Bombay High Court High Court

Chaudhary Abdul Majid Shahadat & … vs Smt. Shenaz Abdulla Shahadat & Ors on 5 May, 2010

Bombay High Court
Chaudhary Abdul Majid Shahadat & … vs Smt. Shenaz Abdulla Shahadat & Ors on 5 May, 2010
Bench: Anoop V.Mohta
    nms3527.02                             1

                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY

                    ORDINARY ORIGINAL CIVIL JURISDICTION




                                                                                
                        NOTICE OF MOTION NO.3527 OF 2002




                                                        
                                          IN

                               SUIT NO. 4007 OF 2002




                                                       
                                    ALONG WITH

                   COURT RECEIVER'S REPORT NO. 267 OF 2009




                                              
                                          IN
                             igSUIT NO. 4007 OF 2002

                                    ALONG WITH 
                           
                    COURT RECEIVER'S REPORT NO. 73 OF 2010
                                      IN
                            SUIT NO. 4007 OF 2002
         


    Chaudhary Abdul Majid Shahadat & Ors.                        ...Plaintiff.
      



                  Vs.





    Smt. Shenaz Abdulla Shahadat & Ors.                          ...Defendants.



    Ms. Manjiri Shah with Mr. Z.A. Jariwala and Ms. P. Mhatre i/by M/s. 





    Thakore Jariwala & Associates for Plaintiff Nos. 1 and 2.
    Mr. Holambe along with Mr. G.P. Khan for Defendant Nos. 1(a) and 1(b).
    Mr. G.G. Ketkar, 1st Assistant to the Court Receiver, present. 
    Mr.  Virag  Tulzapurkar, Sr. Counsel  with  Ms. Jasmin  Sheth with  Swapnil 
    Khatri i/by M/s. Wadia Ghandy & Co. for Defendant No. 6.
    Ms. Punita Soni i/by M/s. Bilawala & Co. for Defendant Nos. 7,11 to 14,16, 
    17, 27, 28 and 31.
    Mr. Jayesh Bhatt for Defendant No.15.




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    Mr. K.K. Shroff  along with Ms. Snehali Karkera i/by M/s. Dhruva & Co. for 
    Defendant No.8.
    Mr. V.Y. Sanglikar for Defendant No.236 and Flat Purchasers of Flat Nos. 




                                                                                      
    G-42, 44,11,21 & 23.
    Mr. Nainesh Amin for Defendant Nos. 25 and 26.




                                                              
    Mr. M.V. Hakrogi for Defendant Nos. 11 and 13.
    Ms. Deepa Kamath for the Flat Purchaser. 235.




                                                             
                                    CORAM :- ANOOP V. MOHTA, J.

DATED :- 5TH MAY, 2010.

P.C.-

1

As the basic facts, parties and properties are common, interlinked

and interconnected and therefore, for proper understanding of the matter,

for clarity and to avoid repetition; the submissions and the arguments are

made only in these two Motions and the Court Receiver’s Report, and

therefore, this common order, though heard separately one after other. The

facts of both suits are also dealt with separately.

2 (As Per Suit No. 1961 of 2003) The Plaintiff is one of the daughters

of Chaudhary Shaukat Hasmullah (“Shaukat”) who died intestate on 5th

March, 1995 leaving behind 11 heirs. Defendant Nos. 1 to 3 are the sons,

Defendant No.4 is widow and Defendant Nos. 5 to 10 are 6 daughters.

3 The basic prayers in the suit, as well as, in the notice of motion are

for administration of the estate of her father Shaukat and for setting aside

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(a) relinquishment deed dated 1st July, 1995, signed/ executed by the

Plaintiff for release of her share; (b) consent terms dated 15th April, 1998;

(c) development agreement dated 22nd January, 2002 in favour of

Defendant No.32; (d) power of Attorney dated 26th March, 1998 in favour

of Defendant No.1. The Plaintiff along with other heirs of Shaukat

executed a general power of attorney dated 26th March, 1998 in favour of

Defendant No.1 to deal with the suit property. Clause 7 of the Power of

Attorney empowers Defendant No.1 to sign the consent terms. Clause 21

entitles Defendant No.1 to deal with the property for and on behalf of the

Plaintiff. Clause 25 empowers Defendant No.1 to sign, execute and deliver

all contracts, conveyances and assignments and another documents for and

on behalf of the Plaintiff.

4 The Plaintiff has claimed 6.73% interest in the estate of Defendant

Nos. 1 to 3 who are entitled to 13.46% interest in the suit property.

However, in the arguments, restricted as 2.97% of the suit property.

5 The sons of Shaukat (Defendant No.1-3), widow of Shaukat

(Defendant No. 4) and other daughters of Shaukat (Defendant No. 5-11)

have opposed the claims of the Plaintiffs and have affirmed the Deed of

Relinquishment and the Power of Attorney granted in favour of Defendant

No.1 herein. Defendant No.5 and 10 have subsequently filed a contrary

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affidavit however, no independent proceedings challenging the

relinquishment deed have been filed by Defendant No.5 or Defendant No.

10 or any other heir of Shaukat.

6 The Supplementary Deed of Partnership dated 23rd September, 1995

of Haji Shaukat & Co also records that the female members of Shaukat

Branch i.e. Defendant No. 4 (widow), and Plaintiff No.1, Defendant No.

5-11 (daughters of Shaukat) have released their respective undivided

shares in the estate of late Shaukat in favour of Defendant No. 1-3 (sons of

Shaukat). The same release by all the female heirs of Shaukat is also

recorded in the Deed of Partnership dated 11th July, 1995 of Shaukat

Shahadat & Co..

7 As submitted, in written notes also without prejudice that even in the

event prayer (d) of the Plaint is granted i.e. the Consent Decrees are set

aside and the three original suits being Suit No. 1350 of 1980, Suit No. 843

of 1985 and Suit No. 3170 of 1985 are restored, the following shall be the

share of the Plaintiff;

8 M/s. Haji Shaukat & Co. shall have 1/6th or 16.66% share in the Suit

Property to be divided between the then existing partners in their profit

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sharing ratio of 20% each as follows –

Shaukat

Defendant No. 1

Defendant No. 2

Defendant No. 3

Defendant No. 23

Defendant No. 24

Shaukat shall as a partner shall be entitled to 16.66% of 1/6 th in the Suit

Property being 2.97% in the Suit Property.

