposal and notified the modified Development
Control Rules of Pune Municipal Corporation. Rule N.2.4.11 which was
sanctioned and notified by the State Government reads as under :
G

"(a) The FSI on receiving plots shall be allowed to be exceeded not
more than 0.4 in respect of DR available for the reserved plots.

(b) The FSI on receiving plots shall be allowed to be exceeded by
further 0.4 in respect of DR available on account of the land H
464 SUPREME COURT REPORTS [2007] 6 S.C.R.

A surrendered for the road widening or construction of new road from
very said plot. "

4. The State Government while sanctioning Rule N.2.4.11 introduced a
departure from the Bombay Development Control Rules. Some other changes
were also made by the State Government in the Rules which had been
B proposed by the Pune Municipal Corporation. Thereafter, some exchange of
correspondence and meetings took place between the Pune Municipal
Corporation and the State Government as regards the interpretation of the
above Rule. The Chief Secretary of the Urban Development Department. _{
Government of Maharashtra then sent a detailed letter to the Pune Municipal
C Corporation on 11.6.1998 regarding the correct interpretation of the notified
Development Control Rules. Regarding Rule N.2.4.11 it was stated as under
in the said letter :

"8. Use of0.4 Transferable Development Rights and 0.4 Development
Plan Road together making 0.8 Floor Space Index on the same property.
D The policy adopted by the Mumbai Municipal Corporation should be
followed by the Pune Municipal Corporation."

5. In view of the clarification issued by the State Government, the Pune
Municipal Corporation issued a circular on 20.7.1999 and with regard to Rule
E N.2.4.11 it was stated as under :

"As per the rule No.2.4.11 (a & b) of the Development Control Rules
the TDR of 0.4 of the total floor space area of the receiving plot out
ofTDR of road widening or other roads widening and 0.4 of the total
floor space area of the receiving plot out of TDR of areas reserved
for other purposes is allowed. Thus a maximum of0.8 of the total floor
F
space area of the receiving plot shall be permitted."

More than two years thereafter, the Pune Municipal Corporation passed
a Resolution on 29. l 0.200 I not to allow use of additional 0.4 FSI in the area
other then the plot from which the land for road widening has been acquired
G which was in tune with clause (b) of D.C.R.-2.4.11. This decision of the
Corporation was endorsed by the General Body on 21.11.200 I. It may be
pointed out here that while sanctioning the proposal of the Pune Municipal
Corporation, the State Government added the words "from the very said plot"
towards the end of clause (b) of Development Control Rule N.2.4.11 in the
notification which was issued by it on 5.6.1997. It is the addition of these
H words by the State Government which gave rise to the litigation which was
PROMOTERS&: BUil.DERS ASSOCIATION OF PUNE '· PUNEMUNICIPAL COPRN. [G.P. MATHUR, l.J 465

ultimately decided by this Court in Civil Appeal No.3820 of 2003 and the A
introduction of said words is also under challenge in the present review
petitions.

6. Promoters and Builders Association of Pune, a Society registered
under the provisions of Societies Registration Act, filed Writ Petition No.5198
of 2001 against Pune Municipal Corporation and State of Maharashtra B
challenging the modified Development Control Rules, especially Rule N-2.3(A)
and N.2.4.11 (a) and (b), wherein the principal relief claimed was that a writ
of mandamus be issued commanding the respondents to the writ petition to
implement Development Control Rule N-2.4.1 l(b) in a manner that the road
area in respect of the plot, which is reserved for the road can be utilized being C
0.4 FSI on the same plot and the balance unutilized FSI, if any, can be
converted into TOR and can be used anywhere on a receiving plot to the
extent of 0.4 FSI, in addition to the 0.4 FSI pennissible on the receiving plot
for amenities under Rule N-2.4.1 l(a) and direct the Municipal Corporation to
forthwith dispose of the applications which had been submitted by the members
of the petitioner Association in the light of said clarification. The writ petition D
was contested by the Pune Municipal Corporation and State of Maharashtra
by filing counter affidavits. The High Court after considering the provisions
of Section 37 of the Act and also of the Development Control Rules, allowed
the writ petition on 23 .4.2002. It will be useful to reproduce the findings
recorded by the High Court and the relevant part of paras 18, 19 and 21 of E
the judgment of the High Court are reproduced below:

