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2024 Supreme(Bom) 636

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
MILIND N. JADHAV, J.
Sita Vihar Co-operative Housing Society Ltd. – Petitioner
Versus
Surajratan Fatehchand Damani Janhit Nidhi and Others – Respondents
Writ Petition No. 10005 of 2023
Decided On : 24-09-2024

Advocates:
Advocate Appeared:
For the Petitioners: Anil V. Anturkar, Karishma Shinde, Sugandh Deshmukh.
For the Respondents: B.K. Barve, Sandeep Barve, Sonali Patil, G.S. Godbole, R.S. Datar, Druti Datar, Swati Sawant, J.P. Patil.

The court held that statutory obligations under MOFA compel the execution of conveyance to a housing society and that such obligations must be upheld to prevent unauthorized development.

Headnote:(A) Maharashtra Ownership of Flats Act, 1963 - Sections 3, 4, and 11 - Dispute over conveyance and development rights of property - The Plaintiff-Society filed suit for conveyance, asserting it is entitled under MOFA due to wrongful encroachments by Defendants. (Paras 5, 8, 12, and 36)

(B) Contract Law - Legal obligations arising from agreements - The court found that the development Agreement required conveyance to the Plaintiff-Society, which had not been executed by the Defendants, amounting to a contractual breach. (Paras 21, 27, and 30)

(C) Injunctions and Statutory Obligations - The court upheld the Plaintiff's right to seek an injunction, affirming that any construction by the Defendant on disputed land cannot proceed without complying with MOFA requirements. (Paras 32 and 36)

Facts of the case:
The Plaintiff-Society, formed by residents due to failure of Defendant-Trust to execute property conveyance, faced encroachment amid ongoing development by Defendant firms without necessary approvals. (Paras 5, 8, and 12)

Findings of Court:
The previous orders rejecting interim relief were quashed, affirming the obligation of the Defendants to adhere to the statutory requirements for property conveyance to the Society. (Paras 31-36)

Issues: Whether the Plaintiff-Society is entitled to conveyance under MOFA, and if the Defendants had a right to develop the disputed land. (Paras 12 and 36)

Ratio Decidendi: The court ruled that the obligations under MOFA are enforceable through judicial intervention to ensure compliance with prior agreements regarding property conveyance. (Paras 27, 36)

Result: Writ Petition allowed, and injunction imposed restraining further construction on the disputed property. (Para 39)

Table of Content
1. the case involves a society's claim for the execution of a conveyance under statutory obligations. (Para 1 , 2)
2. petitioner seeks conveyance under mofa. (Para 3 , 4 , 5 , 7)
3. issues regarding tenant rights and development agreements are critical to the case. (Para 8)
4. opposition to claims based on possession. (Para 9 , 10 , 11)
5. court's analysis on the development agreement. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19)
6. clarification on rights to develop plot b. (Para 21 , 22)
7. the court emphasized the importance of the development agreement in determining property rights. (Para 30)
8. court's injunction against defendant no. 9 upheld. (Para 31 , 32)
9. urgency for expedited trial process. (Para 33 , 34)

JUDGMENT :

MILIND N. JADHAV, J.

1. Heard Mr. Anturkar, learned Senior Advocate for Petitioner; Mr. Barve, learned Advocate for Respondent No. 8; Mr. Godbole, learned Senior Advocate for Respondent No. 9, Ms. Sawant, learned Advocate for Respondent No. 11-Corporation and Mr. Patil, learned AGP for Respondent No. 12-State.

2. By consent, taken up for final hearing due to the exigency mentioned by Mr. Anturkar.

3. Petitioner is a Co-operative Housing Society who has filed Regular Civil Suit (“RCS”) No. 748 of 2019 on 17.09.2019 for the following reliefs:

    “(a) It be held, declare and decreed that Plaintiff is entitled to and Defendant Nos. 1 to 8 and anybody claiming through and under them including Defendant Nos.9 and 10 are under statutory obligation under MOFA to execute conveyance of suit land admeasuring 9582.650 sq. meters together with the said buildings standing thereon by way of lease for the period of 999 years in favour of Plaintiff as directed by the Charity Commissioner vide order dated 02/11/1987 modified vide order dated 09/02/1988 passed under Section 36 (1) (b) of the Bombay Public Trust Act.

    (b) It be held, declared and decreed that consent terms executed on 27/04/2011 by and between Defendant Nos.2, 3 and 4 through Defendant No. 5 for and on behalf of Defendant No. 1 and Defendant No. 8 and Defendant No. 10 In Regular Civil Suit No. 495 of 1998 in the Court of Civil Judge (J.D.) Thane vide Exh.47 and the consent decree dated 18/09/2011 passed thereupon by the Hon’ble Court viz. fraudulent consent decree be declared as null, void-ab-initio and/or not enforceable against the Plaintiff and/or not binding upon the Plaintiff and be quashed and set aside.

    (c) It be held, declared and decreed that lease deed dated 30/12/2011 registered under serial no. TNN5-00982-2012 on 01/02/2012 with the office of Sub-Registrar, Thane-5 executed by and between the Defendant No. 10 and Defendant No. 9 viz. fraudulent lease deed be declared as null, void-ab-initio and/or not enforceable against the Plaintiff and/or not binding upon the Plaintiff and be quashed and set aside.

    (d) It be held, declared and decreed that declaration and undertaking executed by Defendant Nos. 2, 3 and 4 through Defendant No. 5 for and on behalf of Defendant No. 1 and Defendant No. 8 executed on /02/2011 viz. fraudulent declaration be declared as null, void- ab-initio and/or not enforceable against the Plaintiff and/or not binding upon the Plaintiff and be quashed and set aside.

    (e) It be held, declared and decreed that resolution passed by the Defendant no. 1 in the meeting of Trustees allegedly held on 01/12/2010, inter-alia, resolving to grant lease to the Defendant no. 10 herein and further resolving to give credit of lease rent for the residual period to the Defendant no. 10 and further resolving to authorize the Defendant no. 5 to sign and file the consent terms on behalf of the Trust in RCS No. 495 of 1996 viz. fraudulent resolution be declared as null, void-ab-initio and/or not enforceable against the Plaintiff and/or not binding upon the Plaintiff and be quashed and set aside.

    (f) It be held, declared and decreed that suit plan no. 1, suit plan no. 2 and suit commencement certificate be declared as null, void-ab-initio and be revoked, qu

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