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INTHEHIGHCOURTOFJUDICATUREATBOMBAY

APPELLATEJURISDICTION

FIRSTAPPEALNO.2182OF2007

NahalchandLaloochandPvt.Ltd...Appellant

Vs.

PanchaliCoOperativeHousingSocietyLimited...Respondent

Mr.F.E.Devitre,SeniorAdvocatewithMs.RajaniIyer,SeniorAdvocatewithMr.

VenkateshDhond,Mr.VineetB.Naiki/byM/s.PrakashandCompanyforappellant.

Mr.G.N.SalunkewithMr.S.R.Sharmaforrespondent.

CORAM:B.H.MARLAPALLE,J.

Reservedon:February13,2008.

Pronouncedon:April25,2008.

JUDGMENT:

1. ThisappealisdirectedagainsttheJudgmentandDecreepassedbythelearnedJudgeoftheCityCivilCourt,GreaterMumbaion4/4/2007inS.C.SuitNo.1767

of2004.Thesaidsuitwasdismissedwithcosts.

2. Thesuitwasfiledbytheappellantcompanyforthefollowingsubstantialrelief:"Thatthedefendants,officebearers,committeemembers,members,servants,

agentsoranyotherpersonclaimingthroughthemberestrainedbyanorderof

permanentinjunctionofthisHonbleCourtfromencroachingupon/trespassing

onthesuitpremisesand/orinanymannerdisturbing/obstructing/interfering

withthepossessionoftheplaintiffsinrespectofthesuitpremisesi.e.25

numberofparkingspacesinthestiltportionofthebuildingbynamePanchali,as

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moreparticularlyshownintheplanannexedatExhibit"A"hereto,situatedat

IndraprastaEnclave,N.L.Complex,AnandNagar,Dahisar(East),Mumbai400

068."

3. TheplaintiffisaPrivateLimitedCompany,representingitselfasadeveloper/builder/promoterasdefinedundertheMaharashtraOwnershipFlats

(Regulationofthepromotionofconstruction,sale,managementandtransfer)

Act,1963(forshorttheMOFA).Ithadpurchasedfromtheoriginalowners,

namely,AnjaniKrishnaBoritkarandotherslandbearingCTSNos.1458(Pt),1459

(Pt),1472(Pt),1474Pt),1475(Pt),1476(Pt),1478(Pt)and1482(Pt)situatedin

villageDahisar,TalukaBorivali,MumbaiSuburbanDistrictandwhichwas

declaredasexcessvacantlandbytheAdditionalCollectorandCompetent

Authority(UrbanLandCeiling),GreaterMumbai.Theappellantthendecidedto

constructsevenmultistoreyedbuildingsandshoppingcomplexonthesaidland

inaccordancewiththebuildingplansandspecificationdulyapprovedbythe

MumbaiMunicipalCorporation(theCorporationforshort).Oneofthesaid

sevenmultistoreyedbuildingsisbyname"Panchali"whichhasstiltplusseven

upperfloorshavingtwowings,"A"and"B"with56flats(theBuildingforshort).

Thebuildinghasenclosedparkingareabelowthestilt.Thereareinall28stilt

parkingspacesaspertheplansapprovedbytheCorporation.BetweenFebruary

2001toAugust2003,onthebasisoftheagreementssignedbetweenthe

promoterandtheindividualflatpurchasers,theplaintiffpromotersoldeachof

the56flatsandtheconstructionwascompletedsometimesinmid2002.On

19/8/2002theCorporationissuedtheoccupationcertificate.Theflatpurchasers

formedaCooperativeSociety,whichwasregisteredonorabout8/10/2003and

itwasnamedas"PanchaliCooperativeHousingSociety".Beforethesocietywas

registered,threeparkingspacesweresoldandremaining25werepurportedlyin

thepossessionoftheplaintiff.Itisallegedthaton22/2/2004thecommittee

membersofthesocietytriedtotakeforciblepossessionoftheremaining25

parkingspacesbybreakingopenthelocksoftheappellant.Itappearsthatthe

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plaintiffhasenclosedalltheparkinglotsbyacollapsiblegate/grilldoorandhad

lockedeachoneofthem.On21/3/2004,eventheresidentsofotherbuildings

alsoresortedtothesimilaraction.Theplaintifffiledpolicecomplaintson

11/3/2004and22/3/2004andfinallyapproachedthetrialcourtinCivilSuitNo.

1767of2004andothers.Thusthesuitpropertyistheenclosedcarparking

spacesinthestiltportioninthebuildingnamed"Panchali".

4. Inthesuitapermanentinjunctionhasbeenprayedinrespectofthesuitparkinglotsmainlyonthefollowinggrounds:

a. Aspertheagreementforsalesignedwitheveryflatpurchaser,theplaintiffintendedtoselleitherresidentialflat/stiltparkingspace/open

parkingspaceinthesaidbuildingonownershipbasis.

b. Eachoftheflatpurchaserhadexecutedadeclaration/undertakingatthetimeoftakingoverpossessionoftherespectiveflatsinfavourofthe

plaintiff,interaliatotheeffect,thateachpurchaserunconditionallyand

irrevocablyagreedthatstiltparking spacesandopenparkingspaces

shownintheplanbelongedexclusivelytotheplaintiff,thattheywould

havenoclaimofwhatsoevernaturetothesameandthattheywillnot

objecttothesaleofthesamebytheplaintifftoanyperson,thattheflat

purchaserunderstandsthathe/she/theyshallnotbeallowedtopark

his/her/theirvehicleinthesuitpremisesuntilandunlesshe/she/they

has/havepurchasedfromtheplaintiffastiltparkingspaceoropen

parkingspaceasshownintheplanandthateachflatpurchaser

undertakennottoparkhis/her/theirvehicleinthesaidpropertyuntil

andunlessthesameispurchasedfromtheplaintiff.

c. ThestiltparkingspaceisincludedinthedefinitionofflatasgivenunderSection2(a)oftheMOFAanditisnotapartofthecommonareasandit

islikeaprivategarage.

