JAYANTILAL INVESTMENTS versus MADHUVIHAR CO-OPERATIVE HOUSING SOCIETY AND ORS.

JAYANTILAL INVESTMENTS versus MADHUVIHAR CO-OPERATIVE HOUSING SOCIETY AND ORS.

The amended Section 7 and Section 7A of MOFA make clear that obtaining prior consent of flat owners is not required for constructing any additional structure; approval of the plan by the competent authority is necessary. However, full and true disclosure by the promoter about land, amenities and development potentiality is mandatory. Applicability of amended provisions depends on whether the project was for additional buildings or one building with several wings; the High Court must reconsider this factual question to determine promoter's obligations regarding conveyance.

Parties
Appellant Promoter: Jay Antilal Investments; Respondents: Madhuvihar Co-operative Housing Society and Ors.
Jurisdiction
India
Judgment Date
10 January 2007
Procedural Posture
Civil Appeal / Supreme Court Appeal From a High Court Final Judgment
Outcome
Appeal allowed; High Court judgment set aside; matter remitted for reconsideration.
Legal Topics
Promoter's Obligations, Ownership Flats, Conveyance, Additional Construction, Disclosure Requirements
Property Law Housing Law Promoter's Obligations Ownership Flats Conveyance Additional Construction Disclosure Requirements

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Parties

Jay Antilal Investments

Appellant Promoter

Madhuvihar Co-operative Housing Society and Ors.

Respondents

Procedural Posture

Civil Appeal / Supreme Court Appeal From a High Court Final Judgment

Legal Issues

  1. 1 Whether prior consent from flat takers is required for construction of additional structures under MOFA as amended.
  2. 2 Whether the amended provisions, Sections 7 and 7A of MOFA, apply to the present case.
  3. 3 Whether the promoter is obliged to execute conveyance in favour of the society before full development potentiality is exploited.

Ratio Decidendi

The amended Section 7 and Section 7A of MOFA make clear that obtaining prior consent of flat owners is not required for constructing any additional structure; approval of the plan by the competent authority is necessary. However, full and true disclosure by the promoter about land, amenities and development potentiality is mandatory. Applicability of amended provisions depends on whether the project was for additional buildings or one building with several wings; the High Court must reconsider this factual question to determine promoter's obligations regarding conveyance.

Court Disposition

Appeal allowed; High Court judgment set aside; matter remitted for reconsideration.

Orders

  • Impugned judgment of High Court set aside.
  • Matter remitted to High Court for reconsideration of whether project consisted of additional buildings or one building with several wings.