Supreme Court Permits Withdrawal of Special Leave Petitions in Tenancy Dispute Following Termination of Development Agreement. Tenants Allowed to Withdraw Petitions as Cause Did Not Survive After Agreement Termination, with Liberty Reserved to Challenge Fresh Agreement Before Appropriate Forum.

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Case Note & Summary

The Supreme Court addressed special leave petitions filed by tenants aggrieved by judgments of the Bombay High Court in writ petitions concerning premises occupation. During proceedings, petitioners in SLP No. 4428/2016 sought withdrawal due to subsequent developments: the development agreement with respondent No. 5 was terminated on 08.10.2018, and a fresh agreement was executed with a new developer. The petitioners argued the cause no longer survived against respondent No. 5. Other petitioners in SLP No. 4922/2016 did not dispute this but requested a copy of the fresh agreement and liberty to challenge it if terms were unacceptable. Respondent No. 5 opposed withdrawal but sought liberty to challenge the termination and perjury applications. The court considered these submissions and permitted unconditional withdrawal of SLP No. 4428/2016, dismissing it for petitioner No. 4 due to non-appearance. For SLP No. 4922/2016, the court disposed of it by directing the management to furnish the fresh agreement copy to tenants and reserving liberty for tenants and respondent No. 5 to challenge the agreement or termination before appropriate forums, with grounds to be considered on merits. The decision was based on procedural fairness and the changed circumstances, ensuring parties could pursue remedies elsewhere without prejudice.

Headnote

A) Civil Procedure - Special Leave Petitions - Withdrawal and Disposal - Supreme Court Rules - Petitioners sought withdrawal of SLPs due to termination of development agreement and execution of fresh agreement - Court permitted withdrawal of SLP No. 4428/2016 unconditionally and dismissed it qua petitioner No. 4 - Held that subsequent developments rendered cause non-surviving against respondent No. 5 (Paras 3.1, 4, 5, 6)

B) Property Law - Development Agreements - Termination and Fresh Agreements - Not mentioned - Respondent No. 5's development agreement terminated on 08.10.2018 and fresh agreement executed with new developer - Court noted termination and fresh agreement, directed management to furnish copy to tenants - Held that tenants and respondent No. 5 could challenge fresh agreement/termination before appropriate forum (Paras 3.1, 5)

C) Civil Procedure - Liberty to Challenge - Reservation of Rights - Not mentioned - Petitioners sought liberty to challenge fresh development agreement if not agreeable to terms - Respondent No. 5 sought liberty to challenge termination and perjury applications - Court reserved liberty for both parties to approach appropriate forums - Held that challenges would be considered on merits in accordance with law (Paras 3.2, 3.3, 5)

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Issue of Consideration

Whether to permit withdrawal of special leave petitions in view of subsequent developments including termination of development agreement and execution of fresh agreement

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Final Decision

Permitted withdrawal of SLP No. 4428/2016 unconditionally; dismissed SLP No. 4428/2016 qua petitioner No. 4; disposed of SLP No. 4922/2016 with directions to furnish copy of fresh development agreement to tenants and reserved liberty for tenants and respondent No. 5 to challenge before appropriate forums

Law Points

  • Withdrawal of special leave petitions
  • termination of development agreements
  • liberty to challenge fresh agreements
  • procedural disposal based on subsequent developments
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Case Details

2023 LawText (SC) (2) 10

Special Leave Petition (C) No. 4428/2016 and Special Leave Petition (C) No...CC No. 4922/2016

2023-02-17

M. R. Shah

Dr. A.M. Singhvi, Shri Rana Mukherjee, Shri Dhruv Mehta, Shri Neeraj Kishan Kaul, Shri Venugopal, Shri Gurukrishna Kumar, Shri Sanjay Jain

S.M. Pasha & Ors.

State of Maharashtra & Ors.

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Nature of Litigation

Special leave petitions challenging High Court judgments in writ petitions regarding tenancy and development agreements

Remedy Sought

Petitioners sought withdrawal of SLPs due to subsequent developments; respondent No. 5 sought to challenge termination and perjury applications

Filing Reason

Aggrieved by High Court judgments in Writ Petition No. 6142/2014 and Writ Petition No. 5490/2014

Previous Decisions

High Court of Judicature at Bombay passed judgments in Writ Petition No. 6142/2014 and Writ Petition No. 5490/2014

Issues

Whether to permit withdrawal of special leave petitions in view of subsequent developments including termination of development agreement

Submissions/Arguments

Petitioners argued cause did not survive after termination of development agreement and execution of fresh agreement Petitioners sought liberty to challenge fresh agreement if terms unacceptable Respondent No. 5 opposed withdrawal but sought liberty to challenge termination and perjury applications

Ratio Decidendi

Subsequent developments, including termination of development agreement and execution of fresh agreement, rendered the cause non-surviving, permitting withdrawal of special leave petitions with liberty reserved for parties to challenge fresh agreements or termination before appropriate forums

Judgment Excerpts

Feeling aggrieved and dissatisfied with impugned judgment(s) and order(s) passed by the High Court of Judicature at Bombay during the pendency of the present proceedings, the development agreement in favour of respondent No. 5 has been terminated on 08.10.2018 we permit the petitioners in SLP (C) No. 4428/2016 to withdraw the SLP unconditionally

Procedural History

High Court passed judgments in writ petitions; special leave petitions filed in Supreme Court; during pendency, development agreement terminated and fresh agreement executed; petitioners sought withdrawal; court permitted withdrawal and disposed of petitions with observations

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