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5. Thedefendant societyfiledWrittenStatementandopposedthesuitonthegroundsthat,

a. theplaintiffhasnoabsoluterighttosellordisposeofftheparkingspacesinthestiltportion,moreparticularlyundertheprovisionsoftheMOFA

andtheplaintiffisentitledtoonlysaleflats/shops/garages;

b. theD.C.Rules1991restricttherightsofthepromoterstosellparkingspaces;

c. theundertakingsallegedlygivenbytheflatpurchasersarenotbindingonthesocietyandinanycasesuchanundertakingiscontrarytothe

provisionsoftheMOFAand,therefore,itrequirestobedeclaredasillegal

andbadinlaw;

d. thedefendant societyneverattemptedtotakeforciblepossessionofthestiltparkingspacesand,therefore,theplaintiffwasnotentitledfor

thereliefsprayedinthesuit.

6. Asperthefinalorderpassedon24/7/2006thefollowingissueswereframedbythetrialcourtandansweredaccordingly:

ISSUESFINDINGS

(1)Dotheplaintiffsprovethat Inthenegative

theyhaveabsoluterighttosell/disposeoftheparking

spaceunderthestilt?

(2)Dotheprovisionsofthe Inthe

MOFArestricttherightsof affirmative

plaintiffs/promoterstosell/disposeoftheparkingspaces?

(3)DotheprovisionsoftheIntheDevelopmentControlRules affirmative

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1991restricttherightsoftheplaintiffs/promotersto

sell/disposeoftheparkingspaces?

(4)DotheDefendantsprovethat Inthe

theundertakinggivenbythe affirmative

respectiveflatpurchasersisnotbindinguponthe

Defendantsnamelythecooperativesocieties?

(5)DotheDefendantsprovethat Inthe

theundertakingreferredto affirmative

inparagraph7ofthePlaintpurportedtohave

beenexecutedbytherespectiveflatpurchasersarecontrary

totheprovisionsoftheMOFAandassuchillegal?

(6)DotheDefendantsprovethat Inthe

theundertakingreferredto affirmative

inparagraph7ofthePlaintarecontrarytothe

D.C.Rulesandassuchillegal?

(7)DothePlaintiffsprovethat Inthenegative

theresidentsoftherespectivebuildingsattemptedtotake

possessionofthestiltportionwiththeuseofforce?

(8)ArethePlaintiffsentitled Inthenegative

tothereliefsaskedinthePlaint?

(9)Whatorder? Asperfinal

order

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IssueNos.4to6dealwiththeundertakingfurnishedbythepurchasersandhencethey

havebeendecidedtogether.SimilarlyIssueNos.1,2and3havebeendecidedtogether.

Certaindocumentswerebroughtonrecordbeforethetrialcourtandthefollowing

documentsarerelevantfordecidingthisappeal:

(a)Exh.A:Copyoftheagreementdated27/05/2002.

(b)Exh.D:Letterdated4/3/05fromtheCorporationtotheplaintiff.

(c)Exh.E:Undertakingexecutedbyoneflatowners.

(d)Exh.FColly:Sanctionedplanalongwithforwardingletterdated19/8/02.

(e)Exh.G:OriginalI.O.D.dated3/5/1997.

(f)Exh.HColly:Originalletterdated27/2/01alongwithapprovedamendedplan.

(g)Exh.J:Originalofficecopyoftheplaintiffsletterdated26/3/02.

(h)Exh.MColly:AffidavitofexaminationinchiefofRajeshHimatlal PW1.

(i)Exh.1:AffidavitofexaminationinchiefofHariharanT.Iyer DW1.

(j)Exh.2:Listofdocumentsalongwiththecopiesoforiginaldocuments.

(k)Exh.3Colly:CopiesoftaxreceiptsshowingthattheDefendantspaidmunicipal

taxes.

(l)Exh.4Colly:CopyofthecomplaintfiledbyDefendantssocietyinB.M.C.

(m)Exh.5:CopyofthecomplaintfiledbytheDefendantssocietyagainstthe

plaintiffinMetropolitanMagistrateCourt.

7. Beforewedealwiththemeritsinthechallengetotheorderpassedbythetrialcourt,itwouldbenecessarytoreproducecertainprovisionsoftheMOFA,

Clausesofthemodelformofagreement,namely,FormVprescribedbythe

StateGovernment,DevelopmentControlRulesandRegulationsandModelbye

laws2001framedundertheCooperativeSocietiesAct,1960.

FLAT

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Sec.1(a)."Flat"meansaseparateandselfcontainedsetofpremisesusedor

intendedtobeusedforresidence,oroffice,showroomorshoporgodownoffor

carryingonanyindustryorbusinessandincludesagarage,thepremisesformingpartof

abuildingandincludesanapartment.

Explanation. Notwithstandingthatprovisionismadeforsanitary,washing,bathingor

otherconveniencesascommontotwoormoresetsofpremises,thepremisesshallbe

deemedtobeseparateandselfcontained;

Promoter

Sec.2(c)."promoter"meansapersonwhoconstructsorcausestobeconstructeda

blockorbuildingofflatsorapartmentsforthepurposeofsellingsomeorallofthemto

otherpersons,ortoacompany,cooperativesocietyorotherassociationofpersons,

andincludeshisassignees;andwherethepersonwhobuildsandthepersonswhosell

aredifferentpersons,thetermincludesboth;

Sec.3(2)(d) Apromoter,whoconstructsorintendstoconstructsuchblockorbuilding

offlats,shall

(d)disclosethenatureoffixtures,fittingsandamenities(includingtheprovisionforone

ormorelifts)providedortobeprovided;

(h)stateinwriting,theprecisenatureoftheorganisationofpersonstobeconstituted

andtowhichtitleistobepassed;andthetermsandconditionsgoverningsuch

organisationofpersons,whohavetakenoraretotaketheflats;

Sec.3(m)(ii)(iii)(iv)

(m)whentheflatsareadvertisedforsale,discloseinteraliaintheadvertisementthe

followingparticulars,namely:

(i)theextentofthecarpetareaoftheflatincludingtheareaofthebalconieswhich

shouldbeshownseparately;

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(ii)thepriceoftheflatincludingtheproportionatepriceofthecommonareasand

facilitieswhichshouldbeshownseparately,tobepaidbythepurchaserofflat;andthe

intervalsatwhichtheinstalmentsthereofmaybepaid;

(iii)thenature,extentanddescriptionofthecommonareasandfacilities;

(iv)thenature,extentanddescriptionoflimitedcommonareasandfacilitiesifany.

