POWAI PLANT CO-OPERATIVE HOUSING SOCIETY (PROPOSED) versus POOJA ESTATE CONSULTANT AND CONSTRUCTION AND ORS.

Citation: [2007] 6 S.C.R. 550 · Decided: 14-05-2007 · Supreme Court of India · Bench: C.K. THAKKER · Disposal: Disposed off

Judgment (excerpt)

A 
POW AI PLANT CO-OPERATIVE HOUSING SOCIETY (PROPOSED) 
~·-
v. 
POOJA ESTA TE CONSUL TANT AND CONSTRUCTION AND ORS. 
MAY 14, 2007 
B 
[C.K. THAKKERAND TARUN CHA TIERJEE. JJ.) 
Maharashtra Housing and Area Development Act, 1976-Mass Housing 
~ 
Project-Offer for allotment of flats-No response from public-Authority 
c decided to allot flats to Cooperative Societies-Offer made by appellant-
society--First respondent-estate agent also made an offer-Letter of intent 
issued to Cooperative Society--High Court set aside the order of allotment 
for non consideration of offer of First respondent-Held, not correct-Matter 
remitted to High Court for reconsideration-Maharashtra Housing and Area 
D Development (Estate, Management, Sale, Transfer and Exchange of Tenements) 
Regulation, 1981. 
MHADA, a statutory authority constituted under the Maharashtra 
T 
llousing and Area Development Act, 1976, took up a Mass Housing Project 
and constructed several flats in Mumbai in 1995. 
E 
MHADA in accordance with the provisions of law released public 
advertisements for sale of 165 Non-Deluxe Flats. Between 1995 and 2002, 
eight such advertisements were released in several leading newspapers for 
allotment of flats, but there was practically no response from public. In 2003, 
F 
as also in 2004, two more advertisements were issued but again there was 
n~gligible response from public. MHADA also considered appointment of 
E~tate/Property Agents to boost up sa!e and disposal of flats since huge amount 
okrores of rupees had been blocked up. First respondent was appointed as 
.,.. 
an authorised property agent of MHADA. But it also could sell only 12 flats. 
The agency of first respondent came to an end on October 7, 2003 which was 
G not renewed thereafter. A policy decision was then taken to make allotment 
of flats through Co-operative Housing Societies under the "Bulk Purchase 
Scheme'. As per the said decision, an offer was made by appellant and since 
it was the only society, which had applied, a decision was taken to sell flats to 
the appellant subject to the terms and conditions mentioned in the Resolution 
"' -
H 
pas~ed by MHADA. The terms and conditions were accepted by the appellant-
550 
.,. 
... 
-y 
.,..,. 
POWAi PLANT CO-OP. HOUSING SOCTY. (PROPOSED) v. POOJA ESTATE CONSULTANT AND CONST. 
551 
society and a Letter of Intent was issued on October 25, 2004. 
When first respondent came to know about the resolution passed by 
MHADA to sell flats to the appellant-society, it approached the High Court 
complaining against the said action on the ground that since they applied on 
September 9, 2004 and the decision was taken by MHADA and Letter oflntent 
was issued thereafter on October 25, 2005, it was clear that when the decisio? 
was taken application of the appellant-society as also of the first respondent 
were before MHADA. 
A 
B 
The High Court allowed the petition observing that it was left "with no 
option but to quash the Letter of Intent dated 25th October, 2004" issued in C 
favour of the appellant-society. The Court directed MHADA to re-advertise 
sale of flats and after receiving all the offers, consider all offers in accordance 
with law and take an appropriate decision. A Review Petition filed against the 
aforesaid decision was summarily rejected. Hence the present appeal. 
Disposing of the appeal and remitting the matter to High Court, the 
Court 
HELD: 1. MHADA is a statutory authority. It is required to exercise its 
powers, perform its functions and discharge its duties in consonance with 
law. Under the Act, it is required to provide housing accommodation throughout 
the State and to dispose of its property in accordance with law. MHADA had 
also framed regulations for the purpose of management, sale, transfer and 
exchange of tenements. The regulations also provide for allotment of 
residential tenements by laying down procedure for such allotment. Though 
normally tenements are to be disposed of by issuing notices, inviting offers 
and drawing lots by determining eligibility, they also deal with situation where 
there is no adequate response from public at large. 
[Para 16] (557-D, E, F] 
2. Several attempts were made by MHADA to dispose of flats by issuing 
public advertisements. 10 advertisements had been issued in various 
newspapers in different languages like English, Marathi, Hindi, Gujarati, etc. 
But there was no proper response from public. Records show that initially no 
public members came forwar

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