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2024 Supreme(Bom) 299

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Amit Borkar, J.
Jai Jalaram Co-operative Housing Society Ltd. - Petitioner
Versus
M/s Nanji Khimji & Co. & Ors. - Respondents
Writ Petition No.2082 of 2018
Decided On : 09-02-2024

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Rajesh S. Datar
For the Respondent:Mr. R.S. Apte, Sr. Advocate i/by Mr. Mandar Limaye, Mrs. V. S. Nimbalkar, AGP.

IMPORTANT POINT
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 right, title, and interest in the land and building to the organization of flat/unit purchasers, and the limitation on the Competent Authority's power to convey more than what the promoter had agreed to convey.

Headnote:

Deemed Conveyance - Maharashtra Ownership Flats Act - Section 11 - [Section 11 of MOFA Act] - The court discussed the nature of power exercised by the Competent Authority under Section 11 of the MOFA Act, emphasizing the obligation of the promoter to convey right, title, and interest in the land and building to the organization of flat/unit purchasers. The court also highlighted that the Competent Authority cannot convey more than what the promoter had agreed to convey under the agreement executed under Section 4 of the MOFA Act. The judgment also emphasized that the Competent Authority has no power to hold an inquiry into the aspect of title and cannot prevent a party from agitating a grievance as to the entitlement of the organization to have conveyance before the Civil Court.

Fact of the Case:

The petitioner, a Cooperative Housing Society, filed for unilateral deemed conveyance under Section 11 of MOFA Act after the promoters failed to execute conveyance in favor of the society within the agreed time. Respondent No.4 rejected the application, directing the petitioner to approach the Civil Court. The petitioner filed a writ petition challenging this decision.

Finding of the Court:

The court found that the Competent Authority's power under Section 11 of the MOFA Act is to enforce the obligation of the promoter to execute conveyance and cannot convey more than what the promoter had agreed to convey. The court also held that the Competent Authority cannot prevent a party from agitating a grievance as to the entitlement of the organization to have conveyance before the Civil Court.

Issues: The issues involved included the rejection of the petitioner's application for unilateral deemed conveyance, the objection raised by respondent No.3 claiming to be the owner, and the nature of power exercised by the Competent Authority under Section 11 of the MOFA Act.

Ratio Decidendi: The court's decision was based on the nature of power exercised by the Competent Authority under Section 11 of the MOFA Act, emphasizing the obligation of the promoter to convey right, title, and interest in the land and building to the organization of flat/unit purchasers. The court also highlighted that the Competent Authority cannot convey more than what the promoter had agreed to convey under the agreement executed under Section 4 of the MOFA Act.

Final Decision: The court made the rule absolute in favor of the petitioner, allowing the petitioner to proceed with the unilateral deemed conveyance. However, respondent No.3 was granted liberty to institute a substantive suit to agitate her claim as regards the property which is the subject matter of deemed conveyance. The request for stay of the judgment was rejected.

JUDGMENT :

1. Rule. Rule is made returnable forthwith.

2. The petitioner takes explain to an order dated 3 April 2017 passed by respondent No.4 rejecting unilateral deemed conveyance under Section 11 of Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 ("MOFA ACT") in respect of plot of land bearing Tika No.5, C.T.S. Nos.48, 49, 50 and 51 ad-measuring about 2785.12 square meters, situated at Tukaram Mahadik Road, Kharkar Ali, Thane (West).

3. The facts relevant to the adjudication of the issue involved are as under:

The petitioner is a Cooperative Housing Society registered under the provisions of the Maharashtra Cooperative Societies Act, 1960. The petitioner/society is in possession of the plot of land described above. The land consists of building 'A' comprising of ground + 8 floors containing 32 residential flats/units and 6 offices. Building 'B' consists of ground + 2 floors, having 12 flats/ units and bungalows Nos.1 & 2. Respondent Nos.1 & 2 entered into an agreement to sell with purchasers as per Section 4 of MOFA Act. However, failed to execute conveyance in favour of the petitioner/society within the agreed/decided time. The petitioner/ society, therefore, on 31 May 2013 filed an application for a grant of unilateral deemed conveyance under Section 11 of MOFA Act. The petitioner filed a sample copy of the agreement for sale and produced a list of bona fide members of the petitioner/society along with details of stamp duty and registration fees. Respondent Nos.1 and 2 (promoters) submitted their no objection/consent for the grant of deemed conveyance in favour of the petitioner by communication dated 14 December 2013. However, respondent No.3 claiming to be the owner objected to the grant of a certificate of deemed conveyance in favour of the petitioner.

4. The original application for a grant of a certificate of deemed conveyance contains an area of 2785.12 square meters. However, based on the subsequent architect certificate, the said area was reduced to 2345.12 square meters by amendment application. Respondent No.4, by order dated 3 April 2017 disposed of the petitioner's application for unilateral deemed conveyance by directing the petitioner to approach the Civil Court holding that the agreement between the land owner and developer was oral. The petitioner/society, therefore, filed the present writ petition.

5. Mr. Datar, learned Advocate for the petitioner/society invited my attention to the agreement dated 5 August 1985, wherein it has been stated that respondent No.1/promoter had acquired the property from predecessor of respondent No.3 to develop the property and accordingly based on the plan sanctioned by the Municipal Corporation, Thane, respondent No.1/promoter constructed the said building. In the said agreement, it has also been stated that respondent No.1/promoter had right to enter in the said agreement respondent No.1/promoter had the right to enter into agreements with intending acquirers of various flats/blocks/shops/offices/garages in the said building. It is stated that the flat purchaser with whom the said Agreement has been executed intends to acquire a flat in the building which was under construction from respondent No.1/promoter and, therefore, he had the intention to acquire flat No.12 on the 3rd floor of the said building for consideration of Rs.250/- per sq. ft. The flat purchaser agreed to pay Rs.1,50,000/- towards total consideration. Mr. Datar also invited my attention to the agreement jointly entered by respondent No.1 and the predecessor of respondent No.3 the tenant in the said area wherein the predecessor of respondent No.3 and respondent No.1 agreed to allot the flat ad-measuring 450 sq. ft. in the newly constructed building, jointly developed by the predecessor of respondent No.3 and respondent No.1. The agreement is dated 27 October 1983. It is, therefore, submitted that the predecessor of respondent No.3, by his act cau

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