Sec.4(1A)(a)(iii)(iv).

(1A)Theagreementtobeprescribedandsubsection(1)shallcontaininteraliathe

particularsasspecifiedinclause(a);andtosuchagreementthereshallbeattachedthe

copiesofthedocumentsspecifiedinclause

(b),

(a)particulars

(iii)theextentofthecarpetareaoftheflatincludingtheareaofthebalconieswhich

shouldbeshownseparately;

(iv)thepriceoftheflatincludingtheproportionatepriceofthecommonareasand

facilitieswhichshouldbeshownseparately,tobepaidbythepurchaserofflat;andthe

intervalsatwhichinstalmentsthereofmaybepaid;

Sec.10(1) AssoonasaminimumnumberofpersonsrequiredtoformaCooperative

societyoracompanyhavetakenflats,thepromotershallwithintheprescribedperiod

submitanapplicationtotheRegistrarforregistrationoftheorganisationofpersons

whotaketheflatsasaCooperativesocietyor,asthecasemaybe,asacompany;and

thepromotershalljoin,inrespectoftheflatswhichhavenotbeentaken,insuch

applicationformembershipofacooperativesocietyorasthecasemaybe,ofa

company.Nothinginthissectionshallaffecttherightofthepromotertodisposeofthe

remainingflatsinaccordancewiththeprovisionsofthisAct.

(2)Ifanypropertyconsistingofbuildingorbuildingsisconstructedortobeconstructed

andthepromotersubmitssuchpropertytotheprovisionsoftheMaharashtra

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ApartmentOwnershipAct,1970,byexecutingandregisteringDeclarationasprovided

bythatActthenthepromotershallinformtheRegistrarasdefinedintheMaharashtra

CooperativeSocietiesAct,1960,accordingly;andinsuchcases,itshallnotbelawfulto

formanycooperativesocietyorcompany.

Sec.11.Apromotershalltakeallnecessarystepstocompletehistitleandconveytothe

organisationofpersons,whotakeflats,whichisregisteredeitherasacooperative

societyorasacompanyasaforesaid,ortoanassociationofflattakersorapartment

ownershisright,titleandinterestinthelandandbuilding,andexecuteallrelevant

documentsthereforinaccordancewiththeagreementexecutedundersection4andif

noperiodfortheexecutionoftheconveyanceisagreedupon,heshallexecutethe

conveyancewithintheprescribedperiodandalsodeliveralldocumentsoftitlerelating

tothepropertywhichmaybeinhispossessionorpower.

Sec.16. TheprovisionsofthisAct,exceptwhereotherwiseprovided,shallbeinaddition

totheprovisionsoftheTransferofPropertyAct,1882,andshalltakeeffect

notwithstandinganythingtothecontrarycontainedinanycontract.Clausesofthe

modelformofagreement,FORMV.Clause2:TheFlatPurchaserherebyagreesto

purchasefromthePromoterandthePromoterherebyagreestoselltheFlatPurchaser

oneFlatNo.........oftheType.............ofcarpetareaadmeasuring......sq.metres(which

isinclusiveoftheareaofbalconies)onFloorasshowninthefloorplanthereofhereto

annexedandmarkedAnnexureD/shopNo....../covered/openGarageNo.......inthe

.......Building(hereinreferredtoas"theFlat")forthepriceofRs.........includingRs........

beingtheproportionatepriceofthecommonareaandfacilitiesappurtenanttothe

premises,thenature,extentanddescriptionofthecommon/limitedcommonareasand

facilitieswhicharemoreparticularlydescribedintheSecondSchedulehereunder

written.

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Clause4 ThePromoterherebydeclaresthattheFloorSpaceIndexavailableinrespect

ofthesaidlandis.....sq.mtrs.onlyandthatnopartofthesaidfloorspaceindexhas

beenutilisedbythePromoterelsewhereforanypurposewhatsoever.Incasethesaid

floorspaceindexhasbeenutilisedbythepromoterelsewhere,thenthePromotershall

furnishtotheflatpurchaserallthedetailedparticularsinrespectofsuchutilisationof

thesaidfloorspaceindexbyhim.IncasewhiledevelopingthesaidlandthePromoter

hasutilisedanyfloorspaceindexofanyotherlandorpropertybywayoffloatingfloor

spaceindex,thentheparticularsofsuchfloorspaceindexshallbedisclosebythe

PromotertotheFlatPurchaser.TheresidualF.A.R.(F.S.I)intheplotorthelayoutnot

consumedwillbeavailabletothepromotertilltheregistrationofthesociety.Whereas

afterregistrationofthesocietytheresidualF.A.R.(F.S.I)shallbeavailabletothesociety.

Clause5 IncasethePromoterisactingasanagentofthevendor/Lessor/Original

Ownerofthesaidland,thePromoterherebyagreesthatheshall,beforehandingover

possessionoftheflattotheflatpurchaserandinanyeventbeforeexecutionofa

conveyance/assignmentofleaseofthesaidlandinfavourofacorporatebodytobe

formedbythepurchasersofflats/shops/garagesinthebuildingtobeconstructedon

thesaidland(hereinafterreferredtoas"theSociety"/theLimitedCompany"),makefull

andtruedisclosureofthenatureofhistitletothesaidlandaswellasencumbrances,if

any,includinganyright,title,interestorclaimofanypartyinoroverthesaidlandand

shallasfaraspracticableensurethatthesaidlandisfreefromallencumbrancesand

thattheVendor/Lessor/OriginalOwnerthePromoterhas/haveabsolute,clearand

marketabletitleontheexecutionofaconveyance/assignmentofleaseofthesaidland

bythePromoterinfavourofthesaidSociety/LimitedCompany.

Clause11 TheFlatPurchasershallusetheFlatoranypartthereoforpermitthesame

tobeusedforpurposeofresidence/office/showroom/shop/godownforcarryingon

anyindustryorbusiness.Heshallusethegarageorparkingspaceonlyforthepurpose

ofkeepingorparkingtheFlatPurchasersownvehicle.

