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Rajawadi Arunodaya Chsl v. Value Projects Pvt. Ltd. .

Bombay High Court

Jan 7, 2021

Judgment

CaseIQ

Smart Summary (Beta)

Factual and Procedural Background

This opinion, delivered by G.S. Patel, J., was heard through video conferencing. The court was dealing with two rival Section 9 Petitions involving a society and the developer, Value Projects Private Limited. Counsel in court reported receipt of a notice from the Municipal Corporation of Greater Mumbai (MCGM), which stated that the property under development is attached for arrears of property tax dues and that no further development permissions will be granted in respect of that property. It was also stated that, because of the arrears, the developer may not receive building permissions for other projects within the city or the MCGM's command area. In light of this notice, the court directed procedural steps to involve the MCGM in the proceedings and issued timelines for amendment and service.

Legal Issues Presented

Whether the Municipal Corporation of Greater Mumbai (MCGM) should be joined to both Section 9 petitions in view of the MCGM's notice concerning attachment of the property for property tax arrears and the consequent restrictions on development permissions.
Whether the petitions should be amended to join the MCGM through its Building Proposals Department and whether copies of the main petitions should be served on the MCGM's legal department to safeguard the statutory authority's interests.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court's analysis proceeded from an administrative fact reported in court: the MCGM had attached the property for arrears of property tax and had communicated that no further development permissions would be granted in respect of that property, with potential impact on the developer's ability to obtain permissions elsewhere in the MCGM's jurisdiction. The judge reasoned that because the statutory authority's action directly affects the subject matter of the rival Section 9 Petitions and could influence the rights and obligations of the parties, the MCGM must be made a party to the proceedings to ensure its interests are not inadvertently compromised by any future order.

On that basis the court directed a series of procedural measures to operationalize joinder and participation by the MCGM:

Both petitions are to be amended to join the MCGM through its Building Proposals Department.
Copies of the main petitions (excluding all affidavits) are to be served on the MCGM's legal department.
The Court Associate is to contact Mr. Sagar Patil, who regularly appears for the MCGM in this Court, and ask him to accept the brief so that further orders can be passed with all interests in mind.
Amendments must be filed in hard and soft copy on or before 11 January 2021, without the need for reverification.
A further listing was directed for 15 January 2021.
The order will be effective upon production of a digitally signed copy signed by the Private Secretary of the Court.

Holding and Implications

Core Ruling: Both Section 9 petitions are ordered to be amended to join the Municipal Corporation of Greater Mumbai (MCGM) through its Building Proposals Department.

Direct consequences of this holding for the parties are:

The developer (Value Projects Private Limited) and the society must amend their petitions to include the MCGM as a party and serve copies of the main petitions on the MCGM's legal department.
The specified procedural timeline requires amendments in hard and soft copy by 11 January 2021 and a hearing/listing on 15 January 2021.
The Court Associate will seek to secure counsel (Mr. Sagar Patil) to represent the MCGM so the statutory authority's interests are formally placed before the court.
The order becomes operative on production of a digitally signed copy by the Private Secretary of the Court.

The opinion does not discuss broader legal implications or state that it establishes any new legal precedent; its effect is procedural and confined to joining the MCGM and ensuring its participation in the pending Section 9 petitions.

Show all summary ...

G.S. Patel, J.:— Heard through video conferencing.

2. Mr. Shah need to take instructions on behalf of the Developer, Value Projects Private Limited, pursuant to some discussions in Court today.

3. In the meantime, Mr. Khandeparkar states that a notice has been received from the MCGM. A copy of this is to be sent by the Advocates for the society to the Advocates for the developer on or before 9 January 2021.

4. It seems that the MCGM has said that the property under the development is now under attachment for arrears of property tax dues. It is also stated that no further development permissions of any kind will be given to anybody in respect of this particular property. It is also further stated, or so I am told, that the developer itself will, because of this question of arrears of property tax, not receive any building permissions for any other project elsewhere in the city or in the command area of the MCGM.

5. This requires, to my mind, the joinder of the MCGM through the appropriate department to both Section 9 Petitions. Clearly it is necessary in the interest not only of the two Petitioners in the rival petitions, i.e. the society and the developer, but also to ensure that the interests of the statutory authority are not even inadvertently comprised in any order that may come to be passed hereafter.

6. Accordingly, both Petitions are to be amended to join the MCGM through its building proposals department. Copies of the main Petitions (though not all Affidavits) are to be served on the MCGM's legal department. I will request the Court Associate to contact Mr. Sagar Patil who regularly appears for the MCGM in this Court and ask him to accept the brief so that further orders can be passed keeping the interest of all in mind.

7. Amendments in both the matters are to be carried out in hard copy and soft copy on or before 11 January 2021, without need of reverification.

8. List the matters on 15 January 2021.

9. This order will be digitally signed by the Private Secretary of this Court. All concerned will act on production of a digitally signed copy of this order.