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2022 Supreme(Bom) 733

IN THE HIGH COURT OF BOMBAY
M.S. KARNIK, J.
M/s. Vijay Builders and Developers - Appellant
Versus
The Competent Authority - Respondents
Writ Petition No. 549 of 2021
Decided on : 02-08-2022

Advocates:
Advocate Appeared:
For the Appellant : Mr. R.P. Rathod
For the Respondent: Smt. V.S. Nimbalkar, Mr. Aditya Khamkar, Dr. Uday P. Warunjikar

The Competent Authority cannot dispense with the requirement of oral arguments while deciding the application for grant of deemed conveyance. The principles of natural justice must be scrupulously followed.

Headnote:

Natural Justice - Deemed Conveyance - Maharashtra Ownership of Flats (Regulation of The Promotion of Construction, Sale, Management & Transfer) Act, 1963 - Section 11, Rules 11, 12, 13 - The Competent Authority cannot dispense with the requirement of oral arguments while deciding the application for grant of deemed conveyance. The Competent Authority's approach was flawed and contrary to the provisions of MOFA and the Rules framed thereunder.

Fact of the Case:

The petitioner challenged an order granting deemed conveyance to the respondent society, alleging a breach of natural justice. The Competent Authority closed the application for orders on the date fixed for appearance, without providing an opportunity for oral arguments.

Finding of the Court:

The court found that the Competent Authority's decision to dispense with oral arguments and rely on written submissions was flawed and contrary to the provisions of MOFA and the Rules. The court also noted that the Competent Authority failed to provide sufficient opportunity to the petitioner to contest the application.

Issues: The main issue was whether the Competent Authority's decision to grant deemed conveyance without oral arguments and sufficient opportunity for the petitioner to contest the application was in compliance with the provisions of MOFA and the Rules.

Ratio Decidendi: The Competent Authority cannot dispense with the requirement of oral arguments while deciding the application for grant of deemed conveyance. The Competent Authority's approach was flawed and contrary to the provisions of MOFA and the Rules framed thereunder.

Final Decision: The impugned order was quashed and set aside, and the application was remitted to the Competent Authority to be heard afresh in accordance with the provisions of MOFA and the Rules and in accordance with law. The parties were directed to appear before the Competent Authority on a specified date, and the Competent Authority was requested to hear the application expeditiously.

JUDGMENT :

1. The challenge in this writ petition filed by the petitioner-original respondent no.1 - promoter (hereafter ‘promoter’, for short) under Article 227 of the Constitution of India, is to an order dated June 10, 2020, passed by the Competent Authority and the District Deputy Registrar, Co-operative Societies (hereafter ‘the Competent Authority’ for short) under the provisions of the Maharashtra Ownership of Flats (Regulation of The Promotion of Construction, Sale, Management & Transfer) Act, 1963 (hereafter ‘the MOFA’ for short) granting deemed conveyance in favour of the respondent no.3 - original applicant - society (hereafter ‘society’, for short).

2. The facts of the case are set out in brief. An application for grant of deemed conveyance under the provisions of the MOFA was made by the society on February 26, 2020. The Competent Authority by a notice published in two local newspapers, English as well as Marathi, called upon those interested in the deemed conveyance application filed by the society to submit their say on the date fixed for hearing on March 19, 2020, at 3.30 p.m. The promoter through their advocate appeared before the Competent Authority on March 19, 2020. The vakalatnama was duly filed by advocate Shri R. P. Rathod representing the promoter. On the vakalatnama is an endorsement of having received the copies of the application on March 20, 2020. The copy of the vakalatnama is stated to have been obtained from the records of the Competent Authority. The Competent Authority by the order impugned allowed the application for grant of deemed conveyance.

3. The promoter pleads that the impugned order is passed in breach of principles of natural justice without hearing him and on the very date fixed for his appearance mentioned in the public notice. The promoter having realised that the application is disposed of in his absence, made an application on April 25, 2022 to the Competent Authority for providing the certified copies of the entire file, proceedings, roznama and final order on the deemed conveyance application. Learned counsel for the promoter submitted that they were informed that due to Covid restrictions, the hearing will not take place. Learned counsel submits that the application has been allowed on March 19, 2020 itself on an erroneous interpretation of Government Resolution (G.R.) issued by the State Government imposing Covid restrictions by giving a go by to the principles of natural justice. In his submission, the Competent Authority appears to have misconstrued the G.R. to mean that it can override the statutory provisions prescribing the procedure for hearing of the application and therefore, the procedure adopted by the Competent Authority is completely dehors the provisions of MOFA and the Rules.

4. Learned counsel for the respondent no.3 on the other hand supported the impugned order. In his submission, the public notice clearly indicated that any person interested may appear on March 19, 2020 and submit say at the time of hearing. The consequence of failure to submit the say was provided. According to him, in view of the stipulation in the public notice that in case of failure to submit the say, it shall be presumed that nobody has any objection and further action will be taken, the promoter having failed to avail of the opportunity, now cannot make a grievance as to the non-compliance of the principles of natural justice. My attention is invited by the learned counsel to the affidavit-in-reply filed on behalf of the respondent no.3 to contend that even on merits, the promoter does not have a case and the application has been rightly allowed by the Competent Authority on the basis of the pleadings and the materials before him.

5. Learned AGP appearing on behalf of the Competent Authority contended that the Competent Authority had issued a notice (page 52 of the paper-book) which referred to the G.R. dated March 18, 2020 of the State Government regarding the restrictions to be imposed i

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