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Clause13 Unlessitisotherwiseagreedtobyandbetweenthepartiesheretothe

Promotershall,withinfourmonthsofregistrationoftheSocietyorLimitedCompany,as

aforesaidcausetobetransferredtotheSocietyorLimitedCompanyalltheright,title

andtheinterestoftheVendor/Lessor/OriginalOwner/Promoterand/ortheownersin

thealiquotpartofthesaidlandtogetherwiththebuilding/sbyobtaining/orexecuting

thenecessaryconveyance/andorassignmentofleaseofthesaidland(ortotheextent

asmaybepermittedbytheauthorities)andthesaidbuildinginfavourofsuchSociety

orLimitedCompany,asthecasemaybesuchconveyance/assignmentofleaseshallbe

inkeepingwiththetermsandprovisionsofthisAgreement.

Clause24 ITISALSOUNDERSTOODANDAGREEDBYANDBETWEENTHEPARTIES

heretothattheterracespaceinfrontoforadjacenttotheterraceflatsinthesaid

building,ifany,shallbelongexclusivelytotherespectivepurchaserortheterraceflat

andsuchterracespacesareintendedfortheexclusiveuseoftherespectiveterraceFlat

Purchaser.ThesaidterraceshallnotbeenclosedbytheFlatPurchasertillthe

permissioninwritingisobtainedfromtheconcernedlocalauthorityandthePromoter

ortheSociety,orasthecasemaybe,theLimitedCompany.

Sections5and53oftheTransferofPropertyAct,readasunder: 5."Transferof

property"defined. Inthefollowingsections"transferofproperty"meansanactby

whichalivingpersonconveysproperty,inpresentorinfuture,tooneormoreother

livingpersons,ortohimselfandoneormoreotherlivingpersons;and"totransfer

property"istoperformsuchact..Inthissection"livingperson"includesacompanyor

associationorbodyofindividuals,whetherincorporatedornot,butnothingherein

containedshallaffectanylawforthetimebeinginforcerelatingtotransferofproperty

toorbycompanies,associationsorbodiesofindividuals.

53.Fraudulenttransfer.

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(1)Everytransferofimmovablepropertymadewithintenttodefeatordelaythe

creditorsorthetransferorshallbevoidableattheoptionofanycreditorsodefeatedor

delayed..Nothinginthissubsectionshallimpairtherightsofatransfereeingoodfaith

andforconsideration.Nothinginthissubsectionshallaffectanylawforthetimebeing

inforcerelatingtoinsolvency..Asuitinstitutedbyacreditor(whichtermincludea

decreeholderwhetherhehasorhasnotappliedforexecutionofhisdecree)toavoida

transferonthegroundthatithasbeenmadewithintenttodefeatordelaythecreditors

ofthetransferorshallbeinstitutedonbehalfof,orforthebenefitof,allthecreditors.

(2)Everytransferofimmovablepropertymadewithoutconsiderationwithintentto

defraudasubsequenttransfereeshallbevoidableattheoptionofsuchtransferee..For

thepurposesofthissubsection,notransfermadewithoutconsiderationshallbe

deemedtohavebeenmadewithintenttodefraudbyreasononlythatasubsequent

transferforconsiderationwasmade.

8. TheGovernmentofMaharashtrabyitsnotificationdated20/2/1991hassanctionedandpublishedtheDevelopmentControlRegulations(DCR)for

GreaterBombay,1991.RegulationNo.2definescertaintermsandtherelevant

ofthoseforthepresentconsiderationarereproducedasunder: 2(7)"Amenity"

meansroads,streets,openspaces,parks,recreationalgrounds,playgrounds,

gardens,watersupply,electricsupply,streetlighting,sewerage,drainage,public

worksandotherutilities,servicesandconveniences.

2(11)"Building"meansastructure,constructedwithanymaterialswhatsoever

foranypurpose,whetherusedforhumanhabitationornot,andincludes

foundation,plinth,wallsetc.,verandas,balconies,anywallenclosingorintended

toencloseanylandorspace,tanksconstructedforstorageofchemicals.2(13)

"Builtuparea"meanstheareacoveredbyabuildingonallfloorsincluding

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cantileveredportion,ifany,butexceptingtheareasexcludedspecificallyunder

theseRegulations.2(15)"Carpetarea"meansthenetusablefloorareawithina

buildingexcludingthatcoveredbythewallsoranyotherareasspecifically

exemptedfromfloorspaceindexcomputationintheseRegulations.

2(31)"Externalwall"meansanouterwallofabuildingnotbeingapartywall

eventhoughadjoiningawallofanotherbuildingandalsomeansawallabutting

onaninterioropenspaceofanybuilding.2(47)"GaragePrivate"meansa

buildingoraportionthereofdesignedandusedfortheparkingofvehicles.

2(48)"GaragePublic"meansabuildingorportionthereof,designedotherthan

asaprivategarage,operatedforgain,designedand/orusedforrepairing,

servicing,hiring,sellingorstoringorparkingmotordrivenorothervehicles.

2(64)"Openspace"meansanareaforminganintegralpartofasiteleftopento

thesky.2(67)"Parkingspace"meansanenclosedorunenclosedcoveredoropen

areasufficientinsizetoparkvehicles.Parkingspacesshallbeservedbya

drivewayconnectingthemwithastreetoralleyandpermittingingressoregress

ofvehicles.2(91)"Tenement"meansanindependentdwellingunitwitha

kitchen,oracookingalcove..

Regulations35(2)and36readasunder:

35.FloorSpaceIndexComputation (1)...(2)ExclusionfromFSIcomputation

ThefollowingshallnotbecountedtowardsFSI: (a).......(b).......(c).......(d).......

(e).......(f)Areaofunenclosedbutcoveredparkingspacesasprovidedinclause

(b)(i)ofsubregulation(5)ofRegulation36.

