High Court Allows Writ Petition Challenging Impleadment Order in TDR Dispute -- Owners of Adjoining Land Not Necessary Parties to Suit Over Ownership of Original Land -- Transferable Development Rights Not Immovable Property -- Plaintiff Cannot Claim Ownership in Flats Constructed Using TDR on Third-Party Land

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

The High Court allowed a Writ Petition challenging a Trial Court order that had directed impleadment of the Petitioners (owners of adjoining land) as Defendants in a suit concerning ownership of suit land -- The Plaintiff claimed ownership of suit land from which Transferable Development Rights (TDR) were generated and utilized on the Petitioners' adjoining land -- The Plaintiff sought to implead the Petitioners and claim rights in flats constructed on their land using the TDR -- The High Court held that TDR is not immovable property and its utilization on another land does not create ownership rights in that land for the owner of the original land -- The Petitioners were not necessary parties to the suit as they had no concern with the suit land -- The Trial Court's order was set aside as it would cause prejudice and delay -- The High Court emphasized that the Plaintiff's remedy, if any, was to claim monetary value of the TDR, not ownership rights in flats on adjoining land

Headnote

The High Court of Judicature at Bombay, in its Civil Appellate Jurisdiction, heard a Writ Petition under Article 227 of the Constitution of India challenging an order dated 16 February 2023 passed by the 7th Joint Civil Judge Senior Division, Thane -- The Trial Court had allowed an application under Order I Rule 10 read with Order VI Rule 17 and Section 151 of the Code of Civil Procedure, 1908 (CPC), directing impleadment of the Petitioners as Defendants and permitting amendment of the Plaint -- The Plaintiff claimed ownership of suit land (Survey No. 29/6) through a Conveyance Deed dated 20 September 1990 and had filed Special Civil Suit No.579 of 2010 seeking declaration of ownership -- Defendant No.9, who also claimed ownership of the suit land, had surrendered part of it to Thane Municipal Corporation, generating Transferable Development Rights (TDR) -- This TDR was utilized on adjoining land (Survey Nos.25/1, 25/2, 29/8) owned by the Petitioners, where Defendant No.9 constructed flats -- The Plaintiff sought to implead the Petitioners and claim rights in flats constructed on their land using TDR from the suit land -- The High Court held that TDR is not immovable property but represents development potential that can be monetized -- Loading TDR on adjoining land does not transfer ownership rights from the suit land to that land -- The Petitioners, as owners of adjoining land, were not necessary parties to the suit concerning ownership of the suit land -- The Trial Court's order was set aside as it would cause prejudice to the Petitioners and delay the suit -- The Petition was allowed, and the impugned order was quashed and set aside

Issue of Consideration: Whether loading of TDR generated out of suit land on adjoining land would entail impleadment of owner of such adjoining land to the Suit -- Whether mere loading of TDR arising out of suit land on adjoining land would entitle Plaintiff to claim reliefs in respect of flats constructed on adjoining land on which the TDR is loaded

Final Decision

The High Court allowed the Writ Petition -- The impugned order dated 16 February 2023 was quashed and set aside -- The Trial Court was directed to proceed with the suit without the Petitioners as parties -- No order as to costs

2026 LawText (BOM) (02) 15

Writ Petition No. 3595 of 2023

2026-02-03

Sandeep V. Marne, J.

2026:BHC-AS:6353

Mr. Kailas Dewal with Mr. Sham Thakur i/b Mr. Yash Dewal for the Petitioners, Mr. Suresh Shah, Senior Advocate with Mr. Rishikesh Soni and Ms. Raveena S. Yadav for Respondent No.1, Ms. Minal Chandnani for Respondent No.10

Abdul Aziz Bharmar, Anr.

Vinod Anand, Ors.

Nature of Litigation: Writ Petition under Article 227 of the Constitution of India challenging a Trial Court order allowing impleadment of parties and amendment of plaint in a civil suit

Remedy Sought

Petitioners sought quashing of the Trial Court order dated 16 February 2023 that directed their impleadment as Defendants and permitted amendment of the Plaint

Filing Reason

The Petitioners, owners of adjoining land, were impleaded in a suit concerning ownership of suit land because Transferable Development Rights (TDR) generated from the suit land were utilized on their land

Previous Decisions

Trial Court order dated 16 February 2023 allowed Application at Exhibit-156 for impleadment and amendment -- High Court in Writ Petition No.11401 of 2015 had directed status quo regarding balance land and noted TDR consumption

Issues

Whether loading of TDR generated from suit land on adjoining land makes the owner of adjoining land a necessary party to the suit Whether utilization of TDR on adjoining land entitles the Plaintiff to claim ownership rights in flats constructed on that land

Submissions/Arguments

Petitioners argued they had no concern with the suit land and should not be impleaded -- Plaintiff argued that TDR utilization created rights in flats on adjoining land -- Defendant No.9's role in generating and using TDR was contested

Ratio Decidendi

TDR is not immovable property but represents development potential that can be monetized -- Utilization of TDR on adjoining land does not transfer ownership rights from the original land to that land -- Owners of land where TDR is utilized are not necessary parties to a suit concerning ownership of the land from which TDR was generated -- The Plaintiff's remedy, if any, is limited to claiming monetary value of the TDR, not ownership in flats on third-party land

Judgment Excerpts

The Petition raises an interesting issue of Plaintiff’s right to claim ownership in flats constructed on non-suit land owned by a third party by use of TDR generated from the suit land TDR is capable of being freely sold and monetized Whether extraction of TDR from suit land and its utilization on another land would create in Plaintiff’s favour merely a right to claim monetary value of that TDR or can he also claim ownership rights in the flats constructed by use of such TDR The issue for consideration therefore is whether loading of TDR generated out of suit land on adjoining land would entail impleadment of owner of such adjoining land to the Suit Held that TDR is not immovable property and its utilization on another land does not create ownership rights in that land

Procedural History

Special Civil Suit No.579 of 2010 filed by Plaintiff for declaration of ownership -- Application at Exhibit-156 filed for impleadment and amendment -- Trial Court order dated 16 February 2023 allowed the application -- Writ Petition No.3595 of 2023 filed challenging the order -- High Court heard arguments and allowed the Petition

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