Society can't be forced to give redevelopment right to builder

Chief Justice Mohit Shah and Justice Nitin Jamdar, last week, dismissed an appeal filed by builder Gopi Gorwani against the trial court's order of April 4 which refused him redevelopment rights of Jeevan Prabha Housing Society in suburban Bandra on the ground that there was no concluded contract between him and the society.

The builder had argued that there was a subsisting and binding contract between him and the society as two resolutions had been passed in March and June last year authorising him to take over the work of redevelopment.

He acted thereon and resolved some issues. He also obtained NOC from the Registrar of Cooperative Societies and gave his time and energy to the project, the builder had said.

The society argued that there was no concluded contract between them and that through another resolution it had decided not to give redevelopment work to the builder.

Dismissing the builder's plea, the judges observed, "Having heard the rival contentions, we are of the view that the trial Judge was right in coming to a conclusion that the Notice of Motion (filed by the builder against the society) deserved to be dismissed."

"Prima facie the correspondence entered into between the parties clearly indicates that the Development Agreement between the parties was not signed. Before the Development Agreement could be signed, the Society, by its resolution dated July 22, 2011, decided not to continue with the appellant as their developer. Thus the Society decided not to enter into any agreement with the appellant," the bench noted.

"The initial resolution of March 31, 2011, it appears, was merely a decision to explore the possibility of redevelopment through the appellant (builder). This resolution and subsequent correspondence indicates that final decision of entrustment of development work to the appellant was yet to be taken, the judges said. (More)