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2023 Supreme(Bom) 1869

IN THE HIGH COURT OF BOMBAY
A.S. Doctor, J.
Saurin Ketan Jariwala - Appellant
Versus
State of Maharashtra - Respondent
Writ Petition No. 5439 of 2022
Decided On : 03-07-2023

Advocates appeared:
Anshul Anjarlekar, Advocate, P.H. Kantharia, Advocate, Ankit Lohia, Advocate, Usha Tiwari, Advocate, Manshi Jain, Advocate

IMPORTANT POINT
The court established that an agreement recognizing tenants as owners of flats, coupled with the receipt of consideration for those flats, qualifies the landlord as a promoter under the Maharashtra Ownership of Flats Act, thereby imposing an obligation to convey ownership rights.

Headnote:

MOFA - Maharashtra Ownership of Flats Act - Sections 2(c), 4, 11 - The court interpreted the provisions of the Maharashtra Ownership of Flats Act (MOFA), particularly focusing on the definition of 'Promoter' under Section 2(c) and the obligations imposed under Section 11. The court concluded that the agreement between the parties was governed by MOFA, and since the landlord (Venisons) had received consideration for the flats, it was deemed a promoter under the Act. The court emphasized that the rights and obligations of the parties were to be determined in accordance with MOFA, leading to the dismissal of the petition challenging the deemed conveyance.

JUDGMENT/ORDER

ARIF S.DOCTOR, J. - The present Petition impugns (i) an order as also (ii) a certificate of Deemed Conveyance both dtd. 17/10/2019 passed by Respondent No. 2 i.e. the District Deputy Registrar Co-Operative Societies, Mumbai, being the Competent Authority under the provisions of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sales Management and Transfer) Act, 1963 ('MOFA') on an Application filed by Respondent No.3 under Sec. 11 of MOFA. The relevant facts are as follows :-

2. The Petitioner claims to be the successor in interest of a partnership firm known as Venisons. By and under a Deed of Assignment and Transfer dtd. 14/11/1979 entered into between one Ms. Tehmina Khorshed Karanjia and Venisons, the building known as 'Quetta Terrace' ('the said building'), and land bearing Plot No.10, Cadastral Survey No.427 of Malabar Hill Division in D Ward ('the said land') was leased to Venisons. The members of Respondent No. 3 were the tenants in respect of the flats in the said building.

3. Since the said building was in dilapidated condition, Venisons decided to redevelop the same. It was for this purpose that from the year 1991 Venisons entered into various agreements with the tenants of the said building for redevelopment of the same and to provide alternate accommodation to the existing tenants.

4. Venisons thereafter applied for the requisite permission for redevelopment of the said building. The Bombay Building Repair and Reconstruction Board granted an NOC dtd. 9/3/1993 and Condition No. 1 whereof was as follows, viz.

<WXY>"1. The Co.Op. Housing Society along with minimum 70% of Old occupiers of the Old Building shall be formed before occupation in the building to be reconstructed."</WXY>

5. In the year 1994 Venisons entered into an Agreement dtd. 21/7/1994 whereby new flat numbers were allocated in the to be constructed building to the existing tenants.

6. Thereafter Venisons entered into another Agreement dtd. 15/1/1997 with the tenants for inter-alia settling the terms and conditions of the Co-operative Society that would be formed by the tenants.

7. It is this Agreement that falls consideration in the present Writ Petition and based on which the Application for Deemed Conveyance had been filed. It is useful at this juncture to set out the following relevant clauses of the said Agreement viz. :-

<WXY>1. The Landlords recognize the Tenants as the owners of the said flat no.202 on Second floor in the new building (as per the condition imposed by 'MHADA') called 'PARSHWA KUNJ' (Previously known as 'Quetta Terrace') tenements i.e. the accommodation given to the tenants in the new building. The construction cost of the said flat Rs.10, 56, 600.00 has been borne and paid by the tenants.

2. The Landlords and the Tenants along with other Tenants in the building will co-operate with each other and jointly form a Co-operative Housing Society to be called '[ARSJWA LIMK Co-OPERATIVE HOUSING SOCIETY LIMITED' if approved or such other name as may be approved and sanctioned by the Registrar of Co-Op Housing Society Ltd. and the Landlords, the Tenants herein and other Tenants of various premises in the New Bluilding will joint in and become members of the said 'PARSHWA KUNJ CO-OPERATIVE HOUSING SOCIETY LIMITED.' There upon and after receipt of the full construction cost, Taxes and other outgoing due and payable to the authorities concerned, the Landlords undertake to execute and register such documents as may be required to confirm the ownership of the Tenants in respect of the said flat and the rights power and authorities of the said society to manage, look after and attend to the affairs and matters of the said new building. All costs, charges and expenses of the formation, incorporation and registration of the said Society and or any other documents and or agreements will be shared by the members of the said Society in proportion to the area of their respective premises.

3. '..

4. This Agreement a

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