Bombay High Court Considers Appeal Against Appointment of Court Receiver in Redevelopment Dispute — Non-Cooperative Garage Occupant Challenges Demolition Order in Dilapidated Society Buildings. The dispute centered on illegal conversion of garage to shop under Section 351 of Mumbai Municipal Corporation Act, 1888, and the rights of a non-cooperative member in a housing society redevelopment.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The appeal before the Bombay High Court arose from interim orders in a redevelopment suit concerning three dilapidated buildings known as Trilok – ‘A’, Trilok – ‘B’ and Trilok – ‘C’ constructed in 1965 on CTS Nos. C/1651, C/1653 and C/1654 of Village Bandra, Mumbai Suburban District, situated at 313, Dr. Ambedkar Road, Bandra (West), Mumbai 400 050. The buildings comprised 76 flats and 20 garages. The flat purchasers formed and got Bandra Trilok Co-operative Housing Society Limited registered under Registration No.BOM/HSG/3619 of 1972. The appellant family held Garage No.12 in Trilok ‘B’, originally purchased by their father Keval Mishra in June 1971 from one P. S. Ajwaini. The father had also owned Flat No.B-37 but sold it, retaining only the garage. After the father's death in 1984 and mother Beena Mishra's death on 18th August 2012, the appellants are the only legal heirs. The property was originally owned by Hardevi Rajpal, who executed an agreement for lease dated 18th October 1961 in favour of United Building Corporation, which constructed the buildings. By a registered deed of conveyance dated 11th August 2005, Hardevi Rajpal conveyed the suit property in favour of the developer, Shree Ahuja Properties Pvt. Ltd. In 2007, Trilok Society filed L.C. Suit No.164 of 2007 before the Bombay City Civil Court complaining that the appellants’ mother had illegally converted the suit garage into a shop and was carrying on commercial activities, seeking a declaration of illegality, injunction, and directions to the Municipal Corporation of Greater Mumbai (MCGM). The MCGM issued a notice dated 23rd May 2013 under Section 351 of the Mumbai Municipal Corporation Act, 1888, and by order dated 24th July 2013 held the change of user of the suit garage from car parking to commercial illegal and directed reinstatement as a garage. Appellant No.1 challenged the notice and order by filing L.C. Suit No.1266 of 2014 before the Bombay City Civil Court at Dindoshi; these suits were pending. Due to the old and dilapidated condition of the buildings, the society members decided to redevelop through the developer. Out of 76 flats and 20 garages, all except 7 flats and 5 garages were handed over, and the developer was paying approximately Rs.60 lakhs per month to displaced flat owners. The developer filed Suit No.760 of 2019 with Notice of Motion No.1318 of 2019 seeking directions to vacate and hand over premises, offering alternative residential flats on the first floor equivalent to occupied area plus 38%, and stating it would provide the area even if the change of user suits were lost. The appellants took out Notice of Motion No.1518 of 2019 seeking restraint against interference with possession and restoration of water connection. By orders dated 3rd May 2021, the learned Single Judge disposed of Notice of Motion No.1318 of 2019 in favour of the developer by appointing the Court Receiver, High Court, Bombay in respect of the garage for demolition in furtherance of redevelopment, and rejected the appellants’ Notice of Motion No.1518 of 2019. The appellants challenged both orders in the present appeal. The provided text ends before the parties’ submissions and the final ruling, so the court's analysis, ratio decidendi, and final decision are not available in the excerpt.

Headnote

A) Municipal Law - Unauthorized Change of User - Garage Used as Shop Declared Illegal - Mumbai Municipal Corporation Act, 1888, Section 351 - The Municipal Corporation of Greater Mumbai issued notice dated 23rd May 2013 under Section 351 and by order dated 24th July 2013 held the change of user of the suit garage from car parking to commercial illegal and directed reinstatement as garage. The appellant challenged the notice and order by filing L.C. Suit No.1266 of 2014 before Bombay City Civil Court, which was pending at the time of appeal. Held that the Court noted the MCGM's finding of illegality in the context of redevelopment dispute, though final ruling not available in provided text (Paras 1.3, 2.7-2.8).

B) Co-operative Society Law - Redevelopment of Dilapidated Society Property - Non-Cooperative Member's Rights - Maharashtra Co-operative Societies Act, 1960 - The three buildings constructed in 1965 were in dilapidated condition; society members decided redevelopment through developer; all but seven flat owners and five garage holders handed over possession, and developer paid compensation to displaced members. The developer offered alternative residential flat on first floor with area equivalent to occupied area plus 38%, even if change of user suits were lost. The Court noted that appellants were the only remaining non-cooperative garage occupants causing inconvenience, and that Single Judge appointed Court Receiver for demolition (Paras 1.4-1.8, 2.9).

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Issue of Consideration

Whether the Single Judge's orders dated 3 May 2021 appointing Court Receiver and rejecting Appellants' Notice of Motion were correct; whether Appellants are entitled to continue occupying suit garage in light of MCGM order under Section 351 MMC Act.