9 M/s. Shaukat Shahadat & Co. shall have 1/3 share or 33.3% share in

the Suit Property to be divided between the partners then in their profit

sharing ratio as follows.

Shaukat (25%)

Chaudhary Shahadat Hasmullah (25%)

Abdul Basalat (25%)

Rahimtulla Rubali (12.5%)

Defendant No. 23 (12.5%)

Shaukat as a partner shall be entitled to 25% of 1/3 share in the Suit

Property being 8.3% in the Suit Property. Therefore, Shaukat had in the

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aggregate entitled to 2.7% + 8.3% in the Suit Property aggregating to

approximately 11% in the Suit Property.

10 The Plaintiff in Suit No. 1961 of 2003, as an heir of Shaukat may be

entitled to a certain share in this 11% which as per Muslim Law shall

devolve as follows:

                 Widow (1/8)                    =       1.38%                   =        1.38%




                                                           
                 Sons (7/52 each)               =       2.14% each x 3          =        6.42%
                                      
                 Daughter (7/104 each) =                0.45% each x 7          =        3.21%
                                                                                ------------------
                                     
                                                                                =      11%


Therefore, the Plaintiff as per her case will be entitled to 0.45%

share in the Suit Property, in the event prayers as set out in the Plaint are

granted.

11 An amount of Rs.2,05,72,318/- (Rupees Two crores five lakh seventy

two thousand three hundred eighteen only) has been paid by Defendant

No.32 to sons of Shaukat (Defendant No.1,2 and 3) towards their share of

gross sale proceeds under the Development Agreement (which may include

the share of Plaintiff relinquished to Defendant No.1, 2, 3). By and under

order dated 12th August, 2003, in Notice of Motion No. 1922 of 2003 in

Suit No. 1961 of 2003, Defendant Nos. 1 to 4 deposited the sum of Rs.

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5,45,000/- (Rupees five lakhs forty five thousand only) towards their share

of gross sale proceeds under the Development Agreement. Further, by and

under order dated 3rd December, 2008 in Notice of Motion No. 2782 of

2006 in Suit No. 1961 of 2003 refused injunction against the Suit Property

and directed status quo in respect of Flat of Defendant No.1 towards claim

of the plaintiff.

12 The suit property is an immovable property admeasuring 1596.53 sq.

meters situated at Chakala, Andheri (East) Mumbai, (Notice of Motion

3527 of 2002), in Suit No. 4007 of 2002, owned by –

         


    M/s. Haji Shaukat & Co.   M/s. Shaukat Shahadat                                 M/s. Premier Iron  
      



                                             & Co.                                  & Metal Industries
                                                                                    (50% share)

!————————————————————-!

! !
! !
Partners Partners
1 Choudhary Shaukat Hasmullah 1 Shaukat

(“Shaukat”) 2 Choudhary Shahadat
Hasmullah (“Shahadat”)
2 Chaudhary Mohd. Rafiq Shaukat 3 Abdul Basalat Rubali
(D8)
3 Chaudhary Mohd. Zubair 4 Rahimtulla Rubali
Shaukat Ali (D9)

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4 Chaudhary Abdul Gani Shaukat 5 Sharif Hassan Rubali
(D 10) (D 27)

5 Sharif Hassan Rubali (D 27)

6 Ahmed Rubali (D 28)

13 Disputes arose between the partners of M/s. Haji Shaukat & Co. and

M/s. Shaukat Shahadat & Co. resulting in the following proceedings.

(i) Suit No. 1350 of 1980 was filed by Shahadat against Shaukat and

other partners for dissolution and accounts of Shaukat Shahadat & Co. and

declaration that Deed of Retirement of Shahadat was not valid and binding

on him.

(ii) Suit No. 3170 of 1985 was filed by M/s. Shaukat Shahadat & Co.

against Shahadat for declaration that the firm was the co-owner of the Suit

Property and Shahadat had no individual right in the Suit Property.

(iii) Suit No. 843 of 1985 was filed by Shahadat against Shaukat,

Defendant No. 24-26 for declaration that Shahadat was entitled to 1/6th

share in the Suit Property.

14 Shahadat intestate died on 15th March, 1994 and Shaukat died

intestate on 5th March, 1995 leaving behind the following heirs:

(a) Shahadat branch

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——————————————————————–

                 !                            !                                          !




                                                                                                        
          Widow                             Sons                                    Daughters
                 (P4)                         !                                          !




                                                                               
                                              !                                          !
                          ---------------------------                          ------------------------------
                          !         !          !        !                       !        !        !        !




                                                                              
                         P1       P2       P3     D1                            D2    D3      D4     D5
                                                        !
                                                    ----------




                                                                    
                                                     !       !
                                            ig  D1(a)    D1(b)
                                              Widow    Daughter
                                                            (Plaintiffs in Suit No. 1717 of 2009)
                                          
                                                            (Separate from these two suits)
          


    (b) Shaukat branch
       



——————————————————————–

                 !                  !                                           !
          Widow         Sons                                                Daughters





           (D7)                     !                                           !
                                    !                                           !
                    -----------------------            -----------------------------------------------------





                    !         !          !             !         !      !       !        !        !        !
                    D8     D9      D10                 D11  D12  D13   D14    D15   D16                    D17


                                                           (Plaintiffs in Suit No. 1961 of 2003)


    15           The female members of Shaukat branch i.e. widow and 7 daughters 

had vide Deed of Relinquishment dated 1st July, 1995 relinquished all their

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right, title and interest in the estate of Shaukat in favour of the sons of

Shaukat i.e. D8, D9 and D10.

16 By recording above, the Consent Terms dated 15th April, 1998 filed in

Suit No. 1350 of 1980, the aforesaid three suits came to be disposed off

and the shares of each branch of Shaukat and Shahadat family came to be

determined to the extent of 8.50% to the Shahadat branch and to extent of

41.50% to the Shaukat branch.

(As per Suit No. 4007 of 2002)

17 Pursuant to the aforesaid Consent Terms, by and under a

Development Agreement dated 22nd January, 2002 executed between

Defendant No. 24-25 (Qureshis), Defendant No. 6,7, 8 (Shaukat heirs),

Defendant No. 27 (Sheirf Hasan Rubali), Defendant No.1, Defendant No.

