Mumbai: Taking a humanitarian approach, the Bombay High Court on Friday directed the Slum Rehabilitation Authority (SRA) to release transit rent of a cancer patient who vacated his premises in 2013, but had not been paid the transit rent since last seven years as insolvency proceedings were initiated against the builder, Darshan Developer. 

A bench of Justices MS Sonak and Kamal Khata directed the SRA to release Rs2.55 lakh due to Mohamad Patel, a senior citizen, towards arrears of transit rent as on November 2023, as he is a “cancer patient and in dire need of some money to sustain himself, his family and his medical needs”. The HC was hearing a plea by Patel seeking direction to the SRA to release his transit rent. 

The builder undertook redevelopment of 33 slum societies in Juhu Gully near Gilbert Hill in 2013. An agreement was signed with the slum dwellers that permanent alternate accommodations will be provided and till then they would be paid transit rent. Initially the developer paid transit rent, but subsequently defaulted. Patel, who personally appeared before the HC, said he vacated the premises in 2013. 

The court was informed that the Corporate Insolvency Resolution Process (CIRP) has been initiated against the developer and a resolution professional is also appointed. 

Patel had approached SRA, which is holding an amount of Rs1.56 crore belonging to the developer for payment of transit rent, seeking release of his transit rent. The SRA refused saying that the money was frozen following communication by the Directorate of Enforcement. Also, last year the HC had directed not to release the amount due to initiation of the CIRP, and as proceedings were pending before the National Company Law Tribunal. 

The slum authority, however, admitted before the bench that as on November 2023, outstanding arrears payable to Patel is Rs2.55 lakh. 

The bench noted that “considering the peculiar circumstances of this case, including in particular that petitioner is eligible for transit rent and that arrears or transit  rent has run up to Rs2.55 lakh, some order would have to be made”. 

“In cumulative consideration of above factors and in clarifying that this order is being made with the most peculiar facts and circumstances, we direct the SRA pay to  petitioner Rs2.55 within two weeks from Rs1.46 crore held by SRA on behalf of the developer,” the court directed, clarifying that this order shall not be treated as precedent. It also said that the petitioner, who is suffering from cancer, “cannot be made to wait indefinitely until all these matters (CIRP, ED proceedings) are sorted out”. 

The HC has kept the matter for further hearing on October 24. 

Patel had, last month, appeared before the court and while pleading for release of his amount had threatened to attempt suicide. 

On Friday, the judges said they sympathise with Patel, but warned him from repeating the act in future. “This order (release of transit rent) is not because of your drama. Next time we will send him to the prison, that is in the hospital  ward of the prison. In fact this is contempt of court,” the bench explained to Patel.