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2023 Supreme(Online)(Bom) 22844

APPELLATE SIDE,BOMBAY
M. S. KARNIK, J
RAVI WAMAN MHATRE – Appellant
Versus
M/S. VIGHNAHARTA ENTERPRISES (REGISTERED PARTNERSHIP FIRM) – Respondent
CP 63 2022



The court emphasized the balance of convenience and irreparable loss in injunction cases, allowing construction to proceed despite ongoing litigation.

Headnote:(A) Specific Relief Act, 1963 - Section 14 - Injunction - The plaintiffs filed a suit for declaration and cancellation of agreements with defendant no.1, alleging fraudulent inclusion of properties and lack of development. The trial court granted an injunction preventing construction by defendants 2 to 4. The court found that the defendant no.1's delay in seeking injunction and the plaintiffs' prior agreements justified allowing construction. (Paras 1, 6, 17)

(B) The court ruled that the construction should be allowed to continue to avoid irreparable loss to defendants 2 to 4 and that the plaintiffs had not demonstrated substantial injury. (Paras 15, 16)

Facts of the case:
Plaintiffs entered into multiple agreements with defendant no.1 for property development but alleged no action was taken. They later executed agreements with defendants 2 to 4 for development, leading to a suit after defendant no.1 sought an injunction. (Paras 2-5)

Findings of Court:
The appeals were partly allowed, permitting construction on the property while restricting further third-party rights above the ninth floor until the case's resolution. (Paras 17)

Issues: The primary issues included the validity of the agreements and the appropriateness of the injunction granted by the trial court. (Paras 12, 15)

Ratio Decidendi: The court emphasized the need to balance the rights of the parties, allowing construction to proceed while recognizing the plaintiffs' ownership and the need to avoid irreparable harm to defendants 2 to 4. (Paras 16, 17)

Result: Appeals partly allowed, with specific conditions regarding construction and third-party rights.

ORDER

1.The challenge in this Appeal from Order is to an order dated 18.12.2020 passed by the Civil Judge, Senior Division. Appellants in AO No. 2 of 2021 are original Defendant nos. 2 to 4. The Appellants in AO No. 854 of 2022 are the original plaintiffs. Appeal from Order No. 854 of 2022 is filed by the original plaintiffs challenging the very same impugned order. The interest of the appellants is common. The contest is between the appellants in both the Appeal from Orders on one side and the respondent no.1-defendant no.1 on the other.

2. The plaintiff nos. 1 to 25 (present respondent nos.2 to 26) filed a suit for declaration, avoidance and cancellation of contract and injunction. The details of the suit properties are mentioned in the plaint. The plaintiffs entered into Development agreement with the defendant no.1 on 22.12.2007 and executed Confirmation Deed, Power of Attorney on 16.01.2010 with respect to the suit properties mentioned in serial nos. 1 to 4 in the suit. An unregistered Memorandum of Understanding (MoU) dated 15.12.2010 was entered between the plaintiffs and the defendant no.1 in respect of the properties mentioned at serial nos. 5 to 11 in the plaint.

3. The plaintiffs executed registered Developments agreements with defendant no.2-firm on 16.10.2014 with regard to property at serial no. 65 (serial no.9). Another Development agreement with regard to serial no.73/9A and survey no. 72/1 (admeasuring 5300 square metres), at serial nos. 10 and 11 with defendant no.2-firm came to be executed. The plaintiffs on 16.10.2014, executed registered agreement of sale in favour of defendant nos. 3 and 4 in respect of property survey no. 72/1 (admeasuring 1600 square metres) at serial no. 10 in the plaint.

4. It is the case of the plaintiffs that despite the Development agreement in favour of defendant no.1 and despite verbal assurance of defendant no.1 that he shall commence with development of suit property nos. 1 to 4, nothing was done, no development activities were carried out between the period December 2007 till 2014. It is the case of the plaintiffs that the defendant no.1 has fraudulently included in the suit agreement, certain properties owned by the plaintiffs i.e. nos. 9 to 12 with survey no. 65, 73/1, 73/9A and 73/4, which were not intended nor agreed to be given for the development.

It is the case that the Development agreement was delayed and according to the plaintiffs, the defendant no.1 had no intention to develop the suit properties.

5.Sometime in 2014, the plaintiff being in monetary need, decided to develop their property nos. 9 to 11 (survey nos. 65, 73/1 and 73/9A) and agreed to grant development right of suit properties nos. 9 to 11 to defendant nos. 2 to 4. Thereafter, Development agreement registered on 16.10.2014 was executed by the plaintiff in favour of defendant no.2 M/s. Vighnaharta Enterprises and granted development rights in respect of suit property no. 9 together with Power of Attorney dated 16.10.2014 in favour of the partner of defendant no.2-firm. Agreement of sale dated 16.10.2014 was also entered in respect of the suit property no. 10 by the petitioners in favour of defendant no.2. The possession of the suit property nos. 9 to 11 was handed over to the defendant nos,. 2 to 4. It is averred that the plaintiffs had discussion with defendant no.1 for settlement since 2014 and even offered to return the amount of Rs. 60 Lakhs, which they had received pursuant to the deposit of the suit agreement the plaintiff had with the defendant no. 1. That the defendant no.1 came to the suit properties on 27.09.2015 and threatened to take forcible possession of the suit properties. The plaintiffs as an abundant caution terminated the Development agreement dated 13.02.2007 and the Power of Attorney executed by Advocate's notice dated 09.02.2015. The suit is therefore filed for declaring the agreements entered into between the plaintiffs and defendant no.1, and suit agreements/development agreements/Power

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