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2026 Supreme(Bom) 169

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Kamal Khata, J.
Cable Corporation of India Limited - Appellant
Versus
The Western Edge II Premises – Respondent
Appeal From Order No. 14 of 2024 With Interim Application No.241 of 2024
Decided On : 17-03-2026

Advocates Appeared:
For the Appellant : Mr. Aspi Chinoy, Sr. Adv. a/w. Mr. Nikhil Sakhardande, Sr. Adv.,Mr. Yash Momaya, Mr. Munaf Virjee, Mr. Rushabh Parekh i/b. AMR Law
For the Respondent: Mr. Mehul Shah a/w Mr. Yatin Kochar, Ms. Nishita Joshi and Ms. Chaitali Jadhav, Ms. Bhakti Mehta, Ms. Shubadha Khandekar, Ms. Letishiya Chaturvedi i/b. Wadia Ghandy & Co.

Landowner granting limited FSI/TDR rights to independent developer, reserving balance acknowledged by purchasers, not 'promoter' under MOFA; cannot be injuncted from using reserved rights; bare injunction suit without declaration not maintainable.

Headnote:(A) Maharashtra Ownership Flats Act, 1963 - Sections 2(c), 4, 7, 11, 16 - Landowner granting limited development rights over portion of larger property to independent developer, capping FSI/TDR at specific quantum fully consumed in constructed buildings, expressly reserving balance FSI/TDR acknowledged in agreements for sale executed by developer with flat purchasers, not a “promoter” who “causes to be constructed” buildings for sale; developer acts in own right bearing costs, risks, profits; flat purchasers cannot claim balance FSI/TDR beyond promoter’s entitlement under nemo dat principle; Section 7 prohibiting alterations/additions without consent inapplicable to landowner’s independent development using reserved FSI/TDR never part of disclosed project. Suit for bare injunction without declaratory relief on disputed entitlement not maintainable, plaint rejected under Order VII Rule 11(d) CPC. (Paras 62-140)

(B) Code of Civil Procedure, 1908 - Order VII Rule 11(d) - Suit barred where plaintiff claims rights over reserved FSI/TDR contrary to contracts without seeking declaration of entitlement or invalidity of reservations; abuse of process where filed post-failure of negotiations to obtain additional FSI for regularising unauthorised additions. (Paras 113-138)

(C) Development Agreements - Express clauses limiting developer’s FSI/TDR, reserving balance to landowner, with developer marketing/selling independently, not creating agency/joint venture; powers of attorney merely procedural for approvals, do not alter substantive independent contractor relationship. (Paras 64-71)

Facts of the case:
Landowner of larger property granted developer rights over suit land portion for development using capped FSI/TDR fully exhausted in three buildings; agreements for sale disclosed limitation and reservation to flat purchasers; occupation certificates issued, possession handed over; later, society sought injunction against landowner utilising reserved balance FSI/TDR for new construction after negotiations failed for additional FSI to regularise society’s excess usage from unauthorised alterations; trial court granted interim relief.

Findings of Court:
Impugned injunction quashed; suit dismissed as not maintainable; costs imposed on society.

Issues: Whether landowner is “promoter” under Section 2(c) MOFA; validity/enforceability of FSI/TDR reservations; applicability of Section 7 MOFA to reserved rights; maintainability of bare injunction suit without declaration on disputed rights; prima facie case for interim relief.

Ratio Decidendi: “Promoter” requires active construction/sale involvement, not mere grant of limited rights to independent developer; reservations specifically disclosed not “blanket consent” violating Section 7; disputed title/right necessitates declaration before injunction; no prima facie case, balance of convenience against restraint on landowner’s proprietary rights.

Result: Appeal allowed.

