/2022 INSC 0127/ 1 NON­REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.  1222  OF 2022 [arising out of SLP (CIVIL) No. 21964 of 2017] KAMGAR SWA SADAN CO­OPERATIVE  HOUSING SOCIETY LTD.                   …     APPELLANT v. MR. VIJAYKUMAR VITTHALRAO  SARVADE & ORS.                                   …  RESPONDENTS J  U  D  G  M  E  N  T ABHAY S. OKA, J. Leave granted. 1. The respondent nos.1 to 11 are the original plaintiffs.  The appellant­Society   is   the   original   defendant   no.1.     The respondent nos.12 to 25 are the office bearers of the appellant­ Society.   The   respondent   nos.   26   to   29   are   the 2 developers/builders.   The   respondent   nos.30   to   38   are   officials and/or   the members  of the  High Power   Committee constituted by the Government of Maharashtra.  The last respondent is the Project  Consultant and Architect.    It  is not  in  dispute that  the respondent   nos.1   to   11   (original   plaintiffs)   are   the   members   of the appellant, a Co­operative Society duly  registered under the Maharashtra   Co­operative   Societies   Act,   1960   (for   short   “the said Act of 1960). The dispute is about the redevelopment of the buildings  occupied  by  the  members  of  the   appellant­Society  in accordance   with   Regulation   33(7)   of   the   Development   Control Regulations   for   Greater   Mumbai,   1991   applicable   to   the Municipal   Corporation   of   Greater   Mumbai.     In   the   Special General   Body   Meeting   of   the   appellant­Society   held   on   12 th February   2011,   a   resolution   was   passed   resolving   that   the tender   submitted   by   the   respondent   no.26   for   the redevelopment   of   the   property   of   the   appellant­Society   should be   accepted.     It   is   the   case   of   the   appellant­Society   that   the resolution was unanimously passed.   3 2. On 2 nd  December 2012, a Special General Body Meeting of the   appellant­Society   was   held   in   which   a   resolution   was unanimously   passed   appointing   the   respondent   no.27   as   the developer. The respondent no.27 is stated to be a sister concern of the respondent no.26.   It is alleged that out of 240 members of   the   appellant­Society,  165   were   present  in   the   meeting.     An agreement   for   development   was   accordingly   executed   on   24 th December   2012   by   the   appellant­Society.     The   agreement provided for allotment of premises in the redeveloped buildings free of cost on ownership basis to all the eligible members of the appellant­Society.   In addition, the respondent no.27 agreed to provide   a   corpus   of   Rs.5,00,000/­   (Rupees   Five   Lakhs)   per member to the appellant­Society.   On 27 th   December 2012, the Jurisdictional   Assistant   Registrar   of   Co­operative   Societies accorded   permission   to   the   appellant­Society   to   redevelop   the property.  On 7 th  January 2013, the Assistant Registrar granted further   permission   to   the   appellant­Society   to   redevelop   the property  by   appointing  the   respondent   no.27  as  the  developer. The   said   permission   refers   to   a   report   submitted   by   the 4 Authorized Officer which recorded that all the 165 members of the appellant­Society  who were present in the meeting  held on 2 nd  December 2012 supported the proposal for redevelopment.    3. The   respondent   nos.2,   3   and   8   along   with   some   other members   of   the   appellant­Society   filed   a   revision   application under   Section   154   of   the   said   Act   of   1960   for   challenging   the orders/permissions   dated   27 th   December   2012   and   17 th January 2013 issued by the Assistant Registrar of Co­operative Societies.   The   revisional   authority   allowed   the   revision application by the order dated 14 th  May 2013.  The order of the revisional authority was challenged by the appellant­Society by filing  a  Writ  Petition   in  the   Bombay   High  Court.     By   the   order dated 11 th   December 2013, the Bombay High Court stayed the order   of   the   revisional   authority.     The   said   interim   order   of Bombay High Court was challenged by the respondent nos.2, 3 and   8   before   this   Court.     While   dismissing   the   Special   Leave Petition,   this   Court   directed   the   Bombay   High   Court   to expeditiously   decide   the   Writ   Petition.     In   the   pending   Writ Petition,   the   respondent   no.2   filed   an   interlocutory   application seeking   an   interim   order   of   status   quo   as   regards   the 5 redevelopment   of   the   property.   The   High   Court   declined   to grant any interim relief on the said application.  4. The respondent nos.1 to 11 filed the suit – subject matter of this Civil Appeal in the City Civil Court at Mumbai.  The suit was   filed   on   20 th   February   2016.   The   respondent   nos.1   to   11 contended in the suit that the resolutions passed in the Special General   Body   Meetings   dated   12 th   February   2011   and   2 nd December 2012 were illegal being contrary to provisions of law and   the   Guidelines   framed   by   the   State   Government   vide   the Government Resolution dated 3 rd   January 2009.   A prayer was made for a decree of declaration that the said resolutions were illegal,   null   and   void.     Another   prayer   was   made   for   a declaration that the tender process conducted by the appellant­ Society  for   appointing   a developer   for   redeveloping  its property was illegal.  A prayer was also made for directing the appellant­ Society   to   conduct   a   fresh   tender   process.     Interim   relief   was claimed   in   the   suit   for   restraining   the   concerned   defendants from granting further permissions to the appellant­Society.  The 6 Trial   Court   did   not   grant   ad­interim   relief   to   the   respondent nos.1 to 11. 5. The present appellant­Society  and some other  defendants took   out   a   Notice   of   Motion   in   the   suit   contending   that   the jurisdiction of the Civil Court was barred in view of Section 91 of   the   said   Act   of   1960   and   the   Co­operative   Court   will   have exclusive jurisdiction to entertain and decide the dispute in the suit.   It was also alleged that the suit was barred by limitation. The   said   respondents   invoked   Section   9A   of   the   Code   of   Civil Procedure,   1908   (for   short   “CPC”)   and   prayed   that   both   the issues   be   decided   as   preliminary   issues   before   deciding   the Notice   of   Motion   for   temporary   injunction.     The   prayer   was contested   by   the   respondent   nos.1   to   11.     Two   preliminary issues on jurisdiction and bar of limitation were framed by the Trial Court.   