IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP K. SHINDE, J.
Sukruti Apartment Co-op Hsg. Soc. Ltd. – Appellant
Versus
Tirumala Developers and Others – Respondents
Appeal From Order No. 326 OF 2021 Alongwith Interim Application No. 2843 of 2021 (For Stay)
Decided on : 21-03-2022
Maharashtra Ownership Flats Act, 1963 - Sections 5A, 11(4), 11(3), 10 and 11 - Enforcing unilateral execution of conveyance deed - Certificate to execute unilateral deemed - Sukruti Builders-defendant by deed of conveyance dated purchased land - Structure standing known from its owners and others, through its partners for consideration and on terms and conditions, more particularly - Promoter constructed a building on part of said plot of land consisting of ground and seven upper floors and sold flats, vide individual agreements - flat purchasers formed a Co-operative Housing Society-the appellant - Contains a stipulation that, Cooperative Housing Society of flat owners of the Sukruti - Apartments, shall have ‘lessees interest’ said portion of said land on which the new building is being constructed, as per details set out in Clause-28 of the agreement - Clause-28 of agreement.
Finding of the Court:
Society could not have applied for conveyance of said larger plot in question and further Competent Authority could not have granted same - Reason being, Promoters had agreed to create ‘lease interest’ in favour of Society in plot - Promoter has agreed to convey, being disproportionate to constructed area of building and since appellants are paying Municipal taxes for area exceeding 668. sq.mtrs, Certificate granted by Competent Authority - Seeking adjudication of their right, title and interest in property in question by filing suit.
Result: Application disposed of
JUDGMENT :
1. On 31st May 2016, Competent Authority under Section 5A of the Maharashtra Ownership Flats Act, 1963 (“said Act” for short), in exercise of powers under Section 11(4) of the said Act, issued a Certificate, in favour of Sukruti Apartment Co-operative Housing Society Limited- appellant, for enforcing unilateral execution of conveyance deed. M/s. Tirumala Developers (plaintiff-respondent no.1) questioned its validity in the suit instituted in the City Civil Court, Bombay. Pending suit, the learned Judge, by order dated 7th April, 2021 stayed the implementation of order of Competent Authority. Feeling aggrieved by that order, appellant-defendant no.1, has challenged it, in this appeal under Order 43(1)(r) of the Civil Procedure Code.
Background facts are as under :
2. M/s. Sukruti Builders-defendant no.3 (hereinafter called “Promoter”), by deed of conveyance dated 31st December, 1979 purchased land bearing Plot no.2, Survey No.161, C.T.S. No. 526/1 to 526/9, Mulund (E), Mumbai admeasuring about 1203.9 sq.mtrs (“said larger plot” for short) alongwith the structure standing thereon known as “Bhavani Shankar Bungalow” from its owners, Urmila K. Madeka and others, through its partners for the consideration and on terms and conditions, more particularly set out therein. Whereafter, Promoter constructed a building on part of the said plot of land, known as “Sukruti Apartments” consisting of ground and seven upper floors and sold fats, vide individual agreements. Later, the fat purchasers formed a Co-operative Housing Society-the appellant herein. A, recital in the agreements, executed by the Promoter reads as under :
“28. The title which is intended to be created in favour of the Co- operative Society Association or Limited Company, as the case may be in respect of the said new property shall be as under :-
(a). There will be a lease for a term of 98 years at a token rent of Rs.150/- per annum in respect of the said portion of the said land under the aforesaid new building named ‘SUKRUTI APARTMENTS’ and the land appurtenant thereto being part of the said land described in the Schedule I hereunder written and shown on the aforesaid sketch plan hereto annexed, and a Conveyance of the said new building constructed thereon.”
AND SCHEDULE I ABOVE REFERRED TO :
ALL THAT piece or parcel of land with hereditaments, premises and buildings, admeasuring 1203.90 square metres or thereabout, bearing Survey No.161, Pot No.2 and bearing City Survey No.526 and 526/1 to 9 of Mulund (East), bearing Municipal T-ward No.478 and 479 and situate at Lokmanya Tilak Road, Mulund (East), in the Registration Sub-District and District of Bombay City and Bombay Suburban and bounded on or towards North by Lokmanya Tilak Road, on or towards South by property known as Kesar Baug Dhayphule Private Scheme, on or towards East by the property of Lahensingh Shersingh and Ratanbai Bomanji Patel and on or towards West by property of Vasant Gauri Jadhavji Narbheram and Others.”
3. Thus, under the agreement for sale executed with fat purchasers, promoter had agreed to create ‘lease interest’ in respect of portion of larger plot admeasuring 668 sq.
Contentions regarding title, in respect of the property in question or adjudication in respect of the property in question or adjudication in respect of entitlement of exact quantification of FSI on ....
The statutory obligation under Section 11 of MOFA requires the promoter to convey both land and building to the society, and the Competent Authority must enforce this obligation upon the promoter's f....
The competent authority's jurisdiction to grant deemed conveyance is limited and cannot delve into aspects of title. An order granting deemed conveyance does not conclude the issue of right, title, a....
The Competent Authority's deemed conveyance under MOFA must adhere strictly to existing agreements, and disputes over property rights should be resolved in civil court.
The Competent Authority's jurisdiction under Section 11 of the MOFA Act is limited to enforcing the promoter's obligations, not adjudicating title disputes, which must be resolved in civil courts.
The court affirmed that deemed conveyance can be granted without an occupancy certificate if a self-declaration is submitted, emphasizing the promoter's obligation to obtain such certificate.
The Competent Authority's failure to ensure service of notice and adherence to natural justice principles invalidates the ex parte decision regarding Unilateral Deemed Conveyance.
The court ruled that a society can obtain deemed conveyance even without an occupancy certificate, emphasizing that the promoter's defaults should not disadvantage flat purchasers.
The court affirmed that deemed conveyance can be granted under Section 11 of the Act even without an occupancy certificate, provided a self-declaration is submitted, preventing promoters from benefit....
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