Quick Summary: The Bombay High Court decided in favor of Janakalyan Sahakari Bank, rejecting a challenge to a property claim related to a development agreement dispute.
Janakalyan Sahakari Bank Limited, a cooperative bank, was in a legal fight with several parties, including the State of Maharashtra and developers Anil and Sachin Damle, over a property in Mumbai. The disagreement was about a Development Agreement signed in 2011.
Back in 2011, Anil and Sachin Damle signed a Development Agreement with Avishkar Developers to develop a property for Rs. 1.13 crore. This agreement allowed the developers to sell units and manage the property development.
"The developers were allowed to sign all necessary documents for the sale and to receive and keep the payment as their own."
Janakalyan Bank had given loans to APT Infratech Solutions LLP, with Anil and Sachin Damle as guarantors. When the loans weren't paid back, the bank moved to recover its money, leading to the claim on the developers' rights in the property.
In 2022, a recovery certificate was issued against APT Infratech, leading to the claim on the property rights. Anil and Sachin Damle objected, saying they had canceled the development agreement in 2023.
"The Revisional Authority decided that the developer had no remaining rights in the property and that the claim was invalid."
The court, led by Justice Amit Borkar, decided that Anil and Sachin Damle still had rights in the property according to the 2011 agreement. The cancellation notice through a lawyer was not enough to cancel the agreement.
"A simple notice through a lawyer does not have any legal power to cancel a registered agreement."
The court restored the Special Recovery Officer's decision, allowing Janakalyan Sahakari Bank to continue with the claim. The judgment emphasized that Anil and Sachin Damle's rights were valid and enforceable under the original agreement.
"The rights given to the developer were clear, enforceable, and backed by payment."
This decision shows the importance of following legal steps for canceling registered agreements and highlights Janakalyan Sahakari Bank's right to recover its money through property claims.