The learned Trial Judge after hearing  the parties, held that the suit was not barred by Section 91 of the said Act of 1960 and was maintainable in Civil Court.   He held that the suit was within limitation.  It is this order which was subjected to   a   challenge   by   filing   a   Civil   revision   application   by   the 7 appellant­Society.     The   High   Court   dismissed   the   revision application.   Therefore,   the   present   appeal   has   been   filed   for challenging the orders of the Trial Court and High Court.  6. We   have   heard   the   learned   counsel   appearing   for   the parties.     Mr.   Shyam   Divan,   the   learned   Senior   Counsel submitted that in view of the repeal of Section 9A of the CPC as applicable to the State of Maharashtra and a recent decision of this   Court   in   the   case   of   Nusli   Neville   Wadia   v. Ivory   Properties   &   Ors. 1 ,   the   issue   of   limitation   could   not   be decided   as   a   preliminary   issue.     The   learned   Senior   Counsel submitted   that   the   finding   recorded   by   the   Trial   Court   on   the issue of  limitation will have to  be set aside. He submitted that issue   of   limitation   will   have   to   be   decided   after   the   parties adduce   evidence.     He   would   submit   that   in   any   case,   the respondent   nos.1   to   11   will   not   be   entitled   to   the   benefit   of Section 14 of the Limitation Act, 1963 (for short “the Limitation Act”).   He   also   invited   our   attention   to   additional   documents placed   on   record   along   with   I.A.No.22493   of   2021   and 1 2020 (6) SCC 557 8 submitted   that   the   buildings   of   the   appellant­Society   are   in extremely   dilapidated   condition   and   a   notice   to   that   effect   has been   served   upon   the   appellant­Society   by   the   Municipal Corporation   of  Greater   Mumbai.     He  submitted   that   except  for the   respondent   nos.1   to   11,   more   than   150   members   of   the appellant­Society   have   consented   to   the   redevelopment   of   the property by the respondent no.27­developer.  He submitted that it   is   only   because   of   the   objection   raised   by   only   11   members who   are   the   plaintiffs   that   the   entire   redevelopment   work   has been stalled.  The learned counsel appearing for the respondent no.27 supported the submissions of the learned Senior Counsel appearing   for   the   appellant­Society.     The   learned   counsel appearing   for   the   original   plaintiffs   urged   that   the   findings recorded by the Trial Court on both the issues are fully justified as the original plaintiffs will be entitled to benefit of Section 14 of the Limitation Act and the bar of Section 91 of the said Act of 1960 will not be attracted. 7. After   the   submissions   were   heard,   we   called   upon   the parties   to   explore   a   possibility   of   an   amicable   solution 9 considering   the   present   status   of   the   buildings.   We   also permitted the appellant­Society and the respondent no.27 to file affidavits/undertakings   for   placing   on   record   their   offer   to   the respondent   nos.1   to   11   and   other   members   of   the   appellant­ Society.     The   respondent   no.27   stated   that   initially,   the   offer was to allot premises admeasuring 429.88 sq. ft. of carpet area plus 20.12 sq. ft. of service slab to those eligible members of the appellant­Society   who   were   occupying   residential   tenements. The   respondent   no.27   in   view   of   subsequent   enhancement   in Floor   Space   Index   (FSI),   offered   to   allot   residential   premises admeasuring   450   sq.   ft.   of   carpet   area   (excluding   the   service slab) to those eligible members who were occupying residential premises.  The respondent no.27 offered premises admeasuring 350   sq.   ft.   of   carpet   area   to   those   eligible   members   of   the appellant­Society   who   were   occupying   commercial   premises. The   respondent   no.27   also   offered   to   pay   shifting   charges   as well   as   requisite   monthly   amounts   for   acquiring   temporary accommodation on rental basis.  The respondent no.27 has also offered to create a substantial corpus fund for the benefit of the appellant­Society and its members.   The respondent no.27 has 10 filed   affidavits/undertakings   on   record   containing   their   offer. Even   the   appellant­Society   has   filed   an   affidavit/undertaking reiterating   the   offer   made   by   the   respondent   no.27.   The submission   of   the   learned   counsel   appearing   for   the   original plaintiffs   is   that   the   respondent   no.27   has   no   experience   of developing   properties   in   Mumbai.   He   submitted   that considering the additional FSI which is now made available, the area   offered   by   the   respondent   no.27   to   the   members   of   the Society   should   be   much   more   than   what   is   set   out   in   the affidavits   filed   on   record.     In   short,   though   the   plaintiffs   are accepting   that   redevelopment   of   buildings   of   the   appellant­ Society   is   necessary,   they   are   not   willing   to   accept   the   offer made by the appellant­Society  and the respondent no.27.   The respondent   no.27   filed   an   affidavit   on   17 th   January   2021   by which   the   area   of   residential   premises   offered   to   the   members was increased to 460 sq. ft. of carpet area. 8. Firstly , we are dealing with the submissions on the merits of the impugned orders. Section 9A was introduced by the Code of   Civil   Procedure   (Maharashtra   Amendment)   Act,   1977   which 11 provided   that   if   at   the   hearing   of   an   application   for   grant   of interim relief in a suit, an objection is raised by a defendant to the   jurisdiction   of   the   Court   to   entertain   the   suit,   the   Court shall proceed to determine at a hearing of such application, the issue   of   jurisdiction   as   a   preliminary   issue   before   granting   or setting aside the order granting interim relief.  Under Section 3 of   the   Code   of   Civil   Procedure   (Maharashtra   Amendment) Ordinance, 2018,   Section 9A was deleted.   But it was provided that an issue of jurisdiction already framed by invoking Section 9A will be treated as an issue framed under Order XIV of CPC. The said Ordinance was replaced by an Act.   The Act repealing Section   9A   underwent   an   amendment   by   the   Code   of   Civil Procedure   (Maharashtra   Amendment)   (Amendment)   Act,   2018 by which Section 3 of the earlier repealing Act was substituted with   effect   from   27 th   June   2018   which   provided   that   if   on   the date   of   deletion   of   Section   9A,   an   issue   under   Section   9A   has already been framed, the same shall be decided as if Section 9A was   not   deleted.     