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2023 Supreme(Bom) 1881

IN THE HIGH COURT OF BOMBAY
Sandeep V. Marne, J.
M/s. K. G. Associates & Anr. - Appellants
Versus
The District Deputy Registrar , Co-Operative Societies , Pune , City-1 And Competent Authority & Ors. - Respondents
Writ Petition No. 8203 of 2022 alongwith Contempt Petition No. 454 of 2022
Decided On : 04-10-2023

Advocates appeared:
Mr. Girish S. Godbole, Senior Advocate with Ms. Shruti Tulpule, Advocate I/By. Mr. Kaustubh Thipsay, Advocate, for the Appellant In WP-8203-2022; Mr. Jaydeep S. Deo, Advocate, for the Respondent No.2 In WP-8203 of 2022 and for the Respondent No.1 In CP-454-2022; Mr. C.D. Mali, AGP, for Respondent Nos.1 to 3 In WP-8203 of 2022 for Respondent Nos. 2 to 4 In CP-454-2022.

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 compliance during registration.

Headnote:(A) Maharashtra Ownership of Flats (Regulation of Promotion, Construction, Sale, Management and Transfer) Act, 1963 - Section 11 - Jurisdiction of Competent Authority to grant deemed conveyance - Order granting deemed conveyance of land admeasuring 77,754.75 sq.mtrs upheld - Society's right to seek deemed conveyance cannot be defeated due to dual nature of its members - Registration of deed of deemed conveyance set aside for breach of mandatory provision of issuing summons to the Promoter. (Paras 11, 64, 70, 74)

(B) Interpretation of 'Flat' under MOFA - Court rules that while an open plot of land does not qualify as a 'Flat', constructed units qualify regardless of surrounding plot sale - Legislative intent of protecting flat purchasers emphasized; a broad interpretation of 'Flat' preference. (Paras 21-30, 34-39)

Facts of the case:
Petitioners challenge an order granting deemed conveyance to Respondent-Society regarding a specified land area. Petitioners assert that certain internal roads should not form part of the conveyance; Respondent-Society argues for the complete conveyance of land per agreements with purchasers.

Findings of Court:
The jurisdiction of the Competent Authority to grant deemed conveyance is affirmed, underscoring the need for equitable treatment of Society members with various property rights.

Issues: (i) Validity of deemed conveyance order, (ii) Applicability of MOFA to various agreements, (iii) Breach of court orders during registration.

Ratio Decidendi: The court clarifies that not all agreements must meet MOFA requirements for the Society to assert rights under deemed conveyance provisions; registration process violations deconstructed.

Result: Order granting deemed conveyance upheld; registration set aside; costs imposed on the Society.

Table of Content
1. introduction of petitioner's challenge to deemed conveyance. (Para 1 , 2)
2. bungalows qualify as flats under mofa. (Para 34 , 37)
3. registration requires compliance with statutory requirements. (Para 63 , 66 , 71)
4. court's reasoning on not initiating contempt proceedings. (Para 72 , 74)

Judgment

The Challenge :

1. This Writ Petition is filed by Petitioners taking exception to the Order dated 17 March 2020 passed by the Deputy Registrar of Co-operative Societies and Competent Authority, Pune granting deemed conveyance of the land in favour of Respondent No. 2-Society. By that order, the Competent Authority has granted deemed conveyance of land admeasuring 77,754.75 sq. mtrs out of land bearing Gat No.1420 (Part), Village-Wagholi, Taluka-Haveli, District-Pune. During pendency of the present petition, the Respondent No.2-Society has registered the Certificate of deemed conveyance at Serial No.7185 of 2020, which is also challenged in the present petition. As per the Petitioners, in breach of interim Order passed by this Court on 17 December 2020, the Society entered into correspondence with the Revenue Authorities and got its name mutated to the records of rights of the land, which according to them, constitutes contempt of this Court and accordingly Contempt Petition No. 454/2022 has been filed.

Facts :

2. For better understanding of the controversy in hand, a brief factual narration as a prologue to the judgment would be necessary. Petitioner No.1 was the owner of the land bearing Gat No. 1420-(Part), Village-Wagholi, Taluka-Haveli, District-Pune admeasuring 14 Hectares and 8 Ares. Petitioner No.1 decided to develop that lands by preparing a lay-out of plots and accordingly appointed Petitioner No.2 as an Organizer vide Agreements dated 24 January 2002 and 20 November 2003. Accordingly, Petitioners got the lay-out plan sanctioned in respect of the said land after obtaining permission for non-agricultural use of the land. According to Petitioners, the said land at Gat No.1420 (Part) admeasuring 14 Hectares and 8 Ares was divided for development by them as follows:

    (i) Land admeasuring 45,223.61 sq.mtrs was divided into 243 bungalow plots, out which Petitioners decided to undertake construction of 24 twin bungalows, whereas the rest of the plots were to be sold without any construction. Additional area of 4803.83 sq.mtrs was kept as proportionate open space for such 243 bungalow plots. Purchasers of such plots/bungalows were to become members of Respondent No.2-Society.

    (ii) Land admeasuring 30,318 sq.mtrs was also divided into bungalow plots and corresponding open space and another Society named Chyrsalis Co-operative Housing Society was registered in respect of those bungalows.

    (iii) Land admeasuring 4635.64 sq.mtrs was divided into 25 bungalow plots which was to be absolutely conveyed to the respective plot owners as freehold land. Those bungalows were not to form part of Respondent No.2-Society.

    (iv) Commercial Plot No.136 and Residential Plot No.230 totally admeasuring 2,549.06 sq.mtrs was to be retained by Petitioner No.2.

    (v) Amenity space totally admeasuring 20,434.26 sq.mtrs.

    (vi) Internal roads admeasuring 23,816.14 sq,mtrs connecting the southern part of the lay-out.

    (vii) Total area under road widening 4,887.31 sq.mtrs.

3. Accordingly, Petitioners undertook development of the land forming part of serial No. (i) above and divided the land admeasuring 45,223.61 sq. mtrs into 243 bungalow plots. Petitioners executed agreement for sale in respect of 219 open plots with purchasers. The plot purchasers became members of Respondent No.2-Society. Under the agreements, the purchasers had choice of constructing the bungalows either on their own or through Petitioner No.2. Under the agreements, Petitioners also undertook to convey the land to Respondent No.2-Society. In respect of 24 plots, separate agreements were executed for sale of 24 constructed bungalows. The purchasers of such bungalows were also to become members

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