Executive Instructions Cannot Override Statutory Rights, Rules High Court in Landmark Decision
In a significant judgment, the Bombay High Court quashed the Maharashtra government's retrospective application of a Government Resolution (GR) dated July 14, 2021, which sought to invalidate a conversion order of leasehold rights to Occupancy Class-I. The court held that executive instructions cannot be applied retrospectively to override statutory rights unless explicitly stated.
The case, titled "Dharampal Sharma and Ors. v. State of Maharashtra and Ors.," involved a challenge to an order by the Minister of Revenue, who had set aside a Collector's decision from April 2021. The Collector had permitted the conversion of leasehold rights in a Mumbai suburban property to Occupancy Class-I, following the Maharashtra Land Revenue (Conversion of Occupancy Class-II and Leasehold Lands into Occupancy Class-I Lands) Rules, 2019.
Justice Kamal Khata, presiding over the matter, ruled that the GR could not be applied retrospectively, as its language indicated prospective application. The court emphasized that vested rights accrued under a valid statutory order cannot be taken away by subsequent executive instructions or policy decisions.
The judgment also addressed the locus standi of BPCL, a sub-lessee, which was deemed to have no standing to challenge the conversion order. The court clarified that the sub-lessee's rights were confined to structures on the land, and since the sub-lease had expired before the conversion order, BPCL had no subsisting interest to contest the conversion.
The court further criticized the revisional authority for exceeding its jurisdiction under Section 257 of the Maharashtra Land Revenue Code, 1966, by adjudicating civil disputes between lessee and sub-lessee, a domain reserved for civil courts.
The High Court's decision restores the Collector's original order and reinforces the principle that executive decisions should not retroactively impact rights established under statutory frameworks.
Bottom line:-
Government Resolution (GR) cannot be applied retrospectively to invalidate a conversion order when the GR does not explicitly state such retrospective effect.
Statutory provision(s): Article 226 of the Constitution of India, Maharashtra Land Revenue Code, 1966, Section 257, Maharashtra Land Revenue (Conversion of Occupancy Class-II and Leasehold Lands into Occupancy Class-I Lands) Rules, 2019, Transfer of Property Act, 1882, Section 116
Dharampal Sharma v. State of Maharashtra, (Bombay) : Law Finder Doc id # 2936551
