VidhiSangh

Supreme Court of India · 10/01/2023

RESIDENT’S WELFARE ASSOCIATION AND ANOTHER versus THE UNION TERRITORY OF CHANDIGARH AND OTHERS

[2023] 1 S.C.R. 601 · 2023 INSC 22

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

After Chandigarh's Apartment Rules, 2001 were repealed and Rule 16 of the 2007 Estate Rules barred fragmentation, developers kept converting single dwelling units in heritage Phase-I into three floor-wise apartments. Each buyer received a 50%, 30% or 20% share and a memorandum allocating a floor, and a survey found 891 such sites. The High Court held this was not fragmentation, since there was no recognised sub-division. The Supreme Court reversed. The scheme was disguised fragmentation that did indirectly what the law forbids. Fragmentation and apartmentalisation of residential units in Phase-I are prohibited, and the special rules under the 1952 Act prevail over the Transfer of Property Act. Under Article 142 the Court froze FAR, capped floors at three, and directed a Heritage Committee review subject to Central approval.

Issues

  1. Whether conversion of single dwelling units in Phase-I of Chandigarh into floor-wise apartments through sale of percentage shares and co-owners' memoranda of understanding amounts to fragmentation prohibited by Rule 16 of the Chandigarh Estate Rules, 2007.
  2. What directions are needed to protect the heritage status of Corbusian Chandigarh.

Provisions considered

Held

Result

Civil Appeal Nos. 274 and 275 of 2023 allowed; the Punjab and Haryana High Court judgment dated 23.11.2021 in CWP No. 18559 of 2016 set aside, fragmentation and apartmentalisation of residential units in Phase-I held prohibited, and directions issued under Article 142; no costs.

Judgment PDF: Supreme Court of India, [2023] 1 S.C.R. 601.