Mumbai: HC Issues Contempt Of Court Notice To Directors Of Budhrani Housing Developers Pvt Ltd

Mumbai: HC Issues Contempt Of Court Notice To Directors Of Budhrani Housing Developers Pvt Ltd

The Bombay High Court has issued notice to directors of Budhrani Housing Developers Pvt Ltd – Shyam Sunder Agarwal, Ajay Kumar Garg and Purshottam Chattaram Budhrani

Urvi MahajaniUpdated: Thursday, February 15, 2024, 09:40 AM IST
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Bombay High Court | PTI

The Bombay High Court has issued notice to directors of Budhrani Housing Developers Pvt Ltd – Shyam Sunder Agarwal, Ajay Kumar Garg and Purshottam Chattaram Budhrani – asking as to why contempt of court action should not be initiated against for failing to comply with the undertaking given to the city civil court in 2017. The notice was issued with regard to a redevelopment project at Andheri East. 

The high court was hearing a contempt petition by one Ashok Narang and 12 others contending that the developer failed to comply with the Consent Terms signed between the parties in 2017 over the ownership of their premises in Krishna Business Park on Saki Vihar Road in Andheri East. “I am of the opinion that the respondents have committed breach of the undertakings given to the City Civil Court as recorded in the consent terms dated 30th December, 2017 in Suit No. 100812 of 2010 and accepted by the City Civil Court by order dated 12th January 2018,” Justice Gauri Godse said on February 9.

February 6, the HC had directed the developer to deposit Rs7.6 crore
On February 6, the HC had directed the developer to deposit Rs7.6 crore, which is 50% of the outstanding amount. Failing which, the court had warned of initiating contempt action against the developer. By February 8, the developer was able to deposit Rs7,36,29,000 in the high court. Last week, the respondents filed an affidavit stating that in 2021, they were restrained from creating third party rights in the said premises, hence were “unable to comply with the undertakings”. 


The court noted in its order that the developer contended that they “never intended to not comply with the undertaking and even today are ready to comply with the undertakings”. If they are given time then they are “ready and willing” to comply with the undertakings. “To show their bonafides, respondents have deposited in this court an amount of Rs. 7,36,29,000,” Justice Godse noted. 

Details of case
“I have perused the affidavit-in-reply filed by the respondents. Though the respondents have sought to explain the reasons for not complying with the undertakings, there is no attempt made on behalf of the respondents to seek an extension of time for compliance with the undertaking given to the City Civil Court in the suit,” the judge said in a detailed order. Hence, the court opined that there was breach of undertakings and issued contempt notice. The court has also asked the respondents to file reply affidavits, if any, before the next date of hearing on March 8. 

Justice Godse has clarified that the respondents are “at liberty to comply with the said undertakings on or before the returnable date” and are permitted to deposit the shortfall of Rs29,96,006. The petitioners are allowed to withdraw the amount deposited by the developers considering that they were “entitled to receive the amount on/or before 31st December 2017”. The petitioners have been asked to submit a chart showing the proportionate amount they are entitled to receive as per the consent terms. 

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