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2016 Supreme(Bom) 1844

IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD
T.V. NALAWADE, J.
M/s. Chetan Constructions, Aurangabad & another - Petitioners
Versus
The State of Maharashtra and others - Respondents
Writ Petition No. 1845 of 2014, Writ Petition No. 4264 of 2016.
Decided on : 06-10-2016

Advocates:
Advocate Appeared:
For the Petitioners:Shri. R.R. Mantri, Advocate.
For the Respondent:Shri. S.R. Yadav, Assistant Government Pleader, Shri. R.F. Totla, Advocate, Shri. U.P. Giri, Advocate.

Headnote:Constitution of India, 1950-Article 226-Maharashtra Co-op. Societies Act, 1960, Section 151- Maharashtra Ownership Flats Act, 1961, Sections 10 and 11(4)-Writ petition.-Writ petition cannot be dismissed on ground of availability of alternate remedy.

       There is dispute raised by the owner under the provisions of Apartment Act, 1970 that due to declaration executed by him only the association of apartment owners can be formed and co- operative housing society cannot be formed. When such point is involved it can be said that the rights of the parties under contract also need to be ascertained.

       One authority created under the Maharashtra Cooperative Societies Act, 1960 is expected to work as competent authority under the Act of 1963 and the Registrar of Cooperative Societies is expected to act as competent authority under the Apartment Act, 1970. Before giving of the decision by the competent authority under the Act of 1963, even the registration of the association of apartment owners was done by the owner by using some unit owners. So in such circumstances writ petition can be entertained. So petition cannot be dismissed by holding that the decision of registration of cooperative housing society ought to have been challenged by filing appropriate proceeding like revision as provided under the Maharashtra Co-operative Societies Act, 1960. In respect of other order of deemed conveyance of the property it can be said that only after the registration of the association the conveyance is possible and so that present petitions are tenable.

       Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - Sections 10(1), (2) and 11(4)-Maharashtra Apartment Ownerships Act, Section 2, 11(1) and 16(2)-Registration of Cooperative Housing Society.-Failure of owner of flats to comply with provisions of Section 11(1) of Act, renders registration of Coop. Housing Society valid.

       It is laid down that whether the petition needs to be entertained or not needs to be decided on the facts and circumstances of that case. There cannot be dispute over this proposition. In the present matter it can be said that there is a dispute raised by the owner under the provisions of Apartment Act, 1970 that due to declaration executed by him only the association of apartment owners can be formed and co-operative housing society cannot be formed. The provision of Section 10(1) of the Act of 1963 imposes liability on the promoter to go for registration of co-operative housing society or Company under the provisions of the Act of 1963 but when declaration is executed as required under the provisions of the Apartment Act, 1970, the competent authority cannot allow the registration of the association as co-operative housing society.

       When such point is involved it can be said that the rights of the parties under contract also need to be ascertained. One authority created under the Maharashtra Cooperative Societies Act, 1960 is expected to work as competent authority under the Act of 1963 and the Registrar of Cooperative Societies is expected to act as competent authority under the Apartment Act, 1970. Before giving of the decision by the competent authority under the Act of 1963, even the registration of the association of apartment owners was done by the owner by using some unit owners. In such circumstances, it can be said that the Apartment Act, 1970 is not a scheme complete in itself. So in such circumstances theCourt holds that writ petition can be entertained. So, the Court holds that petition cannot be dismissed by holding that the decision of registration of cooperative housing society ought to have been challenged by filing appropriate proceeding like revision as provided under the Maharashtra Co-operative Societies Act, 1960. In respect of other order of deemed conveyance of the property it can be said that only after the registration of the association the conveyance is possible and so theCourt holds that present petitions are tenable. In view of the aforesaid discussion, the Court holds that no interference is possible in the orders made by the competent authority. In the result, both the petitions stand dismissed.

ORDER :

T.V. Nalawade, J.

The first proceeding is field to challenge the order made by the competent authority under the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (hereinafter referred to as "the Act of 1963") by which a direction is given to register a cooperative housing society of the flat owners. The other proceeding is filed to challenge the order made by the competent authority to issue certificate in favour of the flat owners and their cooperative housing society of deemed conveyance under the provisions of section 11(4) of the Act of 1963. The first proceeding is filed by the owners and developers of the property and the second proceeding is filed by the developer and few flat owners of the developed premises. Both the sides are heard.

2. M/s Chetan Constructions has developed the property which is situated in Aurangabad city. There are 44 flats which include few shops. It is the case of the petitioners of the first proceeding that declaration was executed under section 2 of the Maharashtra Apartment Ownership Act, 1970 ("Apartment Act, 1970") and it was registered on 31-8-2001 by the developers and the flats were sold after such declaration. It is also contended that in each transaction a mention was made that association of the apartment owners was to be formed under the Apartment Act, 1970. It is contended that due to such declaration it was not open to the flat owners to go for registration of cooperative housing society under the provisions of the Act of 1963.

3. It is the contention of the petitioners that on 12-4-2015 a meeting of the unit holders of the building was held and they took the decision to form a housing society. Respondent No.1 of the petition is the Chief Promoter of the society. It is contended that majority of the unit holders approached the developer and they submitted that they wanted to register association of flat owners under the Apartment Act, 1970 and they did not want to form a housing society. It is contended that due to the request made by the majority of the unit holders, the owner, developer executed a deed of conveyance in favour of the said association (condominium). It is contended that intimation of formation of said association and execution of conveyance document was then given to the competent authority constituted under Apartment Act 1970.

4. It is contended that in a proceeding which was numbered as 8/2015 and which was filed by the so called chief promoter of the housing society, the petitioners appeared and they opposed the proceeding by mentioning the aforesaid circumstances. It is contended that proper opportunity was not given to the owner, developer to have his say and even when there was aforesaid contention of the developer, the authority made the order of registration of cooperative housing society under the Act of 1963 and made another order of deemed conveyance in favour of the housing society.

5. The material which the petitioners want to use for challenging the aforesaid two orders is a declaration executed under the provisions of the Apartment Act, 1970 on 31-8-2001, the correction deed made in respect of declaration in the year 2006 and some copies of the sale transactions showing that it was informed to the purchasers that the property was to be submitted to the application of the Apartment Act, 1970. It can be said that only few complete copies of sale deeds are produced which include copy of sale deed executed in the year 2005 showing that it was informed to the purchaser that he will be bound by the declaration executed and registered under the Apartment Act, 1970. This provision is described as section 2-A of the said Act.

6. There are at least 18 sale deeds of the flats which were executed in favour of the persons who want registration of the association as cooperative housing society and which were executed prior to the date of execution of declaration i.e. 31-8-2001. They are dated 4- 8-2






















































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