2-5, Plaintiff 1-4 (Shahadat heirs), Boman Irani, Percy Chowdhary,

Saifuddin Patel ( as confirming parties) and Defendant No.6, all the

aforesaid parties granted development rights in respect of the Suit Property

in favour of Defendant No.6. Defendant No.1 executed the Development

Agreement on behalf of Plaintiff Nos. 1 to 4 and Defendant Nos. 2 to 5 by

and under Power of Attorney dated 25th April, 1995.

18 Under the Development Agreement the gross sale proceeds to

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generate upon sale of the premises to be constructed in the new building

on the suit land is bifurcated in the manner as set out under the

Development Agreement executed between:

    i)           Defendant No.6.

    ii)          First   Owners   (Premier   Iron   &   Metal   Industries):-  (Mohmd.   Jamil 




                                                                

Mohmd. Ismail Qureshi (Defendant No.24), Mohd. Aquil Mohmd. Ismail

Qureshi (Defendant No.25), Mohmd. Kafil Mohmd. Ismail Qureshi

(Defendant No.26),

iii) Second Owners (Shaukat Branch):- Mohd. Rafique Shaukat

Chaudhary, Mohd. Zubair Shaukat Chaudhary, Abdul Gani Shaukat

Chaudhary, Sharif Hasan Rubakli,

iv) Third Owners (Shahadat Branch):- Chaudhary Abdul Majid

Shahadat (Plaintiff No.1), Mohd. Farooque Shahadat Chaudhary (Plaintiff

No.2), Mrs. Gafurunnisa Shahadat Chaudhary (Plaintiff No.4), Abdulla

Shahadat (Defendant No.1), Mrs. Kulsum Manzoor Khan (Defendant No.

2), Mrs. Saira Afzal Khan (Defendant No.3), Mrs. Shahida Saifullah

Chaudhary (Defendant No.4), Mohd. Llyas Shahadat (Plaintiff No.3), Mrs.

Shabira Ayub Khan (Defendant No.5)

v) Boman Irani (First Confirming Party), Sharfuddin A. Patel (Second

Confirming Party), Mr. Percy Choudhary (Third Confirming Party).

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19 Defendant No.6 commenced construction and development on the

suit property as far back as in January, 2002. In spite of being aware of the

redevelopment undertaken by Defendant No.6 the suit came to be filed on

December, 2002.

20 The plans sanctioned by the authorities envisaged construction of 8

residential buildings and 1 commercial complex. Till the date of filing of

the present suit, Defendant No. 6 has completed construction of 5 buildings

(Wing A to E) and building G and H were under construction. The

Commercial Complex and one Residential Building i.e. Wing F are not yet

completed.

21 By and under and order dated 6th May, 2004 passed by the Court

disposed of Notice of Motion No. 3527 of 2002 along with Notice of

Motion No. 1922 of 2003 in Suit No. 1961 of 2003, where the Court

permitted Defendant No. 6 to continue construction of G and H Buildings.

The Court restrained Defendant No.6 from creating third party rights in

respect of the unsold flats of Buildings G and H.

22 The aforesaid order was carried in appeal by Defendant No.6 being

Appeal No. 558 of 2004 in Notice of Motion No. 3527 of 2002 in Suit No.

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4007 of 2002,l whereby the Division Bench of this Hon’ble Court by its

order dated 21st October, 2004 directed the Court Receiver to act as Court

Commissioner and report to the Court about the status of the suit property.

The Court permitted Defendant No. 6 to complete construction of G and H

buildings but restrained creation of third party rights in respect thereof.

23 In the meantime following settlement took place in Suit No. 4007 of

2002:-

                   Date                  Agreement                   Consideration
                                
    20th April, 2007             Registered   Conveyance  Rs.4,00,00,000/- 

between Defendant No. 235 (Rupees Four Crores
and Plaintiff No.1 Only)
1st August, 2007 Registered Conveyance Rs.1,10,00,000/-

between Defendant No. 235 (Rupees One Crore
and Plaintiff No.2 Ten Lakhs Only)

28th September, 2007 However, in the meanwhile,
Plaintiff No.4 (Widow)
expired

7th November, 2008 Consent Terms with Plaintiff Rs.2,00,00,000/-

No.3 and Defendant No.6 (Rupees Two Crores
(includes share derived only)
from Shahadat and his +
mother, Plaintiff No.4) Flat admeasuring 975
taken on record by the sq.ft.

Hon’ble Court on 17th
January, 2009
28th December, 2007 Registered Conveyance Rs.35,00,000/-

between Defendant Nos. (Rupees Thirty Five
2-5 in favour of Defendant Lakhs) each.

No.235 (includes share
derived from Shahadat and
their mother, Plaintiff No.4)

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24 In view of death of Plaintiff No.4, in Suit No. 4007 of 2002, her

share in the Suit Property devolved as follows:-

1.06% (As per shares in Consent Terms) 2.08% (As claimed by the

Plaintiffs)

As per Muslim Law of Inheritance, the estate of widow will devolve upon

the sons and daughters in the ratio of 2:1 as follows:


    (As per shares in Consent Terms)                  (As claimed by the Plaintiffs)




                                                
    3 sons                   0.21% each
                                   ig                                0.41%

    4 daughters              0.10% each                              0.20%
                                 

Since one of the son (i.e. Defendant No.1) pre-deceased his mother

(Plaintiff No.4), he will not get any share in his mother’s estate as per

Muslim Law.

25 As explained above, by the contesting party, only rights of Plaintiff

No.1 and Plaintiff No.2 accruing to them through Plaintiff No.4 (Widow) is

outstanding. Share of Plaintiff No.1 and Plaintiff No.2 shall be 0.41% each

and therefore aggregating to 0.82%.

Therefore, there is force in the contention raised that, the present

suit only survives to the extent of 0.82% share accruing to Plaintiff No.1

and Plaintiff No.2 through their mother.

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26 Appeal No. 558 of 2004 and Appeal No. 572 of 2004, filed by

Defendant No.6 came up for final hearing before the Division Bench of this

Hon’ble Court. The Division Bench vide its order dated 17th January, 2009,

in view of the “subsequent developments” in the form of settlement

between the parties which were significant and was pleased to set aside the

interim order dated 6th May, 2004 and remitted the Notice of Motion No.

