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2025 Supreme(Bom) 398

HIGH COURT OF BOMBAY
Amit Borkar, J
Nahalchand Laloochand Pvt Ltd - Appellant
Versus
Panchamrut Chs Ltd - Respondent
WP/2222/2025
Decided On : 24-02-2025

Advocates:
Advocate Appeared:
Mr. Vishal Kanade with Mr. Haresh Lulia, Ms. Janvee Joshi and Mr. Mangesh Shinde for the petitioners. Dr. Abhinav Chandrachud with Mr. Janay Jain, Mr. Amit Tungare, Karthyayani Amblimath and Akhata Katara i/by Asahi Legal for respondent No.1. Ms. Vaishali Nimbalkar, AGP for respondent Nos.2 and 3-State.

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.

Headnote:

(A) Maharashtra Ownership Flats (Regulation of the Promotion, Construction, Sale, Management and Transfer) Act, 1963 - Section 11 - Writ petition challenging unilateral deemed conveyance granted to Society - Petitioners, original promoters, contest the conveyance of land exceeding the agreement's stipulations - The Competent Authority's order is upheld as it aligns with statutory obligations and agreements under MOFA. (Paras 1, 12, 36)

(B) Deemed Conveyance - The Competent Authority's role is quasi-judicial, ensuring compliance with agreements and statutory provisions - The authority cannot alter proprietary rights beyond those agreed upon. (Paras 12, 15)

Facts of the case:
The petitioners challenge an order granting deemed conveyance of land to respondent No.1-Society, asserting it exceeds the area stipulated in the agreement under Section 4 of the MOFA Act. (Paras 1, 2)

Findings of Court:
The court found no substantial grounds for interference with the Competent Authority's order, affirming the Society's entitlement to the deemed conveyance as per the agreements. (Paras 36, 37)

Issues: The primary issue was whether the deemed conveyance exceeded the area stipulated in the agreement under Section 4 of the MOFA Act. (Paras 18, 19)

Ratio Decidendi: The court ruled that the Competent Authority's functions are limited to enforcing existing rights under the agreements, and disputes regarding property rights must be resolved in civil court. (Paras 12, 34)

Result: Writ petition dismissed with liberty to pursue civil remedies.

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points:

  • The order of the Competent Authority under Section 11 of the MOFA Act grants deemed conveyance of land to the Society, including rights in the Recreational Ground area, totaling approximately 5794.85 square meters, which the petitioners contest as exceeding the scope of their agreements (!) (!) .
  • The primary issue concerns whether the conveyance exceeds the area stipulated in the agreement under Section 4 of the MOFA Act. The agreement describes "Plot B" with an approximate area of 6753 square meters, with specific deductions for previously sold portions and reserved rights, which should guide the interpretation of the conveyance scope (!) (!) (!) (!) (!) (!) (!) (!) .
  • The boundary descriptions in the agreement are more definitive than survey numbers or measurements, and in case of conflict, boundary descriptions take precedence to ascertain the intended property to be conveyed (!) (!) (!) (!) .
  • The conveyance granted under the order is within the overall intended area, considering the deductions and boundaries specified in the agreement, and does not significantly deviate from the original scope (!) (!) (!) (!) (!) (!) .
  • The role of the Competent Authority is limited to enforcing existing rights and obligations under the statutory framework and the registered agreements, acting as a quasi-judicial body that cannot decide complex questions of title or ownership. Disputes over property rights or alleged excess areas should be resolved through civil courts, not through the deemed conveyance proceedings (!) (!) (!) (!) (!) (!) (!) (!) .
  • The petitioners have the right to pursue civil remedies if they believe their proprietary rights, including claims related to boundary, sub-division, or easements, have been improperly affected by the order. The court emphasizes that the statutory proceedings do not preclude substantive civil rights from being litigated in appropriate civil courts (!) (!) .
  • The court dismissed the writ petition, affirming that the order of the Competent Authority is within its limited scope, and the petitioners have the liberty to seek civil redress for any disputes concerning their property rights (!) (!) .

Please let me know if you require further analysis or specific legal advice.


Table of Content
1. petitioners challenge deemed conveyance (Para 1)
2. disputes over land conveyance (Para 2)
3. petitioners contest application maintainability (Para 4 , 5 , 6 , 7)
4. respondent no.1 defends deemed conveyance (Para 8 , 9 , 10 , 11)
5. competent authority's quasi-judicial role (Para 12 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35)
6. competent authority's limited functions (Para 13 , 14)
7. writ petition dismissed (Para 36 , 37 , 38)

JUDGMENT :

1. The petitioners, being aggrieved, have preferred this writ petition impugning the order dated 15th October 2024 passed by the Competent Authority, i.e., respondent No.3. By the impugned order, respondent No.3 has purported to grant unilateral deemed conveyance under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion, Construction, Sale, Management and Transfer) Act, 1963 (hereinafter referred to as “the MOFA Act”). The said order, it is alleged, bestows upon respondent No.1-Society the conveyance of land ad-measuring 4925.62 square metres together with undivided rights in the Recreational Ground (RG) area ad-measuring 869.23 square metres, in aggregate constituting 5794.85 square metres. The property at issue pertains to Survey No./Hissa No.330/6 corresponding to CTS Nos.1482/A/1/1 and 1482/A/1/2, and Survey No./Hissa No.330/3 corresponding to CTS No.1484 of Village Dahisar, Taluka Borivali, City Survey Office, Borivali in the Mumbai Suburban District. The petitioners assert that the order impugned is untenable in law and deserves interference by this Court.

2. The factual matrix, culminating in the institution of the present writ petition, may briefly be delineated hereunder.

Respondent No.1-Society, representing certain allottees/flat purchasers, initiated proceedings before respondent No.3 seeking to obtain deemed conveyance in respect of the subject property under Section 11 of the MOFA Act. The petitioners herein, being the original promoters/developers, are said to have executed various agreements with the members of respondent No.1-Society under Section 4 of the MOFA Act. However, disputes emerged between the parties concerning the precise extent of the land to be conveyed and the inclusion of the RG area in the conveyance. Consequently, respondent No.1-Society pursued unilateral conveyance of the entire land in question, including the RG area, prompting the petitioners to file objections which, they submit, have been disregarded by respondent No.3 in a perfunctory manner, culminating in the impugned order.

3. In order to substantiate their case, respondent No.1-Society filed Deemed Conveyance Application No.76 of 2024 before the Competent Authority (respondent No.3). The basis of their claim for the deemed conveyance rested upon the agreements entered into under Section 4 of the MOFA Act and other documents evidencing their right to the conveyance. It is further averred by respondent No.1 that, pursuant to the mandate of the statute, they had annexed all necessary documents, including, inter alia, copies of the agreement for sale executed between the promoter and one of the flat purchasers, the resolution passed in the Special General Body meeting dated 11th December 2023, and the Architect’s certificate and sanctioned building plan. These documents, according to respondent No.1, adequately demonstrate their entitlement to the deemed conveyance as claimed.

4. Upon receipt of notice under Section 11 of the MOFA Act, the petitioners entered appearance and contested the said application by urging, firstly, that the application was not maintainable due to non-compliance with the requirement of notarization. The petitioners further contended that they were at all times ready and willing to execute the deed of conveyance in respect of the portion of land bearing CTS No.1482/A/1/1, ad-measuring 2996 square metres. According to the petitioners, the draft conveyance was duly prepared and communica

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