Bombay High Court: Third-Party Flat Buyers' Rights Dismissed in Redevelopment Dispute

In a recent decision, the Bombay High Court dismissed appeals by third-party flat buyers who wanted to enforce their rights in a redevelopment project. The court decided that these buyers, who had agreements with a developer whose contract was canceled, have no rights that can be enforced against the housing society or the new developer.

Background of the Case

The people who appealed, Mr. Sunil Rohidas Kamthe and another, were third-party flat buyers involved in a redevelopment project managed by Nehru Nagar Vidyut Vilas Co-operative Housing Society Ltd. The original developer, Mr. Amogh Sawant, had his agreement with the society canceled. The buyers argued that they had rights to the property based on their agreements with the developer.

Court's Decision

Judge Kamal Khata was in charge of the case, which involved multiple appeals and temporary requests. The court focused on whether the buyers could claim rights in the society’s property after the developer's contract was canceled.

The court decided that:

• The society was not a "promoter" under the Maharashtra Ownership Flats Act (MOFA) and therefore not responsible for the developer's agreements.
• The cancellation of the development agreement ended any rights the buyers had.
• Buyers' solutions are against the former developer, not the society or the new developer.

"The consistent view of this Court is that buyers claiming through a terminated developer cannot claim or enforce any rights against the Society or the newly appointed developer."

Important Past Cases

The decision referred to several cases, including Vaidehi Akash Housing Pvt. Ltd. vs. D. N. Nagar C.H.S. Union Ltd., which clarified that societies are not responsible as promoters for third-party sales by a developer whose contract was canceled.

Implications for Flat Buyers

This decision highlights that third-party buyers in redevelopment projects should be careful. Their agreements with developers do not guarantee rights against the housing society if the developer's contract is canceled.

Summary of the Verdict

The court's decision makes it clear that flat buyers need to understand the legal rules around redevelopment projects. Buyers should make sure their agreements are solid and be aware of the possible risks involved.

This case serves as a reminder to check the status and rights of developers in redevelopment projects before making any commitments.

For further details, you can refer to the full judgment and related legal cases cited within the decision.