Supreme Court Disposes of Appeal in Housing Development Dispute — Settlement Reached Among Society Members and Developer. The court recorded a voluntary settlement between the Society and its members with the developer, allowing improved terms for redevelopment.

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Case Note & Summary

The dispute arose from a redevelopment project initiated by the Ganesh-Kripa Co-operative Housing Society Ltd. in Mumbai, where the Society decided to demolish the existing building and redevelop the property through a developer. An agreement was made in June 2003, but some members, including the appellants, opposed the redevelopment. This led to a suit filed by the developer for a permanent injunction against the appellants, resulting in an interim injunction. The appellants did not vacate their premises, prompting MHADA to issue a summary eviction order under Section 95A of the Maharashtra Housing and Area Development Act, 1976. The appellants challenged this order through a writ petition, which was dismissed, and their subsequent appeal was also rejected. In light of increased permissible FSI, the developer offered improved terms for the redevelopment, which included larger flats for all members. The appellants agreed to these new terms, and the Society also consented. The court noted that MHADA had no role in the settlement and recorded the agreement among the parties. The appeal was disposed of, allowing the settlement to be enforceable as a decree in case of any breach.

Headnote

A) Housing Law - Eviction Proceedings - Summary Eviction under Section 95A - The appellants opposed redevelopment and were subject to summary eviction by MHADA - Court noted that the appellants did not vacate premises leading to eviction order, which was upheld as valid under the Act - Held that the eviction was justified due to non-compliance with redevelopment agreement (Paras 3-4).

B) Settlement - Voluntary Agreement - The parties reached a settlement regarding redevelopment terms - The court recorded the settlement which included improved terms for the appellants, allowing them to join other members in redevelopment - Held that the settlement was enforceable as a decree (Paras 6-8).

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Issue of Consideration

Whether the appellants could be evicted under the Maharashtra Housing and Area Development Act, 1976, and the validity of the redevelopment agreement.

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Final Decision

The appeal was disposed of, recording the settlement between the appellants, the Society, and the developer, allowing for improved redevelopment terms and enforceability as a decree.

Law Points

  • Eviction under Maharashtra Housing and Area Development Act
  • redevelopment agreements
  • interim injunctions
  • voluntary settlements
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Case Details

2011 LawText (SC) (01) 101

Civil Appeal No. 565 of 2011

2011-01-14

R.V. Raveendran, A.K. Patnaik

Mukul Rohtagi, Shekhar Naphade

SUSHILA DIGAMBAR NAIK & ORS.

MAHARASHTRA HOUSING & AREA DEVELOPMENT AUTHORITY & ORS.

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Nature of Litigation

Dispute regarding redevelopment of housing society property and eviction of non-cooperating members.

Remedy Sought

Appellants sought to challenge the eviction order and the redevelopment agreement.

Filing Reason

Opposition to the redevelopment and subsequent eviction order issued by MHADA.

Previous Decisions

Writ petition and appeal against eviction order were dismissed.

Issues

Validity of eviction under Section 95A Enforceability of redevelopment agreement

Submissions/Arguments

Appellants opposed eviction and sought relief Developer offered improved terms for redevelopment

Ratio Decidendi

The court upheld the eviction order under Section 95A of the Maharashtra Housing and Area Development Act, 1976, while also recognizing the enforceability of a voluntary settlement reached among the parties regarding redevelopment terms.

Judgment Excerpts

The members of the fourth respondent-Society decided to redevelop the property... MHADA passed an order of summary eviction against them under Section 95A... The permissible FSI has been increased considerably subsequent to the agreement...

Procedural History

The appellants challenged the summary eviction order in Writ Petition (Lodging) 10/2010, which was dismissed. The writ appeal was also dismissed by order dated 12.3.2010, leading to the current appeal.

Acts & Sections

  • Maharashtra Housing and Area Development Act, 1976: Section 95A
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