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2021 Supreme(Bom) 1680

IN THE HIGH COURT OF BOMBAY
BHARATI H. DANGRE, J.
Raigad Co-Operative Housing Society Ltd. - Petitioner
Versus
Suman Eknath Gaike and others - Respondents
W.P. No. 11115 of 2019
Decided On : 29-09-2021

Advocates Appeared:
For the Petitioner: S.M. Gorwadkar, Sandeep Mishra.
For the Respondent: Harshad Inamdar.

The main legal point established in the judgment is the application of statutory provisions related to deemed conveyance and mandatory notice requirements under the Maharashtra Ownership Flats Act, 1963 and the Maharashtra Co-operative Societies Act, 1960.

Headnote:

Deemed Conveyance - Property Dispute - Maharashtra Ownership Flats Act, 1963, Maharashtra Co-operative Societies Act, 1960 - Section 11 of MOFA, Section 164 of MCS Act - The court discussed the application of section 11 of the MOFA and section 164 of the MCS Act in the context of deemed conveyance and the mandatory notice requirement. The interpretation of these provisions influenced the court's decision in granting temporary injunction in favor of the plaintiff.

Fact of the Case:

The case involved a property dispute over a building and land. The plaintiff, Smt. Suman Gaike, sought cancellation of deemed conveyance and sale deeds executed in favor of individual flat purchasers. She also sought injunction against any construction or property disposal. The defendant, Raigad Co-operative Housing Society, challenged the injunction order.

Finding of the Court:

The court found that the plaintiff had a prima facie case in her favor, balanced the convenience in her favor, and noted the potential irreparable loss if the injunction was not granted. The court upheld the injunction order in favor of the plaintiff.

Issues: The issues involved the validity of the deemed conveyance, legality of sale deeds, and the grant of injunction. The court also addressed the mandatory notice requirement under section 164 of the MCS Act.

Ratio Decidendi: The court's decision was based on the existence of a prima facie case, balance of convenience, and potential irreparable loss. The interpretation of section 164 of the MCS Act and the application of the deemed conveyance provisions influenced the decision.

Final Decision: The writ petition and civil revision applications were dismissed, and the injunction in favor of the plaintiff was upheld.

JUDGMENT :

In narrow compass, the facts leading to the writ petition and two civil revision applications, which are listed and argued before me can be succinctly set out as under :

2. The three proceedings involve property located at City Survey No. 112-A (1 to 5), Plot No. 5, in Mouza Panchpakadi Taluka and Sub Division Thane, admeasuring 648.85 sq. meters. The respondents in the proceedings, Smt. Suman Gaike asserts that she is the owner of the suit property, which is purchased by her along with her husband, who has predeceased. A building known as “Shivneri” was constructed on the said land, which comprised of 20 flats and the premises were let out to various tenants. It is her case that for some point of time, when her husband was alive and was away at native place, the tenants formed a Society titled as ‘Raigad Co-operative Housing Society Limited’ (refer to as “the Society”) on 7-9-1989. The building was in dilapidated condition and most of the tenants moved away. This constrained Suman Gaike to institute distinct civil suits before the Civil Judge, Senior Division, Thane under the Bombay Rent Control Act, seeking eviction of tenants and payment of rent due and payable.

3. While this was the prevailing scenario, the Society preferred an application to respondent No. 2 – the Competent Authority and District Deputy Registrar of Co-operative Societies (refer to as “the Competent Authority”) for grant of certificate of deemed conveyance under section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, wherein a claim was staked to the effect that Suman Gaike had entered into agreements for sale of flats with the individual purchasers as per section 4 of the MOFA and all agreements were duly registered as per law. It was alleged that though the owner had agreed to convey the suit premises to the Society within the agreed period in the agreement or four months from the formation of the Society, as provided in Rule 9 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Rules, 1964 (referred to as “the Rules 1964”), there is a failure to execute the conveyance for conveying the right, title and interest of the promoter/owner in the land, which they are entitled to. The Society, therefore claimed entitled to have a certificate issued by the Competent Authority in the form of unilateral deemed conveyance under section 11 of the MOFA. It was alleged that though the notice was issued to the owner to grant conveyance, there is no compliance.

4. The said application, being Application No. 150 of 2016 preferred by the Society came to be rejected by the Competent Authority on 27-7-2017 on the purported reasoning that against the members of the applicant-Society, proceedings under the Rent Control Act are pending and, there is no stay operating in the same and the reason assigned is the sale agreements produced by the Society are not under the MOFA and, there is no propriety in conferring the right of the promoter/ownership in favour of the Society. Liberty was however granted to file fresh application on compliance of the existing shortfalls.

5. On 1-9-2017, another application was preferred, which was numbered as Application No.728 of 2017, by the Society reiterating that the members of the Society had purchased respective flats from Suman Gaike under the provisions of the MOFA and the Society is in possession of the property. The Competent Authority on 22-7-2017 deemed it expedient to grant the deemed conveyance by recording that the Society has complied with the deficiencies pointed out in the earlier order. It also recorded that the Society is registered in the year 1989 and since long time, they have been deprived of their right.

6. Being aggrieved by the deemed conveyance, the petitioner filed a writ petition in this Court, wherein she challenged the said order and on 16-7-2018, the petition was disposed o

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