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
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
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 O....
The main legal point established in the judgment is the obligation of the Promoter under MOFA to transfer rights, title, and interest in the property to the Co-operative Society, as explicitly stated....
The Competent Authority under MOFA cannot adjudicate title disputes; it must fulfill statutory obligations to issue deemed conveyance to the Society.
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 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 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.
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....
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 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....
The court affirmed that deemed conveyance under MOFA can apply to composite societies, despite differing member agreements, emphasizing equitable treatment and the necessity of proper procedural comp....
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