Builder can’t force redevelopment sans society nod: Court

MUMBAI: A housing society cannot be forced to let a builder redevelop its building in the absence of a final agreement between them, the Bombay high court has ruled.

Hearing an application filed by builder Gopi Gorwani, a division bench of Chief Justice Mohit Shah and Justice Nitin Jamdar dismissed the plea seeking an order restraining Jeevan Prabha cooperative housing society from dealing with any other builder for redeveloping the Bandra property.

"Ultimately the work of redevelopment of a housing society is such that the society must have confidence in its developer," said the judges, adding "Once members of the society had by a unanimous resolution, before executing the final agreement, decided not to get the premises developed through the (builder), the society cannot be forced to get the redevelopment work done through (the developer), when prima facie there is no concluded contract."

Gorwani had dragged the housing society to court alleging breach of agreement. According to the builder, the society had passed two resolutions in March and June 2011, entrusting the redevelopment of the building to him. However, in July 2011, the society passed a resolution in a special general body meeting, saying it did not want the redevelopment to be carried out by Gorwani. The builder rushed to the civil court, which dismissed his plea. Gorwani then approached the HC. The court, however, did not agree with the builder. "Prima facie, the correspondence entered into between the parties indicates that the development agreement between the parties was not signed. Before the agreement could be signed, the society by its July 2012 resolution decided not to continue with the appellant as their developer."