MUMBAI: The Bombay High Court recently came to the rescue of a Delhi-based company and its director, who had been deprived of ownership rights of two flats in Bandra West that they had purchased in an auction sale in April 2007. The court issued orders that would now enable them to utilise the two flats.
Justice Milind Jadhav recently noted that the company, HV Infrastructure Pvt Ltd, and its director Ajay Kumar Gupta, were deprived of membership of Swapna Safalya Co-operative Housing Society because the latter’s secretary and chairman,who had not even participated in the bidding process, claimed ownership of the properties.
The company had purchased the flats in an auction sale conducted by the Recovery Officer of the Debt Recovery Tribunal way back in April 2007, for ₹13 lakh each. The secretary and chairman of the housing society – Babubhai Khushal Solanki and Dr Yakub N. Chikhrodharwala – had thereafter claimed ownership of the flats and also sought recovery of ₹2 lakh against them. However, the Recovery Officer rejected their pleas and handed over flats to the company in November 2007.
As the flats were in bad shape, the Gupta sought the society’s permission to carry out repairs in 2008, but the society denied. The society also refused to grant them membership and get the flats transferred in their name. Thus started the seemingly never-ending litigation, where the company and its director had to file pleas alternately with the Recovery Officer and the Assistant Registrar. The society then disconnected not only electricity and water supply to the flats, but also issued an order to evict the auction purchasers from the flats.
On December 16, 2019, the Assistant Registrar of the H West ward rejected Gupta’s plea for membership, primarily on the ground that the sale certificate offered by the DRT Recovery Officer was stamped but not registered. The Divisional Joint Registrar of Co-operative Societies also upheld this rejection. On June 27, 2024, the company challenged the Assistant Registrar’s rejection at the high court.
On October 15, Justice Milind Jadhav struck down the orders of Registrars, observing that the Sale Certificate issued by DRT was exempted from registration, and the Registrars proceeded on a completely wrong notion and refused them membership.
“Under Section 17(2)(xii) of the Registration Act 1908, Sale Certificates granted by a Court or Revenue Officer in respect of property sold in public auction are specifically exempted from compulsory registration,” Justice Jadhav said, and ordered the housing society to grant membership to the petitioners and complete the necessary formalities in two weeks.
The court also struck down a communication issued by the society on July 22, 2024, which ordered the petitioners to vacate, and ordered the housing society to restore water supply to both the flats in 72 hours and cooperate in restoring electricity supply to the premises.