"18. In our opinion, therefore, it was not possible for the State to add
the words "from the same plot" in clause 2.4.11 as the same have been
added without being publicized as requireri by the provisions of
Section 37(1). The planning authority did not want the words "same F
plot" to be introduced. It did not therefore propose the modifications
in that fashion. It is the claim of the Planning Authority before us that
the words were inserted by the Government. There is no answer to
this by the State Government and it was obvious that it was done by
the State Government. Since the addition has been done by the State
without following the procedure established by Section 37(1 )(A) or G
Section 37(1), the words added cannot be read as validly added in the
Development Regulations and the addition will have to be struck
down as beyond the competence of the State Government. The State
Government has not directed under Section 37(1) to make modification
in the Regulations as the direction does not include the words "from H
466 SUPREME COURT REPORTS [2007] 6 .S.C.R.

A the same plot". There was no notice to the persons affected and
therefore there was no objection raised to it. The insertion of those
words by the State while granting sanction is therefore tantamount to
modifying the Final Development Plan in the exercise of its powers
under Section 37(1)(A). The State could have done so but then it was
duty bound to follow the procedure under Section 37(1XA). Obviously
B there is failure on the part of the State to do so and therefore inclusion
of those words in the Regulation is illegal. .................................... .

19 ...................................... On the principles of promissory estoppel
also, therefore, the Corporation cannot be allowed to insist that the
additional 0.4 FSI be used on the same very plot. In our opinion,
c therefore, even if the interpretation put by us on Section 37 is not
accepted still on th.e ground of promissory estoppel, the corporation
will have to be restrained from requiring the owners or builders from
giving up additional 0.4 FSI on the interpretation of the regulation of
2.4.11 to mean that it must be used on the same very plot.
D
21. In the result, therefore, the petitions succeed and are allowed. The
words "from the same very plot" in clause 2.4.11 of the Development
Control Regulation as passed by the Planning Authority, Municipal
Corporation, Pune are hereby struck down. The respondents Planning
Authority is directed to permit the use of 0.8 FSI to the petitioners and
E other similarly situated owners, builders etc. as transferred development
rights wholly or on part as proposed by them. Consequently, the
respondents are directed to sanction the building plan submitted by
the petitioners incorporating FSI of 0.8 as available in accordance with
D.C. Rules 2.4.11."

F 7. Feeling aggrieved by the decision of the High Court, the Pune
Municipal Corporation filed Civil Appeal No.3800 of 2003 in this Court. After 'r
hearing learned counsel for the parties, this Court allowed the appeal by the
judgment and order dated 5.5.2004. The judgment of the High Court was set
aside and the writ petition filed before the High Court was dismissed. For the
G sake of convenience, the relevant part of the judgment of this Court is
reproduced below :

"The question now for consideration is whether the State
Government can make any changes of its own in the modifications
submitted by Planning Authority or not. The impugned Section 37 of
H the Act reads as follows:
PROMOTERS & BUILDERS ASSOCIATION OF PUNE '· PUNE MUNICIPAL COPRN. (G.P. MA THUR, J.] 467

"3 7(1) Where a modification of any part of or any proposal made A
in, a final Development plan is of such a nature that it will not
change the character of such Development plan, the Planning
Authority may, or when so directed by the State Government
shall, within sixty days from the date of such direction, publish
a notice in the Official Gazette and in such other manner as may
B
•
be detennined by it inviting objections and suggestions from any
person with respect to the proposed modification not later than
one month from the date of such notice; and shall also serve
notice on all persons affected by the proposed modification and
after giving a hearing to any such persons, submit the proposed
modification with amendments, if any, to the State Government c
for sanction.
(IA) .....
(!AA) .....
(IB) ......
D
(2) The State Government may, make such inquiry as it may
--;.. consider necessary and after consulting the Director of Town
Planning by notification in the Official Gazette, sanction the
"'"
modification with or without such changes, and subject to such
conditions as it may deem fit, or refuse to accord sanction. If a
E
modification is sanctioned, the final Development plans shall be
deemed to have been modified accordingly." (emplasis supplied)

Reading of this provision reveals that under Clause (I), the Planning
Authority after inviting objections and suggestions regarding the
proposed amendment and after giving .1otice to all affected persons
F
shall submit the proposed modification for sanction to the Government.
---{
The deliberation with the public before making the amendment is over
at this stage. The Government, thereafter, under Clause (2) is given
absolute liberty to make or not to make necessary inquiry before
granting sanction. Again, while according sanction, Government may
do so with or without modifications. Government could impose such G
conditions as it deem fit. It is also pennissible for the Government to
refuse the sanction. This is the true meaning of the Clause (2). It is

