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Issues: (i) whether the writ petition was not maintainable or whether the appellants had forfeited relief in equity by their conduct; (ii) whether the findings of forgery, fraud and misrepresentation against the appellants could stand on the material on record; (iii) whether the development authority was justified in withholding permission for construction under the Town Planning Act in the absence of an effective notified scheme.
Issue (i): whether the writ petition was not maintainable or whether the appellants had forfeited relief in equity by their conduct.
Analysis: Non-maintainability of a petition and lack of bona fides are distinct concepts. A petition may fail for want of standing or because another person should have approached the court, while a denial of equitable relief for improper conduct requires a separate inquiry into the parties' behaviour. The finding that the petition was filed by a wrong person rested on an inadvertent misdescription of the name and on subsequent events rather than on the facts existing when the petition was filed. The record showed that the real owner was before the court through his attorney and that the petition was not rendered incompetent on that ground.
Conclusion: The finding of non-maintainability could not be sustained.
Issue (ii): whether the findings of forgery, fraud and misrepresentation against the appellants could stand on the material on record.
Analysis: Grave findings of forgery and fraud required proof of more than denial of signatures on some applications and representations. The materials did not establish that false documents were fabricated with intent to deceive or that the authorities were misled by any unauthorised act of the appellants. The evidence indicated that the relevant steps were taken with the knowledge of the persons concerned and in the context of obtaining permission for the property, while the High Court drew adverse inferences without adequately confronting the witnesses with the decisive aspects of the case.
Conclusion: The findings of forgery, fraud and misrepresentation were unsustainable.
Issue (iii): whether the development authority was justified in withholding permission for construction under the Town Planning Act in the absence of an effective notified scheme.
Analysis: The restriction on construction under the Act operated only after the relevant notification procedure had been completed. On the admitted chronology, the scheme had not been effectively notified when the Government directed sanction of the plan, and the authority had no valid basis to refuse permission merely because it intended to revive a scheme. The authority acted arbitrarily in delaying the matter despite governmental directions and the parties' willingness to leave the road margin required for widening.
Conclusion: The refusal to grant permission was unjustified and contrary to law.
Final Conclusion: The appellants were entitled to relief, the High Court's adverse findings were set aside, and the construction-related writ petition succeeded while the connected public interest petition failed except for the limited direction regarding filling of non-official posts.
Ratio Decidendi: Findings of non-maintainability, fraud or forfeiture of equitable relief cannot rest on misdescription, suspicion or incomplete inference; and where no effective statutory notification has brought the restrictive regime into operation, the authority cannot arbitrarily withhold construction permission.