The Supreme Court ruled that the legal representatives of the original occupant, who had maintained possession of the disputed property since 1976, had the right to be considered for benefits under the Town Planning Scheme introduced in 1994 and the subsequent circulars issued by the Municipal Corporation. The Court underscored that, according to the scheme, any occupant of the property was eligible for rehabilitation or compensation

In the ongoing appeal, the primary matter under consideration by the court revolved around the entitlements of the legal successors of the initial occupant with regards to their request for either the allocation of an alternative location or compensation for the property they had been using. These individuals had maintained possession of the contested property since 1976 and had even been subject to tax assessments by the Municipal Corporation.

A two judge Bench of Justice Vikram Nath and Justice Rajesh Bindal found, “In terms of the Town Planning Scheme, notified on 01.08.1994 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 legal dispute commenced in 2001 when a notice was served to the predecessor-in-interest of the appellants. This notice was subsequently contested in a Civil Suit, resulting in a favorable judgment for the occupants in 2003. Additional notices were issued in 2004 and 2007, which triggered another legal battle. Over the course of these proceedings, the original occupant passed away, and the appellants were officially recognized as his legal representatives.

Advocate Nitin Bhardwaj appeared for the Petitioners and Advocate Garvesh Kabra appeared for the Respondent.

The primary contention presented by the appellants revolved around their claim that, in accordance with the Town Planning Scheme introduced in 1994 and subsequent circulars issued by the Municipal Corporation, they were eligible for rehabilitation or compensation due to their long-standing possession of the property. On the other hand, the Corporation argued that the appellants' legal action was not admissible, citing a legal restriction outlined in Section 149 of the Act.

The Court noted that the appellants had been in possession of the property since 1976, as evidenced by a census certificate. According to the Town Planning Scheme and subsequent circulars, any occupant of the property was eligible for consideration for rehabilitation or compensation. The appellants' claim had not been duly considered by the Corporation.

The Court said, “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 needful shall be done within a period of three months from the date of receipt of copy of the order.”

Case Title: Jaffar Ali Nawab Ali Chaudhari & Ors. v. The Municipal Corporation Of Greater Mumbai

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