Case Note & Summary
The appellant, Ornate Housing Pvt. Ltd., filed a suit in the City Civil Court, Mumbai, seeking to restrain Respondent No.1, the Abhyuday Nagar Sahakari Gruhanirman Sanstha Sangh Ltd. (the Federation), from permitting Respondent No.2, Keystone Realtors Pvt. Ltd., to participate in a tender process for the redevelopment of a large plot of land in Parel, Mumbai. The plot, admeasuring 1,33,593.88 sq.mts., had 48 buildings with 3238 residential and 172 non-residential units, originally constructed by the Bombay Housing and Area Development Board between 1956-1960. The tenancies were later converted to ownership, and 48 cooperative housing societies were formed, which together constituted the Federation registered under the Maharashtra Co-operative Societies Act, 1960. The Federation initiated a tender process to select a developer for redevelopment. The appellant, a private limited company, participated in the tender but later sought to exclude Respondent No.2 from the process, alleging that Respondent No.2 was ineligible. The trial court rejected the appellant's application for ad-interim relief, leading to the present appeal. The High Court examined whether the appellant had made out a prima facie case for an injunction. It noted that the appellant had no concluded contract or legal right to be appointed as the developer; it was merely a participant in the tender process. The court held that the Federation had the authority to conduct the tender and consider all eligible bidders. The balance of convenience was against granting an injunction, as it would delay the redevelopment project, which was for the benefit of the society members. The court also found that the appellant would not suffer irreparable loss if the injunction was refused, as it could still participate in the tender. Consequently, the appeal was dismissed, and the order of the City Civil Court was upheld.
Headnote
A) Civil Procedure - Interim Injunction - Prima Facie Case - The appellant sought to restrain the Federation from allowing a competitor to participate in a tender for redevelopment. The court held that the appellant failed to establish a prima facie case as there was no concluded contract or legal right in its favour. (Paras 1-10) B) Contract Law - Tender Process - Locus Standi - The appellant, being a mere participant in the tender process, had no vested right to exclude other bidders. The Federation was entitled to consider all eligible participants. (Paras 5-8) C) Co-operative Societies - Federation - Powers - The Federation, registered under the Maharashtra Co-operative Societies Act, 1960, had the authority to conduct the tender process for redevelopment of the land belonging to its member societies. (Paras 3-4) D) Injunction - Balance of Convenience - The court found that the balance of convenience was against granting an injunction as it would delay the redevelopment project, which was in the interest of the members of the societies. (Paras 9-10)
Issue of Consideration
Whether the appellant was entitled to an ad-interim injunction restraining the respondent Federation from permitting respondent No.2 to participate in the tender process for redevelopment of the plot.
Final Decision
The appeal was dismissed. The order of the City Civil Court, Mumbai, dated 28 October 2015, rejecting the ad-interim relief, was upheld.
Law Points
- Prima facie case
- balance of convenience
- irreparable loss
- interim injunction
- tender process
- redevelopment
- co-operative housing society
- federation
- locus standi
- contractual right