The   amendments   referred   above   clearly envisage  that  if  the  Court  had  ordered  to  decide  an  issue  as  a preliminary  issue before the date of deletion of Section 9A, the 12 same shall be decided by the Court as a preliminary issue.   In the present case, the issue was decided prior to 27 th  June 2018 when Section 9A was repealed. 9. In   the   case   of   Nusli   Wadia   ( supra),   this   Court   held   that the expression “jurisdiction of the Court to entertain such suit” used in Section 9A by holding that under Section 9A, the issue of   jurisdiction   to   entertain   the   suit   has   to   be   decided   without recording   evidence.     In   paragraphs   49,50,54,56,88   and   89   of the aforesaid decision, this Court held thus: “49.   Since the  expression used in Section 9­ A   as   incorporated   in   Maharashtra,   is “jurisdiction   to   entertain”   that   is   in   a narrower   sense   and   its   purport   cannot   be taken   to   be   comprehensive   as   laid   down in   Foreshore   Coop.   Housing   Society Ltd.   (supra). 50.   When   we   consider   what   colour expression   “jurisdiction”   has   in   Section   9­A, it   is   clearly   in   the   context   of   power   to entertain,   jurisdiction   takes   colour   from accompanying   word  “entertain”   i.e.  the   court should have jurisdiction to receive a case for consideration  or  to  try  it. In case there is no jurisdiction, court has no competence to give the   relief,   but   if   it   has,   it   cannot   give   such relief for the reason that claim is time­barred by   limitation   or   is   barred   by   the   principle   of 13 res   judicata   or   by   bar   created   under   any other law for the time being in force. When a case is barred by res judicata or limitation, it is   not   that   the   court   has   no   power   to entertain it, but it is not possible to grant the relief. Due to expiry of limitation to file a suit, extinguishment   of   right   to   property   is provided   under   Section   27   of   the   Limitation Act.   When   court   dismisses   a   suit   on   the ground of limitation, right to property is lost, to hold so the court must have jurisdiction to entertain it. The court is enjoined with a duty under Section 3 of the Limitation Act to take into   consideration   the   bar   of   limitation   by itself.  The expression “bar to file a suit under any   other   law   for   the   time   being   in   force” includes   the   one   created   by   the   Limitation Act.   It   cannot   be   said   to   be   included   in   the expression   “jurisdiction   to   entertain”   suit used in Section 9­A.   The court has to receive a   case   for   consideration   and   entertain   it,   to look   into   the   facts   constituting   limitation   or bar   created by  any   other  law  to  give relief,  it has to decide the question on merits; then it has   the   power   to   dismiss   the   same   on   the ground   of   limitation   or   such   other   bar created by any other law.   Thus, the meaning to   be   given   to   jurisdiction   to   entertain   in Section   9­A   is   a   narrow   one   as   to maintainability,   the   competence   of   the   court to   receive   the   suit   for   adjudication   is   only covered   under   the   provisions.   The   word “entertain”   cannot  be   said   to   be   the   inability to grant relief on merits, but the same relates to receiving a suit to initiate the very process for granting relief.” (underline supplied) 14 “54.   What   is   intended   by   Section   9­A   of   the Code   of   Civil   Procedure,   1908   (CPC)   is   the defect   of   jurisdiction.   It   may   be   inter   alia territorial   or   concerning   the   subject­matter. The   defect   of   jurisdiction   may   be   due   to provisions   of   the   law.   In   Raghunath Das   v.   Gokal   Chand   AIR   1958   SC   827,   the execution   of   award   of   the   decree   was dismissed   by   the   Court   on   the   ground   that decree   was   a   nullity.   The   Court   had   no jurisdiction   to   pass   a   decree   of   the   partition of agricultural land. It held that defect of the jurisdiction   in   the   court   that   passed   decree became attached to decree itself as dismissal of   the   suit   was   on   account   of   the   defect   of jurisdiction.  Thus, in our considered opinion, it is only the maintainability of the suit before the court which is covered within the purview of   Section   9­A   CPC   as   amended   in Maharashtra . (underline supplied) “56.   Within   the   ken   of   provisions   of   Section 9­A, CPC jurisdiction of the court to entertain the   suit   has   to   be   decided   without   recording of   evidence.   Recording   of   evidence   is   not contemplated   even   at   the   stage   of   framing issue under Order 14 Rule 2 much less it can be allowed at the stage of grant of injunction, it   would   be   the   grossest   misuse   of   the provisions of the law to permit the parties to adduce   the   evidence,   to   prove   facts   with respect   to   a   preliminary   issue   of   jurisdiction to   entertain   a   suit.   In   case   it   is   purely   a question   of  law,  it  can  be decided  within  the purview   of   Section   9­A   CPC   as   applicable   in Maharashtra. The scope of Section 9­A is not broader   than   Order   14   Rule   2(2)   CPC.   The 15 scope   is   a   somewhat   limited   one.   Two   full­ fledged   trials   by   leading   evidence   are   not contemplated   in   CPC,   one   of   the  preliminary issue and another on other issues. Until and unless the question is purely of law, it cannot be   decided   as   a   preliminary   issue.   In   our opinion,   a   mixed   question   of   law   and   fact cannot   be   decided   as   a   preliminary   issue, either   under   Section   9­A   or   under   Order   14 Rule 2 CPC. Before or after its amendment of CPC concerning both provisions, the position is the same.” “88.   Given   the   discussion   above,   we   are   of the   considered   opinion   that   the   jurisdiction to   entertain   has   different   connotation   from the jurisdictional error committed in exercise thereof.   There   is   a   difference   between   the existence   of   jurisdiction   and   the   exercise   of jurisdiction. The expression “jurisdiction” has been   used   in   CPC   at   several   places   in different   contexts   and   takes   colour   from   the context   in   which   it   has   been   used.   The existence   of   jurisdiction   is   reflected   by   the fact of amenability  of  the  judgment to  attack in the collateral proceedings. If the court has an   inherent   lack   of   jurisdiction,   its   decision is open to attack as a nullity. While deciding the   issues   of   the   bar   created   by   the   law   of limitation,   res   judicata,   the   court   must   have jurisdiction to decide these issues. Under the provisions   of   Section   9­A   and   Order   14   Rule 2, it is open to decide preliminary issues if it is   purely   a   question   of   law   not   a   mixed question   of   law   and   fact   by   recording evidence.   