High Court of Bombay Considers Interim Relief in Housing Society's Suit for Conveyance and Challenging Construction Approvals. The Court Was Hearing a Notice of Motion and an Appeal from Order Regarding Alleged Unauthorized Construction and Failure to Execute Conveyance Under MOFA.

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

The judgment text provided is truncated and does not include the court's analysis or final decision. From the available text, the High Court was hearing an interim application and an appeal related to a dispute over construction and conveyance in a co-operative housing society. The plaintiffs, Malad Kokil Co-operative Housing Society Ltd., sought a decree for conveyance of the suit property, a declaration that concessions/relaxations in the Approval Report dated 5 December 2009 and Commencement Certificate dated 13 October 2010 were null and void, and an injunction restraining further construction. The backdrop was that developers had constructed four buildings (S-1 to S-4) over 208 residential tenements and shops, and the occupants had formed two co-operative societies. The plaintiff society registered in 1982 consisted of flat purchasers in buildings S-1, S-2, S-3; the other society (defendant no.6 and appellant in the appeal) consisted of purchasers of S-4, registered in 1993. Occupation certificates were issued between 1975 and 1996. Plaintiffs alleged that the developers initially proposed only ground+three floors, but on 3 September 2010 unknown persons entered and demolished structures, damaging common amenities. Through RTI, plaintiffs learned of the approval report and commencement certificate permitting development of about 7722 sq. meters. They contended that FSI was almost exhausted, so no further construction was permissible. The other society filed a similar suit in the City Civil Court; its interim injunction application was dismissed. The High Court had earlier granted ad-interim relief on 7 July 2011. Legal arguments canvassed included: the developers' duty to convey the property under MOFA Section 4 and an undertaking given at society formation; the invalidity of concessions granted free of FSI; the arbitrary exercise of power under DCR Regulation 64(b); and the binding nature of a government order under MRTP Act Section 154 which prohibited loading TDR without executing conveyance. The court heard arguments but the text ends before any reasoning or decision. Hence, the outcome and ratio decidendi are not available in the provided text.

Issue of Consideration

NOTICE OF MOTION NO. 1359 of 2011

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Case Details

2012 LawText (BOM) (09) 91

Notice of Motion No. 1359 of 2011 in Suit No. 1005 of 2011 along with Appeal from Order No. 383 of 2012 in Notice of Motion No. 2953 of 2010 in L.C. Suit No. 2348 of 2010

2012-09-07

B.R. Gavai, J.

2012:BHC-OS:11053

D.D. Madan, Gaurav Joshi, Nisanth Sasidharan, Trupti Shetty, Pravin Samdani, Simil Purohit, Rati Patni, Helina Desai, Rahul Veera, Janak Dwarkadas, Chirag Kamdar, Sandeep Dadwal, Prakash Mahadik, Sanjeev Hariakar, Virag Tulzapurkar

Malad Kokil Co-operative Housing Society Ltd. (Plaintiff in Suit), Sundarvan S4 Co-operative Housing Society Ltd. (Appellant in A.O.)

The Modern Construction Co. Ltd., The Metropolitan Development Corporation, Sanket Estates and Finance Private Limited, Care Developers Private Limited, Skyscraper Realtors Private Limited, Sundervan S4 Co-operative Housing Society Limited, Municipal Corporation of Greater Mumbai, Executive Engineer (Building Proposals) (W.S.) 'P' Ward

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Nature of Litigation

Suit for conveyance of property, declaration that approvals are invalid, and permanent injunction; along with an appeal against dismissal of interim injunction in a similar suit.

Remedy Sought

Plaintiff society sought decree for conveyance of suit property, declaration that concessions/relaxations in Approval Report dated 5 December 2009 and Commencement Certificate dated 13 October 2010 are null and void, and injunction restraining further construction.

Filing Reason

Developers commenced construction activities on the suit property without first executing conveyance in favour of the society, and the approval/concessions were allegedly granted illegally and in violation of statutory provisions.

Previous Decisions

Ad-interim relief granted on 7 July 2011 by the High Court; in the City Civil Court, the notice of motion was dismissed on 18 April 2011, leading to the appeal.

Issues

Whether the approval report dated 5 December 2009 and commencement certificate dated 13 October 2010 are valid and legal Whether the developers can carry out construction without obtaining consent of the society and without executing conveyance of the property Whether the relaxation under Regulation 64(b) of the Development Control Regulations, 1991 was validly granted

Submissions/Arguments

Plaintiff argued that developers made representations in the 1975 and 1992 agreements and undertakings not to construct without consent and to convey the property Plaintiff contended that the approval report granted undue concessions free of FSI and the relaxation under DCR 64(b) was mechanically signed without demonstrable hardship Plaintiff submitted that government order under MRTP Section 154 prohibits loading TDR without conveyance, and the corporation's note saying it is inapplicable was untenable

Judgment Excerpts

The buildings have been constructed over span of period between 1974 to 1989. The plaintiff-society was registered on 9 th November, 1982 whereas the appellant-society is registered on 24 th May, 1993. The powers exercised by the Commissioner under Regulations 64(b) of the Development Control Regulations for Greater Mumbai, 1991 ... permit relaxation in case of FSI only if it is otherwise permitted under the Regulations.

Procedural History

Buildings S-1 to S-4 constructed between 1974-1989; occupation certificates issued 1975-1996; plaintiff society registered 9 Nov 1982; appellant society registered 24 May 1993; approval report dated 5 Dec 2009; commencement certificate dated 13 Oct 2010; unknown persons entered and demolished on 3 Sep 2010; Suit No. 1005/2011 filed; notice of motion taken out; High Court granted ad-interim relief on 7 Jul 2011; City Civil Court dismissed notice of motion in other suit on 18 Apr 2011; appeal filed; High Court passed common order on 7 Jul 2011 admitting appeal and granting interim injunction; both matters heard together on 5 Sep 2012; judgment pronounced on 7 Sep 2012.

Acts & Sections

  • Maharashtra Ownership Flats Act, 1963: Section 4
  • Development Control Regulations for Greater Mumbai, 1991: Regulation 64(b)
  • Maharashtra Regional Town Planning Act: Section 154
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