Bombay High Court ruling clarifies rights of occupants in possession in joint ownership redevelopment disputes | File Photo
Mumbai, Dec 16: The Bombay High Court has held that in cases of redevelopment disputes involving joint owners, the occupant in possession of a flat is entitled to all benefits arising out of the redevelopment agreement, including possession of the new flat in the redeveloped project.
Developer Moved HC Over Stalled Project
The HC was hearing an arbitration petition filed by developer Virgo Infraspace Pvt. Ltd., through advocates Shrey Faterpekar and Jay Vakil, against Charkop Shreeji Krupa Co-operative Housing Society Ltd., a 13-member society located in Kandivali (West).
Joint Ownership, Single Occupant
The dispute concerned Flat No. 6 on the third floor of the society’s ground-plus-four-storey building, jointly owned by Sanjay M. Singh and Sandhya R. Singh.
Internal Disputes Cannot Stall Redevelopment
While both respondents are co-owners of the flat, Sanjay Singh has been in occupation and possession of the premises. He had opposed vacating the flat and handing over possession to facilitate redevelopment, citing an inter se dispute with the other co-owner. His refusal stalled the project since September 2025.
The High Court, however, made it clear that such internal disputes cannot derail a redevelopment project approved by an overwhelming majority of society members.
Occupant Entitled To All Benefits
“Since Respondent No. 2 (Sanjay Singh) is in possession of Flat No. 6, the possession shall be handed over and Respondent No. 2 shall be entitled to all the benefits flowing from the Development Agreement,” the court noted while disposing of the petition based on consent terms filed by the parties.
PAAA To Be Signed By All Co-Owners
At the same time, the court clarified that where a flat is jointly owned, the Permanent Alternate Accommodation Agreement (PAAA) must be signed by all co-owners. The execution of the PAAA, however, would be “subject to the outcome of the legal proceedings between the joint owners,” Justice Bharati Dangre held on December 11.
Vacant Possession Deadline Fixed
The court directed Sanjay Singh to hand over vacant and peaceful possession of the flat to the developer on or before January 15, 2026. It also recorded that the corpus amount payable under the redevelopment agreement has been deposited with the society and will remain subject to the outcome of the civil suit between the co-owners.
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Redevelopment Backed By Majority Members
The society had appointed Virgo Infraspace as the developer in a Special General Body Meeting held on November 10, 2024, in the presence of a Deputy Registrar. Nine out of the 13 members voted in favour of the redevelopment. Subsequently, 12 of the 13 members executed and registered their PAAAs in November 2025, with only the disputed flat remaining.
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