A Cooperative Society's Legal Battle Over Development Rights
In a recent decision by the Bombay High Court, a dispute involving a cooperative housing society and a developer took center stage. The court had to decide whether the Cooperative Court or the regular Civil Court should handle this complicated case. Here's what happened.
This legal battle involves multiple petitions filed by Shri. Vishwas Ramchandra Lashkare and others against M/S. Pancharatna Properties. The main issue is about a development agreement made by the society's Administrator in favor of a developer for a huge sum of Rs.11.74 crore.
At first, the Cooperative Court decided that it had the authority to hear the dispute. However, this decision was challenged, leading to an appeal in the Cooperative Appellate Court.
"The Cooperative Court held that it had jurisdiction to entertain the dispute."
The Appellate Court disagreed with the Cooperative Court's decision, stating that some parts of the dispute were outside its authority. This led the petitioners to approach the High Court.
Justice Amit Borkar of the Bombay High Court looked into the case, focusing on whether the dispute should be handled by the Cooperative Court. The key question was whether the developer was acting on behalf of the society or had its own rights.
The court examined documents like the development agreement and power of attorney to see if the developer was just acting for the society.
"The agreement does not transfer ownership of the land or confer any independent title upon respondent No.1."
The court referred to previous cases, including Margret Almeida v. Bombay Catholic Cooperative Housing Society Ltd., to clarify when a third party can be involved in a cooperative society dispute.
The High Court canceled the Appellate Court's decision, giving the Cooperative Court the authority to handle the entire dispute.
"The judgment and order dated 30 November 2019 of the Cooperative Appellate Court is quashed and set aside."
The Cooperative Court will now look at the whole case again, focusing on whether the development agreement is valid and what role the developer played.