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36.Parkingspaces.Whereverapropertyisdevelopedorredeveloped,parking

spacesatthescalelaiddownintheseRegulationsshallbeprovided.When

additionsaremadetoanexistingbuilding,thenewparkingrequirementswillbe

reckonedwithreferencetotheadditionalspaceonlyandnottothewholeof

buildingbutthisconcessionshallnotapplywheretheuseischanged.(1)General

SpaceRequirements. (i)Types. Theparkingspacesmentionedbelowinclude

parkingspacesinbasementsoronafloorsupportedbystilts,oronupperfloors,

coveredoruncoveredspacesintheplotandlockupgarages.(ii)SizeofParking

Space. Theminimumsizesofparkingspacestobeprovidedshallbeasshown

below:

(a)Motorvehicle2.5mx5.5m.

(b)Scooter,Motorcycle3sq.m.

(c)Bicycle1.4sq.m.

(d)TransportVehicle3.75m.x7.5m.:28:

(iii)MarkingofParkingSpaces Parkingspacesshallbepavedandclearlymarked

fordifferenttypesofvehicles.

(iv)

(v)

(2)QuantitativeRequirements Fourwheeledautovehicles. Parkingspacesfor

fourwheeledautovehiclesshallbeprovidedasinTable15below,anyfractional

spaceofmorethanhalfresultingfromtheratiosincolumn(3)thereofbeing

roundedoffupwardtothenearestinteger.

1.Residential(B)IntherestoftheIslandCityarea,SuburbsandExtended

Suburbs:(a)4tenementshavingcarpetareaabove35sq.m.each.(b)2

tenementswithcarpetareaexceeding45sq.m.butnotexceeding70sq.m.each.

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:29:(c)1tenementwithcarpetareaexceeding70sq.m.(5)ParkingSpaces.

Wheretobeaccommodated Theparkingspacesmaybeprovided

(a)underneaththebuilding,inbasementswithinitsstiltedportion,oronupper

floors;

(b)inthesideandrearopenspaces,butnotintheamenityopenspaces,if

(i)theyareunenclosedbutuncoveredexceptasprovidedin(d)below;

(ii)theydonotconsumemorethan50percentoftheopenspace;

(iii)aminimumdistanceof3.0m.aroundthebuildingiskeptfreeofparkingfor

propermanocuverabilityofvehicles;

(iv)theyareatleast7.5m.fromtheroadboundaryincaseofdetachedcovered

garages;(v)theparkinglayoutsmeettherequirementsoftheChiefFireOfficer

inthecaseofmultistoreyed,highriseandspecialbuildings.

(c)inaresidentialzone,beyondthecompulsorysideandrearopenspaces

stipulatedinsubregulation2ofRegulation26,ifotherconditionsundersubrule

(b)abovearesatisfied.Heretheparkingspacemaybeanunenclosedcovered

space.(d).......38.Requirementsofpartsofbuildings (1)Plinth. ..........(i)Main

Building. ..........(ii)Interiorcourtyards,coveredparkingspacesandgarages.

Theseshallberaised:31:atleast15cmabovethesurroundinggroundleveland

shallbesatisfactorilydrained.

9. P.W.1 RajeshHimatlal,inhiscrossexaminationbeforethetrialcourt,admittedasunder: "Thereferenceof700sq.ft.inExh.Kisnotreferredthereinascarpet

area.Icannotsaywhetheritisreferredthereinasbuiltuporsuperbuiltup.The

referenceofRs.10,29,700/ isfor700sq.ft.areaoftheflatapplicablefrom

1/5/2002to31/5/2002..........TheamountofRs.10,29,700/ referredinclause

no.3Aofagreementdated27/5/2002Exh.AreferstopricementionedinExh.K.

Theareaof535sq.ft.referredinclause3Bisnotacarpetarea.Itreferstobuilt

uparea.ThereisnoconsumptionofF.S.I.inrespectofstiltparkingarea..........

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Clauseno.3B,3Cand3Daredeleted,asagreementisinrespectofsaleofaflat

mentionedinclause3A.......Undertakingisexecutedonaproperstamppaper.

Itisnotregistered.ThestamppaperExh."E"waspurchasedbymeinmyname.I

havenotsignedExh."E"undertaking.Itisincorrecttosaythatthedeponentof

Exh.Eneverappearedbeforenotaryoradvocate.Itistruethatasperclause6C

ofExh.Jparkingspaceisrequiredtobekeptopenasshownintheplan".

10.D.W.1 ShriHariharanT.Iyer,theSecretaryoftherespondent society,inhiscrossexamination,admittedasunder: "Ihavepurchasedmyflatinthe

defendantsocietyinMay2002.InJune2002Igotpossessionofmyflat.The

buildingwascompletelyconstructedinMay,2002.........:33:SinceIwanted

sometimeofapproximatelyamonthformakingbalancepayment,Icouldnot

takepossessionofmyflatinthemonthofMay,2002.Ihadsignedawritten

undertakinginfavourofthedeveloper.ItistruethatIhavenotchallenged

undertakingsignedbyme,asIdonotknowthecontentsthereof.Iamsecretary

ofthedefendantsocietyfromOctober/November,2003.

Theplaintiffdisclosedtheundertakingexecutedbyflatpurchasersinthissuit.All

theundertakingsexecutedbytheflatpurchaserswerenotannexedbutone

copyofitwasannexed.IhavereadtheundertakingwhenIreceivedthecopyof

plaint.Wehadreceivedcopyofallundertakingsexecutedbytheflatpurchasers

includingmyself.Itiscorrecttosaythat,tilltoday,wehavenotdecidedto

challengeundertakingexecutedbytheflatpurchasers,whoaremembersofthe

defendantsociety.Allthemembersareflatpurchasersofthedefendantsociety.

Itistruethatinmyagreement,nowhereitismentionedwhatissuperbuiltup

areaofmyflat.Theareamentionedinmyagreementisbuiltupareaofmyflat.

Sofar,municipalityhasnotassessedeachandeveryflatseparately.The

propertytaxesarepaidbythemembersinrespectoftheflatsoccupiedbythem.

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Themembersarenotpayinganyothertaxes,saveandexceptfortheareaofthe

flatintheirrespectiveoccupation.Itistruethatthereisnoconveyanceexecuted

bythedeveloperinfavourofthesocietytilltoday".

