VidhiSangh

Supreme Court of India · 30/07/2024

YASH DEVELOPERS versus HARIHAR KRUPA CO-OPERATIVE HOUSING SOCIETY LIMITED & ORS.

[2024] 7 S.C.R. 1443 · 2024 INSC 559

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Summary

The Supreme Court upheld the termination by the Apex Grievance Redressal Committee of a developer's agreement for a Mumbai slum rehabilitation project that had not begun construction for more than 16 years. It held that Section 13(2) of the Maharashtra Slum Areas Act gives the Slum Rehabilitation Authority a power coupled with a duty, for which its CEO and the Authority are accountable, to ensure time-bound completion, and that delay cannot be excused by splitting it into separate episodes. Costs were imposed, and the Bombay High Court was requested to begin suo motu proceedings for a performance audit of the Act.

Issues

  1. What is the scope of judicial review under Article 226 against an order under Section 13 of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 terminating a developer's appointment?
  2. Whether Section 13(2) confers a power coupled with a duty on the Slum Rehabilitation Authority, and whether the CEO and the Authority are accountable for delay.
  3. Whether the developer's explanations for successive periods of delay, and its financial position, justified interference with the termination.
  4. Whether proceedings under Section 13(2) depend on a complaint, so that withdrawal of complaints made the appeal before the AGRC not maintainable.
  5. Whether constitutional courts may direct a performance audit of a statute.

Provisions considered

Held

Result

Appeal dismissed with costs of Rs. 1,00,000 payable to the Supreme Court Mediation and Conciliation Project Committee; no further orders in the connected contempt petition; the Chief Justice of the Bombay High Court requested to constitute a bench to start suo motu proceedings reviewing the working of the Act, which may consider directing the State to constitute a committee for a performance audit.

Judgment PDF: Supreme Court of India, [2024] 7 S.C.R. 1443.