Expressing displeasure over the delay in execution of consent terms, the Bombay High Court has directed M/s Orbit Enterprises to hand over possession of premises to the purchaser, Veera Associates, in INS Towers at Bandra Kurla Complex expeditiously.
A division bench of justices SJ Kathawalla and Milind Jadhav, on March 21, directed the Orbit Enterprises to hand over the possession as per the consent terms submitted in October 20, 2021.
The HC was hearing an application filed by Veera Associates following non-compliance of consent terms by Orbit Enterprises.
M/s. Orbit Enterprises, which is a Partnership Firm, constructed a building known as INS Towers at Bandra Kurla Complex. Veera Associates purchased premises on the INS Towers and paid consideration of Rs 3.26 crore in 2009. However, it did not receive the premises. However, the agreement was not registered for 13 years.
It was only in May 2021, Veera Associates learnt that Orbit Enterprises had sold the same premises to a third party in 2014 for Rs 5.38 crore.
Aggrieved, Veera Associates filed a suit in the HC in July 2021 before a single judge of the HC. the dingle judge refused to grant any relief observing that although Veera Associates learnt about the creation of third party rights in May 2021, it filed a suit only in July 2021.
Veera Associates then filed an appeal before the division bench. Setting aside the order of the single judge, the bench headed by justice Kathawalla said: “We are not in agreement with the Learned Single Judge that a party who has admittedly paid more than Rs.5 Crores to the Partnership in the year 2015, upon coming to know in May 2021 that the Partnership had already sold his unit to a third party, is not entitled to ad-interim reliefs, if such purchaser (the Appellant herein) has taken 60 days to collect the material particulars against the Partnership that has cheated the Appellant and has thereafter filed a suit.”
Orbit Enterprises’ advocate Dipesh Siroya said that the developer had agreed to hand over alternate premises which was accepted by Veera Associates.
Accordingly, consent terms were signed, in October 2021.
However, despite this, the premises were not handed over to Veera Associates and it filed an application before the HC.
“As in other matters, the Developer i.e. Respondent No. 1 has in the present matter also not complied with a shred of what is promised / undertaken in the Consent Terms,” noted HC.
Siroya said that there was delay in handing over the premises as there had been change in partnership of the firm.
However, the court said that in place of one of the partners, a court officer can sign and the premises can be handed over to Veera Associates.