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2025 Supreme(Bom) 189

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
AMIT BORKAR, J.
Swastik Promoters and Developers - Appellant
Versus
The Competent Authority, the District Deputy Registrar of Cooperative Societies - Respondent
Writ Petition No. 6869 of 2021
Decided On : 07-02-2025

Advocates:
Advocate Appeared:
Mr. Jaydeep Deo for the petitioner.
Mr. T.S. Kapre, AGP for respondent No.1 – State.
Dr. Abhinav Chandrachud i/by Mr. Pavan S. Patil for
respondent No.2.

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.

Headnote:

(A) Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - Section 11 - Deemed conveyance application - The Competent Authority granted deemed conveyance to the society despite the promoter's objections regarding ongoing civil suit and alleged premature application - The Authority held that the statutory right to conveyance operates independently of civil disputes and that the society complied with necessary prerequisites. (Paras 5, 12, 19)

(B) Jurisdiction of Competent Authority - The Competent Authority's role is quasi-judicial, limited to enforcing the promoter's obligations under the sanctioned plan and registered agreements, without adjudicating title disputes. (Paras 11, 19)

Facts of the case:
The petitioner challenged the Competent Authority's order granting deemed conveyance to the society for land and construction, asserting that a civil suit regarding the same property was pending and that the application was premature. (Paras 1-4)

Findings of Court:
The Competent Authority found that the society was entitled to deemed conveyance as it met all statutory requirements, and the application was not premature despite the ongoing civil suit. (Paras 5, 12)

Issues: The main issues were whether the deemed conveyance application was premature due to the pending civil suit and the extent of the Competent Authority's jurisdiction under the MOFA Act. (Paras 4, 11)

Ratio Decidendi: The court ruled that the Competent Authority's jurisdiction under Section 11 is to enforce the promoter's obligations and does not extend to adjudicating title disputes, which must be resolved in civil courts. (Paras 11, 19)

Result: Writ petition dismissed; liberty granted to the petitioner to institute a civil suit. (Paras 26, 27)

Table of Content
1. challenge to deemed conveyance (Para 1)
2. background of the case (Para 2)
3. civil suit filed (Para 3)
4. premature application (Para 4)
5. authority's evaluation (Para 5)
6. jurisdictional errors (Para 6)
7. defense of the order (Para 7)
8. binding mou (Para 8)
9. reliance on judicial precedent (Para 9)
10. promoter's rights (Para 10 , 11)
11. authority's quasi-judicial role (Para 12 , 13 , 14 , 15)
12. limited jurisdiction (Para 16)
13. judicial intent (Para 17 , 18 , 19 , 20 , 22 , 23 , 24 , 25)
14. writ petition dismissed (Para 26)
15. writ petition disposed (Para 27)
16. ad-interim relief extended (Para 28)

JUDGMENT.:

(AMIT BORKAR, J.)

1. The petitioner takes exception to an order dated 26th July 2021 passed by respondent No.1 in Deemed Conveyance Application No.D.C.1006568/2019/1608 granting unilateral deemed conveyance under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (“MOFA Act”) in respect of land admeasuring 13718.26 sq. mtrs. along with construction admeasuring 12048.83 sq. mtrs. on the land at Mouje Tathavade, Taluka Mulshi, District Pune.

2. The facts and circumstances giving rise to the filing of the instant writ petition are as under:

Respondent No.2 filed Deemed Conveyance Application No.1006568 of 2019 before respondent No.1. The petitioner is promoter and developer of the scheme. The members of respondent No.2 – Society purchased units / flats as per agreement to sale which was based on sanctioned plan dated 24th December 2010. According to the petitioner, as per sanctioned plan dated 24th December 2010, permissible FSI was 12,086.87 sq. mtrs. And sanctioned units were 219. The said sanctioned plan was revised on 4th April 2014 by the petitioner without consent of respondent No.2 – Society. However, the revision of plan does not change position of FSI.

3. The respondent No.2, therefore, filed Special Civil Suit No.1482 of 2019 before the Civil Judge Senior Division, Pune seeking relief of specific performance of the agreement to sale, and further seeking declaration that lay-outs dated 4th April 2012 and 26th May 2014 be declared as illegal and void. The respondent No.2 further prayed injunction against the petitioner and Municipal Corporation not to revise existing plan of the property without the consent of members of the respondent No.2–Society.

4. The petitioner contests the deemed conveyance application by asserting that respondent No. 2-Society has already initiated Special Civil Suit No. 1482 of 2019, seeking specific performance, damages, and impugning the sanctioned plan pertaining to the subject land. It is contended that the Competent Authority under the Act is jurisdictionally barred from adjudicating the application filed by respondent No. 2, as the civil suit involves overlapping issues of title, contractual obligations, and validity of the sanctioned plan, which fall squarely within the domain of the civil court. The petitioner further avers that all flat purchasers affiliated with respondent No. 2-Society were duly apprised of, and expressly consented to, the phased construction of seven buildings under the development scheme. It is underscored that the execution of conveyance was contingent upon the completion of all seven buildings, as per the mutual understanding between the parties. Consequently, the petitioner asserts that the application for deemed conveyance, instituted prior to the culmination of the entire project, is premature, lacks contractual and statutory foundation, and ought to be dismissed in limine for being devoid of merit.

5. Respondent No. 1, the Competent Authority, upon a comprehensive evaluation of the documentary evidence on record and the submissions advanced by both parties, rendered the impugned order. The Authority concluded that respondent No. 2- Society is legally entitled to the conveyance of land admeasuring 13718.26 sq. mtrs. and constructed area admeasuring 12048.83 sq. mtrs

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