Consent decree
s c Mann
(Querist) 30 March 2014
This query is : Resolved
25 plaintiffs of a residential complex and developer (defendant)finalized consent terms through the mediator and it attained finality by a consent decree. Plaintiffs were paid 50% hardship compensation (for delay in execution of the project by the developer) at the time of signing of consent terms and 50% was to be released by the mediator after 01 year without recourse to defendant but provided clauses under consent terms were not breached by either party.Plaintiffs did not form the ad-hoc committee for one year and were inquired by mediator about the reasons thereof, pending balance compensation to be disbursed to plaintiffs. While 13 plaintiffs have given an undertaking that they indemnify the developer and will continue to pay legitimate maintenance charges (their balance compensation has been released with consent of developer given to the mediator; other 12 plaintiffs along with with cleared 13 plaintiffs have now together formed the ad-hoc committee under the aegis of bungalow owners'association, without intimation to the developer and the mediator, and that too after 15 months from the date of consent terms, and have expressed in writing to the mediator and developer that they have now established the ad-hoc committee and thus achieved full compliance and balance compensation should be releases within 10 days. May I request your opinion if the adhoc committee so constituted is void and inconsistent? Can this ad-hoc committee be recognized by the developer and mediator? Should the mediator refer the matter to court for proper constitution/composition of ad-hoc committee? Should the duties and responsibilities of ad-hoc committee be spelt out by the mediator or the court as per established norms? Plaintiffs over the last 15 months have shown no responsibilities towards smooth running of the complex - do not pay maintenance on time and do not abide by safety & security laid down procedures. Developer is running the complex and developing the balance area and troubled by above nuisance by plaintiffs. Is the bungalow owners association required to be registered by them? Request advise course of action by the developer. Thank you.
T. Kalaiselvan, Advocate
(Expert) 30 March 2014
The association formed by the bungalow owners have to be registered and should include all other members too. If the rest of members do not join them then the association will lose its identity and validity especially with regard to the legal formalities of registering the association and other requirements namely maintenance etc. However, as per the consent decree terms, it is the duty of the mediator/developer to abide by the conditions agreed upon within the stipulated time period therein. The more the delay, the more problems will arise this way.
Rajendra K Goyal
(Expert) 31 March 2014
The association is not of even majority of members and not registered. Get the formalities fulfilled.
Developer, mediator and the flat owners are parties to the agreement and the terms should be abide by.
