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S.M. Pasha & Ors. vs State of Maharashtra & Ors.

SLP (C) · 2023 INSC 131Decided 17 Feb 2023
SLP (C) No. 4428 of 2016
M.R. Shah · C.T. Ravikumar · Sanjay Karol

Background

A group of tenants occupying premises in Mumbai challenged Bombay High Court orders (in two 2014 writ petitions) concerning a redevelopment of their building under a development agreement given to a particular developer (respondent no. 5). While the case was pending in the Supreme Court for years, the situation on the ground changed: the building management terminated the developer's agreement in October 2018, MHADA also terminated it, and a new developer was appointed under a fresh agreement. The original developer, in turn, filed applications in the Supreme Court alleging perjury and challenging its termination.

Decision Breakdown

Since the grievance the tenants originally had, against the earlier developer, no longer survived, the Court allowed the main group of petitioners to withdraw their SLP unconditionally, and dismissed it as against one petitioner who did not appear. For the second set of tenants, the Court noted that they did not know the terms of the new development agreement, so it directed the present management to furnish a copy of the fresh agreement to the tenants. Any tenant unhappy with those terms is free to challenge the agreement before an appropriate court or forum. The Court did not decide the ousted developer's perjury and termination complaints itself, but left it open for that developer to challenge the termination and the new agreement before the appropriate forum, where the perjury grounds may be considered on their merits. All pending applications were disposed of.

Lesson Learnt

When the facts underlying a long-pending case change completely, the Supreme Court will not decide a dead dispute; it will instead protect each side's right to start fresh proceedings. Tenants in a redevelopment are entitled to see the development agreement that governs their homes, and can challenge its terms if they disagree.

Official source (sci.gov.in)View Judgment (PDF)

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