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Synopsis

The Supreme Court has directed the Municipal Corporation of Greater Mumbai to consider a claim for compensation or rehabilitation of a group of people who were found to be in possession of a property since 1976 which were coming in alignment of a road there.

A bench of Justices Vikram Nath and Rajesh Bindal rejected the corporation's contention and the claim of the appellants was highly belated and might open a Pandora's box.

The court allowed the appeal of one Jafar Ali Nawab Ali Chaudhari and others against a Bombay High Court's order.

The high court had allowed the corporation's appeal against the trial court's decree, restraining any action in terms of the notices issued against them with regard to their properties.

Upon an appeal, the top court's bench decided the short issue regarding rights of the appellants for consideration of their claim either for allotment of an alternative site or compensation for the premises in their use and occupation.

The counsel for the appellants contended that in terms of the Town Planning Scheme, as notified on August 01, 1994 and the subsequent circulars issued by the Corporation from time to time, the appellants who were in possession of the property in dispute were entitled to be rehabilitated or paid compensation. They said that genuine claim of the appellants was not being considered though undisputedly they were found to be in possession of the property in dispute from the year 1976 onwards.

On the contrary, the corporation's counsel sought to refute the claims of the appellants, contending that the suit filed by appellants was not maintainable in view of bar as contained in Section 149 of the Mumbai Municipal Corporation Act. "There is no error in the order passed by the High Court. The claim of the appellants is highly belated and may open a pandora box," it was contended.

The bench, however, said, "In our view, the present appeal deserves to be allowed without going into much details for the reason that admittedly, the appellants were found to be in possession of the property in dispute from the year 1976 onwards as per census certificate dated 24.05.1978."

In terms of the Town Planning Scheme, notified on August 01, 1994 and subsequent circulars, the claim of any occupant of the property is required to be considered for rehabilitation or for payment of compensation. The appellants are still in possession of the property, which is stated to be coming in the alignment of 60 feet T D Road, the bench said. 

The bench pointed out that only prayer of the appellants was that their claim for rehabilitation or payment of compensation be considered in terms of the Town Planning Scheme, which had not been considered.

"Instead of relegating the parties to litigate further, in our view, the present appeal can be disposed of with a direction to the Corporation to consider the claim of the appellants in terms of the Town Planning Scheme either for rehabilitation or payment of compensation," the bench said.

The court directed that the needful should be done within a period of three months from the date of receipt of copy of the order.

Case Title: Jafar Ali Nawab Ali Chaudhari and others Vs The Municipal Corporation of Greater Mumbai