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2025 Supreme(SC) 564

SUPREME COURT OF INDIA
Vikram Nath, Prasanna B. Varale, JJ.
M/s Faime Makers Pvt. Ltd. – Appellant
Versus
District Deputy Registrar, Co-Operative Societies (3), Mumbai & Ors. – Respondents
Civil Appeal No. 4650 of 2025 (@ SLP(Civil) No. 26654 of 2023) With Contempt Petition (C) No. 684 of 2024 In SLP (Civil) No. 26654 of 2023
Decided On : 01-04-2025

Advocates appeared:
For the Petitioner(s):Mr. Dama Seshadri Naidu, Sr. Adv. Mr. Aman Vachher, Adv. Mr. Amar Khanna, Adv. Mr. Dhiraj, Adv. Mr. Ashutosh Dubey, Adv. Mrs. Anshu Vachher, Adv. Ms. Abhiti Vachher, Adv. Mr. Akshat Vachher, Adv. Ms. Nandni Sharma, Adv. Mr. Amit Kumar, Adv. Mr. Jasvinder Choudhary, Adv. M/S. Vachher And Agrud, AOR
For the Respondent(s): Mr. Piyush Dwivedi, AOR Mr. Aaditya Aniruddha Pande, AOR Mr. Abhikalp Pratap Singh, AOR Ms. Aagam Kaur, Adv. Mr. Utkarsh Kumar, Adv. Ms. Shubhangi Agarwal, Adv. Mr. Kartikey, Adv. Mr. Aditya Bharat Manubarwala, Adv. Mrs. Sarvagnya P Trivedi, Adv. Mr. Bharat Thakorlal Manubarwala, AOR Ms. Tanishka Grover, Adv.

IMPORTANT POINT
Res Judicata – Applicability – Principle of res judicata applies to and binds quasi-judicial authorities – Whenever a judicial or quasi-judicial tribunal gives a finding on law or fact, its findings cannot be impeached collaterally or in a second round and are binding until reversed in appeal or revision or by way of writ proceedings.

Headnote:

Civil Procedure Code, 1908 – Section 11 – Res Judicata – Applicability – Principle of res judicata applies to and binds quasi-judicial authorities – Whenever a judicial or quasi-judicial tribunal gives a finding on law or fact, its findings cannot be impeached collaterally or in a second round and are binding until reversed in appeal or revision or by way of writ proceedings – Characteristic attribute of a judicial act or decision is that it binds, whether right or wrong – Any error, either of fact or law, committed by such bodies cannot be controverted otherwise by way of appeal or revision or a writ unless erroneous determination relates to jurisdictional matter of that body – Once a Competent Authority (quasi-judicial in nature) settles an issue, that determination attains finality unless it is set aside in accordance with law. (Paras 11 and 13)

Facts of the case:

Appellant has assailed correctness of judgment and order dated 10.11.2023, passed by High Court of Bombay, whereby appellant’s Writ Petition No. 8186 of 2022, assailing correctness of order dated 05.10.2021 passed by District Deputy Registrar, Co-operative Societies, Mumbai/Competent Authority, was dismissed.

Findings of Court:

Impugned order of High Court set aside, writ petition would stand allowed, and the order dated 05.10.2021 passed by the Competent Authority is quashed.

Result : Appeal allowed.

Judgement Key Points

Key Points: - The principle of res judicata applies to quasi-judicial authorities and binds their findings until reversed in appeal, revision, or writ proceedings. (!) (!) - A first order directing that issues be resolved by a competent Civil Court before fresh relief could be sought cannot be circumvented by a later application; second application under Section 11 of the 1963 Act was rightly dismissed as barred by the earlier order and principles of res judicata. (!) (!) - The liberty to apply afresh in the first order was not unconditional; it required resolving certain complications before the competent authority could grant leasehold rights. The High Court erred in interpreting it as unconditional liberty. The Supreme Court quashed the second application and upheld the finality of the first order, while preserving the option to approach the competent forum after issues are resolved. (!) (!) (!) (!)

Question 1?

Question 2?

Question 3?


JUDGMENT :

VIKRAM NATH, J.

1. Leave granted.

2. The appellant has assailed the correctness of the judgment and order dated 10.11.2023, passed by the High Court of Bombay, whereby the appellant’s Writ Petition No. 8186 of 2022, assailing the correctness of the order dated 05.10.2021 passed by the District Deputy Registrar, Co-operative Societies, Mumbai/ Competent Authority, was dismissed. By the order dated 05.10.2021, the competent authority had allowed Application No. 101 of 2021, filed by Prakash Apartment Co-operative Housing Society Limited (respondent No.2-Society) under Section 5/11 of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 1 [Hereinafter referred to as the “1963 Act”], directing the execution and registration of a unilateral deed of assignment with respect to 1321.36 square meter area of land and the building situated thereon along with 198.20 square meter on the recreational ground in the name of respondent No.2-Society.

3. Briefly stated, the facts relevant for the present controversy are as follows:

    3.1. The subject land of the dispute comprises Survey No. 22, Hissa No. 1, corresponding to C.T.S. No. 75/B, admeasuring 1,321.36 square meters, along with 198.20 square meters in the Recreational Ground, totalling 1,519.56 square meters, out of a larger parcel of 2,752.9 square meters, situated at Bandivali Hill Road, Jogeshwari (West), Mumbai – 400102, within the Village Bandivali, Taluka Andheri.

    3.2. The larger property, which includes the subject land, was transferred to Byramjee Jeejeebhoy Private Limited (hereinafter, "BJPL") through a Deed of Conveyance dated 24.07.1951, executed between Nanabhoy Byramjee Jeejeebhoy and BJPL

    3.3. On 29.10.1952, BJPL, as the lessor, executed an Indenture of Lease in favour of Ramkishor Singh Kunjbihari (respondent No.3) as the lessee. Subsequently, respondent No.3 granted development rights over the leased land to M/s Prakash Builders (respondent No. 4).

    3.4. Respondent No.4 constructed an unauthorized building on the land, without approved plans, comprising approximately 27 flats. These flats were sold to various purchasers, who later formed respondent No.2-Society.

    3.5. On 07.07.2010, BJPL executed a Deed of Conveyance in favour of the appellant, whereby it sold its right, title, interest, and share in the larger property—including the subject land—to the appellant. Consequently, the appellant became the landowner as per the provisions of the 1963 Act.

    3.6. On 06.09.2012, the legal heirs of the late Ramkishor Singh (respondent No. 3) filed a suit against the appellant and BJPL. The dispute was eventually settled through Consent Terms, wherein the parties agreed to divide the larger property into two portions.

    3.7. Pursuant to the Consent Terms, a Deed of Surrender of Leasehold Rights was executed on 30.12.2012 between the appellant and respondent No.3. Through this deed, the appellant surrendered 3,596 square meters of land from the larger property in favour of respondent No.3, while respondent No.3 relinquished his leasehold rights over 2,786 square meters in favour of the appellant. As a result, the appellant became the owner of 2,768 square meters of land within the larger property.

    3.8. The respondent No.2-Society applied for a Unilateral Certificate of Deemed Conveyance under Section 11 of the 1963 Act before the Competent Authority which was registered as Application No.53 of 2020.

    3.9. By an order dated 22.02.2021, the Competent Authority dismissed the respondent No.2- Society’s application, observing that the Society was eligible to seek the relief of unilateral conveyance of assignment of leasehold rights. The application was also rejected due to legal uncertainties and complications regarding the identity of the land's promoter and on account of transfers. The order directed that the parties should first seek appropriate relief from a competent Civil Court, following which the Society was granted li

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