B.P. Colabawalla J.

1. The Petitioner is a member of a housing co-operative society known as the “Navbharatiya Bhavan (1) Co-op. Hsg. Soc. Ltd. (Respondent No.2). By this Petition, challenge has been laid to the order dated 1st November, 2014 passed by Respondent No.1 granting a No Objection for re-development of the building known as “Nav Bharatiya Bhavan (1) Co-operative Housing Society Ltd” (the “said building”). The said building belongs to Respondent No.2 – Society and is situate on a plot of land admeasuring about 853 sq. yards or thereabouts and bearing Plot No.371 of Suburban Scheme No. III, Chembur, bearing CTS No.1316, 1316/1 to 4. The Petitioner is also seeking a declaration that the Development Agreement dated 28th October, 2014 entered into between Respondent No.2 – Society and Respondent No.3 – Developer (Heritage Lifestyles & Developers Pvt. Ltd.), is null and void as the same is in violation of the mandatory circular dated 3rd January, 2009 issued under section 79A of the Maharashtra Co-operative Societies Act, 1960.

2. The brief undisputed facts giving rise to the present controversy are that the Petitioner is a doctor by profession and runs a clinic from the premises occupied by him in Respondent No.2 – Society. Since Respondent No.2 – Society decided to redevelop its property, in their AGM on 13th August 2006, Respondent No.2 passed a resolution to discuss the proposal of re-construction of the said building. The Petitioner was present at the said meeting as the Chairman of Respondent No.2. At the said meeting, the proposal for re-construction of the said building was considered and all members unanimously agreed to this proposal.

3. Thereafter, at the AGM held on 10th August 2008, again the proposal for re-construction of the said building was discussed. At this meeting also, the Petitioner was present as the Chairman of the said Society. Thereafter, the 2nd Respondent – Society received bids for re-development of the said building from (i) Maya Developers on 15th September, 2008; (ii) Mishal Construction Pvt. Ltd. on 3rd October, 2009; (iii) Menorak Realities Pvt. Ltd. on 9th March, 2010; (iv) KCD Infrastructure Pvt. Ltd. on 25th March, 2010; and (v) M/s Heritage Lifestyles and Developers Pvt. Ltd. on 1st January, 2011 (Respondent No.3 herein).

4. It would be important to note that Respondent No.2 – Society did not have a conveyance of the land on which the said building was standing. Accordingly, in the Special General Body Meeting held on 23rd October 2011, the Memorandum of Understanding received from Respondent No.3 was discussed. In the said MOU Respondent No.3 had agreed to get the conveyance done in favour of the Society and in turn, they expected from the Society the re-development rights as per the terms and conditions mentioned in the MOU. After a thorough discussion as reflected in the minutes of the said meeting, it was resolved as under:-

“RESOLVED THAT, after considering the proposal of M/s Heritage Lifestyle and Developers Pvt. Ltd., 401/402, 4th Floor, Plot No.29, Vinayak Siddhi, D.K. Sandu Marg, Opp. Sai Baba Temple, Chembur, Mumbai 400 071, subject to M/s Heritage Lifestyle and Developers Pvt. Ltd. getting Conveyance to the Society, approval be and is hereby given for granting permission to M/s Heritage Lifestyle and Developers Pvt. Ltd. for redevelopment of the Society's property on the terms and conditions, stipulations and undertakings stated in the draft Memorandum of Understanding placed before the General Body, discussed and initiated by the Chairman and Secretary for identification.

RESOLVED further that the MOU be signed by all members.

RESOLVED further that the Managing Committee be and is hereby authorized to do all the things that are necessary to carry on the execution of the project of redevelopment, make necessary applications to various authorities and exercise a power of attorney and other matters as stipulated in the MOU.” (emphasis supplied)

5. At this meeting also, the