The Supreme Court held that disputes relating to the determination and extension of municipal limits cannot be adjudicated by civil courts, affirming that such functions are legislative in nature and fall outside the scope of civil jurisdiction.
The Bench of Justice Prashant Kumar Mishra and Justice K. V. Viswanathan dismissed appeals filed by the Unchgaon Village Panchayat challenging a Bombay High Court ruling which had held that a civil suit questioning inclusion of certain lands within the limits of the Kolhapur Municipal Corporation was not maintainable.
The dispute arose from a public notice issued by the Corporation asserting that certain lands fell within municipal limits and warning of action against unauthorised constructions. The Panchayat had filed a civil suit seeking declaration that the lands were not part of municipal limits and sought to restrain the Corporation from exercising jurisdiction over them.
The Court emphasised that the true nature of the dispute must be determined from the substance of the reliefs, and not their form. It held that even if factual disputes exist, civil courts cannot assume jurisdiction where the issue essentially involves challenge to statutory or legislative action, particularly when raised belatedly after decades.
The Supreme Court held that the core issue pertained to determination of municipal boundaries under Section 3 of the Maharashtra Municipal Corporations Act, which is a legislative function exercised by the State Government. Such determinations, the Court observed, cannot be challenged through a civil suit seeking declaratory and injunctive relief.
It further noted that actions taken by the Corporation as a planning authority under the Maharashtra Regional and Town Planning Act are protected by a statutory bar on civil court jurisdiction under Section 149 of the Act.
Rejecting the Panchayat’s argument that the dispute involved mixed questions of fact and law, the Court held that the nature of the relief sought essentially challenging statutory and legislative action ousts civil court jurisdiction. It also observed that the challenge was belated, given that the inclusion of lands within municipal limits dated back several decades.
Finding no error in the High Court’s reasoning, the Court dismissed the appeals and vacated the status quo order, also disposing of connected contempt proceedings.
