POOJA CONSTRUCTION COMPANY Vs. NAROTTAMBHAI GANESHBHAI PATEL

JUDGEMENT

(1.) LAND measuring 2785 sq. mtr. bearing final plot no. 242, in Memnagar, T.P. Scheme no. 29 of Ahmedabad was owned by joint family of Sh. Mani Lal Maganlal Patel and Sh. Kali Das (hereinafter referred to as "the owners"). On coming into force of Urban Land Ceiling and Regulation Act, 1976, they were permitted to set up a housing society for the members of the economically weaker section of the society, under Section 21 of the said Act. The construction plan was submitted to Ahmedabad Municipal Corporation on 21.12.1995, for construction of houses on the aforesaid land and non -agricultural use of the said land was permitted by District Collector, Ahmedabad vide his order dated 05.11.1996. Thereafter, the owners entered into an agreement dated 19.12.1994 with a Society named Toran Cooperative Housing Society Ltd. (OP -6) (herein after referred to as "the Society"), for the sale of the aforesaid land. This was followed by a supplementary agreement dated 17.03.1995. The possession of the land, subject matter of the agreement to sell and the supplementary agreement was handed over to the society. That was followed by a tripartite agreement between the society, owners and the appellants (hereinafter referred to as "the builder"). Under the said agreement, the construction was to be carried out by the builders and they were to be paid by the society for the said construction.

(2.) AFTER the construction had been carried out by the builders, they entered into separate agreements with the members of the society, in respect of the individual flats constructed by them. As many as four blocks of flats were constructed by the appellants.

(3.) THERE was an earthquake in Ahmedabad on 26.01.2001, which caused huge damage to several properties including flats which the appellants had constructed. Alleging that the construction made by the appellants was of inferior quality and defective, 70 occupants of Blocks -A, B, C and D filed four separate complaints before the State Commission. It was also alleged in the complaint that though in terms of Section 11 of Gujarat Ownership Flat Act, the appellants were required to establish a cooperative society and given ownership right in the land to the complainants, the sale deeds in favour of the complainants were not executed. The complainants also sought to recover the maintenance deposit which they had paid to the appellants and the money which the government had provided to the victims of the earthquake as compensation for the damage caused to their properties, by the earthquake.