IMPORTANT POINT
The main legal point established in the judgment is that the execution of a formal Development Agreement is not always necessary to conclude a contract, especially when a definite offer has been made and accepted without qualification.

JUDGMENT :

1. The plaintiff – Pittie Antariksh Grl Pvt. Ltd (for short ‘Antariksh’), a Private Company engaged in the business of Real Estate, Construction and Development has filed a Suit, seeking a declaration for a valid, binding and subsisting contract with the defendant in terms of the letters dated 30/8/2021 and 23/10/2021, and for a decree of its performance and to do all acts, including execution of the development agreement as necessary for effectively performing the contract as recorded in the above mentioned letters. A declaration is also sought that the letter dated 24/5/2023 issued by the defendants, terminating the arrangement between the parties, is illegal, contrary to law and non-est.

2. A permanent and mandatory injunction is sought against the Defendant, Kher Nagar Sai Prasad Co-operative Housing Society Ltd. (Referred to as “Society”) from entering into an agreement, appointing another developer for redevelopment of the defendant’s building and/or creating third party rights in respect of the suit property.

Interim Application (L) No. 27970/2023 is filed in the Suit claiming the following reliefs pending the hearing and final disposal of the suit:

“(a) This Hon’ble Court be pleased to pass an interim and temporary injunction against the defendant restraining the defendant, its members, representatives, nominees, and assigns/or from entering into any agreement, appointing another developer for redevelopment of the defendant’s building and/or creating any third party rights in respect of the Suit property.

(b). This Hon’ble Court be pleased to stay effect and implementation of the defendant’s letter dated 24th May 2023 and restrain the defendant and its members from acting in furtherance of the said letter dated 24th May 2023.

(c). For interim and ad-interim reliefs in terms of prayer clauses (a) and (b)”

3. Heard Mr.Sharan Jagtiani, Sr. Advocate along with Mr.Karl Tamboly for the plaintiff/applicant and Advocate Aseem Naphade i/b Aditya Shirke for the defendant.

In order to consider the Interim Application, it is necessary to refer to the background facts in the wake of which the reliefs are sought.

4. The defendant no.1 is a Co-operative Housing Society Limited registered under the Maharashtra Co-operative Societies Act and is a lessee of the property admeasuring 1066.94 sq.m situated at Survey no.341 (PT) and City Survey No.04 (Part) at Kher Nagar, Bandra (East), in Mumbai City. A ground plus two floor building is standing on the suit land which has accommodated 54 tenants.

Since the Society was desirous of redeveloping its property, in the Special General Meeting held on 31/7/2021, the plaintiff was provisionally selected as a developer and on 4/8/2021, an offer letter was issued in its favour.

5. On 7/8/2021, Antariksh was informed that the final selection and its appointment as Developer for the redevelopment project will be done after following the procedure in the Special General Body Meeting, which shall be conducted in accordance with the provisions under Section 79A of the Maharashtra Co-operative Societies Act. However, the letter is issued on the basis of the final offer letter dated 4/8/2021.

The letter categorically stipulated as under :-

“We are happy to inform you that in the Special General Body Meeting held on 31st July 2021, our members by majority, have provisionally selected you as developers for redevelopment of our Society Building.

The final selection and your appointment as the Developers for our Redevelopment project will be done after following procedure and in the Special General Body Meeting which will be conducted by the Authorised Officer appointed by Deputy Registrar, Co-operative Society, H/East Ward, Mumbai as per the procedure laid down under section 79A of Maharashtra Co-operative Society Act, 1960 with respect to redevelopment of buildings of co-operative housing societies.

Please