.- difficult to uphold the contrary interpretation given by the High Court.
The main limitation for the Government is made under Clause (I) that
no authority can propose an amendment so as to change the basic
H
468

A
SUPREME COURT REPORTS [2007] 6 S. C.R.

character of the development plan. The proposed amendment could
,.
only be minor within the limits of the development plan. And for such ·-<
minor changes it is only nonnal for the government to exercise a wide
discretion, by keeping various relevant factors in mind. Again, if it is
arbitrary or unreasonable the same could be challenged. It is not the
case of the Respondents herein that the proposed change is arbitrary
B or unreasonable. They challenged the same citing the reason that the
Government is not empowered under the Act to make such changes
to the modification.
.,J
Making of OCR or amendment thereof are legislative functions. .:ii....
Therefore, Section 37 has to be viewed as repository of legislative
c powers for effecting amendments to OCR. That legislative power of
amending OCR is delegated to State Government. As we have already
pointed out, the true interpretation of Section 37(2) permits the State "',.

government to make necessary modifications or put conditions while
granting sanction. In Section 37(2), the legislature has not intended
D to provide for a public hearing before according sanction. The
procedure for making such amendment is provided in Section 37(1).
Delegated legislation cannot be questioned for violating principles of
~
natural justice in its making except when the statute itself provides for
'1
that requirement. Where the legislature has not chosen to provide for
any notice or hearing, no one can insist upon it and it is not permissible
E to read natural justice into such legislative activity. Moreover, a
provision for 'such inquiry as it may consider necessary' by a
subordinate legislating body is generally an enabling provision to
facilitate the subordinate legislating body to obtain relevant information
from any source and it is not intended to vest any right in anybody.
F (Union of India and Anr. v. Cynamide India Ltd and Anr., [1987] 2
SCC 720 paragraphs 5 and 27. See generally HSSK Niyami and Anr.
v. Union of India and Anr., [1990] 4 SCC 516 and Canara Bank v.
Debasis Das, [2003] 4 SCC 557. While exercising legislative functions,
r
unless unreasonableness or arbitrariness is pointed out, it is not open
for the Court to interfere. (See generally ONGC v. Assn. of Natural
G Gas Consuming Industries ofGujarat, [1990] Supp SCC 397) Therefore,
the view adopted by the High Court does not appear to be correct.

The OCR are framed under Section 158 of the Act. Rules framed

H
under the provisions of a statute form part of the statute. (See General
Office Commanding-in-Chief and Anr. v. Dr. Subhash Chandra Yadav
-..
PROMOTERS&: BUILDERS ASSOCIATION OF PUNE v. PUNE MUNICIPAL COPRN [G.P. MATHUR, J.J 469
l

)... and Anr., (1988) 2 SCC 351, paragraph 14). In other words, DCR have A
statutory force. It is also a settled position of law that there could be
no 'promissory estoppel' against a statue. (A.P Pollution Control
Board II v. M V Nayudu, (2001] 2 SCC 62, paragraph 69, Sales Tax
Officer and Anr. v. Shree Durga Oil Mills, [ 1998) 1 SCC 572, paragraphs
21 and 22 and Sharma Transport v. Govt. of AP, (2002) 2 SCC 188,
paragraphs 13 to 24). Therefore, the High Court again went wrong by B
invoking the principle of 'promissory estoppel' to allow the petition
filed by the Respondents herein.
~. For the foregoing reasons, the view adopted by the High Court
cannot be sustained."
c
8. We have heard Mr. U.U. Lalit and Mr. V.A. Bobde, Senior Advocates
for the review petitioners and Mr. Mukul Rohatgi, Senior Advocate for the
respondents at considerable length and have examined the record.