11.ThemainissuesthatariseforconsiderationinthisAppealare,a. Whethertheplaintiffcompanyhastherighttosellthesuitparkingspacesseparatelytoanyoneincludingthemembersofthedefendant

SocietyinviewoftheprovisionsoftheMOFA,themodelagreement

prescribedbytheStateGovernmentunderthesameandthe

DevelopmentControlRegulations,1991;and

b. WhetherthedefendantSocietyisestoppedfromchallengingtheactionoftheplaintiffcompanyforsaleofthesuitparkingspacesonaccountof

theundertakingsfurnishedbyitsmembers/flatpurchasers.

12.AttheoutsetletmedealwiththesubmissionmadebythelearnedSeniorCounselwhichhasbeentakenupforthefirsttimeinthisappealandtothe

effectthattheplaintiffcompanywasnotrequiredtoprovidethesuitparking

spacesaspertheDCRinviewofthecarpetareaofeachflatbeinglessthanor

upto35sq.mtrs.ThissubmissionisbasedontheschemeofRegulation36(2)of

theDCRwhichstatesthatifthecarpetareaofthetenementsisabove35

Sq.mtrs.,oneparkingspacehastobeprovidedforfourtenementsandifthe

carpetareaexceeds45sq.mtrs.butlessthan70sq.mtrs.,twotenementswill

haveoneparkingspacedprovidedbythebuilder.Incasethecarpetarea

exceeds70sq.mtrs.,eachtenementmusthaveoneparkingspace.Intheinstant

casethecarpetareaofanyofthe56flats/tenementsinPanchalibuildingisnot

lessthan35sq.mtrs.orupto35sq.mtrs.TheManagingDirectoroftheplaintiff

companyShriRajeshHimatlal(PW1)inhisdepositionsbeforethetrialCourt

admittedthattheconsiderationofRs.10,29,700/ wasfor700sq.ft.areaofthe

flatasmentionedintheagreementdated27/5/2002.Hefurtherstatesthatthe

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areaof535sq.ft.referredinclause3(b)isnotcarpetarea.Theareaof35

sq.mtrs.willbeapproximately350sq.ft.andadmittedlythemembersofthe

defendant societyhavepaidforatotalareaof700sq.ft.ThelearnedSenior

Counselfairlyconcededthatbetweenthecarpetareaandbuiltuparea,there

wouldbedifferentofabout15to20percenti.e.ifthecarpetareais350sq.ft.,

thebuiltupareamaybearound400sq.ft.andbynostretchofimaginationit

canbe700sq.ft.Thusatotallynewcasewassoughttobemadeoutinthis

appealbytheplaintiff companyandifsuchapleawastakenupbeforethetrial

Court,obviouslythesamecouldhavebeendealtwithonthebasisofthe

evidence.Evenotherwiseitisfarfetchedtostatethatwhentheflatpurchasers

havepaidfor700sq.ft.area,carpetareawouldbe350sq.ft.i.e.50percent.The

suithasproceededonthebasisthatthecarpetareaofeachflatis535sq.ft.and

thebuiltupareais700sq.ft.Thisnewpleaoftheplaintiff company,therefore,

mustfailanditcannotbeconsidereddespitethearticulationssoughttobe

madeintheWrittenSubmissionsmadebeforethisCourt.

13.Itistheplaintiffscasethatthestiltparkingspaceisagarageand,therefore,itisentitledtodisposeitoffasaseparatepremisebywayofsaleanditcannotbe

treatedtobeacommonopenspaceorcommonparkingareaavailabletothe

membersofthesociety.Regulation2(67)ofDCRdefines"Parkingspace"which

meansanenclosedorunenclosedcoveredoropenareasufficientinsizetopark

vehicles.AsperRegulation2(47)"GarragePrivate"meansabuildingoraportion

thereofdesignedandusedfortheparkingofvehicles.Surelytheparkingspace

eitherenclosedorunenclosed,coveredoropencannotbeabuilding.Itisalso

admittedthattheareaofparkingspaceisexcludedfromFSIasperDCR35(2)(f).

ButadmittedlytheareaforagarageiscountedintheFSI.Similarlyagarageas

definedintheDCRischargedtopropertytax,thestiltparkingspaceisnot

chargedtopropertytax.DCR35(2)(f)statesthatareaofunenclosedbutcovered

parkingspaceasprovidedinclause(b)(i)ofsubregulation(5)ofRegulation36.

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Intheinstantcasethestiltparkingspaceswereunenclosedbutcovered.

However,byafabricatedstructuretheparkingspacesweresoughttobe

enclosed.DCR36statesthatwhereverapropertyisdevelopedorredeveloped,

parkingspacesatthescalelaiddownintheseRegulationsshallbeprovided.

Whenadditionsaremadetoanexistingbuildingthenewparkingrequirements

willbereckonedwithreferencetotheadditionalspaceonlyandnottothe

wholeofbuildingbutthisconcessionshallnotapplywheretheuseischanged.

ThusitisacompulsoryrequirementtoprovideforparkingspacesunderDCR36.

Underclause(ii)ofDCR36(1),sizeofparkingspaceshasalsobeensetoutandin

theinstantcase,:39:asrequiredunderDCR36(2)for56flats,28parkingspaces

(unenclosedbutcovered)havebeenprovided.

14.Section3(2)oftheMOFAstatesthatapromoter,whoconstructsorintendstoconstructabuildingofflats,shalldisclosethenatureoffixtures,fittingsand

amenitiesprovidedortobeprovided,inwritingtheprecisenatureofthe

organisationofpersonstobeconstitutedandtowhichtitleistobepassed,and

thetermsandconditionsgoverningsuchorganisationofperson,whohavetaken

oraretotakeflats,whentheflatsareadvertisedforsale,discloseinthe

advertisementtheextentofthecarpetareaoftheflatincludingtheareaofthe

balconieswhichshouldbeshownseparately,thenature,extentanddescription

ofthecommonareasandfacilities,andthenature,extentanddescriptionof

limitedcommonareasandfacilities,ifany.AsperSection4ofMOFAallthese

particularswhicharesetoutinSection3arerequiredtobeprovidedforinthe

agreementthatistobesignedbetweenthebuilder/promoterandtheflat

purchasers.AsperSection4(1),theagreementbetweenthepromoterandthe

flatpurchasersshallbeintheprescribedform.AsperSection11oftheMOFA,a

promotershalltakeallnecessarystepstocompletehistitleandconveytothe

organisationofpersonshisright,titleandinterestinthelandandbuildingand

executeallrelevantdocumentsoftitlerelatingtothepropertywhichmaybein

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hispossessionorpower.Clause4oftheModelAgreementstatesthatthe

residualFSIintheplotorthelayoutnotconsumedwillbeavailabletothe

promotertilltheregistrationofthesocietyandwhereasaftertheregistrationof

thesociety,itshallbeavailabletothesocietyandnottothebuilder.Thetime

limitforregistrationofthesocietyisfixedunderRule8oftheMOFARules,1964.

