Authority: High Court of Judicature at Bombay

Order Date: 23 September 2026

Case Overview

  • Petitioners: Pant Nagar Indrayani CHS Ltd (society of 30 original members).
  • Respondents: Shagun Reality and Others (development partner).
  • Core agreements: Development Agreement dated 29 June 2006; Deed of Rectification dated 10 September 2010; Supplementary Agreement dated 30 August 2011.
  • Under the Supplementary Agreement, each member was to receive a flat of 484 sq ft carpet area; the flats actually constructed are 556 sq ft, creating an excess of 72 sq ft per flat.
  • Petitioners seek (a) execution and registration of agreements recording the additional 72 sq ft for each member/flat owner before the Registrar of Assurances; (b) an injunction restraining Respondents from dealing with, alienating, or encumbering flats Nos. 901, 1002, 1503 and 1602 pending arbitration.
  • Monetary claim: Petitioners allege Rs 6,01,98,113 jointly and severally payable by Respondents for unpaid transit‑rent compensation, compensation under the Development Agreement, and statutory dues.
  • Supporting documents: Property Tax Notice from MCGM (January 2023); letters dated 30 January 2023 and 8 December 2023 demanding payment of arrears and receipts; Managing Committee meeting on 8 January 2023 where Respondent No. 2 assured compliance; notice invoking arbitration (Clause 64) dated 12 July 2024 (served by Registered Post A.D.; Respondents 1 & 2 refused acceptance, Respondent 3 had left address).
  • Respondents’ defence: substantial transit‑rent payments made from May 2010 to December 2018; financial difficulties disclosed in December 2018 preventing further payments; allotment letters for flats 401→901, 1002, 1503, 1602 issued between 2010 and 2021.
  • Court’s analysis: No material shows the additional 72 sq ft is unauthorised; financial difficulty does not extinguish contractual obligations; the four flats identified are vulnerable to third‑party rights and must be protected; monetary liability remains for arbitration determination.

Final Outcome

1. Prayer (a) is allowed: Respondents (and any persons claiming through them) must execute an agreement for the excess 72 sq ft in favour of each concerned member/flat owner and register it before the Registrar of Assurances.

2. Prayer (b) is allowed: Pending arbitration, Respondents are restrained from dealing with, parting with possession of, creating any third‑party right, title or interest in, alienating, transferring or encumbering Flats 901, 1002, 1503 and 1602 in Pant Nagar Indrayani CHS Ltd., Building 13, Ghatkopar (East), Mumbai 400 052.

3. The court clarifies that observations on the Rs 6,01,98,113 claim are only for the present petition; the final monetary rights and liabilities will be decided in the arbitration proceedings.

4. No order as to costs; the arbitration petition is disposed of on the above terms; all other contentions remain open for adjudication by the Arbitral Tribunal.

Topics: Court Order, Real Estate Dispute, Arbitration