3527 of 2004 in Suit No. 4007 of 2002 and Notice of Motion No. 1922 of

2003 in Suit No. 1961 of 2003 for fresh consideration. The interim order

of Court Receiver was continued till the disposal of the Notice of Motion as

a protection measure. Defendant No. 6 was permitted to grant possession

to the 40 flat purchasers in Wing G and H on satisfying the Receiver that

they have bona fide agreements to sell the flats, substantial consideration

has been paid and that MCGM has granted occupation certificates for the

same flats.

27 All the Flats in Wing A, B, C, D and E are sold to flat purchasers and

the possession of the flats are handed over to such flat purchasers. Wing

A,B, C, D and E are residential buildings, Wing G & H are also residential

buildings and the construction thereof is completed and the occupation

certificate is also given. Wing G and H totally comprises of 56 flats, out of

which 40 flats are sold and letter of allotment were issued accordingly by

Defendant No.6 to various flat purchasers and Defendant No. 6 has

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received substantial consideration thereof. However, possession to the flat

purchasers of these 40 flats as not yet permitted by the Court Receiver in

spite Defendant No.6 having satisfied the Court Receiver in respect of the

requirements as stated above of the Hon’ble Court vide its order dated 17th

January, 2009, the Court Receiver submitted its Report No. 267 of 2009,

dated 8th September, 2009 to the Court for directions. Wing F is a

residential building, the construction whereof is yet to commence and one

more commercial building thereof is proposed to be constructed. In

addition to the buildings to be constructed on the suit land, there are

uncompleted amenities and infrastructure also.

28 Defendant No.1 is entitled to sale proceeds as consideration under

the Development Agreement. Till date Defendant No.6 has paid an

aggregate sum of Rs.67,79,763/- (Rupees Sixty Seven Lakhs Seventy Nine

Thousand Seven Sixty Three only) towards consideration to the Shahadat

branch. Out of the aforesaid sum, a sum of Rs.15,59,421/- (Rupees Fifteen

Lakhs Fifty Nine Thousand Four Hundred and Twenty One only) was paid

by Defendant No. 6 to Defendant No.1 which has been deposited by him in

this Court and a further sum of Rs.52,20,342/- (Rupees Fifty Two Lakhs

Twenty Thousand Three Hundred and Forty Two only) has been deposited

by Defendant No. 6 in this Court on behalf of Shahadat branch.

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29 On 9th April, 2010, as there was no report submitted by the Court

Receiver pursuance to the order passed by the Division Bench, this Court

has directed as follows:-

“1 In view of the order passed by the Division Bench in the
matter, specifically in paragraph No. (2) (ii)(a) read
with Paragraph No.5 of the Court Receiver’s report dated

12th September, 2009, it is desirable that the Court
Receiver to give detailed report, within 10 days, from
today.

2 The liberty is granted to the parties to appear before the
Court Receiver, on 12.04.2010 at 3.00 p.m.

3 The matter be placed on board with additional report of

the Court Receiver, on 22nd April, 2010, as the additional
report is necessary for passing the final order in Notice of
Motions.”

30 The Court Receiver accordingly submitted the Additional Report No.

73 of 2010, dated 20th April, 2010, and prayed that:-

“(a) As B.M.C. Has issued Occupation Certificate in respect of

“G” and “H” wings of the building and the 19 Flat Purchasers
have paid full consideration to the Defendant No.6 as per list
being Exhibit “C”, the Court Receiver may be permitted to put
the said Flat Purchasers in possession of their respective flats as
agent of the Court Receiver upon executing the necessary Agency

Agreement and undertaking, without royalty and security as
per order dated 17th January, 2009.”

31 It is relevant to note the following order of the Division Bench in

Notice of Motion No. 2708 of 2004 in Appeal No. 558 of 2004 in Notice of

Motion No. 3527 of 2002 in Suit No. 4007 of 2002 dated 21/10/2004:-

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“Heard.

2 The notice of motion is returnable on 14th December,
2004.

3 The learned motion Judge observed that construction has
proceeded considerably and it would not be proper now to stop
the construction activity. He also observed that two buildings

consisting of five wings are complete and flats therein have been
sold. The work now remains is in respect of G and H wings and
the commercial complex and in G and H wings also it is said
that some agreements have been entered into.

4 Taking overall facts and circumstances into consideration

and the aforesaid observations made by the learned motion
Judge, we are satisfied that the operation of the impugned order
deserves to be stayed and the following ad-interim order shall

remain operative until further orders:-

(i) The Court Receiver is appointed to act as

Court Commissioner for reporting to this
Court the present status of the property in

dispute. If necessary, the Court
Commissioner may take the assistance and
services of the structural Engineer and
Architect to assist him. The report shall be

submitted by the Court Commissioner as
early as possible and in no case later than
four weeks from the date of deposit of
tentative expenses by the appellant.

(ii) The appellant (defendant No.6) is permitted
to complete the construction of G and H
wings as per the sanctioned plans only
without any alteration or modification.
However, the appellant shall not create any
third party right or interest henceforth in
the G and H wings.

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(iii) The appellant (defendant No.6) is restrained
from proceeding with any further
construction in respect of the commercial

complex.

(iv) The appellant (defendant No.6) shall
furnish to the Court Commissioner the true
and correct copy of the sanctioned plants,
copies of agreements, if any, so far entered

into in respect of flats in G and H wings, the
copies of other necessary documents
necessary for completion of G and H wings
and all other documents that may be

required by the Court Commissioner.

(v)

Liberty to the appellant (defendant No.6) to
apply the court for appropriate direction

after the completion of construction of G
and H wings.

(vi) The appellant (defendant No.6) is directed

to deposit a sum of Rs.25,000/- with the
Court Receiver towards tentative expenses

within ten days from today.”

