IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ARIF S. DOCTOR, J.
Garodia Co-operative Housing Society Ltd. – Petitioner
Versus
District Deputy Registrar Co-operative Society – Respondent
Writ Petition No. 2749 of 2022
Decided On : 10-07-2023
Deemed Conveyance under the Maharashtra Ownership Flats (Regulation of the promotion of Construction, Sale Management and Transfer) Act, 1963 (MOFA). The court analyzed Section 11 of MOFA, which imposes obligations on promoters to complete conveyance and file the conveyance deed with the competent authority. The court also referred to Rule 3(5) of the MOFA Rules, which requires the competent authority to verify the legality and effect of the documents submitted in an application for deemed conveyance. The court emphasized the importance of proper examination of the documents and compliance with MOFA's provisions.
Fact of the Case:
The petitioner, a cooperative housing society, filed an application for deemed conveyance under Section 11 of the Maharashtra Ownership Flats (Regulation of the promotion of Construction, Sale Management and Transfer) Act, 1963 (MOFA) seeking conveyance of land and building from the respondent. The respondent had executed a deed of conveyance in favor of the petitioner, but it was not registered. The competent authority dismissed the petitioner's application on the ground that a conveyance had already been executed. The petitioner filed a writ petition challenging the order.
Finding of the Court:
The court held that the competent authority failed to properly consider the legality and validity of the deed of conveyance relied upon by the respondent. The court emphasized that the jurisdiction of the competent authority under MOFA is not ministerial and requires a proper examination of the applicant's eligibility and the promoter's compliance with the obligations under MOFA. The court also noted that the deed of conveyance was not executed in accordance with the provisions of MOFA and that the application for deemed conveyance was based on an agreement between the petitioner and the respondent, which had not been fulfilled. The court set aside the impugned order and directed the competent authority to hear the petitioner's application on merit.
Ratio Decidendi: The competent authority under MOFA must properly examine the legality and validity of the deed of conveyance relied upon by the respondent and consider the applicant's eligibility and the promoter's compliance with the obligations under MOFA. The competent authority's jurisdiction is not ministerial and requires a proper examination of the facts and legal issues.
Result: The court set aside the impugned order and directed the competent authority to hear the petitioner's application for deemed conveyance on merit, considering all rights and contentions of the parties, within three months.
JUDGMENT :
ARIF S. DOCTOR, J.
1. The present Writ Petition impugns an order dated 15th June, 2019, by which, Respondent No. 1 being the Competent Authority under the provisions of the Maharashtra Ownership Flats (Regulation of the promotion of Construction, Sale Management and Transfer) Act, 1963 (MOFA) has dismissed the Application filed by the Petitioner under Section 11 of MOFA seeking a deemed conveyance in respect of land more particularly set out in the said Application.
2. The relevant facts are as follows:
(ii) In or about the year 1970-1971, Respondent No. 2 being desirous of developing the said plots, amalgamated the same. Respondent No. 2 thereafter constructed and built a building having basement + ground floor (part stilt + part shops) + four upper floors after obtaining various approvals from the Municipal Corporation of Greater Mumbai (MCGM).
(iii) Respondent No. 2 thereafter sold shops and flats to various purchasers under various Agreements for Sale. One such Agreement is annexed to the Petition. Clause 3 of the said Agreement inter alia specifically provides that Respondent No. 2 would convey the said land to a Co-operative Society of the premises-acquirers which were to be registered in pursuance of the said Agreement. However, despite the passage of about 40 years, Respondent No. 2 failed and neglected to convey the said land and building to the Petitioner.
(iv) In the year 2014, approximately 39 years after construction of the said building and shops, Respondent No. 3, who was also director and promoter of one M/s. Shri Sati Builders and Developers Private Limited approached the office bearers of Petitioner-Society with a proposal for redevelopment of Society’s building. The redevelopment contemplated demolishing the old building and constructing a new one in place and stead thereof. Respondent No. 3 also agreed to convey the said plot in favour of the Petitioner. It is thus that a development agreement came to be executed between the Petitioner-Society and M/s. Shri Sati Builders and Developers Private Limited.
(v) Consequent to the above, on 30th December, 2014, a Deed of Conveyance came to be executed between Respondent No. 3 on the one hand and the Petitioner on the other. Under the Deed of Conveyance, Respondent No. 3 reserved an area of 13,755 sq. ft. (built up) for himself. It appears that thereafter the said Deed of Conveyance was submitted to the Collector of Stamps, Mumbai Suburban for adjudication of proper stamp duty. The Collector of Stamps thereafter adjudicated the stamp duty at Rs.11,61,300/- including the interest and penalty. It is an undisputed position that the said Deed of Conveyance is not registered.
(vi) Thereafter there was a change in the Managing Committee of the Petitioner-Society, at which time, the new Committee members realized that the Conveyance Deed dated 30th December, 2014 executed by Respondent No. 3 was bad in law. The objections of the new Managing Committee were pointed out to Respondent No. 3, who did not accept the same.
(vii) The Petitioner was thereafter advised to file an Application under Section 11 of MOFA for deemed conveyance of the said land and building and it was thus that the said Application came to be filed. Respondent No. 2 and 3 filed a Miscellaneous Application raising a preliminary ground of objection seeking dismissal of the Application filed by the Petitioner on the ground that a Deed of Conveyance had already been executed in favour of the Petitioner- Society. The Application filed by Respondent No. 3 came to be allowed by the impugned order in which Respondent No. 1 has held as follows:
“6. The Deemed Conveyance Application filed by the applicant society for granting unilateral deemed conveyance cannot be entert
The competent authority under MOFA must properly examine the legality and validity of the deed of conveyance and consider the applicant's eligibility and the promoter's compliance with the obligation....
The Competent Authority under MOFA cannot adjudicate title disputes; it must fulfill statutory obligations to issue deemed conveyance to the Society.
The main legal point established in the judgment is the nature of power exercised by the Competent Authority under Section 11 of the MOFA Act, emphasizing the obligation of the promoter to convey rig....
The court established that in applications for unilateral deemed conveyance under MOFA, all parties with a legitimate interest, including landowners, must be given notice and an opportunity to be hea....
The Maharashtra Ownership Flats Act mandates conveyance to be executed by promoters; failure triggers a remedial process under Section 11, which is not subject to extensive trials.
Under Section 11 MOFA, Competent Authority conducts summary prima facie enquiry via key documents to grant deemed conveyance on promoter's failure; cannot hold full title trial; pending society regis....
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....
Subsisting leasehold rights in land and ownership of superstructure preclude deemed conveyance to tenants' society under MOFA without extinguishment proof, valid Section 4 agreements and proper docum....
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....
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