The   decision   in        Foreshore   Coop. Housing Society Ltd.        (supra) cannot be said to 16 be   laying   down   the   law   correctly.   We   have considered   the   decisions   referred   to   therein, they are in different contexts.   The decision of the  Full  Bench   of  the  High   Court  of   Bombay in        Meher   Singh        (supra)   holding   that   under Section   9­A   the   issue   to   try   a suit/jurisdiction can be decided by recording evidence   if   required   and   by   proper adjudication,   is   overruled.   We   hold   that   the decision   in   Kamalakar   Eknath Salunkhe   (supra)   has   been   correctly   decided and   cannot   be   said   to   be   per   in   curiam ,   as held   in   Foreshore   Coop.   Housing   Society Ltd.   (supra).” (underline supplied) “89.   Section   2   of   the   Maharashtra   Second Amendment   Act,   2018   which   provides   that where   consideration   of   preliminary   issue framed   under   Section   9­A   is   pending   on   the date   of   commencement   of   the   CPC,   the   said issue shall be decided and disposed of by the court   under   Section   9­A   as   if   the   provision under Section 9­A has not been deleted, does not change the legal scenario as to what can be   decided   as   a   preliminary   issue   under Section   9­A   CPC,   as   applicable   in Maharashtra.   The   saving   created   by   the provision of Section 2 where consideration of preliminary   issue   framed   under   Section   9­A is   pending   on   the   date   of   commencement   of the   Code   of   Civil   Procedure   (Maharashtra Amendment)   Act,   2018,   can   be   decided   only if it comes within the parameters as found by us   on   the   interpretation   of   Section   9­A.   We reiterate   that   no   issue   can   be   decided   only 17 under   the   guise   of   the   provision   that   it   has been   framed   under   Section   9­A   and   was pending   consideration   on   the   date   of commencement   of   the   (Maharashtra Amendment)   Act,   2018.   The   reference   is answered accordingly.”   10. In the facts of the case, the appellant ­Society   and certain other defendants led evidence on the preliminary issue by filing an   affidavit   in   lieu   of   examination­in­chief   of   one   Mr.   Sanjay Rajaram   Mohite.   The   original   defendant   nos.16   and   17   were examined   as   witnesses.     Thus,   in   this   case,   for   deciding   the issue   of   limitation   evidence   was   required   to   be   recorded. Hence,   it   was   not   open   for   the   Trial   Court   to   examine   and decide the issue of the bar of limitation by invoking Section 9A of CPC.  11. By   filing   the   present   suit   in   February   2016,   the   original plaintiffs   have   questioned   the   resolutions   dated   12 th   February 2011   and   2 nd   December   2012   passed   in   Special   General Meetings of the appellant­Society. The plaintiffs also challenged the   tender   process   conducted   by   the   appellant­Society   way back   in   the   year   2011.     The   plaintiffs   were   aware   of   both   the 18 resolutions  at  all  relevant  times as  some  of  them   were  present in   the   meetings.   Some   of   them   filed   aforesaid   revision application   in   the   year   2013   for   challenging   the   permissions granted   on   the   basis   of   the   said   resolutions.     The   revision application   preferred   by   the   respondent   nos.2,   3   and   8   was allowed   on   14 th   May   2013.     The   said   order   was   stayed   by   the High Court on 11 th   December 2013.   The Special Leave Petition preferred by the respondent nos.2, 3 and 8 against the order of stay was dismissed by this Court on 7 th  March 2014.   12. The   respondent   nos.1   to   11   waited   till   February   2016   to file the suit. The said respondents relied upon Section 14 of the Limitation   Act   to   bring   their   suit   within   limitation.     From   the bare  facts  pleaded in  the  plaint,   prima  facie,   there is a  serious doubt   whether   the   benefit   of  Section   14   can   be   granted   to  the respondent   nos.1   to   11.   However,   the   issue   can   be   finally decided based on the evidence adduced by the parties. 13. Thus,   in   normal   course,   by   setting   aside   findings   of   the Trial  Court  and  the  High  Court  on   the  issue of   limitation,  this 19 Court would have directed the Trial Court to decide the issue of limitation   along   with   the   other   issues.   The   learned   Senior Counsel   appearing   for   the   appellant ­Society   has   fairly   stated that this Court need not go into the question of maintainability of the suit. 14.   Now,   we   will   deal   with   the   offer   made   by   the   appellant ­ Society   as well as by the respondent no.27 and the response of the   respondent   nos.1   to   11   to   the   said   offer.     Mr.   Shripal Babulal   Jain,   the   managing   partner   of   the   respondent   no.27 has   filed   an   affidavit/undertaking   on   17 th   January   2021 . Paragraphs 4 to 10 of the said affidavit reads thus:­   “4.   The correct facts in this regard as under: i) FSI as per Old policy (DCR – 1991) u/s 33(7) + 33(24): FSI. ii) FSI   as   per   New   Policy   (DCPR   ­   2034) u/s   33(7)   with   80%   incentive   on   rehab area: 4.31 FSI. Here it may also be noted that: Incentive   FSI   as   per   old   Policy   (DCR­ 1991)   was   50%   u/s   33(7)   plus   u/s 33(24)   parking   FSI   by   providing   public parking which would be roughly 25% of the   Rehab   built­up   area.   Thus,   total 20 incentive   on   rehab   area   would   be around 75%. Incentive   FSI   as   per   New   Policy   (DCPR ­2034)   u/s   33(7)   is   80%   however parking FSI would not be available as it is restricted upto 4 FSI. A   copy   of   the   Architect   certificate   is annexed   hereto   and   marked   as Annexure A/1 (Page no.9 to ­). A copy of the   relevant   portion   of   DCR   1991   is annexed   hereto   and   marked   as Annexure­A/2   (Page   No.10   to   13).   A copy   of   the   relevant   portion   of   DPCR 2034   is   annexed   hereto   and   marked   as Annexure­A/3   (page   no.14   to   20).     A copy   of   the   relevant   portion   of   policy and   circular   dated   8.7.2021   is   annexed hereto   and   marked   as   Annexure­A/4 (Page No.21 to 31) . 5. The size of new premises: (Residential) Existing   Area   occupied   by   members: 115 to 180 sq. ft. Eligible   as   per   Old   Policy   (DCR   1991): 405 sq. ft. carpet area Offered earlier: 429.88 sq.ft Eligible as per  new  policy  (DCPR 2034): 425.25 sq. ft. carpet area. Revised offer by Development: 450 sq.ft. 6 .   