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2023 Supreme(Bom) 1524

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE, J.
M/s. Faime Makers Pvt. Ltd (earlier known as M/S Fairmont Construction Pvt. Ltd.) - Petitioner
Versus
District Deputy Registrar, Co-operative Societies (3), Mumbai & Ors. - Respondents
Writ Petition No. 8186 of 2022 With Interim Application No. 10410 of 2022
Decided On : 10-11-2023

Advocates Appeared:
For the Petitioners: Mr. Ashish Kamat, Senior Adv. a/w Mr. Mayur Khandeparkar, Mr. Aseem Naphade, Mr. Amar Khanna, Mr. Yugal Bhatia, Mr. Haris Koradia.
For the Respondents: Mr. Aditya Lele, Mrs. V.S. Nimbalkar, AGP.

The main legal point established in the judgment is that the owner and promoter, in the absence of legal complications, can convey the leasehold rights to the society, and objections to the maintainability of the application for Deemed Conveyance can be rejected if specific objections were not raised before the Competent Authority.

Headnote:

Deemed Conveyance - Land Dispute - Maharashtra Ownership of Lands (Regularization of the Promotion Construction, Sale Management and Transfer Act, 1963) - [Section 11 of MOFA] - The court discussed the legal complications arising from the transfer of leasehold rights and the obligations of the promoter under MOFA. The Competent Authority held that the society could only seek leasehold rights and not conveyance of the land. The court found that the Petitioner, as the owner and promoter, had no legal complications and could have conveyed the leasehold rights to the society. The court also rejected the objection of maintainability raised by the Petitioner and upheld the grant of Deemed Conveyance by the Competent Authority.

Fact of the Case:

The Petitioner challenges the grant of unilateral Deemed Conveyance of land and building to the Respondent no.2 society. The dispute arises from the transfer of leasehold rights and the obligations of the promoter under MOFA. The Competent Authority rejected the society's first application for Deemed Conveyance due to legal complications and granted liberty to file a fresh application. The Petitioner objected to the second application, but the court found no legal complications and upheld the grant of Deemed Conveyance.

Finding of the Court:

The court found that the Petitioner, as the owner and promoter, had no legal complications and could have conveyed the leasehold rights to the society. The court also rejected the objection of maintainability raised by the Petitioner and upheld the grant of Deemed Conveyance by the Competent Authority.

Issues: The issues revolved around the maintainability of the second application for Deemed Conveyance, the legal complications arising from the transfer of leasehold rights, and the objections raised by the Petitioner regarding the area of land to be conveyed to the society.

Ratio Decidendi: The court held that the Petitioner, as the owner and promoter, had no legal complications and could have conveyed the leasehold rights to the society. The court also rejected the objection of maintainability raised by the Petitioner and upheld the grant of Deemed Conveyance by the Competent Authority.

Final Decision: The court dismissed the writ petition, finding it devoid of merits, and extended the interim relief granted to the Petitioner by a period of eight weeks.

JUDGMENT :

1. By this petition, Petitioner challenges order dated 5 October 2021 passed by the District Deputy Registrar Co-operative Societies (3), Mumbai and competent authority granting unilateral Deemed Conveyance of leasehold rights of land admeasuring 1321.36 square meters, societies’ building and undivided rights in recreational ground admeasuring 1519.56 square meters in favour of the Respondent no.2 society.

2. Briefly stated, the facts of the case are that one Nanbhoy Byramjee Jeejeebhoy was the owner of piece and parcel of land admeasuring 6382.10 square meters and bearing CTS no.75 and 75/1 to 5,8,9,11 to 34 Survey no.22 Hissa no.1 (part) village Bandivali, Hill Raad, Jogeshwari (West), Mumbai (large property). On 24 July 1951 a Deed of Conveyance was executed between Nanabhoy Byramjee Jeejeebhoy and Byramjee Private Limited (BJPL) by which the larger property was sold to BJPL. A lessor and Respondent no.3 (Ramkishor Singh Kunjbihari Singh) was inducted as lessor in respect of land admeasuring 1 Acre and 20 Gunta i.e. about 6070.22 out of larger property. Lease is for period of 99 years. Respondent no.3 granted development rights in favour of Respondent no.4 M/s. Prakash Builders. In accordance with the development rights granted in his favour, Respondent no.4 has constructed a building consisting of 27 flats and has sold flats in the building to various flat purchasers, who have formed Respondent no.2 society (Prakash Apartment Co-operative Housing Societies Limited) which came to be registered on 28.08.1991.

3. On 7 July 2010, Deed of Conveyance was executed between BJPL as vendor and Petitioner by which Petitioner has purchased the entire larger property for consideration of Rs. 2.50 crores. Under the conveyance, Petitioner’s enjoyment of property is subject to the rights of the lessor. Respondent no.3 filed Suit no.64 of 2011 against BJPL and Petitioner for various reliefs. In that suit, Consent Terms were filed on 06.09.2012 under which it was agreed that the larger property admeasuring 6382 square meters would be divided into two portions viz. (i) land admeasuring 2786 would belong to Petitioner and (ii) land admeasuring 3596 square meters would belong to Respondent No.3. It appears that the building of the society falls in land admeasuring 2786 square meters which belongs to Petitioner under the Consent Terms dated 06.09.2012.

4. On 30.12.2012, the Deed of Surrender was entered into between Petitioner and Respondent no.3, under which Petitioner surrendered land admeasuring 3596 square meters from the larger property in favour of Respondent no.3 and Respondent no.3 surrendered his leasehold rights in land admeasuring 2786 square meters from the larger property in favour of the Petitioner. This is how petitioner has became owner of land admeasuring 2786 square meters out of the larger property. One of the conditions of the Deed of Surrender is that the obligations of Respondent no.3 as promoter under provisions of the Maharashtra Ownership of Lands (Regularization of the Promotion Construction, Sale Management and Transfer Act, 1963) (MUFA) stood transferred to Petitioner.

5. Petitioner claims that out of the land admeasuring 2786 square meters coming to his ownership, land admeasuring 1277 square meters is declared as slum as per and the notification dated 15.10.1985, the land admeasuring 870 square meters is occupied by the building of Respondent no.2 society and the balance land admeasuring 639 square meters is non-slum open land. Petitioner has entered into development agreement with the association of slum dwellers on 08.10.2013 for carrying out development in respect of slum area admeasuring 1277 square meters.

6. On 25.02.2020, Respondent no.2 society called upon Petitioner and Respondent nos. 3 and 4 for grant of conveyance of land. Respondent no. 2 society filed Application dated 05.03.2020 before the D

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