NAHALCHAND LALOOCHAND PVT. LTD. versus PANCHALI CO-OPERATIVE HOUSING SOCIETY LTD.

Citation: [2010] 10 S.C.R. 804 · Decided: 31-08-2010 · Supreme Court of India · Bench: RAJENDRA MAL LODHA · Disposal: Dismissed

Cited by 2 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
B 
[2010] 10 S.C.R. 804 
NAHALCHAND LALOOCHAND PVT. LTD. 
v. 
PANCHAL! CO-OPERATIVE HOUSING SOCIETY LTD. 
(Civil Appeal No. 2544 of 2010) 
AUGUST 31, 2010 
[R.M. LODHA AND A.K. PATNAIK, JJ.] 
Maharashtra Ownership Flats (Regulation of the 
Promotion of Construction, Sale, Management and Transfer) 
C Act, 1963: 
s. 2(a-1) - Stilt parking space - Rights of promoter viv-
a-vis housing society - Held: Stilt parking space is neither 
covered by term 'flat' nor 'garage' but is a part of 'common 
0 areas' - MOFA restricts the rights of promoter in the block or 
building constructed for flats or to be constructed for flats to 
which the Act applies - Promoter has no right to sell any 
portion of such building which is not 'flat' within the meaning 
of s. 2(a-1) nor has he the right to sell stilt parking space -
E He only has the right to sell unsold flats - Entire land and 
building has to be conveyed to the organization -
Maharashtra Ownership Flats (Regulations of the Promotion 
of Construction, Etc.) Rules, 1964 - Development Control 
Regulations for Greater Bombay, 1991 -
Maharashtra 
Apartment Ownership Act, 1970- Maharashtra Regional and 
F 
Town Planning Act, 1966 - Transfer of Property Act, 1882 -
Urban Development. 
s. 2(a-1) - 'Flat' - Meaning of- Held: Flat is a separate 
and self-contained set of premises that forms part of the 
G building and is used or intended to be used for residence or 
office, showroom or shop or godown or for carrying on industry 
or business -
Stand alone garage or garage as an 
independent unit by itself is not a 'flat' within the meaning of 
s. 2(a-1) - Interpretation of Statutes. 
H 
804 
NAHALCHAND LALOOCHAND PVT. l TD. v. PANCHAL! CO-
805 
• 
OPERATIVE HOUSING SOCIETY LTD. 
s. 2 (a-1) - Stilt parking space/open parking space of A 
building - Held: Stilt parking space/open parking space of a 
building regulated by MOFA, is a part of 'common areas'- It 
may be usable as a parking space but does not tantamount 
to a 'garage' within the meaning of s. 2(a-1) rlw condition No. 
2 Form V of 1964 Rules, thus not saleable independently as 
B 
a flat or along with a flat - Maharashtra Ownership Flats 
(Regulations of the Promotion of Construction, Etc.) Rules, 
1964. 
Purpose of Maharashtra Ownership Flats (Regulation of C 
the Promotion of Construction, Sale, Management and 
Transfer) Act, 1963 - Explained. 
Words and Phrases: 
'Flat' - Connotation of, in the context of premises. 
D 
'Garage' - Conntation of. 
The appellant, a promoter, developed few properties 
and entered into agreements for sale of flats with the flat 
purchasers, namely, the members of the respondent co-
E 
operative housing society. The appellant filed a suit for 
permanent injunction restraining the respondent society 
from encroaching upon, trespassing and/or in any 
manner disturbing, obstructing, interfering with its 
possession in respect of 25 parking spaces in the stilt 
F 
portion of the building. The appellant submitted that each 
flat purchaser would have a right in respect of the flat 
sold to him and to no other portion; and that each flat 
purchaser had executed a declaration/undertaking in its 
favour to the effect that stilt parking spaces/open parking 
G 
spaces shown in the plan exclusively belonged to the 
promoter and that the declarant would have no objection 
to the sale of such spaces by it. The respondent 
contended that the promoter had n_o right to sell or 
H 
806 
SUPREME COURT REPORTS 
[2010] 10 S.C.R. 
A 
dispose of spaces in the stilt portion and that the 
undertakings given by the flat purchasers were not 
binding being contrary to law and based on such 
undertakings, the promoter did not acquire any right to 
sell stilt parking spaces. The trial court dismissed the suit 
B 
filed by the promoter. The High Court dismissed the 
appeal. Therefore, the promoter filed the instant appeal. 
Dismissing the appeal, the Court 
HELD: 1.1 The term 'flat' apart from the statutory 
C 
definition, though has no uniform meaning but in its 
natural and ordinary meaning, 'flat' is a self-contained set 
of premises structurally divided and separately owned 
for dwelling. [Para 23) [829-G] 
D 
E 
F 
1.2 The definition of the term 'flat' u/s. 2(a-1) of the 
Maharashtra Ownership Flats (Regulation of the 
Promotion of Construction, Sale, Management and 
Transfer) Act, 1963 (MOFA) means that the set of premises 
has to be a separate and self-contained that forms part 
of the building which is used or intended 

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