I   would   also   like   to   point   out   the   following further   facts   and   additional   burden   to   be borne by the developer : 21 i) The   construction   cost   has   increased upto approx. 50% as compared to in the year   2013   when   the   development agreement was undertaken.  ii) Rs.10.60   crores   approx.   additional   cost towards   the   addl.   20.12   sq.ft.   carpet area to 225 Residential members.  Total 4527   sq.ft.   and   construction   cost   at Rs.23450/­   per   sq.mt.   (cost   with   all premiums).   Additional   premium   on additional construction is required to be paid to Municipal Corporation ­ MCGM. iii) Rs.15   crores   appx.   towards   GST charges   on   construction   cost   which cannot   be   adjusted   against   sales revenue.   (As   from   1 st   April   2019   Input Tax Credit is not allowed for Developers) GST   is   also   addl.   burden   as   this   was not contemplated in the year 2013. iv) There is 450.59 sq.mts. set back on plot and   thus   only   3142.41   sq.mts.   area remains   resulting   into   planning constraints and high density on plot for rehab   and   sale   area   leading   to increasing   in   height   of   rehab   building and thereby construction cost.  v) It   also   requires   to   be   noted   that Developer has also to bear the following additional   costs   over   and   above   the rehab unit cost:  a) Each member is being paid Rs.5 lakh over   and   above   the   rehabilitation 22 unit,   out   of   which   Rs.1.25   lakh   is already paid in 2013. (Total corpus fund Rs.12.30 crores of which   Total   of   Rs.3.07   crores   is already paid) b) 2000   sq.ft.   fitness   centre   and gymnasium   furnished   with   fitness equipment’s   is   to   be   provided   by   the developer to the Society. c) 215   sq.ft.   carpet   area   of   Air conditioned   Society   office,   is   to   be provided.  d) Security   cabin   and   common   toilets are also to be provided. e) 3   flats   of   450   sq.ft.   carpet   area   as against   3   rooms   of   Society   and godown   of   equivalent   carpet   area   in lieu of existing godown.  f) A   deity   place   in   new   rehabilitation building. vi) An   amount   of   approximately   Rs.20 crores   is   already   invested   by   the   firm since   2013,   resulting   into   cost   of investment and interest costs. vii) As against which the Society is enjoying the   fixed   deposit   of   amounts paid/deposited   and   interest   therein since 2013. viii) It is also required to be considered that the   rehabilitation   building   is   to   be 23 constructed   in   the   front   side   facing   the Mahadeo Palav Marg on North side and the sale component building on the rear side on south side.  ix) The   interest   of   the   Society   is   also   well protected,   as   Developer   has   already provided   a   Security   deposit   of   Rs.5 crores at the time of tender. And as per New   DCPR   2034   vide   circular   dated 05.03.2021   of   Maharashtra Government,   a   Developer   is   bound   to give Security Deposit / Bank Guarantee of   10%   of   Rehab   Construction   cost   i.e. approx.12,282   sq.   mtr.   x   30,250 construction cost as per Ready Recknor of   Mumbai   for   2021­22   total   of Rs.37,20,00,000/­   x   10%   i.e. Rs.3,72,00,000/­. 7. I say that as per the revised proposal as stated   in   Undertaking   dated   7.1.2022, the   occupiers   are   already   getting   more area   than   what   is   agreed   in   the development   agreement   and   also   more than   what   they   are   eligible   as   per   the new Policy of DCPR 2034. 8. I   say   that   as   per   the   calculations   and deliberations   undertaken   by   the partners   of   the   firm,   if   the   area   of   the rehab unit is increased from the revised proposal   of   450   sq.ft.   carpet   area   to residential   members   and   300   sq.ft. carpet area to non­residential members, as   stated   in   the   Undertaking   dated:   7 th January 2022, the project would not be financially feasible.  24 9. I   say   that   as   per   Affidavit   dated 7.1.2022   filed   on   behalf   of   the   Society more than 60% members having already given   the   consent   for   new   proposal   of the   Developer.     The   objections   by Vijaykumar   VitthalRao   Sarvade   and other 11 members is not bonafide. 10. I   state   that   MHADA   has   also issued   NOC   to   respondent   no.27   on 3.11.2021.  A copy of the NOC issued by MHADA   to   Res.27   is   annexed   hereto and   marked   as   Annexure   –   A/5   (Page No.32 to 38).” 15. Mr.   Sanjay   Rajaram   Mohite,   Chairman   of   the   appellant­ Society   on   behalf   of   appellant­Society   has   also   filed   an affidavit/undertaking   annexing   thereto   a   copy   of   the   revised proposal dated 9 th  December 2021 submitted by the respondent no.27.     He   has   stated   that   the   said   revised   proposal   was forwarded   to   the   members   of   the   appellant­Society   and   153 occupiers/members   out   of   total   240   occupiers/members   have already consented to the said proposal in writing.  He has given undertaking   on   behalf   of   the   Society   that   the   revised   proposal will remain binding on the appellant­Society.  He has reiterated that   the   buildings   of   the   Society   are   in   very   dangerous 25 condition   and   may   collapse   any   time.     Undertaking   of   Mr. Shripal   Babulal   Jain,   the   managing   partner   of   respondent no.27 in terms of what is stated in the affidavit referred above, is also placed on record along with IA no.4249 of 2022. 16. In   the   undertaking   of   the   respondent   no.27   given   to   this Court, the details of the amenities and other benefits agreed to be   extended   to   the   eligible   members   of   the   appellant­Society have been specifically set out:  “ 2.      The main points of the proposals given by the   deponent   –   Respondent   No.   27   (Developer) are as under:­ i) The size of new premises:­ A. Residential premises; As per old policy of DCR 1991, Developer was bound   to   provide   300   sq.ft.   plus   35% fungible   area   i.e.   405   sq.ft.   carpet   area   to each residential eligible member. Under   the   Development   Agreement   executed with   Society,   the   Respondent   no.27 (Developer)   has   agreed   to   provide   429.88 sq.ft.   carpet   area   plus   20.12   sq.ft   as   service slab   to   each   Residential   member   of   the Society. In comparison to above two, as Developer, we have   now   proposed   to   provide   450   sq.ft. carpet   area   excluding   service   slab,   to   all 26 existing   eligible   Members/Occupants   of residential   premises,   against   their   existing carpet area of approx. 