Clause13oftheModelAgreementstatesthatunlessitisotherwiseagreedtoby

andbetweentheparties,thepromotershall,withinfourmonthsorregistration

ofthesocietyorLimitedCompany,causetobetransferredtotheSocietyor

LimitedCompanyalltheright,titleandtheinterestofthe

Vendor/Lessor/Origianlowner/Promoterand/ortheownersinthealiquotpart.

Section16oftheMOFAstatesthatitsprovisions,exceptwhereotherwise

provided,shallbeinadditiontotheprovisionsoftheTransferofPropertyAct,

1882,andshalltakeeffectnotwithstandinganythingtothecontrarycontainedin

anycontract.Thusonthetouchstoneoftheseprovisions,itisveryclearthatthe

rightsarisingfromtheagreementsignedundertheMOFAbetweenthe

promoterandtheflatpurchaserscannotbedilutedbyanycontractoran

undertakingtothecontrary.WhentheplansaresanctionedbytheCorporation,

itisobligatoryonthepartofthepromotertofollowtheDCRandtheagreement

signedundertheMOFAbetweenthedeveloperandtheflatpurchasermustbe

inconformitywiththemodelformofagreement(FormV)prescribedbythe

StateGovernment.

Thesaidmodelagreementdoesnotcontemplatetheflatpurchasersto

separatelypurchasetheenclosedbutcoveredparkingspacesi.e.thestiltparking

spaces.IntheinstantcasethePW1admittedbeforethetrialCourtthatClauses

3B,3Cand3Dofthemodelagreementweredeletedwhilesigningthe

agreement(Exh.A)betweenthedeveloperandflatpurchaser.Itcannotbe

presumedthateveryflatpurchaserwasintheknowoftheclausesofthemodel

agreementanditsbindingnature.Thebuilderstendtoencashonthisignorance

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andseekallsortsofundertakingswhicharecontrarytotheprovisionsofMOFA,

DCRandthemodelagreement.Whensuchistherequirementoflaw,any

undertakingfurnishedbytheflatpurchaserscannothaveabindingeffectasit

wouldbecontrarytotheguaranteesavailabletotheflatpurchasersunderthe

MOFA.

Thereisnoestoppelagainstthestatuteasiswellknownand,therefore,thetrial

Courtrightlyheldthattheindividualundertakingsfurnishedbytheflat

purchaserswerecontrarytotheprovisionsofMOFAandwereillegal.Theywere

alsocontrarytotheDCR.Consequently,suchundertakingswillnotbebinding

eitherontheflatpurchasersoftheSociety.

15.Intheinstantcasewhenthedefendant Societywasregisteredon8/10/2003underClause13oftheModelFormofAgreement,thepromoterwasdutybound

withinfourmonthsfromthesaiddate,totransfertothesocietyhisrights,title

andinterestswiththebuildingsalongwithlandappurtenanttheretoinfavourof

thesociety.Thiswasnotdoneandinsteadtheplaintiff companyretainedits

holdonthestiltparkingspaceswhichwereenclosedbyfabricatedstructureand

keptunderlockandkey.Thiswastotallyillegalandvoidabinitio.Asnoted

earlier,thestiltparkingspaceisacommonparkingareaavailableandthe

developerisobligedtoprovidethesameundertheDCRwhenthecarpetareaof

theflatis350sq.mtr.Itisnotanadditionalpremises/areathatheisauthorised

toselleithertoanyflatpurchaserortoanyoutsider.Itispartandparcelofthe

Societybuildinganditcannotbeaseparatepremisesavailableforsale.Assoon

astheCorporationissuestheoccupationcertificateandthesocietyisregistered,

thebuildingaswellasthestiltparkingspaces,openspacesandallcommon

amenitiesbecomethepropertyofthesocietyandfourmonthstimeisprovided,

ifanyotherperiodisnotmentionedintheagreement,underclause13ofthe

modelformofagreementanditisbindingonthedeveloper.Hencethestilt

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parkingspacescannotbeputonsalebythedeveloperasheceasestohaveany

titleonthesameassoonastheoccupationcertificateisissuedbythe

Corporationanditwillbecomeapropertyofthesocietyonitsregistration.

Furnishingundertakingbytheflatpurchasersisanactwhichisforceduponby

thedeveloperanditiscommonlyknown,iftheflatpurchaserrefusestofurnish

suchanundertaking,hewouldbeinformedthattheflatisnotavailableforsale.

Askingforanundertakingaswassoughtintheinstantcaseandfurnishedbythe

individualflatpurchaserisnothingsortofexploitationbythedevelopersand

thattoobyresortingtothemethodscontrarytotheprovisionsoflaw.Asper

Rule8oftheMOFARules,thepromotershallsubmitanapplicationtothe

RegistrarforregistrationoftheCooperativeSocietywithinfourmonthsfrom

thedateonwhichtheminimumnumberofpersonsrequiredtoformsuch

societyhavetakenflats.Butthisprovisionisfollowedinbreachinvariablybythe

developersandonehardlycomesacrossaninstancewherethedeveloperhas

takenstepsassoonaselevenflatpurchasershavesignedagreementsfor

purchaseoftheflats.Thereareinstancesthatevenaftertheoccupation

certificateisissuedbytheCorporationandtheflatpurchasershaveoccupiedthe

flats,thedevelopersdonottakeanystepsforregistrationoftheCooperative

Societyevenforyearstogetherandthusholdontotheirinterestsinthe

property(excepttheunsoldflats/shopsorgarages),whichtheyarenotentitled

inlaw.

