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The Bombay High Court ruled in favor of 38 tenants of the 80-year-old Kalyan Bhavan in Kalbadevi, granting them the right to redevelop the dilapidated cessed building after landlords failed to act within the six-month statutory period. Justices Ajay Gadkari and Kamal Khata set aside MHADA's earlier orders favoring the landlords and directed MHADA to issue a Letter of Intent (LoI) to the tenants. Despite landlords' claims of ongoing discussions, the court upheld tenants' rights under DCPR 2034 and the MHADA Act. This ruling reinforces tenant empowerment in redevelopment cases involving Mumbai's aging buildings.
The Bombay High Court recently upheld the tenants' right to redevelop an 80-year-old dilapidated building in Kalbadevi after the landlords failed to initiate redevelopment steps within the statutory timeframe. Justices Ajay Gadkari and Kamal Khata allowed a petition filed by 38 tenants of Kalyan Bhavan, a cessed building, setting aside MHADA's earlier orders directing the landlords to submit a redevelopment proposal and issuing a letter of intent (LoI) in their favour. The court directed MHADA to issue the LoI to the tenants instead. Advertisement
Earlier this year, in response to a petition by the landlords seeking to vacate the building, the High Court had ruled that they could apply to MHADA for redevelopment under the amended Section 79A. The provision grants landlords six months to submit a redevelopment proposal with the consent of 51% of the tenants. However, the landlords failed to comply within the stipulated timeframe, which expired in November 2023. Subsequently, MHADA issued a notice to the tenants, inviting them to submit a redevelopment proposal.
Senior advocate Girish Godbole, representing the tenants, argued that the six-month period had already lapsed when the court issued its earlier ruling. He pointed out that the tenants had obtained 65% consent and accused MHADA of overreaching the court's order by reissuing directions to the landlords in July. Godbole emphasised that the statutory period could not be extended.
MHADA's advocate Akshay Shinde explained that the earlier court order was interpreted as requiring a fresh notice to the landlords, denying any intent to breach it. Meanwhile, the landlords' counsel, Shobit Shukla, maintained that they understood the ruling to grant them an opportunity for redevelopment and held discussions with the tenants. Shukla further stated that the landlords remained willing to redevelop the property.
The judges dismissed this interpretation as untenable, clarifying that the earlier order was unequivocal in not extending the six-month deadline for the landlords. They reiterated that tenants have a right to redevelop cessed buildings under the Development Control and Promotion Regulations (DCPR) 2034 if the landlords fail to act within the prescribed timeframe. Justice Khata, writing for the bench, emphasised the specific rights of tenants in cessed buildings under the MHADA Act. The court concluded by affirming that tenants are entitled to redevelop the property.
The Bombay High Court's ruling empowers tenants of cessed buildings to take charge of redevelopment when landlords fail to act within statutory limits. This decision strengthens tenants' rights under DCPR 2034 and the MHADA Act, setting a significant precedent for similar cases in Mumbai's ageing urban landscape.
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