9. The main challenge of the review petitioners is to the addition of the
words "from the very said plot" towards the end of clause (b) in DCR-2.4.11. D
Learned counsel for the petitioners have submitted that in the proposal sent
-j...
by the Pune Municipal Corporation after following the procedure prescribed
)-
in Sub-section (I) of Section 37 the aforesaid words were not there. However,
the State Government while sanctioning the proposal added the said words
which in law it could not do. It has been submitted that the Municipal E
Corporation had submitted the proposal after inviting objections and after
giving an opportunity of hearing and the proposal so made by the Municipal
Corporation could not have been modified or altered by the State Government
without inviting objections or giving an opportunity of hearing with regard
to changes which it proposed to make and which were ultimately made in the
notification issued by it. This point has been considered and examined in the F
~ judgment and order of this Court dated 5.5.2004. The language of Sub-section
(2) of Section 37 uses the expression "sanction the modification with or
without such changes, and subject to such conditions as it may deem fit, or
refuse to accord sanction". The language of the Section is very clear and it
empowers the State Government to sanction the proposal of the Municipal G
Corporation regarding modification of Development Control Rules "with or
without any changes as it may deem fit". These words are important and
cannot be ignored. They have to be given their natural meaning. In Union of
""').-- . India v. Hansoli Devi, (2002) 7 SCC 273 it has been held that it is a cardinal
principle of construction of a statute that when the language of the statute
H
470 SUPREME COURT REPORTS [2007] 6 S.C.R.

A is plain and unambiguous, then the Court must give effect to the words used
in the statute and it would not be open to the court to adopt a hypothetical
construction on the ground that such construction is more consistent with
the alleged object and the policy of the Act. In Nathi Devi v. Radha Devi
Gupta, [2005] 2 SCC 271 it was emphasized that it is well settled that in
B interpreting a statute, effort should be made to give effect to each and every
word used by the legislature. The courts always presume that the legislature
inserted every part of a statute for a purpose and the legislative intention is
that every part of the statute should have effect. In Dr.Ganga Prasad Verma
v. State of Bihar, [1995] Supp. I SCC 192 it has been held that where the .)
,..._
language of the Act is clear and explicit, the Court must give effect to it,
C whatever may be the consequences, for in that case the words of the statute
speak the intention of the legislature. Therefore, the view taken by this Court
in the judgment and order dated 5.5.2004 that the State Government had full
authority to make any changes or add any condition in the proposal of the
Municipal Corporation is perfectly correct. In fact, on the plain language of
the statute no other view can possibly be taken.
D
10. The High Court also accepted the contention of the writ petitioners
based on the ground of promissory estoppel. The Development Control Rules
are framed by the State Government in exercise of power conferred by Section
158 of the Act. Consequently they must be treated as if they were in the Act
E and are to be of the same effect as if contained in the Act and are to be
judicially noticed for all purposes of construction and obligation. [See State
of UP. v. Babu Ram Upadhya, AIR (1961) SC 751 and State of Tamil Nadu
v. Hind Stones, AIR (1981) SC 711 (para 11)]. If the Development Control
Rules have the same force as that of a statute, then no question of promissory
estoppel would arise as the principle is well settled that there can be no
F estoppel against a statute. We are in complete agreement with the view taken
earlier by this Court and there is not even a slightest ground which may cast
any doubt regarding the correctness of the earlier judgment.

11. As was observed by this Court in Col. Avtar Singh Sekhon v. Union
of India, [1980] Supp. SCC 562 review is not a routine procedure. A review
G of an earlier order is not permissible unless the Court is satisfied that material
error, manifest on the face of the order undermines its soundness or results
in miscarriage of justice. A review of judgment in a case is a serious step and
reluctant resort to it is proper only where a glaring omission or patent mistake
or like grave error has crept in earlier by judicial fallibility ..... The stage of
H review is not a virgin ground but review of an earlier order which has the
PROMOTERS&: BUILDERS ASSOCIATION OF PUNE v. PUNEMUNICIPAL COPRN. (GP. MATllUR, I.] 471

