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2005 (5) TMI 688

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..... of SLP (Civil) No. 8378 of 2005) For the Appearing Parties : G.E. Vahanvati, Solicitor General, Fali Sam Nariman, Arun Jaitley, K. Parasaran, Mukul Rohatgi, Abhishek Manu Singhvi, Iqbal Chagla, K.K. Singhvi, Colin Gonsalves, R.F. Nariman, T.R. Andhyarujina and Gopal Subramanium, Sr. Advs., Ravi Kadam, AG., for State of Maharashtra, Perey Chandy, J.J. Bhat, Zia Modi, Preetesh Kapur, Essai Vahanvati, Shailesh, C. Rashmikant, Gopal Jain, R.N. Karanjawala, Ruby Singh Ahuja, Pragya Singh, Kanika Agnihotri, Avantika Keswani, Manik Karanjawala, B. Sunita Rao, Sushil Kumar Pathak, S.S. Shinde, Aniruddha P. Mayee, Janak Dwarkadas, Rishi Agrawala, E.C. Agrawala, Lyna Perira, Gautam Patel, Parag Kabadi, Indu Malhotra, Sharad J., Dheeraj Nair, Vikas Mehta, S.H. Ujjainwala, Pallav Shishodia, D.N. Mishra, Aparna Bhat, P. Ramesh Kumar, Prem Kishan, Vipin M. Benjamin, Purnima Bhat Kak, Pankaj R., U.A. Rana, K. Sumathi, Anil Menon, U. Udaya Kumar Sagar, Bina Madhavan, Susan Zachariah, A. Venayagam Balan, M.N. Shroff, M.S. Girish, Chirag M. Shroff, Pratap Venugopal, Dhawan V. and Dilnawaz Bhagalia, Adv. for K.J. John., Advs. JUDGMENT S.B. Sinha, J. 1. Leave granted. .....

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..... some mills endeavoured to develop the lands in accordance with the said regulation but the same did not achieve the purpose for which the Regulation 58 was brought into force. In the aforementioned situation, as would be noticed supra, Regulation 58 was amended in 2001. 7. The Respondents filed a writ petition in the Bombay High Court questioning the validity of the said regulation. Some interim orders have been passed therein which are in question in these appeals. 8. The Appellants contend : (i) As the scheme containing 1991 regulations was not found to be workable, committees were appointed and in furtherance of their recommendations a new Regulation 58 was introduced in the year 2001. The new Regulation 58 envisaged a coherent development of the various mills and their lands in Mumbai and also ensured that the proceeds of such development are utilized in accordance with either the schemes promulgated by BIFR and/ or for the satisfaction of the dues of the workers and/ or for the satisfaction of the large outstanding public monies by way of loans from financial institutions and banks under the supervision of a Monitoring Committee. Regulation 58 of 2001 while prov .....

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..... on 58, in particular, Clauses A-6 and C-1 (5) of Schedule 1 of the impugned order dated 20th March, 2001 as ultra vires the MRTP Act, illegal, unconstitutional, void ab initio and non est; (b) For a writ of mandamus, or a writ in the nature of mandamus or any other appropriate writ, order or direction, ordering and directing the 1st and 2nd Respondents (and their servants, agents or officers); (i) to withdraw/ cancel the impugned order dated 20th March, 2001 and the consequent amendment to DCR 58; (ii) to take such action as is necessary in law to amend DCR 58 to ensure that the total amount of space available for redevelopment in respect of which the percentage wise allocations are to be determined, is the open land and the land available after demolition of existing structures; (iii) to forbear and desist from granting any permission, in accordance with amended DCR 58 (including to Respondent Nos. 3 and 4) for the redevelopment of the mill lands; (iv) restraining them from in any way acting in furtherance of the report submitted by NTC and prepared by Team One . (c) For a writ of mandamus or a writ in the nature of a writ of mandamus directing Respo .....

