Redevelopment – Third party flat purchasers from developer have no privity of contract with housing society, its property and redevelopment
Redevelopment – Third party flat purchasers from Developer do not have “privity of contract” with Housing Society, its property and its proposal for redevelopment.
The petitioners, who are third party flat purchasers from developer, had filed the writ petition challenging the intimation of approval given by MHADA and to restrain the respondents including housing society from demolishing the society building.
The petitioners have claimed rights against the housing society on two grounds – condition no.16 of MHADA permission that the society will settle third party rights and indemnity / undertaking of society given to MHADA.
HELD that these two provisions are nothing more than indemnity and do not create substantive rights in praesenti to the society building and development rights. If the developer fails to perform obligations, the purchasers should suffer the consequences. The rights of third party are subject to the rights of the developer and not higher than those rights.
Judgment dated 12.10.2023 of the High Court of Bombay in Writ Petition (L) No.1776 of 2023 – Deepak Prabhakar Thakoor & Ors Vs. Maharashtra Housing and Area Development Authority (MHADA) and others.
