Dissenting minority can’t obstruct redevelopment: Court

The dissenting minority cannot obstruct redevelopment when the cooperative housing society has already passed a resolution and entered into a development agreement, the Bombay high court has ruled.

The dissenting minority cannot obstruct redevelopment when the cooperative housing society has already passed a resolution and entered into a development agreement, the Bombay high court has ruled.

HT Image

Justice DY Chandrachud has appointed a court receiver to ensure proper implementation of the development agreement entered into by Thailambal Cooperative Housing Society with Vardhman Developers.

The developer was compelled to approach the high court after seven of the 28 members of the housing society refused to vacate their flats, though they had consented in favour of the redevelopment.

On September 6, 2007, the general body of the housing society passed a resolution favouring redevelopment, and accordingly on August 27, 2008, an agreement for development was entered into between the housing society and the developer.

The developer had sought a declaration that the consent affidavits executed by the dissenting members and the development agreement were valid, and a decree of specific performance against the dissenting members.

Counsel for the developer, DD Madon, contended a dissenting minority cannot thwart redevelopment approved by the society's general body, especially when they were aware of the resolution passed by the society and without resorting to legal ways to challenge it.

But the high court noted that the consent affidavits were duly executed, and after appointing a court receiver, directed him to start evacuating the residents after four weeks.