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..... itted in August, 1996; (h) For ad-interim reliefs in terms of prayer Clauses (d) to (g); and (i) For such further and other reliefs and orders as this Hon'ble Court deem fit in the nature and circumstances of this petition. 12. In the said writ petition, apart from the State of Maharashtra, the Municipal Corporation of Mumbai, the Maharashtra Housing and Area Development Authority, National Textile Corporation Maharashtra North and South Maharashtra were impleaded as Respondents. Before the said High Court, a large number of mill owners and others who allegedly have invested a huge sum on the lands of the Mill owners or otherwise interested in implementation of Regulation 58 of 2001 filed applications for their impleadment as parties therein but the same was opposed by the Respondents. The Applicants, however, were allowed to intervene. 13. It was, however, stated at the bar that whereas 6th April, 2005 was fixed for filing responses by the interveners, but after hearing the matter for three days, viz., 29th to 31st March, 2005, the impugned orders were passed. 14. Before the High Court, the National Textile Corporation inter alia contended that it had .....

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..... ing on behalf of the Appellants inter alia would submit: (i) Keeping in view of the fact that the writ petitioners did not file any objection or suggestions before Regulation 58 was given a concrete shape, it was not entitled to any interim relief. (ii) Regulation 58 being a subordinate legislation, a public interest litigation should not have been entertained questioning its validity. (iii.) In any event, as within the interregnum of four years, the Appellants as also the others have invested a huge sum of money, the interim order ought not to have been passed as they would affect the interests inter alia of (i) the workers; (ii) the financial institutions, (iii) the mill owners; and (iv) the third party purchasers. (iv.) No interim order in any view of the matter could have been passed without impleading the interested parties and permitting them to file their affidavits. (v) Several parties have obtained lay out, IOD or commencement certificates for different stages and in that view of the matter if the interim order is allowed to operate, the same would result in great hardship. 21. The learned Solicitor General appearing on behalf of the State of .....

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..... ctions or any other activity in relation whereto agreements have been entered into or requisite sanctions have been granted, the impugned orders should not be interfered with. 24. The learned counsel would urge that the undertaking directed to be given by the National Textile Corporation is commensurate with the suggestion given by Mr. Parasarn before this Court. 25. This Court at this stage is concerned with an interim order passed by the High Court. The writ petition is still to be heard. Affidavits between the parties are yet to be exchanged. The objection as regard maintainability of the writ petition is also required to be finally determined by the High Court itself. This Court at this stage cannot thus, enter into all the contentious questions raised in these appeals. But, there cannot be doubt or dispute whatsoever that before an interim order is passed and in particular a public interest litigation, the court must consider the question as regard existence of a prima facie case, balance of convenience as also the question as to whether the writ petitioners shall suffer an irreparable injury, if the injunction sought for is refused. The courts normally do not pass a .....

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..... ount to granting the final relief itself. And then there may be converse cases where withholding of an interim relief would tantamount to dismissal of the main petition itself; for, by the time the main matter comes up for hearing there would be nothing left to be allowed as relief to the petitioner though all the findings may be in his favour. In such cases the availability of a very strong prima facie case -- of a standard much higher than just prima facie case, the considerations of balance of convenience and irreparable injury forcefully tilting the balance of the case totally in favour of the applicant may persuade the court to grant an interim relief though it amounts to granting the final relief itself. Of course, such would be rare and exceptional cases. The court would grant such an interim relief only if satisfied that withholding of it would prick the conscience of the court and do violence to the sense of justice, resulting in injustice being perpetuated throughout the hearing, and at the end the court would not be able to vindicate the cause of justice. Obviously such would be rare cases accompanied by compelling circumstances, where the injury complained of is immedia .....

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..... nces of this case as also the law operating in the field, are of the opinion that interest of justice would be sub-served if the National Textile Corporations are permitted to complete the transactions in terms of the scheme framed by the BIFR but the same shall be subject to the conditions that in the event, the writ petition ultimately succeeds, the vacant land available from other mills, if necessary, shall be offered by way of adjustment. 33. In some cases, the State might have sanctioned DCR. Yet in some other cases, IODs might have been obtained. Yet again, in some cases, commencement Certificates might have been granted. In such cases, the statutory authorities shall process applications or further applications for grant of sanction required for commencement and/ or continuation of structures strictly in accordance with law. It is stated that in some cases such applications may be entertained although the period of lease has expired. We do not think that the statutory authorities shall be so callous so as to grant permission in favour of a person who does not have ownership over the land in question. We furthermore have no doubt that the scheme, rules, regulations and b .....

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