32 It is necessary to note first of all in above back-ground basic prayers

in these two suits which are as under:-

As per Suit No. 1961 of 2003-

“a) that this Hon’ble Court be pleased to declare that
purported Power of Attorney dated 26th March, 1998
(Exhibit “C” hereto) and purported writing dated 1st
July, 1995 (Exhibit “D” hereto) are illegal, null and
void.

b) that Defendant Nos. 1 to 3 and 23 or any of them or
any other Defendant who may be in the possession of

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the alleged Power of Attorney dated 26th March, 1998
Exhibit “C” hereto and the writing dated 1st July, 1995
Exhibit “D” hereto be ordered by this Hon’ble Court to

deliver up the same to this Hon’ble Court for
cancellation and the same be ordered and decreed to be

cancelled by this Hon’ble Court;

c) in the alternative it be declared that the said purported
writing (Exhibit “D”) hereto has not been acted upon

and was never intended to be acted upon.

d) that this Hon’ble Court be pleased to set aside the

consent decree passed on 15th April, 1998 in Suit No.
1350 of 1980, 843 of 1985 and 3170 of 1985 and

restore the said suits to file.

e) This Hon’ble Court be pleased to declare that Agreement

dated 22nd January, 2002 purporting to be entered into
between 1st Defendants and other Defendants being
Exhibit “E” hereto is a sham and bogus document and
the same be delivered up and cancelled.

g) That it be declared that Plaintiff has 6.73 share or such
other percentage share as may be found in the entire
estate of late Shaukat Hasmulla including property at
Chakala and the same be delivered up to her by

partitioning the same by metres and bounds and for
that purpose the properties and estate of late Mr.
Shaukat Hasmullah be administered under the Order
and direction of this Hon’ble Court in accordance with
law.”

based upon that the Plaintiffs have taken out Notice of Motion for interim

reliefs.

    33           The prayers in Suit No. 4007 of 2002 are-

                 a)    that this Hon'ble Court be pleased to set aside the consent  




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decree passed on 15th April, 1998 in Suit Nos. 1350 of
1980, 843 of 1985 and 3170 of 1985 and restore the
said suits to file.

b) this Hon’ble Court be pleased to declare that Agreements

entered into between Defendants and Defendant No. 6 in
respect of the suit property are void, illegal and without
any effect in law and be ordered to be cancelled.

c) that the 6th Defendants by themselves, their servants,
agents and persons claiming through or under them be
restrained by a permanent order and injunction of this

Hon’ble Court from in any manner directly or indirectly
entering upon the suit property described in Scheduled

“A”, A1 hereto or from carrying out any construction
thereon;

cc) That this Hon’ble Court be pleased to- (added by the
Complainant in 2005)

(i) Declare that the Defendant Nos. 34 to 248 have no
right title or interest or any part or portion of the

suit property described in Exhibits A and A1 to the
Plaint or on any part or portion of the residential
and/or commercial buildings constructed/ being
constructed thereon.

(ii) That the agreements entered into between the
Defendant No. 6 on the one hand and the
Defendant nos. 34 to 248 on the other hand are all

illegal, null and void and not binding upon the
Plaintiffs.

(iii) That the Defendant Nos. 34 to 248 be ordered and
decreed to hand over to the Plaintiffs quiet, vacant
and peaceful possession of the premises of which
possession is stated to have been given to the said
Defendant Nos. 34 to 248.

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(iv) The Defendant Nos. 34 to 248 be restrained by a
perpetual order and injunction from in any
manner remaining upon and/or entering any part

or portion of the suit property described in Exhibits
A and A1 hereto.

(v) That the Defendant Nos. 34 to 248 be restrained
by an order and injunction from in any manner
dealing with, encumbering, parting with

possession, including any third parties, including
by way of leave and license agreement/ caretaker
agreements or otherwise creating third party rights
in respect of the premises or any part or portion

thereof purportedly purchased by the said
Defendants by entering into agreements with

Defendant No.6.

(vi) That it be declared that all IODs, Ccs and other
permissions, NOC, sanctions and licenses granted
by Defendant Nos. 249 and 250 for carrying out
and/or in aid of development and/or construction
on the suit properties described in Exhibits A and

A1 to the Plaint are all illegal, null and void and

not binding upon the Plaintiff and the Defendant
Nos. 249 and 250 be ordered and directed to
withdraw/revoke/cancel the same.

(vii) That interim and ad-interim reliefs be granted in
terms of prayer clauses (cc) (iii) to (cc) (v) above.”

34 From the above prayer clauses itself it is very clear that the Plaintiffs

want, the Court to decide and declare the power of Attorney dated 26th

March, 1998 purported writing dated 1st July, 1995 and also prayed to set

aside the consent decree passed on 15th April, 1998 in Suit No. 1350 of

1980, 843 of 1985 and 3170 of 1985. The declaration is also sought with

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regard to the agreement dated 22nd January, 2002, purporting to be sham

and bogus document. The declaration is also sought that the Plaintiff has

6.73% share and/or such other percentage share in the entire estate of late

Mr. Shaukat Hasmulla and therefore, sought administration of the same

also. The relief of restrainment was also sought against Defendant No.32

interfering upon the suit property as described in Schedule-Exhibit “A”.

Importantly, such declaration itself such relief and for such declaration is

their exists those detailed executed documents, in view of the consent

terms of the year 1998. The alleged writing is also of the 1st July, 1995.

The suit is for the year 2003, basically after the agreement dated 22nd

January, 2002. The averments so raised in the plaint read with the

supporting documents, even if placed on record unless adjudicated and

decided finally by leading supporting evidence, I am not inclined to accept

the case of the Plaintiffs based upon this averments so raised to grant ad-

interim reliefs as contended.

35 As per Suit No. 4007 of 2002:-

The multiple prayer clauses are made for similar reliefs revolving

around the same consent terms dated 15th April, 1998, the agreement

entered into by Defendant No.6 in respect of the suit property. The

declaration with regard to the Defendant No.34 to 248 is added by

amendment in the year 2005, read with further declaration that all IODs,

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Ccs, other permissions, NOC, sanctions and licenses granted by Defendant

No.249 and 250 for carrying out and/or in aid of development and

construction on the suit properties are to declare the same as illegal, null

and void and not binding. The existence of those documents are not at all

in dispute. The prayers are made to declare those actions and the

documents null and void. Therefore, if the existence are not at all in

dispute and the prayers are to declare the said documents null and void

including all transactions based upon the same unless granted finally, there

is no case of interim relief, as prayed. Most of the parties have already

acted upon on the same. The conduct of the parties and the delay on their

part in filing such suit and seeking declaration of such type of orders which

goes to the root of the documents. Therefore, unless decided by giving full

opportunity to both the parties, I am not inclined to accept the case of the

contesting Plaintiffs only, as some of the plaintiffs are even settled the

matter pending these motions itself.

