Law
Award upheld
A division bench of the Supreme Court comprising Justices Adarsh Kumar Goel and Rohinton Fali Nariman has decreed that the Behramshah Shroff Building No. 1 (Yazad) and The Zoroastrian Radih Society (ZRS) are bound by the terms of the 2015 arbitration award finalizing the draft agreement for lease.
"The dispute between the parties relating to terms on which the land and building was to be transferred was the subject matter of arbitration. The arbitration was decided on the basis of the consent terms dated November 21, 2015 but approval of the Charity Commissioner (CC) was to be sought.” As per the Supreme Court verdict, "the parties are bound by the said terms. There will be no modification in the consent terms.”
A lease agreement was to be signed between Building No. 1 and ZRS which was kept on hold due to allegations that the agreements in the lease were not adhered to. One of the clauses stated "the purchaser of the flat shall not be entitled to sell the same for a period of 10 years from the date of allotment and shall also be liable to pay 10% of price difference in case he sells it after 10 years, to the applicant trust.”
Another clause stated that the flat could not be sold or leased "to any one or more who is or are not Parsi Zoroastrians.”
The ZRS alleged that flats were transferred without obtaining no objection certificates from the trust, amongst other breaches and hence the lease for 60 years could not be executed by the trustees. An arbitration clause was invoked. Subsequently the residents alleged fraud by the trust for not disclosing to the arbitrator that the application before the CC was withdrawn. The trust clarified this was through oversight and not done intentionally. After several court cases in the Bombay High Court the single and division bench judges concluded there was no fraud.
ZRS was said to be established for the welfare of Parsi Zoroastrians. One of the objects of the trust is to hold land and erect buildings for needy Parsi Zoroastrians. ZRS reportedly owns vast plot of lands at Oshiwara, Jogeshwari. The trustees developed the property with an intention to provide accommodation to the needy Parsi Zoroastrians at concessional price on ownership basis as well as on leave and license basis, stated a source close to the trust.
"The dispute between the parties relating to terms on which the land and building was to be transferred was the subject matter of arbitration. The arbitration was decided on the basis of the consent terms dated November 21, 2015 but approval of the Charity Commissioner (CC) was to be sought.” As per the Supreme Court verdict, "the parties are bound by the said terms. There will be no modification in the consent terms.”
A lease agreement was to be signed between Building No. 1 and ZRS which was kept on hold due to allegations that the agreements in the lease were not adhered to. One of the clauses stated "the purchaser of the flat shall not be entitled to sell the same for a period of 10 years from the date of allotment and shall also be liable to pay 10% of price difference in case he sells it after 10 years, to the applicant trust.”
Another clause stated that the flat could not be sold or leased "to any one or more who is or are not Parsi Zoroastrians.”
The ZRS alleged that flats were transferred without obtaining no objection certificates from the trust, amongst other breaches and hence the lease for 60 years could not be executed by the trustees. An arbitration clause was invoked. Subsequently the residents alleged fraud by the trust for not disclosing to the arbitrator that the application before the CC was withdrawn. The trust clarified this was through oversight and not done intentionally. After several court cases in the Bombay High Court the single and division bench judges concluded there was no fraud.
ZRS was said to be established for the welfare of Parsi Zoroastrians. One of the objects of the trust is to hold land and erect buildings for needy Parsi Zoroastrians. ZRS reportedly owns vast plot of lands at Oshiwara, Jogeshwari. The trustees developed the property with an intention to provide accommodation to the needy Parsi Zoroastrians at concessional price on ownership basis as well as on leave and license basis, stated a source close to the trust.
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