SHANTILAL J. SHAH Vs. JITENDRA SANGHAVI

JUDGEMENT

(1.) The Appeal arises from an order of a learned Single Judge declining relief in a Motion which was taken out by the Appellants in a suit for specific performance. The Plaintiffs are in Appeal.

(2.) Respondents 1 to 3 are the owners of a property known as Padmavati Sadan at Matunga, Mumbai. An agreement was entered into between the Appellants and Respondents 1 to 3 for development of the property on 25 September 2007. The agreement records that the building is a cessed building in the occupation of tenants/occupants and is in a dilapidated condition requiring heavy repairs and/or reconstruction or redevelopment. By the agreement, the owners conferred upon the Appellants full development rights. The total consideration for the agreement was Rs.1.38 Crores in addition to which, as stipulated in Clause 2(b) and Clause 2(c) of the agreement, the owners were entitled to ownership rights in a carpet area ad-measuring 2000 sq. ft. of residential accommodation and of 800 sq. ft. for commercial use in the building which was to be constructed by the Appellants. Under Clause 6, the Appellants were to negotiate with the tenants/occupants by offering them permanent alternate accommodation on ownership basis or by a surrender of tenancy rights. The Appellants were to be entitled to effect a transfer of tenancy rights from the tenants/occupants. Clause 11 of the Agreement provided as follows :

(3.) In pursuance of the agreement, an amount of Rs.1.38 Crores was paid by the Appellants. An irrevocable power of attorney was executed by the owners in favour of the Appellants.