36 Assume for a moment that the case made out by the Plaintiffs with

regard to their shares, based upon the alleged misrepresentation and of

fraud, yet, in view of above facts and circumstances are quite nominal and

shall be subject to grant in the suit after due trial only. The respective

shares and the claims based upon the same, even if so raised, just cannot

be the reason to overlook the existence of those documents as referred

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above and the conduct of the parties at the relevant time, by accepting

those terms and conditions of those documents actually participated and

acted upon. The Apex Court in M. Gurudas & Ors. Vs. Rasaranjan &

Ors., AIR 2006 S.C. 3275, has considered one of such aspect, which

according to me is relevant to be noted for the present matter i.e. in a

partition suit the Court needs to consider the extent of plaintiffs shares in

the property. As noted, at this prima facie stage, it is not possible for the

Court to decide the shares of the Plaintiffs, even if so agitated and as unless

the prayers so raised/made are decided finally, no case is made out for

grant of reliefs so contended.

37 In Anand Prasad Agarwalla Vs. Tarkeshwar Prasad & Ors., AIR

2001, S.C. 2367, as relied by the learned counsel appearing for the

Plaintiffs referring to Order 39 Rule 1 and 2 of Code of Civil Procedure (for

short, CPC), it is held by the Apex Court, that the Court cannot held mini

trial at the stage of grant of temporary injunction and examine various

aspect of case. This principle, in my view, supports the case of a contesting

Defendants in all respect, as basic reading of the prayers and the averments

so raised in the plaint, as well as, in the Notice of motion, itself shows that

there exists various registered documents/ consent decrees and therefore,

the existences of the same, if not in dispute, and unless that is decided

finally in due trial, those prayer clauses itself are not sufficient to grant the

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reliefs so prayed by the Plaintiffs, at this stage of the Proceedings and to

halt the construction which has been proceeded pursuance to the orders

passed by this Court from time to time.

38 There is no serious dispute, which is clear from the record also the

first order dated 6th May, 2004 in Notice of Motion No.270 of 2004 in Suit

No. 4007 of 2004 and order dated 21st October, 2004 passed by the

Division Bench of this Court in Notice of Motion No. 2708 of 2004 arising

out of the order in Motion No. 3527 of 2002 and as recorded above and the

work/ construction of 2 buildings consisting of 5 wings even completed

and the flats have been sold. The work in respect of “G” and “H” wings

and commercial complex are not completed and as some of the flats in “G”

and “H” wings, some agreements have been entered into, the Division

Bench has appointed the Court Receiver to act as a Commissioner for

reporting the status of the property in dispute. Defendant No.6, has been

permitted to complete the construction of “G” and “H” wings as per the

sanctioned plan. However, directed that the Appellant should not create

any third party rights or interest. Defendant No.6 was also restrain from

proceeding further in respect of the construction of Commercial Complex.

As the Division Bench has also directed to Defendant No.6 to submit the

relevant documents, sanctioned plans with regard to the completion of “G”

and “H” wings. The liberty was also granted to apply for appropriate order

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or directions after the completion of construction of “G” and “H” wings.

From the record, it is clear that the parties acted upon the same and

proceeded accordingly except above there was no any direction and/or

restrainment order against the contesting Defendants. It also means, the

Court Receiver has been appointed by the Division Bench to supervise the

construction itself. The statement is, as recorded that the construction is

completed of “G” and “H” wings, except Commercial property.

39

It is relevant to note the order passed by the Division Bench, on 17th

January, 2009, in Appeal No. 558 of 2004 in Notice of Motion No. 3527 of

2002 in Suit No. 4007 of 2002 which is reproduced as under:-

“1 This appeal arises out of the order dated 6.5.2004 passed
by the learned Single Judge of this Court in notice of motion no.

3527 of 2002 in Suit No.4007 of 2002. It is common ground
before us that after the order dated 6.5.2004 was made by the
learned Single Judge, certain developments have taken place in
that suit in the form of settlement being reached by some of the

Plaintiffs with the contesting defendants who are appellants in
this appeal, and death of one of the Plaintiffs as also transfer of
interest by some of the plaintiffs. These developments definitely
have bearing on the type of interim order that should operate
during the pendency of the suit. The appellant has also placed

on record consent terms arrived at between the appellant and
the respondent no.3 who was plaintiff no.3 in the suit, they are
taken on record and marked “X” for identification. In our
opinion, in view of these subsequent developments which are
significant so far as the type of interim order that should
operate during the pendency of the suit is concerned, requires
re-consideration of notice of motion which has been decided by
the learned Single Judge. It is also common ground that this
Court has made an ad-interim order in this appeal dated
21.10.2004 which is presently operating.

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2 Taking overall view of the matter, therefore, in our
opinion, the following order would meet the ends of justice:-

(I) The order dated 6.5.2004 passed by the learned Single
Judge of this Court in notice of motion no. 3527 of 2002 in suit
no.4007 of 2002 is set aside. That notice of motion is remitted
back to the learned Single Judge for fresh consideration and

decision. The appellant shall file an affidavit in that notice of
motion within a period of two weeks from today bringing on
record subsequent developments that, according to the
appellant, have taken place during the pendency of the appeal.
Office shall also place on record of the learned Single Judge the

consent terms at “X” for the consideration of the learned Single
Judge. During the pendency of the notice of motion before the

learned Single Judge, ad-interim order dated 21.10.2004
passed in notice of motion no. 2708 of 2004 in this appeal,
shall continue to operate with the following additions:

(i) The Receiver of this Court will continue to function as
before the ad-interim order dated 21.10.2004.

(II) We have been informed that in Wing “G” and Wing “H”
there are total 56 flats. According to the learned Counsel
appearing for appellant, out of 56 flats, 40 flats have been
agreed to be sold and substantial consideration has been

received from the purchasers. According to the parties,
therefore, there is no reason as to why possession of those 40
flats cannot be given to the purchasers. This position is not
disputed before us presently. However, in our opinion, it will
not be appropriate to make blanket order for delivery of

possession. In our opinion, the following order would meet the
ends of justice:-

(a) The appellant and the flat purchasers may produce before
the Receiver material to establish that full consideration has
been received by the defendant no.6 from the flat purchasers
and proper agreements has been entered into in their favour in
respect of the flats and also the documents to show that the
Corporation has granted occupation certificate for occupation of

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those flats. In short, the defendant no.6 and the flat purchasers
have to satisfy the Receiver that they are bonafide agreements to
sell the flats and substantial consideration has been paid.

Possession of the flats may be given to such purchasers as agent
of the Receiver on usual terms and conditions except royalty and

security.

This order will not come in the way of the Corporation
granting occupation certificate, if otherwise, the defendant no.6
is entitled to the occupation certificate in accordance with law.

