2008(4) ALL MR 838
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
R.M.S. KHANDEPARKAR & A.V. NIRGUDE, JJ.
White Towers Co-op. Hsg. Society Ltd.- Appellant
Vs.
M/s. S.K. Builders & Ors. – Respondent
Appeal No.430 of 2007
IN Notice of Motion No.3665 of 2006
IN Suit No.132 of 2007
Decided On: 22nd April, 2008,
Jayantilal Investments - Real Estate Dispute - Maharashtra Ownership Flats Act, 1963 - Section 3, Section 4, Form V - The court discussed the obligations of the promoter under the Maharashtra Ownership Flats Act, particularly the requirement for full and true disclosure of the development potentiality of the plot at the time of agreement with the flat takers. The court emphasized that any change in the project must follow proper procedure without disturbing the rights accrued to the flat purchasers.
Fact of the Case:
The appellants challenged the order granting ad-interim relief restraining the defendant from constructing any building other than 7 floors in a specific wing of the society's building. The dispute arose from the amalgamation of the society's plot with an adjoining plot for development without the consent of the appellants.
Finding of the Court:
The court found that the impugned order had ignored the rights assured to the flat takers and co-operative societies as per the Maharashtra Ownership Flats Act. It held that the promoter is obligated to make full and true disclosure of the development potentiality of the plot at the time of agreement with the flat takers.
Issues: The main issue was the validity of the impugned order restraining construction on the amalgamated plot without considering the rights of the flat takers and co-operative societies as per the Maharashtra Ownership Flats Act.
Ratio Decidendi: The court's decision was based on the interpretation of the obligations of the promoter under the Maharashtra Ownership Flats Act, emphasizing the requirement for full and true disclosure of the development potentiality of the plot at the time of agreement with the flat takers.
Final Decision: The appeal succeeded, and the impugned order was modified to exclude the relief in relation to the society's plot which had been amalgamated in the adjoining plot until the disposal of the notice of motion.
2. This appeal arises from the order dated 3-5-2007 passed in Notice of Motion No.3665 of 2006 in Suit No. 132 of 2007. By the impugned order, the learned single Judge granted ad-interim relief in the nature of prayer clause C(ii) thereby restrained the defendant No.5 and any person claiming through the respondents, from constructing any building other than 7 floors in "E" Wing while rejecting the other reliefs which were asked for in the notice of motion.
3. The main grievance of the appellants relate to the plot of land forming part of the plot wherein the society's building is situated and claims to have been amalgamated with the adjoining plot and wherein the new layout thereof has been approved for the developments therein by the competent authorities sans the consent of the appellants in relation to the portion of their plot so amalgamated with the adjoining plot.
4. It is the contention on behalf of the appellants that ignoring the law laid down by the Apex Court in M/s. Jayantilal Investments Vs. Madhuvihar Co-operative Housing & Ors., reported in JT 2007(2) SC 368 : [2007(2) ALL MR 398 (S.C.) : 2007 ALL SCR 857] and particularly whereby the Apex Court had clearly held that once the entire project is placed before the flat takers at the time of the agreement in terms of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale. Management and Transfer) Act, 1963, then the promoter IS not expected to carry out development in the plot contrary to the disclosure made to the flat takers. It is the contention on behalf of the appellants that the learned single Judge by merely referring to para 17 of the judgment in Jayantilal Investments' case [2007(2) ALL MR 398 (S.C.) : 2007 ALL SCR 857] (supra), had totally ignored the right assured to the flat takers and the co-operative societies having their structures in the land which is sought to be developed by the builders and promoters contrary to the disclosure made regarding the proposed development in such plots at the time of entering into the agreement with the flat takers in the building either already constructed and to be constructed in such plot.
5. On the other hand, it is the case of the respondents that the ratio of the decision in Jayantilal Investments' case has been correctly understood by the learned single Judge and considering the same the only right which has been assured to the flat takers is that the original FSI available to the society, as disclosed at the time of entering into the agreement, is not disturbed and except that all the other rights of the promoters and builders to develop the plot of land are safe-guarded and considering the same, no fault can be found in the impugned order. Besides, there is already the layout plan approved in relation to the amalgamated plot which includes the part of the society's plot and the same has not been challenged by the appellants, It is the further contention on behalf of the respondents that the impugned order is merely an ad-interim order and the notice of motion is still pending before the learned single Judge to be disposed of.
6. Bare perusal of the impugned order discloses that the same has been passed solely referring to para 17 of the decision in Jayantilal Investments' case by merely observing that if the contention based on paragraphs 19 and 2 I of the said decision are taken into consideration, then the para 17 of the decision would stand diluted. With respect, we are unable to agree with the view taken by the learned single Judge. The Apex Court in Jayantilal Investments' case, has clearly observed in para 20, after taking into consideration the provisions of Clauses 3 and 4 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction etc.) Rules, 1964, that the said provisions are declared to be statutory and mand
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