HC junks flat buyers' plea to take up stalled redevpt
MUMBAI, Dec. 25 -- The Bombay High Court on Tuesday dismissed a plea by 83 third-party flat buyers in a housing society in Bhandup who sought orders to take over and complete the stalled redevelopment of their housing society premises. The flat buyers could not set aside the termination of the redevelopment agreement between the housing society and the developer, or take up the stalled project themselves because they did not have any legal contract with the housing society, the court held.
The 83 flat buyers in Shree Gurudatta Police Co-operative Housing Society (CHS) in Bhandup had filed a suit in 2017, seeking various reliefs including an interim order for appointment of a court receiver on the property and permission, through the receiver, to step into the shoes of the developer, Saga Infra Projects Pvt Ltd.
The Shree Gurudatta Police CHS had, in April 2008, appointed Saga Infra Projects to redevelop its property. According to the third-party flat buyer's lawyer, advocate Laxmi, between October 2009 and September 2013, Saga Infra obtained planning permissions from the Brihanmumbai Municipal Corporation (BMC) for construction up to the 16th floor, and constructed three wings up to the fourth floor.
However, in January 2015, the housing society terminated the agreement with Sagar Infra on grounds of delay in execution of the project. Advocate Laxmi argued that the third-party flat buyers had paid the developer and the money was utilised on partial execution of the project; hence they were entitled to claim rights in the property and its development.
Advocate Aseem Naphade, who represented the housing society, opposed the plea, contending that there was no privity of contract between the housing society and the third-party buyers. The flat purchase agreements were executed solely with the developer and in the absence of a contractual relationship with the housing society, the flat buyers could not seek specific performance against the society.
A single judge bench of justice Kamal Khata found substance in the arguments advanced by Naphade and refused interim relief to the third-party flat buyers for lack of contract with the housing society. "The plaintiffs (third-party flat buyers) have failed to address the fundamental issue of privity of contract between them and the (housing) society," said the court....
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