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2014 Supreme(Bom) 178

High Court of Judicature at Bombay
V.M. KANADE & GIRISH S. KULKARNI, JJ.
Sushil Samir Co-operative Housing Society Limited
Versus
District Deputy Registrar, Co-operative Societies & Others
Writ Petition No. 2410 of 2012
Decided On: 24-01-2014

Advocate Appeared:
For the Petitioner:S.U. Kamdar, Senior Counsel with Girish Dave, Monika Naik, M.V. Gupta, Hussain Somji i/b. Dave Girish & Co., Advocates.
For the Respondent:R1 & R7, Geeta Shastri, AGP, R4 to R6, Chirag Balsara, D.F. Sharma & Uma Sharma i/b. Dharam & Co., R3, Mayur Agarwal i/b. Bilawala & Co., Advocates.

Headnote:Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale Management and Transfer) Act, 1963 - Sections 5-A and 11 Issuance of deemed conveyance. - Though promoter failed to execute conveyance of property in favour of Co-operative Housing Society yet competent authority has no jurisdiction to issue deemed conveyance after holding enquiry under Section 11 of Act. - Perusal of the said section, reveals that the said section can be divided in three parts; Section 11, sub-sections (1) and (2) lays down the duty which is to be performed by the promoter to file with the Competent Authority within the prescribed period, a copy of the conveyance executed by him under sub-section (1). The second part is divided in sub-sections (3) and (4) and it is provided that if the promoter fails to execute the conveyance in favour of the co-operative society, then in such cases, the society is permitted to make an application seeking deemed conveyance. Sub-section (3) lays down what are the documents, which are to be accompanied along with the application. Sub-section (4) then deals with the enquiry which is to be conducted by the Competent Authority. Sub-section (4), therefore, deals with the limit, within which, the Authority has to exercise its jurisdiction before issuing a certificate to the Sub-Registrar or any other appropriate Registration Officer under the Registration Act, 1908. The third part deals with the duty which is imposed on the Sub-Registrar, after such a certificate is issued by the Competent Authority, is tendered to the said officer. The third part deals with the enquiry which is to be conducted by the Sub-Registrar before registration of the instrument as deemed conveyance.

       Court, therefore, of the view that the Competent Authority ought to have collected the relevant documents from the petitioner and respondent Nos. 4, 5 and 6 and then arrived at the conclusion regarding the area which was to be conveyed at least in favour of the petitioner Society since no application has been filed by respondent Nos. 4, 5 and 6 seeking deemed conveyance. Court, therefore, direct the Competent Authority to make a further inquiry after calling upon the petitioner and other respondent Nos. 4, 5 and 6 Societies to submit the documents regarding the area consumed by them and, thereafter, decide the question of area, and direction may be given by the Competent Authority to the petitioner and to the respondents to submit a proper Architect’s certificate for the entitlement of the area and other relevant documents. The said conditions 2(iv) and 2(v) are set aside and we direct the Competent Authority to determine the area which is to be conveyed in favour of the petitioner Society as per the directions given hereinabove.

Judgment :

V.M. Kanade, J.

1. Rule. Rule is made returnable forthwith by consent of parties. Heard the learned Senior Counsel appearing on behalf of the Petitioner, Shri Balsara, the learned counsel appearing on behalf of Respondent Nos.4 to 6 and the learned AGP appearing on behalf of Respondent Nos.1 and 7.

2. By this petition, which is filed under Article 226 of the Constitution of India, the Petitioner is challenging the impugned order passed by Respondent No.1 – District Deputy Registrar, Cooperative Societies, Mumbai City (3), who is the Competent Authority, appointed under section 5 of the Maharashtra Ownership Flats (Regulations of Promotion of Construction, Sale, Management and Transfer) Act, 1963 (for the sake of convenience, hereinafter referred to as “MOFA Act”). The Petitioner is aggrieved by the conditions imposed by Respondent No.1, in which it was observed that only after the said conditions are complied with, the deemed conveyance will be executed as per the provisions of Section 11 of the MOFA Act.

3. Brief facts, which are relevant for the purpose of deciding this petition, are as under:

Respondent No.3 was the owner of larger plot of land bearing CTS No. 57, admeasuring 22,407.20 sq.mtrs. He executed an agreement for sale dated 12th March, 1988 along with an irrevocable power of attorney dated 19th April, 1991 in favour of Respondent No.2. In view of the said agreement, executed by Respondent No.3 in favour of Respondent No.2, the developer constructed various buildings on the larger plot of land. The said larger plot of land later on, has been divided into five parts being Plot No. A, Plot No. B, Plot No. C, Plot No. D and Plot No. E and new CTS numbers were given to the said plots. The Petitioner is a society, which is concerned with the sub-divided plots being CTS No. 57E. Respondent No.2-Developer constructed two buildings viz. Sushil Samir and row houses, and sold the flats therein to various persons who are the members of the Petitioner Society. Under the agreement for sale, Respondent No.2 had given an assurance that on completion of the project, he would convey the plot in favour of the purchasers of the Petitioner Society. The grievance of the Petitioner is that despite several representations being made by them after completion of the construction of the buildings, Respondent No.2 did not convey the property to the ultimate flat purchasers.

4. The MOFA Act was amended and the Competent Authority was appointed under section 5A of the MOFA Act, authorizing him to issue a certification of deemed conveyance after holding an inquiry under Section 11 of the MOFA Act.

5. Since Respondent Nos.2 and 3 did not convey the property as per the terms and conditions of the agreement for sale, the society approached the Competent Authority appointed under Section 5 A of the MOFA Act and filed an application for deemed conveyance. The Competent Authority made an inquiry and passed the impugned order dated 4th June, 2012. By the said order, the Competent Authority was pleased to certify that the Petitioner was entitled to unilateral conveyance executed as deemed conveyance in its favour and to have it registered and came to the conclusion that it was a fit case where the Petitioner was entitled to get the conveyance. The Deputy Registrar in the said order observed that the said conveyance would be granted subject to the Petitioner fulfiling the five conditions mentioned in paragraph 2 of the said order and in para 3, he further directed that the Applicant Society is authorized to prepare a Conveyance Deed after the conditions, ascertained in paragraph Nos. 2 (i) to (v), are completed.

6. Being aggrieved by the said conditions, which were imposed by the Competent Authority, the Petitioner is approaching this Hon'ble Court by invoking its writ jurisdiction under Article 226 of the Constitution of India.

7. Shri Kamdar, the learned Senior Counsel appearing on behalf of the Petitioner submits that the condition Nos. 2(i),




























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