Floor planning is an important problem in very large scale integrated-circuit (VLSI) design automation domain as it evaluates the performance, size, yield and reliability of ICs. Due to rapid increase in number of components on a chip, floor planning has gained its importance further in determining the quality of the design achieved. In this paper we have devised an approach for placement of modules in a given area with bounding constraints in terms of minimum placement area imposed. We have used Modified Genetic Algorithm (MGA) technique for determining and obtaining an optimal placement using an iterative approach.