Legal Question in Real Estate Law in India

Advice on a clause in Development Agreement

Ours is a commercial society (registered) and on lease from MHADA for a term of 30 years commencing from 1/9/1994.The

society is a chawl structure consisting of 20 shops(12 members,2 of which are new members,others old).The society has obtained FSI and is considering to go for redevelopment.A draft of the agreement with the Developer has also been prepared.As per the draft the existing members are to be alloted premises on the GROUND+1.But due to lack of horizontal space,it is not possible for all 20 members to be accomodated on the GROUND+1 pattern.As such3 members have voluntarily and without any compensation agreed to

adjust and occupy premises on the 2nd and the 3rd floors.The agreement also contains a clause regarding the same which says''The members shall also not

claim any compensation from the society for going on the upper floors.'' Please suggest if this point especially the phrase ''for going on the upper floors'' is strong enough to protect the existing members from the new members at any future date.If not please suggest a better point.


Asked on 10/16/08, 12:27 pm

2 Answers from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Re: Advice on a clause in Development Agreement

Once a Member enter into a standard writing of surrender of his/her premises and allotment of new premises, question of his/her claiming any compensation does not survive.

Kindly have necessary drafts prepared from a lawyer well versed in such matters.

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Answered on 10/17/08, 3:13 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Advice on a clause in Development Agreement

If I were to decide, I would better allocate places (apartment numbers and floor) to all the members right at this stage on the basis of the building plans so that things are not uncertain.

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Answered on 10/16/08, 3:43 pm


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