ANUDAN PROPERTIES PRIVATE LTD. Vs. MUMBAI METROPOLITAN REGION

JUDGEMENT

(1.) This petition under Article 226 of the Constitution challenges the legality of orders passed by the Slum Rehabilitation Authority (SRA) under Sec. 13(2) of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 (the " Slum Act "). The impugned orders terminate the petitioner's appointment as developer of a slum rehabilitation project and were issued on the ground of the petitioner's failure to pay transit rent arrears and to complete the project within the stipulated time. The petitioner, a real estate developer, underwent insolvency resolution under the Insolvency and Bankruptcy Code, 2016 ("IBC") during the pendency of the project. A resolution plan has been approved under Sec. 31 of the IBC, which the petitioner contends has extinguished all past dues including the claimed arrears of transit rent. The case thus lies at the intersec. of the IBC regime and the slum rehabilitation law, raising important questions about the effect of an insolvency resolution on statutory obligations towards slum dwellers.

(2.) The facts and circumstances giving rise to the filing of the present writ petition, as narrated by the petitioner, are briefly set out as under:

(3.) The petitioner is an absolute owner of property bearing F. P. No43, T.P.S. No.1, admeasuring 11,832.17 square metres at Ramchandra Nagar, Village Panchpakhadi, Thane (West). The said property was illegally encroached upon and occupied by members of respondent No.3. The occupants of the said property formed themselves into respondent No.3-Society for implementation of slum scheme on the said property. The petitioner submitted a slum scheme on the said property whereby the petitioner agreed to handover permanent alternative accommodation to eligible members of respondent No.3 by constructing two rehabilitation buildings R-1 and R-2 on the said property in addition to construction of sale buildings. Thane Municipal Corporation on 7/9/2009 issued Letter of Intent (LoI) in favour of the petitioner for implementation of slum scheme subject to terms and conditions enumerated therein.