Can Exercise Writ Jurisdiction against Private Party That Wrongly Benefits From Inaction of Public Authorities in Discharge of Public Duty
Case: Sabhajit Ramyash Yadav and ors v State of Maharashtra
Coram: Justices S.J. Kathawalla and Milind N. Jadhav
Case No.: Writ Petition No. 444 Of 2022
Court Observations: “Despite having received such huge amounts from the flat purchasers, the Developers have till date not completed construction of the ‘Hill View’ Project and has in fact abandoned the same for the last one year. Further, from the material on record, it also appears that out of the monies collected from the flat purchasers, huge amounts have been transferred by the partners of the Developers to themselves, their family members and even related entities while the innocent flat purchasers still await their dream homes or the refund of their hard-earned money,”
“Despite the Court having given a long rope to the Developer to provide a true and complete disclosure of its assets in terms of the Order dated 2nd and 3rd December 2021, which were clear and ambiguous, the Developer has till date not fully complied with the said Order.”
“As we have noticed in Rustam Mehta (supra) developers such as this Developer carry on businesses through special purpose vehicles all forming part of the same group or economic unit. Even though innocent flat purchasers are left stranded with no sight of the monies admittedly due to them, the developer or the group continue to engage in high value real estate projects with there being no impact on their lives or business. This shakes the confidence of the ordinary citizens especially when there is no recovery being made by the statutory authorities who are supposed to act for their benefit. In these circumstances the Courts will have to in exercise of their extraordinary writ jurisdiction attempt to pass effective interim orders. Keeping this in mind and having already directed the Developer to open a separate bank account with a nationalised bank for all receivables and revenues, some provision will have to be made for the actual recoveries to be realised by the Petitioners. In the peculiar facts and circumstances of the present case such orders are entirely justified and would alone further the interest of justice.”
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Keywords
Writ Jurisdiction, Private Party, Wrongly Benefits
