SUPREME COURT OF INDIA
(From the High Court of Judicature at Bombay)
Ajay Rastogi, Abhay S. Oka, JJ.
Kamgar Swa Sadan Co-operative Housing Society Ltd. - Appellant
Versus
Mr. Vijaykumar Vitthalrao Sarvade & Ors. - Respondents
Civil Appeal No. 1222 of 2022 [Arising out of SLP (CIVIL) No. 21964 of 2017]
Decided On : 08-02-2022
Redevelopment - Maharashtra Co-operative Societies Act, 1960 - Regulation 33(7) of the Development Control Regulations for Greater Mumbai, 1991 - Summary of Acts and Sections: The judgment discusses the redevelopment of buildings occupied by a Co-operative Society under Regulation 33(7) of the Development Control Regulations for Greater Mumbai, 1991, and the permissions granted by the Assistant Registrar of Co-operative Societies. The court also considers the issue of limitation and the repeal of Section 9-A of the Code of Civil Procedure (CPC) as applicable to the State of Maharashtra, and the recent decision of the Supreme Court in the case of Nusli Neville Wadia v. Ivory Properties & Ors., 2020 (6) SCC 557. The judgment highlights the interpretation of Section 9-A and its application to the issue of jurisdiction, as well as the court's plenary jurisdiction under Article 142 of the Constitution of India to do complete justice between the parties.
Fact of the Case:
The case involves a dispute over the redevelopment of buildings occupied by a Co-operative Society, resolutions passed in Special General Body Meetings, and permissions granted by the Assistant Registrar of Co-operative Societies. The original plaintiffs challenged the resolutions and the tender process, seeking a fresh tender process and interim relief to restrain further permissions. The Trial Court held that the suit was not barred by Section 91 of the Maharashtra Co-operative Societies Act, 1960 and was within limitation. The High Court dismissed the revision application, leading to the present appeal.
Finding of the Court:
The Court found that the issue of limitation could not be decided as a preliminary issue due to the repeal of Section 9-A of the CPC and the recent decision of the Supreme Court. The Court also noted the dilapidated condition of the buildings and the majority of members supporting the redevelopment. It exercised its plenary jurisdiction under Article 142 of the Constitution of India to give quietus to the pending disputes and directed the respondent no.27 to provide larger residential tenements to eligible members, among other directions.
Issues: The issues included the interpretation of Section 9-A of the CPC, the application of Section 14 of the Limitation Act, 1963, and the jurisdiction of the Civil Court to entertain the suit. The Court also considered the objections raised by the original plaintiffs and the delay in the disposal of the suit.
Ratio Decidendi: The Court held that the issue of limitation could not be decided as a preliminary issue due to the repeal of Section 9-A of the CPC and exercised its plenary jurisdiction under Article 142 of the Constitution of India to give quietus to the pending disputes. It also directed the respondent no.27 to provide larger residential tenements to eligible members and quashed the pending criminal complaint filed by the original plaintiffs.
Final Decision: The Court disposed of the appeal by directing the respondent no.27 to provide larger residential tenements to eligible members, quashing the pending criminal complaint, and giving directions for the completion of the redevelopment project. It also directed the disposal of the pending suit and applications, and provided for enforcement of the directions issued in the judgment.
JUDGMENT :
ABHAY S. OKA, J.
Leave granted.
1. The respondent nos.1 to 11 are the original plaintiffs. The appellant-Society is the original defendant no.1. The respondent nos.12 to 25 are the office bearers of the appellant-Society. The respondent nos. 26 to 29 are the developers/builders. The respondent nos. 30 to 38 are officials and/or the members of the High Power Committee constituted by the Government of Maharashtra. The last respondent is the Project Consultant and Architect. It is not in dispute that the respondent nos.1 to 11 (original plaintiffs) are the members of the appellant, a Co-operative Society duly registered under the Maharashtra Co-operative Societies Act, 1960 (for short “the said Act of 1960). The dispute is about the redevelopment of the buildings occupied by the members of the appellant-Society in accordance with Regulation 33(7) of the Development Control Regulations for Greater Mumbai, 1991 applicable to the Municipal Corporation of Greater Mumbai. In the Special General Body Meeting of the appellant-Society held on 12th February 2011, a resolution was passed resolving that the tender submitted by the respondent no.26 for the redevelopment of the property of the appellant-Society should be accepted. It is the case of the appellant-Society that the resolution was unanimously passed.
2. On 2nd December 2012, a Special General Body Meeting of the appellant-Society was held in which a resolution was unanimously passed appointing the respondent no.27 as the developer. The respondent no.27 is stated to be a sister concern of the respondent no.26. It is alleged that out of 240 members of the appellant-Society, 165 were present in the meeting. An agreement for development was accordingly executed on 24th December 2012 by the appellant-Society. The agreement provided for allotment of premises in the redeveloped buildings free of cost on ownership basis to all the eligible members of the appellant-Society. In addition, the respondent no.27 agreed to provide a corpus of Rs.5,00,000/- (Rupees Five Lakhs) per member to the appellant-Society. On 27th December 2012, the Jurisdictional Assistant Registrar of Co-operative Societies accorded permission to the appellant-Society to redevelop the property. On 7th January 2013, the Assistant Registrar granted further permission to the appellant-Society to redevelop the property by appointing the respondent no.27 as the developer. The said permission refers to a report submitted by the Authorized Officer which recorded that all the 165 members of the appellant-Society who were present in the meeting held on 2nd December 2012 supported the proposal for redevelopment.
3. The respondent nos.2, 3 and 8 along with some other members of the appellant-Society filed a revision application under Section 154 of the said Act of 1960 for challenging the orders/permissions dated 27th December 2012 and 17th January 2013 issued by the Assistant Registrar of Co-operative Societies. The revisional authority allowed the revision application by the order dated 14th May 2013. The order of the revisional authority was challenged by the appellant-Society by filing a Writ Petition in the Bombay High Court. By the order dated 11th December 2013, the Bombay High Court stayed the order of the revisional authority. The said interim order of Bombay High Court was challenged by the respondent nos.2, 3 and 8 before this Court. While dismissing the Special Leave Petition, this Court directed the Bombay High Court to expeditiously decide the Writ Petition. In the pending Writ Petition, the respondent no.2 filed an interlocutory application seeking an interim order of status quo as regards the redevelopment of the property. The High Court declined to grant any interim relief on the said application.
4. The respondent nos.1 to 11 filed the suit – subject matter of this Civil Appeal in the City Civil Court at Mumbai. The suit was filed on 20th February 2016. The respondent nos.1 to 11 contended in the suit that t
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The court upheld the validity of redevelopment processes of co-operative housing societies, emphasizing majority consent and the necessity of addressing safety concerns over minority objections.
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The court upheld the validity of the redevelopment project under Section 41A of the Gujarat Ownership Flats Act, 1973, based on the majority consent of the members, dilapidated condition of the build....
Majority consent in cooperative societies is binding for redevelopment under Section 41A of the Gujarat Ownership Flats Act, enabling courts to enforce compliance despite minority objections.
The court upheld the validity of the redevelopment process under Section 41A of the Gujarat Ownership Flats Act, 1973, and directed the respondents to vacate their flats and hand over peaceful and va....
In redevelopment disputes under Arbitration Act Section 9, society members' right to safe housing from dilapidated buildings prevails over developer's profit rights where developer caused 13-year del....
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