Key Property-Related Legal Disputes Arising in Mumbai
1
Redevelopment Disputes
Primary Dispute Categories
- Institutional Projects: Common in old cooperative housing societies, MHADA cess buildings, and SRA projects.
- Execution Failures: Issues often arise due to delays or non-execution of redevelopment agreements, disputes over rent compensation or corpus payment, and failure to obtain IOD/CC or other necessary approvals.
- Statutory Termination: Societies frequently invoke Section 79A of the Maharashtra Cooperative Societies Act, 1960 for termination of non-performing developers.
- Legal Countermeasures: Developers file suits or arbitration petitions seeking specific performance or injunctions against termination.
- Multi-Agency Involvement: Regulatory authorities such as MHADA, SRA, and the Registrar of Cooperative Societies are often involved in parallel proceedings.
- Judicial Intervention: Societies file Writ Petitions against MCGM and developers for unauthorized constructions and illegal demolitions concerning notices issued under Section 354 of the MMC Act and Section 488 of the MMC Act.
1.1
Issues Related to Third-Party Rights
Issues arise when the old developer is terminated by the society due to their failure to perform under the Development Agreement (DA) and the society wishes to enter into a new DA. Third-party purchasers who purchased flats from the old developer file suits seeking reservations of flats in the existing building.
Judicial Precedent Analysis
The law is well established with respect to:
Vaidehi Akash Housing Pvt. Ltd. vs. New D.K. Nagar Co-operative Housing Society Ltd.
2015 SCC OnLine Bom 512
Supreme Court of India
and
Goregaon Pearl Co-operative Housing Society Ltd. vs. M/s. Gokuldham Developers
2019 SCC OnLine Bom 2904
Bombay High Court
Holding: The society, after terminating the developer, is entitled to enter into fresh agreements with new developers without being constrained by reservations made by the old developer.