Corporations to pay monthly compensation in lieu of temporary alternated accommodation

Abhinav Mishra| Kirit P. Mehta School of Law| 21st June 2020

Sahyog Homes Ltd. v. the State of Maharashtra

Introduction:

The petitioner has challenged the circular dated 31^st May 2020 by the MCGM which requisitioned some buildings of the petitioners for providing quarantine and isolation facility. The bench comprises of S.J.Kathawalla and Surendra P.Tavade.

Facts:

• There are hundreds of families in the city, who have handed over their original tenements/flats to the builders by entering into written contracts with builders, wherein the builders have assured the original owners/tenants that they shall redevelop their buildings and handover newly build flats to them.
• The builders agreed in writing to make monthly payments in lieu of temporary alternate accommodation. The builders have taken several years to complete the work and have also stopped paying the compensation in lieu of temporary alternate accommodation due to which the families have virtually landed on the streets.
• Despite the above pathetic circumstances of such families who are longing to secure their legitimate roof over their heads, MCGM under the garb of its Circular dated 31st May 2020, has started requisitioning the said buildings for providing a quarantine / isolation facility.
• In view thereof, the Petitioners in the above Writ Petitions have challenged the aforestated action of the MCGM and the Circular dated 31st May 2020.

Holding:

The HC held that the action on the part of the MCGM, prima facie appears to be absolutely unjust and unfair and done with scant regard or consideration of the plight of those people who have no roof to call their own. The court directed the corporation to file a detailed affidavit regarding the number of individuals presently housed there on or before 9^th June, 2020. The court shall dispose of the petitions on 16^th June 2020 and until then the MCGM shall maintain the status quo as of the day of this order. Further, the court directed the builder/ Neelkamal Realtors Tower Private Limited to provide accommodation and/or pay monthly compensation in lieu of temporary alternated accommodation to the rest of the tenants.