The promoter must execute the conveyance deed within four months of cooperative society registration, regardless of outstanding dues from individual purchasers.

JUDGMENT:

1. Challenge in this petition filed under Article 227 of the Constitution of India is to the legality, propriety and correctness of the order dated 14th October 2020 passed by the District Deputy Registrar, Cooperative Societies, Pune (hereinafter referred to as "the Competent Authority") in Deemed Conveyance Application No. DC/1006635/2019/3263, whereby the Competent Authority directed execution of a deemed conveyance deed in favour of respondent No.2-Society. Consequent to the said impugned order, a Sale Deed styled as Deemed Conveyance Deed came to be registered on 20th October 2020, which is also under challenge in the present proceedings.

2. The facts and circumstances giving rise to the filing of the present writ petition, as narrated by the petitioner, are briefly set out as under:

3. The dispute in the present matter pertains to the immovable property comprising land bearing Survey No. 69, Hissa Nos. 4 and 5, situate at Kharadi, Taluka Haveli, District Pune, admeasuring approximately 18,038 square meters. The said land forms the subject matter of a development project, which consists of two buildings each having 22 storeys, being developed by the petitioner.

4. It is the case of the petitioner that in respect of the said development project, various agreements to sell were entered into between the petitioner and individual purchasers, who are now members of respondent No.2-Society. These agreements were executed progressively from the year 2016 onwards. The project comprises a total of 72 flats. According to respondent No.2-Society, the petitioner had agreed to execute the conveyance of the said land along with the buildings constructed thereon in favour of the Society upon completion of construction. However, despite the completion of construction, the petitioner allegedly failed to execute the requisite conveyance. Consequently, by notice dated 30th August 2019, the respondents called upon the petitioner to forthwith execute the conveyance deed in favour of respondent No.2-Society.

5. It appears that since the requisite number of flat purchasers, as prescribed under the provisions of the Maharashtra Cooperative Societies Act, 1960 , had acquired flats in the said project, the members proceeded to apply for registration of a cooperative housing society. Accordingly, respondent No.2-Society came to be registered on 7th May 2019 under the said Act. However, even after a lapse of four months from the date of registration, the petitioner failed to execute the conveyance of the subject property in favour of the Society. This led respondent No.2-Society to initiate proceedings under Section 11(3) of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (hereinafter referred to as “MOFA”) by filing an application before the Competent Authority for issuance of a deemed conveyance.

6. In response to the said application, the petitioner appeared before the Competent Authority and raised several contentions. It was submitted that out of a total of 82 flats forming part of the project (including those in other buildings), only 55 flats had been sold, and that 25 flats still remained unsold. It was further contended that part consideration from some of the purchasers was yet to be received by the petitioner. The petitioner asserted that it was always ready and willing to execute the conveyance deed in favour of respondent No.2-Society, but only upon completion of the entire project in accordance with the terms and conditions of the respective agreements executed with the purchasers.

7. The Competent Authority, in accordance with statutory requirements, caused a public notice to be published in a local newspaper for effecting service on opponent Nos.2 to 4. However, despite such publication and service, there was no appearance on behalf of respondent Nos.2 to 4 before the Competent Authority. Upon perusal of the documents and material placed on record, and being sa