VidhiSangh

Supreme Court of India · 06/01/2025

THE MUNICIPAL CORPORATION OF GREATER MUMBAI & ORS. versus CENTURY TEXTILES AND INDUSTRIES LIMITED & ORS.

[2025] 1 S.C.R. 313 · 2025 INSC 36

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Summary

The Supreme Court set aside a Bombay High Court direction to the Municipal Corporation of Greater Mumbai to convey Block-A of a Poorer Classes Accommodation Scheme plot to the lessee mill company. Neither the 1927 Board resolution nor the 1928 lease bound the Corporation to convey. Read harmoniously with Section 48(a), Section 51(2) of the Bombay Improvement Trust Transfer Act, 1925 confers only a contingent right, and the lessee never paid the cost of conveyance. The writ petition, filed 61 years after the lease expired and after letting the suit limitation under Section 527 of the 1888 Act lapse, was also barred by delay and laches.

Issues

  1. Whether the Board resolution of 31.05.1927 or the lease deed of 03.10.1928 obliged the Corporation to convey Block-A to the lessee on expiry of the 28-year lease.
  2. Whether Section 51(2) of the Bombay Improvement Trust Transfer Act, 1925, read with Section 48(a), imposes an unconditional duty to convey the leased premises, and what 'at his cost' requires.
  3. Whether the writ petition filed in 2016, for a cause of action arising in 1955, was barred by delay and laches, particularly where the lessee had issued a notice under Section 527 of the Mumbai Municipal Corporation Act, 1888 but never filed a suit.

Provisions considered

Held

Result

Appeal allowed; the Bombay High Court's judgment dated 14.03.2022 in W.P. No. 295 of 2017 set aside and the writ petition dismissed; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2025] 1 S.C.R. 313.