IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
ARAVIND KUMAR, ASHUTOSH SHASTRI, JJ.
SAROJBEN KIRITBHAI SHAH – Appellant
Versus
AHMEDABAD MUNICIPAL CORPORATION – Respondent
Letters Patent Appeal No. 1075 of 2022, Special Civil Application No. 8530 of 2019, Civil Application (For Stay) No. 1 of 2022
Decided On : 23-01-2023
LETTERS PATENT APPEAL - OWNERSHIP FLATS ACT - REDEVELOPMENT - CONSENT OF 75% MEMBERS - SUBSTANTIAL COMPLIANCE OF PROVISIONS - WRIT OF MANDAMUS - EVICTION OF NON-CONSENTING MEMBER - WRIT COURT'S JURISDICTION - INTERPRETATION OF STATUTE - LITERAL RULE.
Fact of the Case:
Petitioner society, a registered Co-operative Housing Society, sought redevelopment of its 11 residential complexes, comprising 78 flats, constructed in 1971. Due to the dilapidated condition of the buildings, the society resolved to redevelop the property and obtained the necessary permissions from the authorities. However, one member, respondent No. 9, objected to the redevelopment. The society approached the High Court seeking a writ of mandamus to compel respondent No. 9 to hand over vacant possession of her flat for redevelopment. The High Court allowed the petition and directed respondent No. 9 to hand over possession within eight weeks.
Finding of the Court:
The High Court held that the society had substantially complied with the provisions of Section 41A of the Gujarat Ownership Flats Act, 1973, and the relevant rules. The Court found that the society had obtained the consent of more than 75% of the members for redevelopment, appointed a Project Consultant, and taken all necessary steps as required by the law. The Court also held that the writ court had the jurisdiction to issue a writ of mandamus to compel respondent No. 9 to hand over possession of her flat, as the society had exhausted all other remedies available to it.
Issues: 1. Whether the society had substantially complied with the provisions of Section 41A of the Gujarat Ownership Flats Act, 1973, and the relevant rules for redevelopment? 2. Whether the writ court had the jurisdiction to issue a writ of mandamus to compel respondent No. 9 to hand over possession of her flat?
Ratio Decidendi: 1. The Court held that the society had substantially complied with the provisions of Section 41A of the Gujarat Ownership Flats Act, 1973, and the relevant rules for redevelopment. The Court found that the society had obtained the consent of more than 75% of the members for redevelopment, appointed a Project Consultant, and taken all necessary steps as required by the law. 2. The Court held that the writ court had the jurisdiction to issue a writ of mandamus to compel respondent No. 9 to hand over possession of her flat, as the society had exhausted all other remedies available to it.
Final Decision: The High Court dismissed the Letters Patent Appeal filed by respondent No. 9 and affirmed the judgment of the Single Judge. The Court directed respondent No. 9 to hand over possession of her flat to the society within eight weeks.
JUDGMENT :
ARAVIND KUMAR, J.
1. Present Letters Patent Appeal under Clause 15 of the Letters Patent is directed against the judgment and order passed by learned Single Judge dated 21.6.2022 in Special Civil Application No. 8530 of 2019.
2. Background of facts which has given rise to present Letters Patent Appeal are quoted hereunder:
(1) Original petitioner is a registered Co-operative Housing Society, consisting of several residential units, total 11 residential complexes, in which 78 flats were constructed over the land at Jodhpur, Satellite, Ahmedabad way back in the year 1971. Said flats were constructed prior to almost more than 50 years, and were constructed by a Co-operative Housing Society, namely Swami Vivekanand Nagar Co-op. Housing Society Ltd. pursuant to Building Permission granted in 1969. On account of passage of time and quality of construction, the condition of building deteriorated and said residential flats became dilapidated since several years and slabs practically in each block were deteriorated and have got damaged and internal steel frames in RCC slabs has also become damaged and are in such dangerous situation that even repair work is not possible to maintain its strength and realizing such structural damage of residential flats, general body of members of the society resolved to go for redevelopment and for that purpose, an advertisement came to be issued on 8.9.2018. Pursuant to such advertisement, a developer namely Excel Life Space LLP and other developers approached the petitioner society. Negotiations took place and ultimately, petitioner society decided to go for such redevelopment work with Excel Life Space LLP - a developer of their society. Respondent - original petitioner informed Ahmedabad Municipal Corporation (for short ‘Corporation’) about such structural damage which requires immediate attention and as such, a request was made to extend permission. In response to that, authorized representative of original respondent No. 1 made a spot visit on 12.12.2018 and realizing the position of construction prevailing of flats, a notice under Section 264 was issued on 15.12.2018 (one notice in common to whole society and one specifically to block No. D). By issuing such notice, respondent Corporation called upon the petitioner society to repair the damage under the supervision of Structural Engineer and submit necessary structural stability certificate as well.
(2) It is the case of the opponent society, who is original petitioner, that on request for structural stability report from one Shreeji Structurals and Structural Engineer they have clearly opined to demolish the building and to reconstruct building and a detailed report came to be submitted on 7.1.2019 attached along with the photographs and said report along with photographs are part of Annexure-IV. Original petitioner in addition to it has also got Non-Destructive testing done by M.K. Soil Laboratory and report of such laboratory has also clearly opined that property in question, i.e. flats are of about 45 years old and test result of rebound hammer and ultrasonic pulse velocity tests indicate that quality of concrete/building is very bad and doubtful and in turn, has also opined to get structural engineer’s report at the earliest. Petitioner society then on 29.3.2019 submitted structural engineer report and soil test report to the respondent corporation and requested again to take necessary steps by submitting representation. But, then authorities did not respond to the same but by passage of time, out of 78 members of petitioner society, 65 members have signed MoU and process for 9 other consenting members for signing MoU was under process as some of them are living abroad and as such, 74 members out of 78 have signed the notarized consent letter agreeing for redevelopment and overall consensus, almost in majority have generated for redevelopment instead of repairs. Original respondent Nos. 5 to 9 initially did not agree for redevelopment,
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AI
The court upheld the validity of the redevelopment process under Section 41A of the Gujarat Ownership Flats Act, 1973, and directed the respondents to vacate their flats and hand over peaceful and va....
The decision established that objections from individual members should not stall the redevelopment process initiated by the majority consent of a co-operative society, provided the society complies ....
The court upheld the validity of the redevelopment project under Section 41A of the Gujarat Ownership Flats Act, 1973, based on the majority consent of the members, dilapidated condition of the build....
A co-operative society's decision for redevelopment, supported by majority consent, is binding on all members, and individual objections cannot impede the process if statutory conditions are satisfie....
Majority consent in cooperative societies is binding for redevelopment under Section 41A of the Gujarat Ownership Flats Act, enabling courts to enforce compliance despite minority objections.
A cooperative society can proceed with redevelopment if 75% of members consent, prioritizing safety and majority decisions over individual objections.
Members of a cooperative society must adhere to the society's decisions and bylaws, losing individual rights in favor of collective governance.
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