The respondent no. 2 urged that, the building was meant for persons from the lower income group therefore permission from Social Welfare Department (SWD) was necessary. Since permission is not obtained the whole project is illegal. However he fails to show to court that, how the SWD has authority over the redevelopment project under Maharashtra Town Planning Act. Court observed that, till date no less than 13 cases were filed, against public officers, however he have not challenged the Development Agreement or the society’s resolution.
The developer has already spend Rs. 6.20 Crores and yet building is not demolished. Hence the developer invoked arbitration and then filed present petition.
The society’s General Body resolution is the foundation document. Without that resolution and assent of 70% members of the society could never have come into being. Decision taken by majority binds all. The said decision is not challenged and it is in force. All members are bound by agreement that was entered into by society with developer. Hence mandatory order passed to vacate the flat and deliver the possession to society. However, court ensures that he will be afforded all the benefits including transit rent, transit accommodation, shifting and corpus charges.
Chirag Infra vs. Vijay Jwala Co. Op. Hsg., Arb.P.(L)no. 108/2021, Mumbai