115 sq.ft. to 180 sq.ft. B. Non­residential premises: So   far   as   Non­Residential   users   are concerned,   as   per   DCPR   2034   they   are eligible   for   the   same   carpet   area   which   is occupied   by   them.     However,   we   propose   to provide   them   300   sq.ft.   carpet   area   against their   existing   occupation   of   242.08   sq.ft.   of carpet area. A table showing the existing area occupied by the   Respondent   Nos.:   1   to   11   –   Original Plaintiffs   and   the   proposed   area   to   be   given against   the   same   is   forming   part   of   the proposal dated : 9.12.2021 as Annexure­V. ii) Transit   Rent/Shifting/Brokerage   for Temporary alternate accommodation: A. For residential members:  It   is   proposed   to   give   transit   rent   of Rs.15,000/­   per   month   for   first   two   years of   alternative   accommodation   and thereafter   Rs.16,500/­   per   month   with increase   therein   at   10%   every   year   till possession   of   permanent   alternate   rehab residential premises is offered.  It   is   proposed   to   give   one   time   shifting charges of Rs. 10,000/­ for to and fro.  It is proposed to give Rs. 30,000/­ towards brokerage. 27 B. Transit   Rent/Shifting/Brokerage   for Temporary alternate accommodation for Non­residential   –   Commercial   use members.  It   is   proposed   to   give   Transit   Rent   of Rs.25,000/­   per   month   with   increase therein   at   10%   every   year   till   the possession   of   permanent   alternate   rehab shop is offered.  It   is   proposed   to   give   one   time   shifting charges of Rs. 10,000/­ for to and fro.  It is proposed to give Rs.50,000/­ towards brokerage. iii) Period   for   completion   of redevelopment project: It is proposed to complete the redevelopment project in stipulated time of five years as per MHADA   circular   dated   5.11.2020.     The   said period of five years shall commence from the date on which the vacant possession of entire property   is   made   available   to   the   developer, so   as   to   enable   starting   of   actual redevelopment   on   site.     Further,   the   time period   as   regards   obtaining   of   necessary permissions,   and/or   stay   from   any   Court, Tribunal   or   Authority   and/or   any   natural calamity   and/or   Force   Majeure   events, and/or   things   beyond   control   of   the Developer shall stand excluded.  iv) Corpus Fund : (All members ­ Residential/Non­ residential): 28 The   society   being   owner   of   property,   we propose   to   provide   Rs.5,00,000   (Rupees   Five Lakhs)   for   each   member   i.e.,   total Rs.12,30,00,000/­   (Rupees   Twelve   Crores Thirty Lakhs) to the Society as Corpus Fund. Against   that   we   have   already   paid Rs.3,07,50,000   (Rupees   Three   Crore   Seven Lakhs   Fifty   Thousand)   to   the   Society,   being Rs.1,25,000/­   (One   Lakh   Twenty­Five Thousand)   for   each   member   of   Society,   in 2013 on execution of Development agreement and the balance we have to pay later.  v) Performance   guarantee/Security Deposit/Bank Guarantee: As   per   New   DCPR   2034   vide   circular   dated 05.03.2021   of   Maharashtra   Government,   a Developer   is   bound   to   give   Security Deposit/Bank   Guarantee   of   10%   of   Rehab Construction cost i.e., approx. 12,282 sq.mtr. x   30,250   construction   cost   as   per   Ready Recknor   of   Mumbai   for   2021­22   total   of Rs.37,20,00,000/­   x   10%   i.e.   Rs. 3,72,00,000/­.   We   have   already   paid Rs.5,00,00,000/­   (Rupees   Five   Crores)   as   an additional security deposit to Society in 2013 on execution of Development agreement.  vi) Project Management Consultant We propose to give Rs.3,00,00,000/­ (Rupees Three   Crores)   to   society,   out   of   which Rs.1,50,00,000/­   (Rupees   One   Crore   Fifty Lakhs) we have already paid to the Society in 2013 and the balance we have to pay later. 29 vii) Parking and height of premises We   will   fulfill   all   compliance   of   New   DCPR 2034 and as per planning constraint.” 17 . The   learned   Senior   Counsel   for   the   appellant­Society   has submitted that all the pending proceedings should be disposed of   so   that   the   work   of   development   can   progress.     The respondent no.27 has stated that the work of development will be   completed   as   per   the   no­objection   certificate   issued   by Mumbai   Building   Repairs   and   Reconstruction   Board   on   3 rd November 2021. 18. After perusing the affidavits and undertakings, this Court suggested   to   the   respondent   no.27   whether   the   area   of   the premises   admeasuring   450   sq.ft.   (carpet)   offered   to   the members   occupying   residential   premises   and   the   area   of premises   admeasuring   300   sq.ft.   (carpet)   offered   to   the members   in   possession   of   non­residential   premises   can   be increased.     In   response   to   that,   an   affidavit   has   been   filed   by the   respondent   no.27   stating   that   instead   of   premises admeasuring 450 sq.ft (carpet area), premises having an area of 30 460 sq.ft. (carpet area) can be offered to those eligible members who   are   occupying   residential   tenements.     A   copy   of   the certificate   issued   by   the   Architect   of   the   appellant­Society recording   that   now   FSI   has   been   increased   from   4.00   to   4.31 has been placed on record.  Thus, respondent no.27 has given a revised   offer   to   allot   residential   premises   admeasuring   460 sq.ft.   of   carpet   area   though   as   per   old   and   new   policy,   the entitlement   of   those   who   are   holding   residential   premises   was to an area of 405 sq.ft and 425.25 sq.ft respectively. 19. The   proposal   of   the   respondent   no.27   takes   care   of payment   of   reasonable   monthly   rent   to   the   members   for acquiring temporary alternate accommodation.  It also provides for   payment   of   a   reasonable   amount   towards   brokerage   which is   required   to   be   paid   for   acquiring   such   accommodation.     A provision has been made to  pay  a sum  of  Rs.10,000/­ as one­ time   shifting   charges   to   each   member.     The   respondent   no.27 has   agreed   to   create   a   corpus   fund   for   the   benefit   of   the appellant­Society   by   contributing   Rs.5,00,000/­   (Rupees   Five Lakhs)   per   member.   Out   of   the   total   corpus   fund   of 31 Rs.12,30,00,000/­ (Rupees Twelve crores thirty lakhs) agreed to be   created,   the   respondent   no.27   has   already   paid   a   sum Rs.3,07,50,000/­   (Rupees   Three   Crore   Seven   Lakhs   Fifty Thousand)   to   the   appellant­Society.     Apart   from   the   above provisions,   a   performance   guarantee   has   been   given   by   the respondent no.27. 