This writ petition was filed by M/s Knots India Carpets Private Limited challenging a letter dated January 24, 2026, whereby the Nagar Nigam, Varanasi, refused to grant a No Objection Certificate (NOC) for the construction of a “Star Hotel” with an investment of approximately ₹100 crores. The municipal authorities refused the NOC on the ground that the property in dispute (bearing property no. D-48/140-141, erstwhile Mazda Picture Palace, admeasuring 22,571.84 sq ft over Arazi Nos. 2402 and 2404, Misir Pokhra, Varanasi) was recorded as a pond in revenue records during the Fasli year 1291 (1884 CE).
Tracing the historical title back to a registered sale deed dated November 19, 1913, executed by the erstwhile Municipal Board, Benaras, in favor of the petitioner’s predecessor with explicit sanction from the District Commissioner, the property had been continuously recorded as abadi (populated/urban land) since at least 1954 (Fasli year 1361) and utilized for decades—initially housing the Mazda Cinema Hall and later transferred through registered sale deeds. A Division Bench comprising Hon’ble Neeraj Tiwari, J. and Hon’ble Sudhanshu Chauhan, J. allowed the writ petition, setting aside the impugned refusal letter and ruling that municipal and state authorities cannot, after over a century, arbitrarily invoke historical revenue entries to label settled, built-up urban properties as ponds, particularly when no water body exists on-site and selective action is taken against the petitioner.
- Validity of Historical Title and Presumption of Registration:
- The Court emphasized that a registered sale deed carries a formidable presumption of validity and genuineness, which cannot be casually or lightly brushed aside.
- Because the erstwhile Municipal Board itself transferred the land along with structures via a registered sale deed in 1913, the municipality and state authorities are estopped from later claiming the property is a pond.
- Inapplicability of Antiquated Revenue Entries:
- Although revenue records from the Fasli year 1291 (1884 CE) reflected the land as a pond, subsequent records from Fasli year 1361 (1954 CE) onward continuously recorded the property in dispute as abadi land for approximately 74 years.
- Citing rulings such as State of Rajasthan v. Ultra Tech Cement Ltd. and Shiv Badan Pandey v. State of U.P., the Court held that where spot inspection reports (including an IIT-BHU report) confirm the absence of any water body and prove the area is densely populated with concrete structures, historical entries cannot be used as an impediment to lawful urban land use.
- Doctrine of Promissory Estoppel and Arbitrariness:
- Applying principles of promissory estoppel and equity (referencing Manulsons Hotels Pvt. Ltd. v. State of Kerala), the Court ruled that the law does not permit an unconscionable departure by authorities from a long-standing status quo relied upon by private parties to their detriment.
- The selective targeting of the petitioner’s property out of the entire 0.688-hectare area of Arazi No. 2404—while leaving surrounding properties untouched—rendered the municipal action arbitrary, discriminatory, and violative of Article 14 of the Constitution of India.
- Final Relief:
- The impugned letter dated January 24, 2026, was quashed.
- The respondents were directed to process the petitioner’s application and take necessary steps in accordance with law, affirming that a lawful title holder can only be disturbed by due process of law.
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M/s Knots India Carpets Private Limited v. State of Uttar Pradesh and 2 others (D.O.J. 02.07. 2026)
J.O. (Web) 2026 ALL 59 click here to view full text of judgment




