The pendency of a title suit cannot impede the issuance of a deemed conveyance under Section 11 of MOFA or justify the deregistration of a cooperative society under Section 21A of the MCS Act.

JUDGMENT

A. The Challenge

1. Petitioners-Society has filed these two Petitions challenging (i) Order passed by Competent Authority rejecting its application for grant of unilateral deemed conveyance of land and (ii) the Order passed by Minister-Cooperation directing the Divisional Joint Registrar of Cooperative Societies to initiate action for cancellation of registration of Petitioner-Society. Although the Impugned Orders are passed by two separate authorities in independent proceedings filed seeking different reliefs, as the reason for passing of both the Orders is common, both the Petitions are decided by this common judgment. In Writ Petition No.1421 of 2024, Petitioner-Society has challenged Order dated 18 October 2023 by which Society's Application filed under Section 11 of Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) for grant of unilateral deemed conveyance of land admeasuring 1583.46 sq.mtrs. has been rejected. In Writ Petition (L) No. 4104 of 2024, the Society has challenged Order dated 24 January 2024 passed by Minister, Co-operation directing Divisional Joint Registrar of Co-operative Societies to initiate action for de-registration of Petitioner-Society. The common reason cited for passing both the orders is pendency of Suit filed by persons claiming share/ownership in the larger portion of the land. Therefore, the issue that arises for consideration is whether pendency of a title suit by persons against promoters claiming ownership and/or share in the land can be a reason for i) deregistration of a Co-operative Society formed by flat purchasers in a building constructed on part of such land and ii) for denying unilateral deemed conveyance of such part of land.

B. Facts

2. A brief factual narration would be necessary for better understanding the exact controversy involved in the Petitions. Late Madhavrao Jagtap was the original owner in respect of land bearing Survey No. 55, Hissa No.1B and Final Plot CTS No. 229, 229/1 to 7 admeasuring 9438 sq. yards i.e. 7890.17 sq. mtrs. situated at village Kanheri at Dattapada Road, Borivali (East), Mumbai 400 066 (larger land). There is factual dispute about the marriage(s) performed by late Madhavrao Jagtap. Manoramabai claims marriage with Madhavrao and out of their claimed wedlock, three children named Uday Jagtap, Ujwala Jagtap and Mangala Jagtap are born. After the demise of late Madhavrao Jagtap, it is claimed that Manoramabai and Uday Jagtap came in occupation and possession of the said larger land. That Manoramabai's name came to be reflected in the revenue records pertaining to the larger land. It appears that Manoramabai and Uday Jagtap took smaller portion of land admeasuring 1583.46 sq. mtrs. for development and submitted plans for construction of a building. Intimation of Disapproval (IOD) for construction of the building was issued on 28 March 1973 and the Commencement Certificate was issued on 30 November 1977. They executed agreements with flat purchasers for sale of various flats constructed in the building named "Manoday". Under the said agreements executed from time to time during the years 1997, said Manoramabai and Uday Jagtap inter alia undertook to form a co-operative society of flat purchasers and to convey the land, which is the subject matter of the agreement in favour of such co-operative society. After construction of the building was complete, Occupancy Certificate was issued on 3 January 1978.

3. One Alice John Madhavrao also claim marriage with Madhavrao Jagtap and that out of their claimed wedlock, daughter named Nalini Ramakant Jadhav was born. Nalini is now no more and has Vibhawari Mohan Shinde, Sunita Ashok Shinde and Anjali Ashok Shinde as her daughters. During her lifetime, Nalini Jadhav filed initially a pauper application in this Court on 8 January 1975, which was converted into Suit No. 246 of 1977. The Suit was against Manoramabai, Uday, Ujwala and Mangala. In the