Collector Must Reconsider Separate Redevelopment Claim After Hearing All Affected Parties Afresh

The petitions concerned whether Shree Building, comprising 12 flats and forming part of the Bombay Suburban District Government Servants’ Co-operative Housing Society, could be separated from the Society for independent redevelopment and conversion of its land to Occupancy Class I.

Following reports from local authorities, the Collector recommended separation and conversion, and the State issued directions on 5 March 2026 to implement that recommendation.

The Society objected, relying on an earlier rejection of separation and asserting that the process had proceeded without its participation.

The Deputy Registrar subsequently considered bifurcation unfeasible, and the Collector informed the State that redevelopment should be considered collectively for all eight buildings.

1. Whether Shree Building should be permitted to separate from the Society for independent redevelopment and conversion to Occupancy Class I.

2. Whether the competing administrative positions and orders should be given effect without a fresh hearing of the affected parties.

The Court identified no statutory provision or precedent as governing the merits of the proposed separation.

The Court also observed that ministerial notings or decisions, without an order of the State Government, do not themselves constitute such an order.

Section 79-A was referred to only in noting that the Society had taken steps towards redevelopment under that process, including appointing a developer; the Court did not interpret the provision.

The Court found that the parties had advanced opposing claims about proceedings conducted without their participation, while the administrative record contained inconsistent positions on whether Shree Building could be separated.

It did not resolve the merits of bifurcation or Occupancy Class I conversion.

Instead, given the Society’s progress towards collective redevelopment and the competing proposal for separate redevelopment, it considered a fresh hearing and assessment by the Collector the appropriate course.

It directed the Collector, Mumbai Suburban District, to hear the Shree Building members, interveners and Society office-bearers, consider the Society’s redevelopment steps and the parties’ competing claims, and apply his mind afresh irrespective of earlier orders.

The hearing was scheduled for 28 October 2026 at 11:00 a.m.; if the Collector could not conduct it that day, the parties were to report to his office for a further date.