High CourtDivision BenchAppeal disposed of

M. Naga Venka Lakshmi v. Visakhapatnam Municipal Corporation and Anr.

Case / Petition Number:Civil Appeal No. 4344 of 2007

Case Details & Bench

Court
High Court
Hon'ble Judges
  • S.B. Sinha
  • U.S. Bedi
Judgment Date
2007-09-18
Court Decision / Holding
The appeal is disposed of. The impugned judgments cannot be sustained; they are set aside and the matter is remitted to the learned Single Judge of the High Court for fresh consideration. The High Court should examine the appellant’s contentions, permit additional affidavits, and place all records before it for a merits-based decision. No costs. VUDA did not appear before the Court.
Final Disposition
Appeal disposed of

Parties to the Case

Appellants / Petitioners

  • M. Naga Venka Lakshmi

Respondents

  • Visakhapatnam Municipal Corporation
  • Anr.

Legal Representation & Advocates

Counsels for Petitioners

  • • G.V.R. Choudary
  • • K. Shivraj Choudhuri
  • • Abhishek Sarkar

Counsels for Respondents

  • • V. Mohana
  • • P. Rao
  • • Hari Priya

Case Synopsis & Summary

Appellant M. Naga Venka Lakshmi purchased about 167 sq. yards of vacant land in Balayya Sastry’s layout, Visakhapatnam, in an area that was not approved. A revised plan in 1989 renamed the locality Radha Krishna Nagar, and other plots were regularised, but the appellant’s plot remained unregularised. She sought sanction of a building plan from Visakhapatnam Municipal Corporation, which was refused on the ground that the land lay in a reserved open space in the layout. The appellant challenged this order by filing a writ petition in the Andhra Pradesh High Court; the Single Judge dismissed it, and the Division Bench dismissed the writ appeal; the appeal before the Supreme Court followed. The Court examined whether the appellant’s right to property had been deprived without compensation and whether she had been afforded hearing, noting that before Master Plan/Zonal Plan was prepared, affected persons must be heard. It observed that no provision clearly authorises depriving the appellant of property without compensation and suggested that if VUDA wished to deprive, compensation or acquisition would be required. In reliance on a recent Bench decision (Chairman, Indore Vikas Pradhikaran v. M/s Pure Industrial Coke & Chem. Ltd & Ors.), it held that property rights require due process. The judgments under challenge were set aside, remitting the matter to the High Court for fresh consideration, with directions to consider the rights of the parties and admissible contentions, and to place all records before it.

Provisions of Law Cited

Transfer of Property ActAndhra Pradesh Urban Areas (Development) Act, 1975Chapter II of the Andhra Pradesh Urban Areas (Development) Act, 1975Chapter III of the Andhra Pradesh Urban Areas (Development) Act, 1975Chapter IV of the Andhra Pradesh Urban Areas (Development) Act, 1975Chapter V of the Andhra Pradesh Urban Areas (Development) Act, 1975

Legal Doctrines & Maxims

  • No person shall be deprived of his property save in accordance with law.
  • Reserved open spaces should be used for the purposes for which they have been earmarked.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the land purchased in an unapproved Balayya Sastri layout, later renamed Radha Krishna Nagar, was earmarked as reserved open space but her right to develop could not be deprived without compensation. She argues that she was not afforded a hearing and that deprivation of property without compensation would violate principle of due process; there is no clear provision permitting such deprivation without compensation, and the matter should be remitted for fresh consideration.

Contentions of Respondents

The respondents submit that reserved open spaces in approved layouts are intended to provide lung space; construction thereon would defeat the layout’s purpose. The appellant knowingly purchased in an unapproved layout. They contend there is no obligation to regularize and that the public interest justifies denial of building permission; the decision is in line with public planning objectives.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Chairman, Indore Vikas Pradhikaran v. M/s Pure Industrial Coke & Chem. Ltd & Ors.(2007) 8 SCALE 110PositiveCited to support principle that deprivation of property requires compensation and due process; used as supportive authority for protecting property rights.

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Extracted Judgment Text

Exact text extracted from official judgment records.

