Housing society can approach other builder for redevelopment: HC
The HC upheld a single judge's order that prima facie said there was no concluded contract to carry out redevelopment between the society and Kalpataru
Sep 16, 2014
Source : The Times of India
Bombay High Court


MUMBAI: There was no relief from the Bombay high court for Kalpataru Properties in a mega redevelopment project in Kandivli. A division bench of Justice S J Vazifdar and Revati Dhere refused to grant an interim order seeking the appointment of a court receiver and restraining Majhitia Nagar cooperative society from assigning the project to another builder.

The HC upheld a single judge's order that prima facie said there was no concluded contract to carry out redevelopment between the society and Kalpataru.

"If an injunction is granted, almost 300 members will be deprived the benefit of enjoying their property during the pendency of the suit. On the other hand, the (Kalpataru) always has a right to claim damages," the judges said, adding, "Members of the society ought not to be denied the right to better living and better facilities." The court said a resolution passed by the society in 2005 accepting Kalpataru's bid was not enough to say that there was a concluded contract.

"There was, therefore, between the parties only an agreement to enter into an agreement, which is not enforceable in law," the judges said. The HC said the society's undertaking that it would not appoint a new builder would continue to operate till October 15, 2014, to allow the developer to file an appeal.

The society on S V Road had six old buildings with 17 wings and comprised 284 residential flats, 12 shops and a commercial unit. In 2004, following tenders, it accepted a bid to construct four 18-stor- ey towers.

While the flat-owners, shop-owners and bank will be rehoused in an area of around 1.50 lakh sq ft, the developer will be eligible to sell over 1.26 lakh sq ft in the open market. A year later, the society sought to terminate the dealing, which Kalpataru filed a suit against. The developer filed an application seeking an interim order restraining the society from looking for another builder, saying it had a concluded a contract with it.

Kalpataru said there was a contract with the society.

The high court did not agree and said that while there were negotiations and draft agreements exchanged, there was no signed formal agreement.

"The importance of a signed agreement is often greater when many members are involved, all of whom have a stake in the redevelopment of the premises," the court said.

Latest Realty News

Triumph for Robert Vadra as Delhi HC rejects PIL for CBI probe into Gurgaon land deals
Sep 16, 2014
The Delhi High Court today dismissed a PIL seeking a court-monitored CBI probe into various land deals allegedly entered into by Robert Vadra's firms
Government may form database on suppression of property sales amount
Sep 16, 2014
In an exercise aimed at checking blackmoney, economic intelligence agencies have started identifying instances where proceeds from property sale have been suppressed in a bid to defraud the government of revenue from stamp duty
Scarce industrial land a major problem in UP
Sep 16, 2014
The scarcity of industrial land is emerging as a major impediment to the entry of new micro, small and medium enterprises (MSMEs) in Uttar Pradesh
Activists protest against move to amend land acquisition act
Sep 16, 2014
Union minister Nitin Gadkari said on Monday that the Narendra Modi government was weighing amendments in the land acquisition act to speed up development projects
Flat buyers register complaint with minister
Sep 16, 2014
Representatives of NEFOWA (Noida Extension Flat Owners Welfare Association) met Uttar Pradesh urban development minister Azam Khan on Monday and presented him a list of complaints about upcoming real estate projects in Greater Noida and Noida
Land rates up, but authority goes easy on group housing
Sep 16, 2014
Properties along Yamuna Expressway have just become costlier, after Yamuna Expressway Industrial Development Authority (YEIDA), in a board meeting on Monday, passed a proposal to hike land allotment rates
Gujarat Housing Board asked to pay for failing to give house for 15 years
Sep 16, 2014
As the Gujarat Housing Board (GHB) conducted draws recently and promised housing units to thousands of people in near future, Shahpur's Prakash Modi is likely to get his deposits back nearly 15 years after he had booked a house in GHB scheme, which was never materialized
'Revise taxes to build smart cities'
Sep 16, 2014
In what may seem like a hint at a not-very-free flow of funds from the Centre, Union urban development minister M Venkaiah Naidu on Monday made it clear that only revision of taxes and reforms in civic administration would help build smart cities, they would not come free
DDA amends policy, installing lifts now easier
Sep 16, 2014
Installing lifts at DDA apartment blocks in the capital is set to become easier with the Authority scrapping a clause requiring an affidavit stating that no modifications have been made to the building's terrace
PCMC razes just 1% of illegal buildings
Sep 15, 2014
The Pimpri Chinchwad Municipal Corporation (PCMC), which has pulled down 680 of 66,000 unauthorized constructions in the past two years, is yet to receive government response on regularization of illegal buildings

Latest Realty News Of State

Realty Talk's