Bombay High Court Allows Summary Judgment for Recovery of Maintenance Charges Under MOFA Agreement. Builder/Promoter entitled to recover proportionate outgoings from purchaser based on contractual clause in agreement for sale.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
  • 66
Judgement Image
Font size:
Print

Case Note & Summary

The plaintiff, Sai Om Petro Specialities Ltd., a builder/promoter, filed a summary suit against the defendant, M Industries through its proprietor Mr. Pinto, for recovery of alleged maintenance charges based on bills raised from time to time under an agreement for sale dated 31 August 2004. The agreement was executed under the Maharashtra Ownership Flats Act, 1963 (MOFA) for the sale of an industrial gala in an industrial estate at Bhandup, Mumbai. The plaintiff claimed that the defendant, as purchaser, was obligated under Clause 12 of the agreement to pay a provisional monthly contribution of Rs.2083/- towards outgoings until a society was formed and conveyance executed. The plaintiff also took out a Summons for Judgment under Order 37 of the Code of Civil Procedure, 1908. The defendant was served but did not file any reply to the Summons for Judgment. The court noted that the plaintiff's case revolved around the agreement, which was duly stamped and registered. The court observed that the defendant had not raised any triable issues or sought leave to defend. Consequently, the court allowed the Summons for Judgment and decreed the suit in favour of the plaintiff for the amount claimed with interest at 9% per annum from the date of filing of the suit until realization, along with costs.

Headnote

A) Civil Procedure - Summary Suit - Order 37 CPC - Summons for Judgment - Unconditional Leave to Defend - Where defendant fails to file reply to Summons for Judgment, court may pass judgment in favour of plaintiff if claim is based on written contract and no triable issues raised - Held that defendant's failure to respond amounts to no defence, and plaintiff is entitled to decree as prayed (Paras 1-5).

B) Maharashtra Ownership Flats Act, 1963 - Agreement for Sale - Clause 12 - Proportionate Outgoings - Maintenance Charges - Builder/Promoter entitled to recover provisional monthly contribution from purchaser until society is formed and conveyance executed - Held that clause 12 obligates purchaser to pay proportionate share of outgoings as determined, and provisional monthly contribution of Rs.2083/- per month is payable (Paras 2-4).

C) Contract - Interpretation - Agreement for Sale - Obligation to Pay - The purchaser's undertaking to pay provisional monthly contribution and such proportionate share of outgoings is a contractual obligation enforceable in summary proceedings - Held that the claim is based on written contract and defendant has no defence (Paras 3-5).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the plaintiff is entitled to a summary judgment for recovery of maintenance charges based on the agreement for sale under the Maharashtra Ownership Flats Act, 1963, when the defendant has not filed any reply to the Summons for Judgment.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Summons for Judgment is allowed. Suit is decreed in favour of the plaintiff for the amount claimed with interest at 9% per annum from the date of filing of the suit until realization, along with costs.

Law Points

  • Summary suit
  • Summons for Judgment
  • Order 37 CPC
  • Maharashtra Ownership Flats Act 1963
  • Section 4
  • Section 6
  • Clause 12 agreement
  • proportionate outgoings
  • maintenance charges
  • builder/promoter
  • purchaser
  • no defence
  • unconditional leave to defend
Subscribe to unlock Law Points Subscribe Now

Case Details

2010 LawText (BOM) (07) 182

Summons for Judgment No. 383 of 2010 in Summary Suit No. 2853 of 2009

2011-07-22

Anoop V. Mohta, J.

Ms. Sunita Sonawane for the Plaintiff. None for the Defendant.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Summary suit for recovery of maintenance charges based on agreement for sale under Maharashtra Ownership Flats Act, 1963.

Remedy Sought

Plaintiff sought recovery of alleged maintenance charges based on bills raised from time to time under the agreement for sale dated 31 August 2004.

Filing Reason

Defendant failed to pay proportionate share of outgoings as per Clause 12 of the agreement.

Issues

Whether the plaintiff is entitled to summary judgment for recovery of maintenance charges under the agreement for sale when the defendant has not filed any reply to the Summons for Judgment.

Submissions/Arguments

Plaintiff argued that the defendant is bound by Clause 12 of the agreement to pay provisional monthly contribution of Rs.2083/- per month towards outgoings until society is formed. Defendant did not appear or file any reply despite service.

Ratio Decidendi

Where a defendant fails to file a reply to a Summons for Judgment under Order 37 CPC, and the plaintiff's claim is based on a written contract, the court may pass judgment in favour of the plaintiff if no triable issues are raised. The defendant's failure to respond amounts to no defence.

Judgment Excerpts

The Plaintiff, who is a promoter within the meaning of Section 2(e) and as under obligation to execute an agreement for sale of Industrial Gala/Unit, as contemplated under Section 4 of the MOFA Act, has executed the duly stamped registered agreement. Until the society is formed and the said land and building transferred to it, the Purchaser shall pay to the Developer such proportionate share of outgoing as may be determined.

Procedural History

Plaintiff filed Summary Suit No. 2853 of 2009 for recovery of maintenance charges. Plaintiff took out Summons for Judgment No. 383 of 2010. Defendant was served but did not file any reply to the Summons for Judgment. The court heard the Summons for Judgment and passed judgment on 22 July 2011.

Acts & Sections

  • Maharashtra Ownership Flats Act, 1963: Section 2(e), Section 4, Section 6
  • Code of Civil Procedure, 1908: Order 37
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Grants Bail to Accused in MCOC Act Kidnapping and Extortion Case — Prima Facie Case Not Made Out Under Section 3 of MCOC Act. Single Incident of Kidnapping Does Not Constitute Continuing Unlawful Activity by an Organised Crime Syn...
Related Judgement
High Court Bombay High Court Allows Summary Judgment for Recovery of Maintenance Charges Under MOFA Agreement. Builder/Promoter entitled to recover proportionate outgoings from purchaser based on contractual clause in agreement for sale.