20. According  to us, adequate safeguards have been provided to   the   members   of   the   appellant­Society   in   the   affidavit   and undertaking   filed   by   the   respondent   no.27.     In   addition,   the appellant­Society   has   undertaken   to   abide   by   the   terms   and conditions   proposed   by   the   respondent   no.27.   Moreover,   a direction   can   be   issued   to   the   appellant­Society   to   incorporate the   same   terms   and   conditions   as   agreed   by   the   respondent no.27   in   the   event   the   appellant­Society   is   required   to   engage another developer in place of the respondent no.27.    21 . The response of the respondent nos.1 to 11 to the aforesaid proposal   is   two­fold.   Firstly,   the   stand   is   that   considering   the recent   enhancement   in   FSI,   the   area   offered   should   be   more. Secondly, the development work should be entrusted to another 32 builder   as   the   respondent   no.27   does   not   have   adequate experience.   In   the   plaint,   one   of   the   prayers   is   that   the appellant­Society   should   be   directed  to   conduct   a  fresh  tender process for appointing a developer.  22.   As noted earlier, this Court would have normally sent back the   matter   to   the   Trial   Court   to   decide   the   issue   of   limitation. However,   we   cannot   ignore   the   serious   situation   created   as   a result   of   the   pendency   of   various   proceedings   from   the   year 2013.     Photographs   produced   along   with   IA   no.11896   of   2018 show the very poor condition of the buildings of the Society.  As stated   in   I.A.   No.22493   of   2021   filed   by   the   appellant ­Society , 236 members of the appellant­Society are occupying structures in   buildings   that   are   in   dilapidated   condition.   Apart   from photographs of the structures annexed to the said application, a   copy   of   the   notice   dated   12 th   July   2019   issued   by   the Municipal   Corporation   to   the   appellant ­Society   has   been annexed.     The   notice   refers   to   the   structural   audit   carried   out by   the   Corporation   in   the   year   2015­2016   which   showed   that the buildings were falling in the C2­A category meaning thereby 33 that   the   buildings   are   required   to   be   vacated   for   carrying   out immediate   major   repairs.     The   notice   records   that   there   must be   further   deterioration   of   the   structures   as   repairs   were   not carried  out.     Therefore,   the  Municipal   Corporation   called   upon the   appellant­Society   to   get   a   structural   audit   of   the   buildings done   within   two   months.    The  Society   was  also   called   upon   to submit undertakings of the occupants that they will continue to stay   in   the   buildings   at   their   own   risk   knowing   fully   well   the probable   danger   of   collapse.     It   is   apparent   that   the   buildings are   in   a   dilapidated   condition   and   the   members   of   the appellant ­Society   are   risking   their   own   lives   by   occupying   the same.     Looking   to   the   manner   in   which   proceedings   are   being contested,   the   suit   may   not   be   disposed   of   in   near   future. Moreover,   there   are   bound   to   be   further   appeals.     In   the meanwhile, if something goes wrong with the buildings, a large number of families of the members will be on the streets.  Going by   the  prayers  in   the   plaint,  even   the  respondent   nos.1  to  11­ the   plaintiffs   want   redevelopment   of   the   property,  but  on   their own   terms   and   through   another   developer.   Moreover,   a   large majority of members of the appellant ­Society  have accepted the 34 proposal   to   appoint   the   respondent   no.27   as   the   developer. They   have   also   accepted   the   proposal   submitted   by   the respondent no.27 to this Court.  23. Though   a   decision   to   redevelop   the   buildings   was   taken way back in the year 2011 by the appellant­Society and though an agreement was executed on 27 th   December 2012 appointing a   developer,   no   progress   has   been   made   in   the   development work   as   a   handful   of   members   of   the   appellant­Society   out   of 236   members   are   opposing   the   project   of   development undertaken   through   the   respondent   no.27.     The   suit   filed   by the respondent nos.1 to 11 of 2016 is not likely to be disposed of in near future.   The issues in the suit including the issue of limitation   will   have   to   be   decided   after   parties   are   allowed   to adduce   evidence.     The   enormous   delay   in   disposal   of   the   suit and appeals arising therefrom will cause prejudice and harm to the   members   of   the   appellant­Society   as   they   will   have   to continue to stay in tenements in the buildings which are in very bad shape. This is not a usual dispute where the members are not   ad   idem   on   the   issue   of   redevelopment.     In   this   case, 35 practically   all   the   members   of   the   appellant­Society   want redevelopment   by   demolishing   old   buildings.     Here   is   a   case where   a   large   number   of   members   of   the   appellant­Society continue to  occupy  dilapidated buildings by  risking   their  lives. Their families are being exposed to imminent danger. Therefore, this   Court   cannot   countenance   a   situation   that   will   delay   the development   work   for   an   inordinately   long   time   due   to   the objection   by   a   handful   of   members.   The   majority   of   members are   supporting   the   redevelopment   by   the   respondent   no.27   on the terms offered by the said respondent.   Therefore, in view of the peculiar facts of the case and for protecting families of more than   200   members   of   the   appellant­Society,   we   are   satisfied that this is a fit case to exercise the plenary jurisdiction of this Court   under   Article   142   of   the   Constitution   of   India   to   do complete   justice   between   the   parties   by   giving   quietus   to   the pending disputes.  It is in the larger interests of more than 200 members   of   the   appellant­Society   including   the   respondent nos.1 to 11 that the disputes are put to an end and the work of redevelopment starts at the earliest. 36 24. To give finality and quietus to the controversy in the larger interests   of   members   of   the   appellant­Society,   considering   the objection   of   the   respondent   nos.1   to   11   to   the   area   offered   by the   respondent   no.27,   we   propose   to   direct   the   respondent no.27   to  provide   residential   tenements   having   a   carpet  area   of 475   sq.   ft.   (exclusive   of   service   slab)   to   the   eligible   members occupying   residential   premises.   The   respondent   no.27   has already agreed to increase the area from 450 sq.ft to 460 sq.ft. In our view, this marginal increase in the area of the premises to   be   allotted   to   members   having   residential   tenements   is necessary as FSI has been substantially increased. 25 .  The undertakings of the respondent no.27 sufficiently take care   of   the   apprehensions   expressed   by   the   respondent   nos.1 to 11.  The respondent no.27 has agreed to complete the project within five years from  the date on which it receives possession of   the   buildings   proposed   to   be   redeveloped.     To   secure   the interest of the members, the respondent no.27 can be directed to pay a transit rent for the period of five years in advance to all 37 the members at the time of entering into individual agreements with   all   the   members.   The   requirement   of   executing   such individual   agreements   with   members   has   been   noted   in   the resolution   dated   2 nd   December   2012   passed   in   the   Special General  Meeting  of the appellant­Society.   Time of two months can   be   granted   to   the   members   to   vacate   their   respective tenements   and   hand   over   possession   thereof   the   appellant­ Society from the date on which they receive transit rent for five years as well  as shifting   and brokerage charges as provided in the   undertaking   of   the   respondent   no.27.   Moreover,   the appellant­Society   be   directed   to   ensure   that   the   successor   of the   respondent   no.27   shall   be   bound   by   all   the   undertakings, in   the   event,   the   appellant­Society   is   required   to   replace   the developers. 26. Unless   all   the   pending   cases   are   disposed   of,   quietus cannot be given to the dispute. Hence, by exercising the powers under Article 142 of the Constitution of India, the suit filed by the respondent nos.1 to 11 will have to be disposed of and the criminal   complaint   filed   by   them   needs   to   be   quashed.   The 38 respondent   nos.30   to   38   are   various   authorities/officers.   In view   of   this   Order,   they   shall   not   entertain   any   complaints made   by   the   respondent   nos.1   to   11   in   connection   with   the redevelopment   project.     In   the   event,   the   respondent   no.27   or the   appellant­Society   commit   any   breach   of   the   undertakings given to this Court or any breach of directions of this Court, the respondent   nos.1   to   11   can   always   move   the   Court   for appropriate   relief   for   enforcement   of   the   undertakings   and directions  issued by   this Court.    If  the respondent  nos.1 to 11 commit   any   breach   of   the   directions   contained   in   this   Order, the   appellant   and/or   the   respondent   no.27   can   adopt appropriate proceedings for the enforcement of the directions. 27. We,   therefore,   dispose   of   this   appeal   by   passing   the following order: (i) We   take   on   record   the   undertakings   of   the respondent no.27 given through Mr. Shripal Babulal Jain,   its   managing   partner   which   is   of   7 th   January 2021   as   well   as   the   assurances   contained   in   his affidavit dated 17 th  January 2021 and Undertaking of 39 the   appellant­Society   in   affidavit   dated   7 th   January 2022 of Mr. Sanjay Rajaram Mohite; (ii) The   undertakings   of   the   appellant­Society   and   the respondent   no.27   are   taken   on   record   as   aforesaid with   a   modification   that   the   area   of   residential premises to be provided to all eligible members of the appellant­Society   occupying   residential   premises shall be 475 sq.ft. of carpet area (exclusive of service slab);  (iii) In   the   event,   the   appellant­Society   is   required   to replace   the   present   developer,   while   entering   into   a development   agreement   with   the   new   developer,   a clause   shall   be   added   therein   incorporating   an undertaking of the new developer that he shall abide by the directions contained in this Order. (iv) The   respondent   no.27   shall   offer  transit   rent  for   the period   of   five   years,   shifting   charges   and   brokerage as   mentioned   in   paragraph   2(ii)   (A   and   B)   of   its undertaking quoted in paragraph 16 above to all the eligible   members   within   maximum   period   of   two 40 months   from   today.     At   the   time   of   payment   of   the said amounts to the members, the respondent no.27 and the appellant­Society shall enter into agreements with individual members for allotment of premises in the   new   buildings   free   of   cost.   Within   a   maximum period   of   two   months   from   the   receipt   of   the aforesaid amounts, the respondent nos.1 to 11 shall hand   over   the   vacant   possession   of   the   premises   in their   respective   possession   to   the   appellant­Society and/or the respondent no.27; (v) The   entire   project   shall   be   completed   by   the respondent   no.27   as   expeditiously   as   possible.   The outer  limit  for  completion  of  the project shall  be five years from the date on which the respondent no.27 is placed   in   possession   of   all   the   tenements   in   the buildings proposed to be demolished. The possession of   the   premises   in   reconstructed   building   shall   be handed   over   to   the  eligible   members  within   the  said outer limit of five years; 41 (vi) Long   Cause   Suit   no.575   of   2016   filed   by   the respondent   nos.1   to   11   in   the   City   Civil   Court   at Mumbai shall stand disposed of in view of this Order; (vii) Complaint   No.1501270/Misc./2017   filed   by   the respondent   nos.1   to   11   pending   before   the   Court   of the   learned   15 th   Metropolitan   Magistrate,   Mazgaon, Mumbai shall stand quashed; (viii) If   the   appellant­Society   or   the   respondent   no.27   or directions issued by this Order or undertakings given by   them,   the   respondent   nos.1   to   11   are   free   to initiate   appropriate   proceedings   in   accordance   with law for  enforcing  the  directions  issued by  this Court including   the   undertakings.   Similarly,   on   the   failure of the respondent nos.1 to 11 or any of them to abide by   the   directions   issued   in   terms   of   this   Order,   the appellant­Society   and/or   the   respondent   no.27   are free to initiate appropriate proceedings in accordance with law.  42 28.       The   Civil   Appeal   stand   disposed   of   with   the   above directions.     All   the   pending   applications,   if   any,   also   stand disposed of.             …………..…………………J (AJAY RASTOGI) …………..…………………J (ABHAY S. OKA) New Delhi; February 08, 2022.