Bombay High Court appoints arbitrator to resolve Om Satyam Niwas CHS dispute

The Bombay High Court has taken a significant step in resolving a decade-old dispute surrounding a redevelopment agreement. In this case, Om Satyam Niwas CHS, a cooperative housing society in Borivali (West) with 26 flat owners and eight shop owners, has invoked an arbitration clause, alleging that the builder, Greenfield Developers and Realtors LP, failed to pay transit rent arrears amounting to approximately Rs 3.5 crore.
HC judge Justice Manish Pitale appointed senior advocate Rajiv Patil as the sole arbitrator and asked the cooperative housing society's secretary to hand over relevant documents and records, including cheque books, to the chairman within a month. The court asked all the parties to put forward their claims and disputes before the appointed arbitrator, facilitating a structured and legal resolution process.
Last year, Om Satyam Niwas CHS, represented by advocate Siddhesh Borkar, approached the court to address their grievances related to a redevelopment agreement. The primary issue revolved around the builder's failure to fulfil their obligation of paying transit rent arrears, a substantial sum totalling about Rs 3.5 crore. To this end, the High Court also instructs the builder, Greenfield Developers and Realtors LP, to provide the cooperative housing society with a copy of the escrow account statement. This statement could shed light on the financial transactions associated with the redevelopment.
In response to the co-operative housing society's claims, the builder, represented by advocates Ish Jain and Kiran Jain, filed an arbitration petition of its own. The builder contends that the original 26 tenants owe approximately Rs 5 crore in unpaid 'GST dues.' Additionally, the builder asserts that 10 of these tenants have yet to settle their payments for the extra floor space they purchased.
It is worth noting that the redeveloped building is already prepared for occupancy but the issuance of an occupancy certificate (OC) remains pending. According to Borkar, as the OC is not yet granted, it creates uncertainty regarding the completion of the redevelopment project. The builder, in response, has pointed out that the OC application was unexpectedly returned by the BMC (Brihanmumbai Municipal Corporation) due to a lack of submission of a civil aviation NOC (No Objection Certificate). According to the builder, this requirement was not stipulated by the BMC during the request for permissions initially. This adds an additional layer of complexity to the ongoing dispute.

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Bombay High Court appoints arbitrator to resolve Om Satyam Niwas CHS dispute

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