The absence of a direct contractual relationship prohibits third-party purchasers from claiming specific performance against the society post-termination of the development agreement.

JUDGMENT :

KAMAL KHATA, J.

1. The present suit pertains to a development project at village Bhandup, Taluka Kurla in the suburban district of Mumbai. The Plaintiffs claim to be purchasers of flats in the project known as ‘Arihant’ developed by Saga Infra Projects Pvt. Ltd. (Defendant No.1) (‘Saga’). The project land belongs to Shree Gurudatta Police Co- operative Housing Society Ltd., (Defendant No.15) (‘Police Society’). Under the Development Agreement dated 10^th April 2008 the Police Society granted development rights in respect of the said land to Saga.

2. Saga has pre-sold several flats in the project even before fulfilling its obligations under the Development Agreement executed with the Police Society. The Police Society has thereafter terminated the Development Agreement with Saga for non-compliance with the terms and conditions. Consequently, the third-party purchasers of flats in the project have filed the present suit against Saga and the Police Society.

3. By this Notice of Motion, the Plaintiffs seek appointment of the Court Receiver, High Court, Bombay, as Receiver of the suit property, with a direction to appoint the Plaintiffs as agents without payment of compensation or security. Furthermore, in their capacity as agents of the Court Receiver, the Plaintiffs seek permission-

(i) to construct and complete the building;

(ii) to supervise the construction on the suit plot;

(iii) to attend the meetings convened by the members of the Plaintiffs society for the purpose of appointing project management consultants, architects, RCC consultants, developers and other agencies from time to time;

(iv) to supervise the construction work until the possession of the suit flats are handed over to the purchasers; and

(v) to monitor the society’s fund flow and expenditure and to receive audited accounts of the Plaintiffs from time to time until completion of the project.

4. The Plaintiffs also seek that the Defendants be directed to: (i) deposit all monies received by them from the purchasers of Arihant Bhandup in this Court, with liberty to the Plaintiff to utilize the said funds for the construction of the building under supervision of the Court receiver; and (ii) execute and sign, from time to time, all necessary papers, documents, affidavits, writings as may be necessary and expedient for commencement and completion of the project.

5. Additionally, the Plaintiffs seek that the Defendants and all persons claiming through or under them be restrained by an order and injunction of this Court from, in any manner whatsoever, directly or indirectly selling, parting with possession or encumbering or creating any third party rights or authorizing or empowering any third party to deal with and/or sell or transfer the free sale area component sold to the Plaintiffs herein.

Development Agreement with Society and steps taken by Saga

6. Ms. Murali learned Advocate for the Plaintiff submits that pursuant to Development Agreement executed on 10^th April 2008, Saga undertook the following steps:

(i) Obtained Intimation of Disapproval (IoD) from the MCGM on 9^th October 2009;

(ii) Secured a Commencement Certificate (CC) on 26th February 2010 from MCGM;

(iii) Obtained an NOC on 7^th April 2010 from Tata Electric Company for shifting the high-tension cables (pylons);

(iv) Between 2010 and 2011, the