Bombay High Court Quashes AGRC Order in Slum Rehabilitation Dispute — Consent Terms Binding on Successor Developer. Petitioners' Entitlement to Two Shops of 409 Sq Ft Each Upheld Based on Consent Terms in Suit No.1994 of 2008.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The petitioners, Alphonso D'Souza and Vanessa D'Souza, filed a writ petition challenging an order dated 5th January 2022 passed by the Apex Grievances Redressal Committee (AGRC) in Application No.141 of 2021. The AGRC had allowed the application filed by respondent No.3, M/s. Mass Jaks Associate Ventures, declaring that the petitioners were not entitled to two commercial premises each admeasuring 450 sq ft in the new building in lieu of two stilt car parking spaces in the old building. The petitioners contended that this order was contrary to the consent terms dated 9th May 2012 recorded in Suit No.1994 of 2008, which had been disposed of by the Bombay High Court. The consent terms, specifically paragraph 16, provided that the petitioners were entitled to two shops of 409 sq ft carpet area each with specified dimensions and frontage, along with other amenities. The respondent No.3 had stepped into the shoes of the original plaintiff/developer and had issued an offer letter agreeing to abide by the consent terms. The petitioners argued that the AGRC had no jurisdiction to adjudicate a civil dispute already settled by a court decree. The court heard arguments from all parties. The High Court held that the AGRC order was without jurisdiction and contrary to the binding consent terms. The court quashed the impugned order and directed respondent No.2 to sanction plans in conformity with the consent terms and the development agreement. The court also restrained respondent No.3 from creating third-party rights over the shop allotted to petitioner No.1. The petition was allowed with no order as to costs.

Headnote

A) Slum Rehabilitation - AGRC Jurisdiction - Consent Terms Binding - The AGRC exceeded its jurisdiction by adjudicating a civil dispute regarding entitlement to commercial premises based on consent terms recorded in a suit, which were binding on the successor developer. Held that the AGRC cannot decide matters already settled by a court decree (Paras 1-42).

B) Writ Jurisdiction - Certiorari - Quasi-Judicial Orders - The High Court exercised its writ jurisdiction under Article 226 to quash the AGRC order as it was passed without jurisdiction and contrary to the consent terms. Held that the impugned order was liable to be set aside (Paras 1-42).

C) Contract Law - Successor Developer - Privity of Contract - The respondent No.3, as successor developer, was bound by the consent terms dated 9th May 2012 and the development agreement dated 27th November 2020. Held that the petitioners' entitlement to two shops of 409 sq ft each was not extinguished (Paras 1-42).

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Issue of Consideration

Whether the Apex Grievances Redressal Committee (AGRC) could adjudicate the entitlement of the petitioners to commercial premises in lieu of stilt car parking spaces, and whether the impugned order dated 5th January 2022 was valid.

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Final Decision

The petition is allowed. The impugned order dated 5th January 2022 passed by the Apex Grievances Redressal Committee in Application No.141 of 2021 is quashed and set aside. Respondent No.2 is directed to sanction plans in conformity with the consent terms dated 9th May 2012 and the Development Agreement dated 27th November 2020. Respondent No.3 is restrained from creating third party rights over the shop allotted to petitioner No.1. No order as to costs.

Law Points

  • Consent terms are binding on successor developer
  • AGRC cannot adjudicate civil disputes
  • writ of certiorari lies against quasi-judicial orders
  • principles of natural justice
  • interpretation of consent terms
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Case Details

2024 LawText (BOM) (8) 206

WRIT PETITION NO. 779 OF 2023

2024-08-20

M. S. Sonak, Kamal Khata

Adv. Nirmay Dave, Adv. Nandini Singh Modi, Adv. Mohit Advani, Adv. Aditya Khandeparkar, Adv. Mayuri Karekar, Adv. Gaurav Patole, i/b. Khandeparkar Law Office; Adv. Mayur Khandeparkar, Adv. Arun Panickar, Adv. Vinay Nair; Adv. Anoop Patil; Adv. Jagdish G. Aradwad (Reddy)

Alphonso D'Souza and Vanessa D'Souza

Apex Grievances Redressal Committee, Chief Executive Officer (Slum Rehabilitation Authority), M/s. Mass Jaks Associate Ventures

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Nature of Litigation

Writ petition challenging an order of the Apex Grievances Redressal Committee (AGRC) regarding entitlement to commercial premises in a slum rehabilitation project.

Remedy Sought

Quashing of AGRC order dated 5th January 2022 and direction to sanction plans in conformity with consent terms and development agreement.

Filing Reason

The AGRC allowed an application by respondent No.3 declaring that petitioners were not entitled to two commercial premises in lieu of stilt car parking spaces, contrary to consent terms recorded in a suit.

Previous Decisions

Consent terms dated 9th May 2012 were recorded in Suit No.1994 of 2008, disposing of the suit. The AGRC passed the impugned order on 5th January 2022 in Application No.141 of 2021.

Issues

Whether the AGRC had jurisdiction to adjudicate the entitlement of the petitioners to commercial premises based on consent terms. Whether the impugned order dated 5th January 2022 was valid and binding.

Submissions/Arguments

Petitioners argued that the AGRC order was contrary to the consent terms dated 9th May 2012, which were binding on respondent No.3 as successor developer. Respondent No.3 argued that the petitioners were not entitled to two commercial premises of 450 sq ft each, but only to two stilt car parking spaces.

Ratio Decidendi

The AGRC exceeded its jurisdiction by adjudicating a civil dispute already settled by a court decree through consent terms. The consent terms are binding on the successor developer, and the AGRC cannot override them.

Judgment Excerpts

The AGRC passed an order stating therein that the petitioners were not entitled to Two Commercial Premises each admeasuring 450 Sq ft, in the new building to be constructed on the said property 'in lieu of Two stilt Car parking space each admeasuring 22.02 Sq Meters in the old building'. The Consent Terms are taken on record and marked ‘X’ for identification. The Suit is disposed of in terms of the Consent Terms marked ‘X’.

Procedural History

Suit No.1994 of 2008 was disposed of by consent terms on 9th May 2012. Respondent No.3 filed Application No.141 of 2021 before the AGRC, which was allowed on 5th January 2022. The petitioners filed the present writ petition on an unspecified date. An interim order was passed on 20th April 2022. The petition was heard and reserved on 14th August 2024, and judgment pronounced on 20th August 2024.

Acts & Sections

  • Indian Partnership Act, 1932:
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High Court Bombay High Court Quashes AGRC Order in Slum Rehabilitation Dispute — Consent Terms Binding on Successor Developer. Petitioners' Entitlement to Two Shops of 409 Sq Ft Each Upheld Based on Consent Terms in Suit No.1994 of 2008.
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