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Law Points

  • Change of user from garage to commercial is illegal under Section 351 of Mumbai Municipal Corporation Act
  • 1888
  • appointment of Court Receiver for demolition in furtherance of redevelopment
  • redevelopment of old dilapidated society buildings
  • non-cooperative members can be compelled to vacate
  • alternative accommodation offered to garage occupants
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Case Details

2021 LawText (BOM) (09) 54

Appeal (L) No.11941 of 2021 in Notice of Motion No.1318 of 2019 along with Notice of Motion No.1518 of 2019 in Suit No.760 of 2019 with Interim Application (L) No.11946 of 2021

2021-09-16

S.J. Kathawalla, Milind N. Jadhav

Ms. Sunita M. Poddar, Mr. Virag Tulzapurkar, Mr. Vineet Naik, Mr. Sagar Ptil, Mr. D.N.Kher

Rajesh Mishra and Mrs. Beena R. Mishra Legal heirs of Beena K. Mishra (Orig. Defendant No.5) 5(a) Rajesh Keval Mishra, 5(b) Manmohan Keval Mishra, 5(c) Kavita Keval Mishra

1. Shree Ahuja Properties Pvt. Ltd., 2. Brij Maraj, 2(a) Sushma Puri, 2(b) Shakti Bala Capildeo, 2(c) Dr. Shashi Bala Kazim, 3. Mrs. Vandana Gursahani, 4(a) Mrs. Asha Nath, 4(b) Mr. Lala Ravindra Nath, 5(a) Mr. Shantilal L. Parmar, 5(b) Mr. Jitendra S. Parmar, 6. Mr. Brij Ahuja, 7. Dr. Bina Wadhawan, 8. Mr. Prabhat Ruia, 9. Mrs. Poonam Prabhat Ruia, 10. Ms. Sayeda Mausuma, 11. The Bandra Trilok Co-op. Hsg. Soc. Ltd., 12. Municipal Corporation of Greater Mumbai

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Nature of Litigation

Appeal against interim orders in a suit for redevelopment of dilapidated co-operative housing society buildings, involving appointment of Court Receiver for demolition of a garage and rejection of occupant's motion for injunction and water restoration.

Remedy Sought

Appellants sought to set aside the Single Judge's orders dated 3 May 2021 appointing Court Receiver and rejecting their Notice of Motion; they earlier sought to restrain developer from interfering with possession and to restore water connection.

Filing Reason

Developer filed suit due to non-cooperation of appellants and other members in vacating premises for redevelopment; appellants resisted on ground of long-standing garage ownership and pending proceedings regarding change of user.

Previous Decisions

Single Judge's order dated 3 May 2021 disposed of Notice of Motion No.1318 of 2019 in favour of developer, appointed Court Receiver for garage; separate order rejected Notice of Motion No.1518 of 2019; earlier MCGM order 24 July 2013 declared garage user illegal; L.C. Suit No.164 of 2007 and L.C. Suit No.1266 of 2014 pending.

Issues

Whether the Single Judge erred in appointing Court Receiver for demolition of the suit garage in furtherance of redevelopment. Whether the Appellants, as garage owners/occupants, were entitled to injunction against interference and restoration of water connection. What is the effect of MCGM order under Section 351 MMC Act declaring change of user illegal on the Appellants' right to occupy the garage.

Submissions/Arguments

Developer: all members except few have vacated; appellants' non-cooperation causing hardship; alternative flat offered; even if change of user suit lost, developer will provide area. Appellants: they are legal heirs of original owner; garage ownership since 1971; they challenged MCGM order; sought to protect possession and restore water connection.

Judgment Excerpts

The MCGM also issued a notice dated 23rd May 2013 under section 351 of the Mumbai Municipal Corporation Act, 1888 (‘MMC Act’) in respect of the Appellants user of the suit Garage as a shop. By his order dated 3rd May, 2021, the learned Single Judge disposed of Notice of Motion No.1318 of 2019 in favour of the developer by appointing the Court Receiver, High Court, Bombay interalia in respect of the garage in occupation of the Appellants for the purposes of demolition of the same in furtherance of the redevelopment project. The developer has gone to the extent of stating that he shall give an area as offered to the non-coperative members including the Appellants, even if they lose the Suit filed by and/or against them on the ground of change of user i.e. from the car parking place to a commercial garage.

Procedural History

The suit property originally owned by Hardevi Rajpal, who executed agreement for lease dated 18 October 1961 in favour of United Building Corporation; buildings constructed 1965 with 76 flats and 20 garages. Appellants' father purchased Garage No.12 in June 1971 and later sold Flat B-37. Father died 1984; mother Beena Mishra continued. In 2005, Hardevi Rajpal conveyed property to developer. Trilok Society filed L.C. Suit No.164 of 2007 alleging illegal conversion of garage to shop and seeking declaration and injunction. Mother died 18 August 2012. MCGM issued Section 351 notice on 23 May 2013, order dated 24 July 2013 directing reinstatement of garage use. Appellant No.1 filed L.C. Suit No.1266 of 2014 challenging MCGM order. Society members decided redevelopment due to dilapidated buildings; developer filed Suit No.760 of 2019 with Notice of Motion No.1318 of 2019 for vacating premises. Appellants filed Notice of Motion No.1518 of 2019 for injunction and water restoration. On 3 May 2021, Single Judge allowed developer's motion, appointed Court Receiver, rejected appellants' motion. Appellants filed present appeal (L) No.11941 of 2021. Judgment reserved 6 July 2021, pronounced 16 September 2021.

Acts & Sections

  • Mumbai Municipal Corporation Act, 1888: Section 351
  • Maharashtra Co-operative Societies Act, 1960:
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