(III) This order will operate during the pendency of the notice
of motion before the learned Single Judge, with liberty to the
parties to apply for modification of the same, in case there are

any subsequent development. It is made clear that the
occupation of 40 flats would be as the agents of the Receiver

without royalty and security and they will have to abide by all
other conditions as agents.

(IV) The learned Single Judge is requested to dispose of the
notice of motion as expeditiously as possible.”

40 The Division Bench has noted the subsequent events/ developments

pending the Notice of Motion including the consent terms entered into by

some of the Plaintiffs and after recording the same, ordered to dispose of

the motion, as expeditiously as possible, afresh. By putting/filing

additional contentions/additions here again the Court Receiver as already

appointed, directed to continue before the ad-interim order in the Appeal

dated 21/10/2004. The Division Bench has even ordered and observed

“there is no reason as to why the possession of those 40 flats cannot be

given to the purchasers, by recording that in Wings “G” and “H” there are

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56 flats and out of that 40 flats agreed to be sold and substantial

consideration has been received by the Developers. The contention was

added that the Appellant and the Flat purchasers to produced necessary

documents to establish the respective rights and claims, apart from

occupation certificate for occupation of those flats. It is specifically

observed that “possession of the flats may be given to such purchasers as

agent of the Receiver on usual terms and conditions except royalty and

security.” The liberty was also granted to the parties to apply for

modification of this order.

41 The Court Receiver Report No. 267 of 2009 in Suit No. 4007 of

2002, dated 8th September, 2009, submitted by the Court Receiver for

appropriate order basically with regard to the allotment of 40 flats by

treating the same as valid agreements under the Maharashtra Ownership

Flats (Regulations of the Promotion of Construction, Sale, Management

and Transfer) Act, 1963(for short, “the MOF Act”).

42 It is necessary here to note the earlier Court Receiver’s Report of the

year 2004 dated 23rd June, 2004, as the Court Receiver was appointed by

an order dated 6th May, 2004 passed in Notice of Motion No. 270 of 2004

in Suit No. 4007 of 2004, the said report reflects that the representative of

the Court Receiver visited the suit property and even made inventory of the

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flats sold and the construction and the details were submitted in the

Exhibit A and B to the report covering the Names of the flat purchaser, total

consideration paid, the date of possession and the various remarks

referring to the flats, the allotment letter and the date. The allotment letter

ranges for the period from 21/06/2002 up to 05/06/2003 of about 40

flats.

43 It is necessary to note the last additional report dated 20th April,

2010 submitted by the Court Receiver pursuance to the order dated 9th

April, 2010 passed by this Court, in view of Division Bench order dated 17 th

January, 2009 basically paragraph No.2 II (a) read with paragraph No.5 of

the Court Receivers report dated 8th September, 2009, there is no reference

made about the earlier report dated 23rd June, 2004 and basically details of

the respective flats and the date of allotment/ letters and the consideration

so paid. However, it is observed by referring to annexure “C” as under:-

“6. Upon considering the letters dated 29th July, 2009 and
12th April, 2010 of Advocate for Plaintiff Nos. 1 and 2,
and submission dated 12th April, 2010 of Advocate for

Defendant No.15 and Annexure “C” of submission dated
15th April, 2010 of Defendant No.6 and oral submission
of Advocate for some of the Flat purchasers recorded in
metting note dated 16th April, 2010, the Court Receiver is
of opinion that 19 Flats Purchasers have letter of
allotment/Agreements and have paid full consideration
to Defendant No.6 as per the receipt filed in the office of
the Court Receiver. Hereto annexed and marked as
Exhibit “E” (Colly) are the copies of the aforesaid letters
dated 29th July, 2009, 12th April, 2010 and 15th April,

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2010 and Exhibit “F” (Colly.) are the copies of the
Minutes of Meeting dated 12th April, 2010 and 16th April,
2010.

7. Considering all the submissions of Advocate for parties as

well as Advocate for Flat Purchasers i.e. Jalan Family, 19
flat purchasers as per list being Exhibit “C” to this report
may be considered having letter of allotment/ agreement
and have paid full consideration and possession of Flats

may be given to such Flat Purchasers as agent of the
Court Receiver on usual terms and condition without
royalty and security as per order dated 17th January,
2009.”

44

Though reference was made of 34 flat purchasers, yet prayer is

sought only for 19 flat purchasers. In no order the Court Receiver has been

directed to decide the validity of these documents. The order was to assist/

to verify the proceedings with regard to the details of the purchaser of

respective flats, so that the appropriate order of giving possession, subject

to existing Agency Agreement and undertaking without royalty and

security, can be passed by the Court. There was no opinion sought from

the Receiver to decide and to take decision as prayed in this report. The

important facet in such matters, which is clear from the orders already

passed by the Court from time to time, is to verify the bonafide

transactions/ Agreements pending the proceedings at that time.

45 The material so placed on record with regard to 40 flats, the

purchasers importantly covering the letter of allotments read with

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respective consideration and the substantial amount so paid and deposited

as further supported by the Zoroastrian Co-operative Bank Limited and as

was already placed on record by an affidavit dated 14th January, 2004, 25th

February, 2004 of Defendant No. 34, Defendant No.6, in Notice of Motion

No. 3527 of 2002 in Suit No. 4007 of 2002, just cannot be overlooked even

to consider the case in view of order so passed by the Division Bench. In

absence of any restrainment order, it is quite natural that the concerned

parties proceeded to complete the project, as early as possible. It is also

natural that pending such litigation, some parties may make payment

subsequently. As recorded, some of the parties have paid the substantial

amount/ consideration based upon the letter of allotments which is

recorded above ranges from the year 2002 to 2003. It means, even prior to

the order passed on 6th May, 2004 and even if, there are transactions and

the rights have been created subsequently, still in my view, in absence of

any restrainment order those transactions, just cannot be overlooked.

46 In the construction/ development of property transactions, it is

possible that the parties may enter into oral transactions of the respective

flats. There is no bar. However, appropriate registration and execution of

documents subsequently, as per the requirements of law, as relevant, just

cannot be the reason to deny such purchasers their rights to claim the

possession of the respective flats from the builder/developer as agreed.

