CENTRAL BANK OF INDIA Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) THE dispute in this petition relates to two plots of lands bearing Nos. 216 and 217 at Backbay Reclamation, Block III and which are at present under sea. The petitioners are a Nationalised Bank and body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and carry on business of banking in diverse places in India. By this petition filed under Article 226 of the Constitution of India the principal relief claimed is grant of permission to errect the intended building on these two plots after reclamation and permission to erect building for office purpose by use of floor space index of 3. 5. To appreciate the claim made by the petitioner Bank and by Bank of India in the companion petition, it is necessary to exhaustively set out the facts.

(2.) THE State Government concerned at the growing congestion in Greater Bombay in the year 1960 appointed a Committee under the chairmanship of Dr. D. R. Gadgil, who was the Director of Gokhale Institute of Politics and Economics at Poona and subsequently holding the post of Deputy Chairman of Planning Commission, to examine the necessary steps to achieve the plans for the city of Greater Bombay. Based on the recommendations the Government repealed Bombay Town Planning Act, 1954 and brought into force the Maharashtra Regional and Town Planning Act, 1966 (hereinafter referred to as the M. R. T. P. Act), which came into effect from January 11, 1967. The M. R. T. P. Act was enacted to make provisions for planning the development and use of land in regions established for the purpose and to make better provision for the preparation of development plans with a view to ensuring that town planning schemes are made in a proper manner and their execution is made effective. Backbay Reclamation Scheme was originally planned by Government of Bombay in the year 1920 and consisted of eight blocks. Block I and II stretched from Chowpatty to Sachivalaya while Blocks VII and VIII lie at the extreme southern tip at Colaba near defence area. Blocks I, II and VII and VIII were reclaimed upto 1930, and thereafter the reclamation was not carried out. In the year 1950 in view of the mounting demand for additional space for development in southern Bombay, the Government appointed one-man Committee chaired by Shri S. G. Barve, I. C. C. to examine possibility of revival of the scheme by reclaiming land out of Blocks III and IV admeasuring about 550 acres. After the enactment of M. R. T. P. Act, in the year 1967 the State Government appointed another Committee headed by Shri L. G. Rajwade, I. C. S. to submit a report in respect of difficulties faced by major metropolitan cities in view of urbanisation migration of people to the metropolis and deterioration in condition of sanitation, housing, law and order etc. Rajawade Committee recommended regional plans for Bombay Metropolitan region by accepting the suggestions made earlier by Gadgil Committee. Accepting the recommendations, the State Government constituted the Regional Planning Records for three major regions of Bombay, Pune and Nagpur. The Bombay Metropolitan Region Planning Board after carrying out the extensive exercise and after consideration of various proposals formulated the draft plans for the Bombay region. The Board after scrutinising the plans and examining the suggestions and objections received from public at large, finalised the plan on October 5, 1970. The Planning Board noticed that the problems of Organisation in major metropolitan cities have been complex. The Board realised that if these problems have to be tackled and prevented from further deterioration, then some metropolitan planning must necessarily be undertaken and the fresh approach brought to bear on future expansion. The Planning Board noticed that the development of the large Metro centres will be required and such metro centres should be set up on either side of the Panvel Creek, the Northern portion between Thane Creek and the Parsik Tunnel and high area is commonly known as "trans-Thana Creek area" and the rest of the area is trans harbour area comprising of Panvel, urban and Nhava-Sheva. The Planning Board noticed that the whole idea of restructuring of the metropolis by constructing a twin city hinges around the office sectors being introduced in large way to locate itself in the new centre. The Planning Board observed that the Government is at the key position in this sector and the positive and determined land from the Government by shifting its capital to new centre would both act as a catalyst and also induce confidence on the minds of the private sectors about assured prosperity of the new development. The Board realised that the strongest growth pole among the various activities being governing; without governments participation the new metro centres cannot succeed. The Planning Board suggested major policy decision at Government level regarding future development in Bombay, particularly in the offices-sector, and these recommendations which were accepted by the Government are as follows :

(3.) A large number of public spirited citizens realising the consequences which would flow from reclamation of a large area from the sea in the Backbay Reclamation, requested the State Government and the Chief Minister not to undertake any reclamation in Blocks III to VI in the Backbay area. Mr. Sudhir Joshi, who was the mayor of Bombay, in the year 1973 requested the Chief Minister not to develop backbay area as it would create circumstances resulting in putting strain on the Municipal services as well as create several traffic hazards. The Government of Maharashtra did not accept the objections and decided to lease plot Nos. 210 to 224 to large number of builders and to Free Press Journal, Central Bank of India. All these plots were under seas and were required to be reclaimed before undertaking construction of office buildings. The petitioner Bank had sought allotment of plots in Block III on November 3, 1971 and in pursuance of the application plots Nos. 216 and 217 were allotted to Central Bank by letter dated April 29, 1974. The letter, inter alia, recites that the plot would be leased on payment of annual groun rent of 16 1/2% on the value thereof at Rs. 5,400/- per sq. metre on the terms and conditions mentioned in the annexed memorandum. The memorandum sets out that the plots to be leased will be shown in the tentative lay our plan prepared by the Director of Town Planning for the Backbay Reclamation area. The memorandum further recites that the plots are completely unreclaimed, and the Bank can commence the work of reclamation only after the permission to that effect is giving by the Chief Engineer, Buildings and Communication Department The memorandum further provides that after the plots are fully reclaimed the Bank shall give a notice to the Collectors of Bombay to that effect and get the boundries of the plot clearly demarcated. The Bank was required to pay the earnest money deposit of Rs. 1 lakh for each plot.