IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Amit Borkar, J
Veer Tower Co-operative Housing Society Limited. - Appellant
Versus
District Deputy Registrar, Co-operative Societies, Mumbai City (4) - Respondent
WRIT PETITION NO.211 OF 2023
Decided On : 18-02-2025
(A) Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963 - Section 11 - Writ petition challenging the rejection of deemed conveyance application - Petitioner contended that developer did not utilize full Floor Space Index (FSI) and that conveyance was conditioned upon complete redevelopment - Respondents argued that conveyance must be to a federation of societies and that the petitioner lacked authority - Competent Authority rejected the application, citing incomplete redevelopment and procedural issues - Court found that the petitioner’s right to conveyance matured upon execution of the agreement and payment, and that delays by the developer cannot impede this right. (Paras 1, 6, 13, 15, 28)
(B) Writ Jurisdiction - The court emphasized that disputes regarding title and ownership should be resolved in civil courts, not through writ petitions. (Paras 20, 26)
Facts of the case:
The petitioner sought deemed conveyance for a portion of land under the MOFA Act, asserting entitlement based on an Architect's certificate and the agreement of sale, while the respondents contended that the conveyance must be to a federation and that the petitioner lacked authority.
Findings of Court:
The court quashed the rejection of the deemed conveyance application and directed the Competent Authority to issue the certificate in accordance with the Architect's certificate.
Issues: The main issues were whether the petitioner was entitled to deemed conveyance despite the incomplete redevelopment and whether the application was validly submitted.
Ratio Decidendi: The court ruled that the petitioner’s right to conveyance was enforceable and could not be delayed by the developer's inaction or procedural contingencies.
Result: The impugned judgment and order were quashed, and the Competent Authority was directed to issue the certificate of conveyance.
JUDGMENT :
1. In the instant writ petition filed under Article 226 of the Constitution of India, the petitioner challenges the impugned Judgment and Order passed by respondent No. 1, which dismissed the petitioner’s application for the conferment of deemed conveyance under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1963 (hereinafter, the “MOFA Act”). The petitioner principally relies on three grounds for its challenge: firstly, that the developer has not yet availed the full Floor Space Index (FSI) available for the development; secondly, that, as per the terms of the agreement governing the transaction, the right to conveyance is conditioned upon the complete redevelopment of all constituent societies; and thirdly, that the Architect’s certificate tendered in support of the proposal is erroneous. These contentions, if sustained, would undermine the validity of the impugned decision and the consequent rejection of the petitioner’s plea for deemed conveyance.
2. The petitioner, having instituted the proceedings, submitted a proposal on 8th March 2022 before respondent No.1, seeking the issuance of deemed conveyance in accordance with Section 11 of the MOFA Act. It was contended that, pursuant to the sanctioned plan, the petitioner-society possesses a built-up area aggregating to 9,140.83 square meters—computed as 8,923.86 square meters plus an additional 216.97 square meters—within a total built-up area of 17,676.95 square meters. Accordingly, the petitioner-society purportedly holds a 51.71% share in the larger plot, a quantum certified by a registered Architect. In light of this entitlement, the petitioner prayed for the issuance of a certificate of entitlement for unilateral conveyance of land admeasuring 4,199.93 square meters out of a larger plot of 8,122.01 square meters, situated in the land bearing CTS No.54/C, Village Kandivali, Dev Nagar, Mumbai. In addition, the petitioner sought an undivided share in the common recreation ground—specifically, 741.16 square meters out of an overall area of 1,433.29 square meters—as well as an FSI benefit for the setback area, quantified as 2,011.51 square meters out of 3,889.94 square meters, inclusive of the existing building. These precise calculations and measurements were tendered to substantiate the petitioner’s claim and to delineate the exact quantum of its entitlement under the redevelopment scheme.
3. In response, respondent Nos.2 and 3 vehemently opposed the application on multiple grounds. They averred that, by virtue of the agreement to sale entered into by the members of the petitioner-society, it was unequivocally stipulated that the conveyance of the disputed land was to be effected in favor of a federation comprising both the extant societies and those to be subsequently constituted. Furthermore, the respondents contended that the petitioner-society had agreed that the amalgamation of adjoining plots and the execution of the redevelopment project for the Dev Nagar Buildings—undertaken by respondent Nos. 2 and 3 —were preconditions precedent to any conveyance. In addition, the respondents pointed out that the members of the petitioner-society were duly informed of rights conferred upon a Trust by virtue of a Gift Deed dated 29th December 2014, which allowed the utilization of an available FSI of 1,228.61 square meters for the purpose of converting the premises into a meditation area and/or constructing additional floors (specifically, the 29th and 30th floors above the A-wing and/or the 5th to 7th floors above the B-wing). It was further submitted that the petitioner had not taken any affirmative steps towards joining or forming the requisite federation of societies, notwithstanding the existence of five such societies. Consequently, the respondents stated that the grant of deemed conveyance cannot be unilaterally effected in favor of the petitioner-society alone. They also contended tha
The right to deemed conveyance under the MOFA Act matures upon execution of the agreement and payment, and cannot be delayed by the developer's inaction.
The statutory obligation to execute the conveyance deed under MOFA cannot be delayed by contractual stipulations or incomplete construction, ensuring timely ownership transfer to flat purchasers.
The Competent Authority's jurisdiction under Section 11 of the MOFA Act is limited to enforcing the promoter's obligations, not adjudicating title disputes, which must be resolved in civil courts.
The competent authority's jurisdiction to grant deemed conveyance is limited and cannot delve into aspects of title. An order granting deemed conveyance does not conclude the issue of right, title, a....
Deemed conveyance under MOFA must adhere to statutory obligations, and timelines cannot be circumvented by private agreements; competent authority must assess the proportional area for conveyance acc....
Deemed conveyance must only cover completed areas of a property, reserving rights of the developer for ongoing and future construction under applicable law.
The Competent Authority's deemed conveyance under MOFA must adhere strictly to existing agreements, and disputes over property rights should be resolved in civil court.
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 court established that the promoter's obligation under MOFA to convey property to the society is paramount, and the competent authority's role is limited to ensuring compliance with this obligati....
Disputes over excess area or title in deemed conveyance orders under MOFA Section 11(3) are for civil courts, not writ jurisdiction; promoters cannot retain land via private clauses against statutory....
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