A _-<_ B 1,_ ## M. NAGA VENKATA LAKSHMI # _v._ VISAKHAPA TNAM MUNICIPAL CORPN. AND ANR. ## SEPTEMBER 18, 2007 [S.B. SINHA AND U.S. BEDI, JJ.] _Transfer of Property Act:_ _Right of property-Sale-purchase of land/plot-Application for_ c _sanction of building plan dismissed by Municipal Corporation on ground that the plot fell on the reserved open space in the approved layout-Challenge to-Dismissed by Single Judge of High Court-Writ appeal dismissed by Division Bench of the High Court-On appeal,_ D _[Held: Authority did not disclose ][to ][vendee about the fact ][of ][earmarking ] of the plot in question for the purpose of providing an open space to other land-owners-Prima_ facie, _there is no provision in terms whereof the vendee could be deprived of her right of property without payment of any compensation-Hence, the impugned judgment set aside and_ E _[the matter remitted to Single Judge ][of ][the High Court/or consideration ] afresh._ Appellant purchased a plot situate at Balayya Sastry's layout, Visakhapatnam by way of a sale deed. However, the layout was not an approved one. A revised plan was approved in the year 1989, but F[the plot belonging to the appellant was not regularized. Aggrieved, ] the appellant-vendee made a representation to Urban Development Authority but no response was received by her. Appellant then filed an application for sanction of the building plan before the Visakhapatnam Municipal Corporation. The application was G[dismissed by the ][Corporation ][on the premise ][that ][the proposed ] constructions fell on the reserved open space in the Layout. Appellant challenged the order of the Corporation by filing a writ petition in the High Court, which was dismissed by a Single Judge of the High Court. Writ Appeal filed thereagainstwas dismissed by H 12 _1_ _r_ -1 M. NAGA VENKA TA LAKSHMI v. VISAKHAPA TNAM 13 MUNICIPALCORPN. the Division Bench of the High Court. Hence the present appeal. A Disposing of the appeal, the Court HELD: 1.1.Nerther the writ court nor the court of !tppeal dealt with the question as regards the right of the appellant to be heard in the matter. If the allegations made in the writ petition were correct, B then why the fact that the land belonging to vendee had been earmarked for the purpose of providing an open space to the other owners of the said layout had not been disclosed to her. [Para 6) [15-H; 16-A-BJ c _---<:_ 1.2. On what basis the layout plan had been drawn resulting in deprivation of a valuable right of the appellant, therefore, was required to be determined. Furthermore9 ifVisakhapatnam Urban Development Authority (VUDA) wanted to deprive the appellant from a valuable right of property, the question which should have D been posed was as to whether therefor the authorities should have acquired the property or not. [Para 7] [16-B-C) _Chairman, Indore Vikas Pradhikaran_ v. _Mis. Pure Industrial Cock & Chem. Ltd & Ors.,_ (2007) 8SCALE110, relied on. 1.3. _Prima facie,_ it appears that there is no provision in terms[E ] whereof the appellant could be deprived of her right of property without payment of any compensation. Hence the impugned judgments cannot be sustained which are set aside accordingly and • the matter is remitted to the Single Judge of the High Court for F consideration of the matter afresh. [Para 9] [16-E-F] CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4344 of 2007. From the Judgment and Order dated 17.08.2004 of the High Court of Judicature, Andhra Pradesh at Hyderabad in Writ Appeal No. 1222[G ] of2004. G.V.R. Choudary, K. Shivraj Choudhuri and Abhishek Sarkar for the Appellant. V. Mohana, P. Rao and Hari Priya for the Respondents. H :i....._ SUPREME COURT REPORTS [2007] 10 S.C.R. 14 _-(_ _r_ > A The Judgment of the Court was delivered by ## **S.B. SINHA, J.** 1. Leave granted. 2. Appellant herein purchased about 167 sq. yard of vacant land in plot No. C/1&2, R.S. No. 52(P) situate at Balayya Sastry's layout, B Sitarnmadhara, Alipuram Extension Ward, Visakhapatnam by reason of a deed of sale dated 8.07.1982. The said layout was not an approved one. The Competent Authority to approve the layout plan was the Visakhapatnam Urban Development Authority (VUDA) created under the Andhra Pradesh Urban Areas (Development) Act, 1975 (for short "the c Act"). A revised plan was prepared in the year 1989. The name oflocality was changed to Radha Krishna Nagar. Plots belonging to others had been regularized but the appellant's plot was not. A representation was made by her to VUDA but she did not receive any response thereto. Appellant also filed an application for sanction of a building plan before the D Visakhapatnam Municipal Corporation. The said application was dismissed on the premise that the proposed constructions fell on the reserved open space in the Radha Krishna Nagar Layout. 