Unit allotment disputes not for courts to decide: Bombay HC

In a trendsetting order concerning unit allotment disputes between developers and occupants in the cases of redevelopment the Bombay HC has observed that courts cannot intervene in such matters and that the two parties have to come to an understandingThe high court made the observation while hearing a writ petition filed by four commercial shop owners from Girgaum in south Mumbai They had sought a stay on the demolition of their shops claiming injustice with the developer allotting them less space on the ground floor and more on the first floor The HC refused an interim relief and directed MHADA to take a final callThe developer demolished the shops on Friday October 21 as per the direction of the Maharashtra Housing and Area Development Authority MHADAThe disputeD R Developers led by Vijay Jain and Vikas Jain is undertaking the redevelopment of Annapurna Sadan Prabhu Bhuvan and Pathak buildings located at V P Road and Ardeshir Dadi cross lane in Girgaum Owners of shops at Pathak building disputed the unit allotmentsA groundplus3floor structure Pathak is being redeveloped into a ground plus 21 storied tower It originally has 24 tenantsfamilies and four commercial shop ownersAlso Read Mumbai Real estate developer dies by suicide by jumping off highrise buildingD R Developers received written consent of the 24 families but not from the owners of the commercial shops number 1 2 7 and 22 They were not happy with the allotment of more space on the first floor and little on the ground They wanted more space on the ground floor as they are in the business of selling heavyduty metal pipes They cited problems in transporting the heavyduty products to the first floorActing as per the MHADA Act the developer demolished the top three floors but couldnrsquot touch the shops without consent Being the nonconsenting occupants the shop owners didnrsquot give consent even for the redevelopment resulting in loss of time and finances to the developerThe shop owners had moved the Court of Small Causes in early 2022 seeking a stay on the shopsrsquo demolition stating that they were unhappy with the allotment The court refused to grant any relief to the shop ownersNo relief in HCThereafter the four shop owners filed a writ petition in the HC where Justices S V Gangapurwala and R N Laddha refused to intervene Passing an order on October 11 they held that it ldquowould not be possible for the court in its writ jurisdiction to embark upon the investigation or enquiry as to how and in what manner the space would be allotted to petitioner in redeveloped project and that it is for the petitioner and the developers to arrive at an arrangementrdquoldquoIt would not be within the domain of the court to discuss and decide about the area that can be allotted to petitioners on ground and first floorsrdquo the bench addedThe bench directed MHADA to decide the application of the shop owners and take a final callMHADArsquos Mumbai Building Repair and Reconstruction Board MBRRB in its report on October 13 said ldquoThe developer had submitted the plan approved by the BMC As per the amended approved plan six shops society office pump room meter room two lift parking and lobby are provided on the ground floor The space is occupied by mandatory amenities and other occupier shops The developer has given more area in the proposed building than certified by this officerdquoThe MBRRB directed the shop owners to vacate for demolitionThe shop owners however filed another writ petition in the high court against MHADArsquos directions The HC bench on October 19 disposed of the matter stating ldquoNo further orders are necessary in the matterrdquoA crucial orderVijay Jain the developer told midday ldquoThe demands made by the tenants shop owners were exorbitant and malicious Their unfair demands delayed the project by nine months It has not only hampered us financially but prolonged the 24 familiesrsquo wait to move into their new home I feel there should be a clear policy regarding relocation and allotment of commercial shops in the redeveloped project as itrsquos the major point of debate and argument in the cityrdquoJaved Khan Akhtar lawyer representing the developer said ldquoThe HCrsquos order is important as far as the redevelopment in the city is concerned There has to be some solution to the deadlock between developers and tenants when such a situation arisesrdquoRepeated calls to Advcate Natasha Keraspan Bhot who represented the shop owners went unanswered11Day in October the Bombay high court passed the order