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The party like the Plaintiffs, cannot raised such objection to deny the rights

and obligations so created by the parties by executing the agreements

which reflected firstly in letter of allotment and secondly by payment of

respective consideration which may not be 100% because of pendency of

the litigations. In my view, the letter of allotment read with consideration

paid at the relevant time and as not denied by the parties, unless denied

and disputes the same, no third person/ party can object. Even if objected

unless decided in their favour, those documents/ agreements are sufficient

to consider, at this stage to grant possession of the flats to the flat

purchasers.

47 The list of 46 flat purchasers and their respective payments is a part

of record. The Receiver, by giving his opinion, restricted only to the 19 flat

purchasers, which in my view, is not correct. The Plaintiffs suit, as well as,

Notice of Motions and the orders passed thereon which are modified from

time to time, and the pendency of hearing, that itself cannot be the reason

not to deal with handing over the possession of such purchasers. It is not

in the interest of anybody that such project be halted basically when the

shortage of accommodation is at large, in the city. The Court has

appointed the Court Receiver to supervise the construction and which has

been going on. This also, in my view, safeguards the interest of all for the

time being.

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48 It is very much necessary to note here that the Builder/Contractor/

Promoter, as well as, the respective members/ purchasers of the Flats, are

bound by their obligations, as well as their rights. The aspect of registered

covenants between the Plaintiff Nos. 1 and 2 with Defendant No. 235 dated

20th August, 2007, dated 11th August, 2007, the consent terms with Plaintiff

No. 3, Defendant No.6, dated 7th November, 2008, the registered covenant

between Defendant No.1 and 5, in favour of Defendant No. 235 are also

subsequent relevant factor, which goes against the Plaintiffs and such other

supporting Defendants.

49 Even if, there are allegations made about non compliance of various

purchase, non performance of obligations, breach of trust,

misrepresentation, fraud and all these facets need detailed inquiry. The

internal dispute so raised between the family members, by the Plaintiffs

who have a very nominal shares in the property as recorded above, cannot

be adjudicated finally at this interim stage itself. It is settled that if it is

difficult to partition the property, the alternative remedy is to compensate

such person and/or owner of the property by paying the market rate

compensation. The parties based upon the various consent terms,

agreements and registered documents have constructed various wings on

the suit property and now occupied by various other purchasers also. The

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total area of the plot/ property even if taken note of, have already been

developed/constructed and in occupation of large number of occupants/

members who have also formed the society, even if there are allegations of

breaches of various terms and conditions including of provisions of law and

based upon which the contesting Plaintiffs want to re-agitate and re-open

the whole transactions and by filing such suit after such long time/ period,

therefore, the conduct of the parties, in my view, is also relevant factor

which goes against the contesting plaintiffs/ Defendants.

50 After the death of original party, the legal heirs now want to re-

agitate and re-open the issue/ transaction. Some of the plaintiffs agitated

the issue of fraud/ misappropriation pending the litigation, some of the

plaintiffs have settled the matter though they raised such allegations by

filing the suit at initial stage. The internal dispute, even if any, of family

members by considering the developments of the property as recorded

above and the fact that the respective shares of the concerned plaintiffs are

quite less in proportion, I see, there is no reason to halt the project. The

basic elements of balance of convenience, equity, irreparable injury goes

against the Plaintiffs but supporting the case and submission of contesting

Defendants and the purchasers/ members. The conduct and the delay

aspect, in the present facts and circumstances, also goes against the

Plaintiffs. The monitory aspect, as recorded, is also relevant factor, as the

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Plaintiffs can be compensated, if they made out their case, after due trial.

51 It is relevant to note that the matter was also adjourned for various

occasions for the settlement, in view of above, but it could not be

materialized. It will be in the interest of both the parties that such matters

be settled and all should co-operate to complete the project.

52

The learned Senior Counsel appearing for the concerned Defendants,

on instructions, even submitted that they are ready and willing to deposit

the monitory part of considering the share of the respective plaintiffs, if

any. He also submitted that there is no question of continuing the Receiver

in view of subsequent development. However, I am of the view that, since

beginning the Development and Construction on the plot in question, has

been under the supervision of the Court Receiver/ Commissioner, and it is

accordingly proceeded further till this date. Therefore, there is no reason

that it should not be continued till the decision of the suit. Both the suits

are expedited. In view of this, the following order:-

O R D E R

a) The Court Receiver, as appointed for only supervision of

the Development/ construction as Commissioner on the

suit property to continue till the decision of the suits.

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The Receiver shall not interfere and obstruct the day to

day constructions and the affairs of the maintenance of

the Buildings and/or as of the society.

b) The Court Receiver’s Report No. 73 of 2001 is allowed

subject to following modification:-

a) The Court Receiver is directed to give the

possession of the flat to the flat purchasers as agent of

the Court Receiver by executing the necessary Agency

Agreement and without royalty and security as per the

list Exhibit “C” i.e. 46 flat purchasers with all amenities,

car parking space allotted to the flats, if any. It is made

clear that those 46 flat purchasers shall not create any

third party rights or interest in the property without

leave of the Court.

c) The Builder/Promoter, the respective Defendants

maintained the Accounts as already directed and

submitted the same to the Court Receiver for every 6

months, till the disposal of the suits. The respective

rights and obligations of the parties including providing

necessary amenities to continue as per the agreement

and as per the law.

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d) The liberty is granted to the concerned Developer/

parties/ Defendants to sought leave/ permission/ order

from the Court, if they wish to develop remaining

commercial complex and residential building “F” on the

suit property including the car parking space attached to

the flats, if any. It is made clear that the remaining

commercial complex and residential buildings, to be

constructed, subject to sanction and permission in

accordance with law; and no physical possession should

be given to any third person without leave of the Court.

e) It is made clear that no third party right/ interest will

be created on 10% of this undeveloped commercial

complex/ Residential Building (F) without the leave of

the Court, Defendant No.6 to submit the map to the

Receiver de-marketing 10% of the area as observed

above, within four months, with due notice to concerned

Plaintiffs/ Defendants.

f) In view of above, both the Notice of Motions are

accordingly disposed of.

g) Both the Court Receiver’s Report are also disposed of,

accordingly. No costs.

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h) It is made clear that any construction is subject to the

suits decision. All the parties to proceed in accordance

with law with regard to the documentations including

registration, if any.

i) The learned counsel appearing for the Plaintiffs seeks

stay of this order. Now as the order is passed to hand

over possession and permitted construction of

commercial wings and therefore, I am inclined to stay

the effect and operation of this order for six weeks only.

(ANOOP V. MOHTA, J.)

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