nonnal feature of finality. A
This view has been reiterated in Devender Pal Singh v. State, [2003] 2
SCC 50 I (para 16). This being the legal position, there is absolutely no ground
for review of the judgment and order dated 5.5.2004. The review petitions are,
therefore, liable to be dismissed.
B
12. Learned counsel for the review petitioners next submitted that after
the clarification had been issued by the Chief Secretary of the Urban
Development Authority of the State Government by the letter dated 11.6.1998
and consequent circular had been issued by the Pune Municipal Corporation
on 20. 7.1999 which provided that a maximum of 0.8 of the total floor space C
area of the receiving plot shall be pennitted, large number of land owners
whose properties were reserved for public amenities like roads, schools,
gardens, etc. were encouraged to hand over their lands to the Pune Municipal
Corporation free of cost, in the expectation of fetching higher price for this
TOR as a result of greater utilization to the extent of 0.8 being pennissible as
against the earlier 0.4 FSI. Similarly, the developers while negotiating for D
buildable properties considered total FSI potential of 1.8 (I + 0.8 TDR, FSI)
as against 1.4 FSI and have accordingly paid much higher consideration
towards the land. Many developers commenced their projects after sanctioning
regular 1.0 FSI and as per the Pune Municipal Corporation procedure applied
• for further 0.8 TOR, FSI. In fact, many builders and land owners had got their
entire project lay out approved from the Corporation with 1.8 FSJ and had E
constructed some buildings upto the sanctioned height. Many such plans
were approved by the Pune Municipal Corporation between the period 20.7.1999
and 21.11.200 I when the second circular was issued adopting a different
stand. It has been urged that refusal of Pune Municipal Corporation to
honour its own lay out plan has given rise to disputes between developers p
and buyers of the flats and also between the developers and land owners.
The difficulty being faced by the review retitioners appears to be quite
genuine as the stand of Pune Municipal Corporation between the period
20.7.1999 to 21.11.2001 was different and building plans were sanctioned
without giving effect to the words "from the very said plot" occurring towards
the end of clause (b) in D.C.R.-2.4.11. A reply affidavit has been tiled by Shri G
Prashant Madhukar Waghmare, City Engineer, Pune Municipal Corporation
giving statement ofTDR cases wherein an excess ofTDR was claimed during
the period 20.7.1999 to 21.11.2001. The sanction of plan and construction
undertaken have been broadly described in 7 categories and category nos.I
to 4 are as under : :- H
472 SUPREME COURT REPORTS [20071 6 S.C.R.

A s Description Total Total Excess
No. Cases sanctioned IDR
area (in sq. utilized
meters) (in
sq. meters)
B
1. Details of construction 55 213763.89 35544.66
works for which the
final completion ce1tificate
was granted after
21.11.2001, wherein the
c original sanction for
construction by .the
Corporation was in excess
of0.4 TDR.
2 Details of construction 9 92287.14 2007325
D works for which the part
completion certificate was
granted after 21.11.200 I,
wherein the original
sanction for construction
by the Corporation was in
E excess of 0.4 TDR.
3. Details of construction 14 31124.47 4fJ76.57
works for which the
completion certificate was
granted between 20.07 .1999
F to 21.11.2001, wherein the
original sanction for
construction by the
Corporation was in excess
of0.4 TDR.
G 4. Details of construction works 5 8555.62 1600.88
for which no completion
certificate has been granted
so far, wherein the original
sanction for construction by
the corporation was in
H »v"eS• of 0.4 TDR
PROMOTERS & BUILDERS ASSOCIATION OF PUNE <: PUNE MUNICIPAL COPRN. [G.P. MATHUR,!.] 473

lt will be seen that in all the above mentioned four categories the A
Municipal Corporation gave sanction for construction in excess of 0.4 TDR
and even completion certificates were issued for serial nos. I to 3.

13. During the course of hearing Mr. Makarand D. Adkar, learned
Advocate for Pune Municipal Corporation, on instructions received from the
Commissioner, Pune Municipal Corporation, has made a statement that having B
regard to the facts and circumstances of the case, the respondent corporation
will have no objection if the constructions made as enumerated in category
nos.I to 4 described above are treated to be not in violation of clause (b) of
D.C.R.-2.4.11. ln the written submission filed by Mr. Vishwajit Singh, Advocate,
learned counsel for Pune Municipal Corporation, it is stated that the Corporation C
does not have objection if the four categories of construction mentioned
above are given relief in view of the fact that -

a The building plans have been sanctioned by the Corporation
b In most of the cases, the completion or the part completion
certificates have been issued by the Corporation. D
c In all the cases, the TDR has been loaded/utilized and
7-
commencement certificate has been issued for the particular
~
projects.
d In all the cases, the construction has taken place with sanction
E
of Corporation.

The statement made by Mr. Makarand D. Adkar, Advocate, is accordingly
taken on record.

14. The review petitions are dismissed, recording the submission on F
behalf of the Pune Municipal Corporation that the constructions mentioned
in categories I to 4 above will not be treated to be in violation of clause (b)
ofD.C.R.-2.4.11.

N.J. Review Petitions dismissed.
G