Gujarat High Court Upholds Redevelopment; Dismisses Plea by Minority Flat Owners
Court imposes exemplary costs on plaintiffs for stalling redevelopment process without valid grounds.
Ahmedabad, September 23, 2025 - In a significant judgment concerning the redevelopment of old housing societies, the Gujarat High Court dismissed the appeal filed by Dhanvantiben Vijaybhai Purohit and others against the Government of Gujarat and the Gujarat Housing Board. The appellants, minority members of the Surya Apartment Part-2, sought to halt the redevelopment initiated by the Housing Board, citing a lack of consent and procedural lapses.
Presiding over the case, Justice Maulik J. Shelat emphasized the legality and necessity of the redevelopment process, which had the consent of over 75% of the apartment's owners, as stipulated under Section 60A of the Gujarat Housing Board Act, 1961. The appellants failed to establish a prima facie case, balance of convenience, or irreparable loss, all critical for granting an ad-interim injunction.
The judgment highlighted that the plaintiffs, despite being aware of the redevelopment plans since 2022, delayed legal action until September 2025, after exhausting other remedies. The Court found no merit in the argument that the conveyance deed amounted to an outright sale, affirming it as a lease agreement with the Board retaining ownership of the land.
Justice Shelat criticized the appellants' conduct, describing their urgency as "artificial" and the lawsuit as defective due to the absence of statutory notice required under Section 71 of the Act. The Court also noted that the plaintiffs' actions were against the interest of the majority, who had already vacated their flats.
In a stern rebuke, the Court imposed a cost of Rs. 1,00,000 on the plaintiffs, payable to the District Legal Services Authority, Ahmedabad City, underscoring the misuse of judicial resources and the plaintiffs' attempt to derail the redevelopment project.
Bottom Line:
Redevelopment of housing society based on majority consent under Gujarat Housing Board Act, 1961 - Minority members opposing redevelopment cannot stall the process unless they establish prima facie case, balance of convenience, and irreparable loss in their favor. Statutory notice under Section 71 of the Gujarat Housing Board Act is mandatory before initiating a suit.
Statutory provision(s): Gujarat Housing Board Act, 1961 Sections 60A, 71; Civil Procedure Code, 1908 Order XXXIX Rules 1 and 2, Order XLIII Rule 1(r)
The ruling is seen as a reinforcement of the legal framework supporting urban redevelopment, balancing the rights of minority dissenters against the collective decision of the majority, thereby promoting the larger public interest in housing improvements.
Dhanvantiben Vijaybhai Purohit v. Government of Gujarat, (Gujarat) : Law Finder Doc Id # 2785794
