In a significant ruling that brings relief to hundreds of homebuyers, the Punjab and Haryana High Court has shielded 836 allottees from being dragged into a protracted family legal battle over a disputed Gurgaon property. The court dismissed a revision petition seeking to implicate 812 flat buyers and 24 shop owners in an affordable housing project as parties to a civil suit.
Court Upholds Trial Court Decision, Cites Lack of Direct Interest
Justice Archana Puri, presiding over the case, upheld the decision of the trial court which had earlier rejected the application to add the allottees as defendants. The court firmly held that the homebuyers and shop owners do not have a direct interest in the core dispute, which is essentially a clash of ownership claims between a son, Ajai Jain, and his parents, Ashok Kumar Jain and another.
The judge observed that the primary issue revolves around the alleged irregularities in a collaboration agreement between the parents and a real estate developer, and the validity of subsequent project licenses. "The proposed defendants do not have direct bearing over the merits of the cases in hand," Justice Puri noted in the order.
Background of the Family Dispute Over Abhinandan Farm
The case originates from a long-standing family conflict concerning land initially purchased in the name of Ajai Jain's parents. Ajai Jain claimed partial ownership of the property, known as Abhinandan Farm. He alleged that his parents entered into a collaboration agreement with Lotus Realtech Private Limited on August 14, 2013, to develop the 'Lotus Homz' affordable housing project. He contended this was done without his consent and through irregular means.
In 2014, Ajai Jain initiated multiple civil suits seeking various legal remedies, including declarations, injunctions, and the cancellation of documents like a lease deed surrender. He also challenged the housing project license granted by state authorities.
Why the Court Rejected Impleading the Buyers
During the ongoing proceedings of these consolidated suits, Ajai Jain filed an application under Order 1 Rule 10 of the Civil Procedure Code (CPC) to add the allottees as defendants. His argument was that the buyers had financial and legal stakes in the disputed property, and the alleged fraud endangered their investments.
However, both the trial court on November 3, 2023, and the High Court found this move unnecessary. Justice Puri emphasized the legal principle for impleadment, quoting CPC provisions that allow addition only when a party's presence is essential for the complete adjudication of all questions in the suit.
The court termed the attempt to add the buyers as "only a speculative move" by the petitioner, who seemed to be presuming a decree in his favour. Justice Puri concluded that at this stage, it cannot be said the allottees are necessary for deciding issues related to flaws in the collaboration agreement or irregularities in obtaining the license.
Relief for Homebuyers, Case to Proceed Without Them
With the dismissal of the revision petition, the consolidated civil suits will now continue without the involvement of the 812 flat buyers and 24 shop owners. This ruling spares hundreds of allottees from being entangled in a potentially long and uncertain legal process, providing them much-needed stability regarding their properties in the Lotus Homz project in Gurgaon.
