Mumbai: In a significant ruling, the Bombay High Court recently held that permission or a no objection certificate (NOC) would not be required from the district collector for signing a leave and licence agreement, irrespective of whether it is for residential, commercial or industrial purpose.
This order will have a huge impact on thousands of housing societies situated on collector's land or lease hold or revenue lands.
As per this order, if anyone wants to sign a leave and license agreement to allow a party to use their property (residential, commercial or industrial), then they would not have to go by the lengthy procedure of obtaining an NOC from the district collector and also pay the mandatory fees.
The division bench of Chief Justice Pradeep Nandrajog and Justice Bharati Dangre pronounced the ruling while setting aside an order passed by the district collector ordering a Charitable Trust to pay Rs 41 lakh as fees.
This, the collector demanded while relying upon the leave and license agreement between the trust and a private firm, which was allowed (by virtue of the agreement) to use the property of the trust.
The collector cited the provisions of the Maharashtra Land Revenue Code, 1966, while passing these orders.
Having considered the facts of the case, CJ Nandrajog referred to the provisions of the Code which restrict selling, transferring, redeveloping or changing the user of a land parcel. As per the provisions, no one can sell, transfer, redevelop or change the user of a land, without the permission of the government authority (collector). To obtain such an NOC,
the laws also provide for a fee, which depends from case to case.
