Section 156 in The Gujarat Municipalities Act, 1963
156. Power of municipality to refuse permission.
(1)When a person has given notice to the Chief Officer under sub-section (1) of section 155 in regard to his intention to build, add t or reconstruct a building, it shall be lawful to the Chief Officer to refuse the permission applied for if the municipality passes a resolution proposing to acquire the land on which any building is proposed to be erected or any building situated on which is proposed to be altered, added to or reconstructed, or if the proposed construction, alteration, addition or reconstruction is likely to be an encroachment on land belonging to the Government or municipality.(2)Such refusal shall be subject to the following conditions:-(a)if the property is acquired and no agreement is arrived at as regards the amount of compensation payable to the person giving notice under subsection (1) of section 155, the same shall be determined in accordance with the provisions of section 268, regard being had to the likely benefit which would have accrued to such person if the permission had not been refused;(b)if within a period of six months from the date of the resolution of the municipality proposing to acquire the land, the land is not acquired by the municipality by agreement upon payment, if within such period, an application has not been made to the Collector for the institution of proceedings for compulsory acquisition under the provisions of the Land Acquisition Act, 1894 (I of 1894), or if the municipality abandons the proposal to acquire the land, the notice given under sub-section (1) of section 155 shall be deemed to have been revived with effect from the date on which the decision of the municipality to abandon the proposal is arrived at, as the case may be. Such decision shall be communicated to the person giving notice within fifteen days from the date of the decision, and the notice shall be dealt with as if the municipality had not passed a resolution to acquire the land. The municipality shall be liable to pay compensation to the said person in respect of the loss which he may prove to have incurred by reason of the municipality's refusal to grant the permission:Provided that the municipality shall not be liable to pay compensation if the notice under sub-section (1) of section 155 is given subsequent to the passing of the resolution by the municipality to acquire the land.