16.Section5readwithSection53AoftheTransferofPropertyAct,1882alsodoesnotpermitthedevelopertocontendthatpartoftheSocietyspropertyviz.the

enclosedstiltparkingspacesaretobesoldeithertothirdpartiesortothe

membersoftheSociety.RegulationNo.1(2)oftheDCRstatesthatthesaid

Regulationsapplytothebuildingactivityanddevelopmentworkinanyarea

undertheentirejurisdictionoftheMunicipalCorporationofGreaterBombay

andifthereisaconflictbetweentherequirementsoftheRegulationsandthose

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ofanyotherRulesorByelaws,theRegulationsshallprevail.Havingregardsto

thisschemeofRegulation1(2)oftheDCR,theundertakingadmittedlyfurnished

bytheflatpurchasershastosurrendertotherequirementsoftheDCRsandthe

saidundertakingwillnotdebarorpreventtheSocietyfromclaimingthatthestilt

parkingspacesarethepropertyofthesocietyandanyofthemcannotbe

offeredforsalebythedeveloperatanytime.

17.AspertheDCRNo.36(5)thelocationoftheparkingspaceshasbeenfixedandtherelevantprovisionsreadasunder:"Theparkingspacesmaybeprovided (a)

underneaththebuilding,inbasementswithinitsstiltedportionoronupper

floors."WhereasthelocationofthegarageasstipulatedunderDCRNo.38(8)(ii)

stipulatesthatthegaragemaybelocatedatitssideorrear,butatleast7.5m.

awayfromanyaccessroad,ifnotwithinthebuilding.TheExplanation

therebelowstatesthatforthepurposeofthisRegulation,theterm"garage"

meansadetachedgroundfloorstructureintheopenspaceoftheplotoronthe

groundfloororonupperfloorofabuilding,andintendedforparkingorshelter

ofmechanicallycontrolledvehiclesbutnotfortheirrepairs.Thusthelocationof

thegarageisonemorereasontorejectthecontentionsoftheappellantthatthe

stiltparkingspacesaregarages.TherelianceoftheappellantonClause2ofthe

ModelAgreement FormVinsupportofthecontentionthatitrecognisesits

righttosellopen/coveredgaragesisalsomisplaced.Thestiltparkingspaces

cannotbetermedasopen/coveredgaragesandClause2oftheModel

Agreement FormVprovidesforsaleofcovered/opengarageinadditiontothe

flat/shop.Itisimmaterialifthepurchaseagreementdoesnotincludestiltcar

parkingspacesinthecommonareasofamenities.TheDCRobligestoprovidecar

parkingsasnotedhereinaboveandtheplansapprovedbytheMunicipal

Corporationcalluponthedevelopertocomplywiththerequirementsofthe

DCR.Exhibit"J"istheletterdated26/3/2002asnotedhereinaboveaddressedto

theExecutiveEngineerprayingforissuanceoftheoccupationcertificateandin

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thesaidletterunderthecaption"Conditionstocomply"Sr.No.6dealswiththe

conditionregarding"surroundingopenspaces,parkingspacesandterraces"

whicharerequiredtobekeptopen.Italsomakesitclearthatopenspacesare

differentfromcarparkingspaces.Therefore,thedefendant Societyisrightin

itscontentionsthatthestiltcarparkingspacesispartofthecommonamenities

anditcannotbetreatedtobeaseparatepremises/garagewhichcouldbesold

bytheDevelopertoanyofthemembersofthesocietyortoanoutsider.Itwas

soughttobearguedthattheMOFAexpresslyrecognisesthepromotersrightto

retainpremiseswhichremainunsold.Therecouldbenodisputeonthis.

However,theword"premises"doesnotinclude"stiltparkingspaces".

Section16oftheMOFAstatesthattheprovisionsofthesaidAct,exceptwhere

otherwiseprovided,shallbeinadditiontotheprovisionsoftheTransferof

PropertyAct,1882andshalltakeeffectnotwithstandinganythingtothe

contrarycontainedinanycontract.Theundertakingsfurnishedbytheflat

purchasersandrelieduponbythebuilderarehitbytheprovisionsofSection16

oftheMOFAandare,therefore,illegalandvoidabinitioashasbeenrightlyheld

bythetrialCourt.AspertheOxfordDictionarytheword"stilt"meansoneofthe

setofpoststhatsupportabuildingsothatitishighabovethegroundorwater.

NoevidencewasplacedbeforethetrialCourtbythebuilder/developertothe

effectthattheareaofstiltparkingspaceswasincludedinthesaleableareaas

pertheplansapprovedbytheMunicipalCorporation.UndertheMOFAthe

developersrightisrestrictedtotheextentofdisposalofflats,shopsand/or

garages,whichmeansthatanypremiseswhichisincludedintheFSIcanbesold

bythedeveloper/promoter.Theareaofthestiltparkingspaceisnotincludedin

theFSInorisitassessablefortheCorporationtaxes.Hencedisposalofthreestilt

parkingspacesbythedeveloperevenbeforetheoccupationcertificatewas

issuedbytheCorporationorthereafterisperseillegalandthatbyitselfcannot

beareasonforthedevelopertocontendthatthesestiltparkingspacesareits

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propertywhichcouldbetransferredbysale,notwithstandingtheundertakings

executedbytheflatpurchasers.

18.Inthepremises,IamsatisfiedthatthewellreasonedjudgmentandorderpassedbythelearnedJudgeoftheCityCivilCourt,GreaterMumbaidoesnotcallforany

interferenceinthisappealandthesameisrequiredtobeinfactconfirmed.

Hencethisappealmustfailandthesameisherebydismissedwithcosts.Interim

orderstandsvacated.

(B.H.MARLAPALLE,J.)

Mr.Naikmadeanoralapplicationtostaytheoperationofthisorderfortwelveweeks.

ThisprayerhasbeenopposedbyMr.Salunke,thelearnedcounselappearingforthe

societies.

Theoperationofthisorderisstayedforaperiodoffourweeksfromtoday.25/4/2008

(B.H.MARLAPALLE,J)