In a recent development, the Bombay High Court has issued a contempt notice to the directors of Budhrani Housing Developers Pvt Ltd, including Shyam Sunder Agarwal, Ajay Kumar Garg, and Purshottam Chattaram Budhrani. The notice stems from alleged failure to fulfill commitments made to the city civil court in 2017 regarding a redevelopment project situated in Andheri East, Mumbai.
Contempt Petition Filed by Dissatisfied Parties
The issuance of the contempt notice follows a petition filed by Ashok Narang and twelve others, contending that the developer had not complied with the Consent Terms agreed upon in 2017 concerning the ownership of their premises located in Krishna Business Park on Saki Vihar Road, Andheri East. An article in the Free Press Journal mentioned that Justice Gauri Godse, presiding over the matter, expressed her opinion on February 9, stating that the undertakings given to the City Civil Court, as documented in the consent terms of December 30, 2017, had been breached by the respondents. This breach was previously confirmed by the High Court's order on January 12, 2018.
Directive to Deposit Outstanding Amount
Earlier, on February 6, the High Court had directed the developer to deposit Rs7.6 crore, constituting 50% of the outstanding amount owed. Failure to comply would result in the initiation of contempt proceedings against the developer. By February 8, the developer managed to deposit Rs7,36,29,000 in the High Court. In a recent affidavit submitted by the respondents, it was asserted that in 2021, they had been restrained from creating third-party rights in the premises, thereby impeding their ability to fulfill the undertakings. However, the court observed that no formal request for an extension to comply with the undertakings given to the City Civil Court had been made.
Court's Decision and Further Proceedings
Justice Godse emphasized the lack of an extension request despite the respondents' explanation for non-compliance. Consequently, the court concluded that there was a breach of undertakings and issued a contempt notice. The respondents have been instructed to file reply affidavits before the next hearing scheduled for March 8. Justice Godse clarified that the respondents have the opportunity to fulfill their undertakings by the returnable date and can deposit the remaining shortfall of Rs29,96,006. Additionally, the petitioners are permitted to withdraw the amount deposited by the developers, as they were entitled to receive it on or before December 31, 2017. The petitioners have been requested to submit a chart demonstrating the proportionate amount they are entitled to receive based on the consent terms.
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