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In a significant legal development, the Supreme Court of India has overturned a 2022 Bombay High Court ruling that directed the Brihanmumbai Municipal Corporation (BMC) to transfer the title of a five-acre plot in Worli, Mumbai, to Century Textiles and Industries Ltd, now known as Aditya Birla Real Estate Limited. The Supreme Court bench, comprising Justices Vikram Nath and Prasanna B Varale, passed the judgment on January 7, 2025, siding with the BMC and dismissing the appeal filed by Century Textiles, PTI reports.
The dispute revolves around a plot of land leased to Century Textiles under the City of Bombay Improvement Act, 1898. Originally part of a welfare scheme aimed at providing housing for the working class, the lease agreement required Century Textiles to construct residential accommodations for workers. The company fulfilled its obligations by building 476 dwellings and 10 shops by 1925. However, after the lease expired in 1955, Century Textiles did not pursue the conveyance of the land until 2006, when it issued a legal notice seeking transfer of the title.
In a scathing critique of Century Textiles' conduct, the Supreme Court highlighted that the land was initially allocated under a welfare scheme intended for the economically disadvantaged. The court stated that attempts to exploit the land for commercial purposes were an affront to the spirit of the scheme, which aimed to address housing shortages and improve living standards for those in need. The judgment condemned the company's actions as an abuse of beneficial legislation intended to serve broader social goals, including better sanitation and urban growth for marginalised communities.
As per PTI reports, the Supreme Court ruled that the BMC was neither legally bound nor obligated to transfer the land title to Century Textiles. The court also emphasised that the petition, filed more than six decades after the lease expired, suffered from "serious delay and laches," thereby rendering it untenable. The bench pointed out that Century Textiles had not made any attempt to claim the conveyance until 2006, despite the lease having expired in 1955.
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The judgment also referenced the statutory framework under the 1925 Act, under which the land was leased to Century Textiles. The court stressed that this framework was designed to secure the broader societal goals of improving urban life and providing housing for the poor, rather than facilitating commercial exploitation.
In response to the Supreme Court's ruling, Aditya Birla Real Estate Limited issued a statement clarifying that the land in question was separate from the Birla Niyaara project in Worli. The company also mentioned that it was seeking legal advice to determine the next steps.
(With inputs from PTI)