Table of Content
1. appeal challenges injunction freezing owner's reserved fsi. (Para 1 , 2 , 3 , 4)
2. limited fsi granted to developer; balance reserved to owner. (Para 5 , 6 , 7 , 8 , 9)
3. society seeks extra fsi for unauthorized alterations regularization. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
4. landowner not mofa promoter; contracts limit developer fsi. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
5. owner causes construction, qualifies as promoter needing consent. (Para 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48)
6. no agency; bare injunction invalid without title declaration. (Para 49 , 50 , 51 , 52 , 53 , 54 , 55 , 56 , 57 , 58 , 59 , 60)
7. developer independent; fsi reservation specifically disclosed. (Para 61 , 62 , 63 , 64 , 65 , 66 , 67 , 68 , 69 , 70 , 71)
8. granting dev rights does not make owner mofa promoter. (Para 72 , 73 , 74 , 75 , 76 , 77 , 78 , 79 , 80 , 81 , 82 , 83 , 84 , 85 , 86 , 87 , 88 , 89)
9. section 7 inapplicable to owner's independent reserved fsi use. (Para 90 , 91 , 92 , 93 , 94 , 95 , 96 , 97 , 98 , 99 , 100 , 101 , 102 , 103 , 104 , 105 , 106 , 107 , 108 , 109 , 110 , 111 , 112)
10. bare injunction suit barred without declaration of rights. (Para 113 , 114 , 115 , 116 , 117 , 118 , 119 , 120 , 121 , 122 , 123 , 124 , 125 , 126 , 127 , 128)
11. plaint rejected as abuse for pressuring fsi transfer. (Para 129 , 130 , 131 , 132 , 133 , 134 , 135 , 136 , 137 , 138 , 139 , 140)

JUDGEMENT :

KAMAL KHATA, J.

1. This Appeal has been preferred by the Appellant/Original Defendant No.1 (“the Owner”) under Order XLIII Rule 1(r) challenging the Order dated 30th October 2023 passed by the Learned Additional Principal Judge, City Civil Court at Dindoshi, in Notice of Motion No. 2989 of 2022 in S.C. Suit No. 2103 of 2022 ("Impugned Order").

2. By the Impugned Order, the Learned Trial Court allowed the Notice of Motion filed by Respondent No. 1 ("the Society") and has granted injunction restraining the Appellant-Owner from utilising any FSI/TDR, creating third-party rights, and or commencing any construction on the land bearing CTS Nos. 165 and 163A admeasuring approximately 31,123 sq. mtrs. at Village Magathane, Borivali, Mumbai (“Suit Land”).

3. The Owner's grievance against the impugned Order is threefold.

i. The Trial Court has granted sweeping and drastic interim reliefs which effectively freeze the entire development potential of the Suit Land, even though the Society has failed to establish any prima facie case entitling it to the Owner's reserved and contractually demarcated FSI/TDR rights.

ii. Second, that the Trial Court has completely overlooked the express terms of the Development Agreements of 2005 and 2008, as well as the Agreements for Sale executed with the flat purchasers, which clearly record that development rights of Respondent No. 2 were restricted to 59,157 sq. mtrs. FSI/TDR, while the balance FSI/TDR was expressly reserved to the Owner.

iii.Third, that the Trial Court has failed to consider that the present suit has been instituted by the Society as a means to pressurize the Owner to part with additional FSI/TDR, allegedly required for regularisation of unauthorised additions and alterations in the Society’s own building.

4. In these circumstances, the principal question that arises in this Appeal is:

Whether, pending final adjudication of the Suit, an Owner who has expressly reserved its balance FSI/TDR rights under Development Agreements - which are incorporated and acknowledged by the flat purchasers' in their own Agreements for Sale - can nevertheless be injuncted from dealing with those reserved rights solely on the basis of the Society's claim that it is entitled to such balance FSI/TDR under the provisions of the MAHARASHTRA OWNERSHIP FLATS ACT , 1963 ("MOFA").

FACTS OF THE CASE

5. It is an undisputed fact that the Appellant is an owner of the land parcels bearing CTS No.165 and 163A totally admeasuring 151,328 sq.mtrs. si

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