3. Questioning the legality of the said purported order, a writ E[application ][was ][filed ][by ][her. ][The ][same ][was ][dismissed ][by ][a ][learned ][Single ] Judge of the Andhra Pradesh High Court by an order dated 22.01.2004 stating: "The relief prayed for by the petitioner to direct the respondents to regularize the plot purchased by her in the unapproved layout, F which is shown as reserved open space in the approved layout, cannot be granted. The petitioner knowing fully well that the Balayya Sastri layout is not approved, yet risked her monies to purchase a plot in the said layout. According to the own admission of the petitioner, she had purchased the plot in the unapproved G layout kno\vn as Balayya Sastri, under a registered sale deed from her vendor. When, according to the own admission of the petitioner, she had purchased the plot in the unapproved layout, which was subsequently transformed into an approved layout known as Radha Krishna Nagar, it is not open for her to contend that respondent no. 1 ought not to have refused permission for construction of G H ~ M. NAGA VENKA TA LAKSHMI v. VISAKHAPA TNAM MUNICIPALCORPN. [SINHA,J.] 15 __,L_ building in the said plot on the ground that the plot purchased by A the petitioner in the approved layout, is shown as reserved open, space. It is required to be noted that reserved open space are nonnally eannarked for providing lung space to the inhabitants of a colony, and it would not be in the interest of general public to accord pennission for construction of building therein contrary to , B the layout. The Apex Court as well as this Court have been consistently holding that reserved open spaces should be made use of for the purposes for which they have been eannarked, and no construction which is destined to defeat the very purpose of providing lung spaces, should be allowed to be made. Inasmuch c as in the approved layout, the plot purchased by the petitioner was shown as reserved open space, respondent no. 1 had refused to grant pennission to construct a building therein, and no exception can be taken thereto. Respondent no. 1 has no obligation, and for that matter, he cannot be directed to grant pennission to the D petitioner for construction of building in the plot, which admittedly in the approved layout is shown as reserved open space." 4. A writ appeal preferred thereagainst by the appellant has been dismissed by reason of the impugned judgment. ,E Appellant is, thus, before us. y 5. The Act was enacted for the development of urban areas in the State of Andhra Pradesh according to plan and for matters connected therewith and ancillary thereto. Chapter II of the Act provides for constitution of the Urban Development Authority and their objects.[F ] Chapter III provides for preparation of Master Plan and Zonal Development Plan. Chapter IV provides for development of lands whereas Chapter V provides for acquisition and disposal of land. 6. The legality and/ or validity of the deed of sale executed by G vendor in favour of the appellant is not in dispute. It is also not in dispute that no layout plan existed in the area in question where she had purchased the land. Before making the Zonal Plan and _the Master Plan,_ the Authority was required to give an opportunity of hearing to the persons who may be affected thereby. Neither the writ court nor the court of H SUPREME COURT REPORTS [2007] 10 S.C.R. 16 A appeal dealt with the question as regards the right of the appellant to be heard in the matter. If the allegations made in the writ petition were correct, we do not know why the fact that her land had been earmarked for the purpose of providing an open space to the other owners of the said layout had not been disclosed to her. B 7. On what basis the layout plan had been drawn resulting in deprivation of a valuable right of the appellant, therefore, was required to be determined. Furthermore, if VUDA wanted to deprive the appellant from a valuable right of property, the question which should have been C posed was as to whether therefor the authorities should have acquired the property or not. 8. We may notice that recently a Bench of this Court in _Chairman, Indore Vikas Pradhikaran_ v. _Mis. Pure Industrial Cock & Chem. Ltd & Ors.,_ (2007) 8 SCALE 110, held: D "58. Property, while ceasing to be a fundamental right would, however, be given express recognition as a legal right, provisions being made that no person shall be deprived of his property save in accordance with law." E 9. _Primafacie,_ it appears that there is no provision in terms whereof the appellant could be deprived of her right of property without payment of any compensation. 10. We, therefore, are of the opinion that the impugned judgments F cannot be sustained which are set aside accordingly and the matter is remitted to the learned Single_ Judge of the High Court for consideration of the matter afresh. 11. Before us, VUDA has not appeared. We, therefore, direct to place all the relevant records before the High Court. Parties shall be G entitled to file their additional affidavits and raise all contentions before it which may be considered on their own merit. 12. The appeal is disposed of with the aforementioned observations. No costs. Appeal disposed of. H S.K.S.