The Bombay High Court has dismissed an application filed by 52 tenants of a demolished building in Ghatkopar (West) seeking to add a new developer as a party to their pending petition concerning redevelopment. The court also imposed a cost of Rs 5 lakh on the applicants.
Court's Observations on the Application
Justices Ajey Gadkari and Kamal Khata, in their order passed on Wednesday, noted: "It prima facie appears that the present application is moved and financed by the proposed respondent (developer) to crystalize his unenforceable right against the respondent-landlords and original developer." The bench further remarked that the tenants had no right to implead a developer who had no privity of contract with the landlords.
Background of the Case
In February 2024, the tenants had approached the High Court seeking expedited redevelopment of Kamla Bhuvan, a dilapidated building on LBS Marg that was demolished by the Brihanmumbai Municipal Corporation (BMC) in April 2018. Subsequently, in 2025, they filed an interim application in the pending petition to add BS Lifespace as a new developer.
Arguments Presented
Advocate Deepak Thakare, representing the tenants, argued that the prolonged delay in the project was a major concern. He stated that the tenants feared the landlords would fail to provide permanent alternate accommodation and would renege on their obligations. Thakare also submitted that the landlords themselves had introduced Lifespace, and the developer had been substantially involved in the redevelopment process.
However, Uday Warunjikar, counsel for the landlords, countered that there was no contract with Lifespace and that the original developers had continued with the project. He described the tenants' application as a "ruse" to pressurize the landlords into entering into terms with Lifespace. Warunjikar asserted that "the tenants cannot use the court as a tool to indirectly pressurise the landlords in this manner."
Court's Reasoning
The judges observed that the tenants "have no right to implead the new developer who has no privity of contract with the landlords in the present petition." They added that allowing the application "would only enlarge the issue and complicate it." When the judges queried whether there was any binding contract between Lifespace and the landlords, Thakare responded in the negative.
The bench then termed the application as "an abuse of the process of law" and an "elite form of coercion and extortion." They described it as a "backdoor entry" attempted by Lifespace "through a seemingly innocuous application." Despite being offered the option to withdraw the application, the tenants insisted on the court deciding it. Consequently, the judges directed the payment of Rs 5 lakh to the Bar Council of Maharashtra and Goa's Advocate Academy and Research Center within two weeks.
