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2025 Supreme(Bom) 753

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
AMIT BORKAR, J.
Flagship Infrastructure Ltd. - Appellant 
Versus 
The Competent Authority - Respondents 
Writ petition no. 151 of 2019, with interim application no. 18160 of 2022 with interim application no. 19665 of 2022
Decided on : 15-04-2025

Advocates Appeared:
Mr. Prasad Dani, Senior Advocate i/b. Mr. Sarthak S. Diwan for thePetitioners.
Ms. M. P. Thakur, AGP for Respondent No.1-State.
Mr. Anil Anturkar, Senior Advocate i/b. Sugandh Deshmukh for Respondent No.2 in Writ Petition and and for the Applicants in all Interim Applications.

A notification under the MRTP Act cannot override the legal duty of conveyance under MOFA, which prevails in matters concerning flat buyers' rights.

Headnote:

(A) Maharashtra Regional and Town Planning Act, 1966 - Section 20(4) - Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - Section 11 - Legal obligation of developers to convey title to cooperative housing societies within four months of formation - Notification under MRTP Act cannot override statutory duty under MOFA - MOFA prevails over MRTP Act in matters of promoter-flat buyer relations. (Paras 1, 29, 25)

Facts of the case:
The petitioners, developers of a township project, challenged the issuance of a deemed conveyance certificate to a cooperative housing society, arguing that a notification under the MRTP Act allowed them ten years to complete the project, which conflicted with their obligation under MOFA to convey title within four months of the society's formation. (Paras 2, 4)

Findings of Court:
The court held that the notification under MRTP does not permit the developer to delay the conveyance of title to the society, emphasizing that MOFA's provisions for timely transfer of ownership must be strictly followed. (Paras 29, 25)

Issues: The main issues were whether the MRTP notification could override the statutory obligation under MOFA and the validity of the deemed conveyance issued to the society. (Paras 1, 29)

Ratio Decidendi: The court ruled that the MRTP Act and MOFA serve different purposes, with MOFA being a special law designed to protect flat buyers, thus prevailing over the general provisions of the MRTP Act. The developer's obligations under MOFA cannot be postponed by citing MRTP permissions. (Paras 29, 25)

Result: The writ petition was partly allowed; the deemed conveyance was upheld except for the benefits related to increased FSI, which were set aside. (Paras 51)

JUDGMENT :

AMIT BORKAR, J.

1. This petition raises a narrow, but important question of law: whether a notification issued under Section 20(4) of the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act), granting a developer ten years’ time for completing a development project, can override the statutory obligation cast upon the developer under the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) and Rule 9 of the MOFA Rules, 1964, to execute a conveyance of title in favor of a cooperative housing society within four months of its formation. This Court is thus called upon to examine the scheme and purpose of the two statutes and decide which must prevail in the event of an apparent conflict.

2. The present petition has been instituted by the petitioners, who are developers, questioning the legality and validity of the judgment and order dated 27th November 2018 passed by the District Deputy Registrar, Co-operative Societies, Pune (Rural). By the said order, rendered in Application No. DC 16/2018-19, a certificate of deemed conveyance has also been issued in favor of respondent No.2 – the Housing Society. The certificate pertains to land admeasuring 442.25 square feet, together with the constructed area of 85,926.373 square meters, and includes an undivided share and interest in the common areas and common facilities to the extent of the said area. The land in question forms part of Survey Nos. 119 (Part) to 125 + 154 (Part) to 160/2 to 171 + 173, situate behind Cognizant, Rajiv Gandhi InfoTech Park, Hinjewadi, Pune.

3. The petitioners, feeling aggrieved by the said order and certificate of deemed conveyance, have approached this Court invoking its writ jurisdiction.

4. The facts necessary for deciding the present petition, briefly stated, are as under: The petitioners are the original developers and owners of the property in question. They had undertaken the development of a township project known as Blue Ridge, after securing requisite permissions under the provisions of the Maharashtra Regional and Town Planning Act, 1966. The construction was to be carried out in a phased manner as per the sanctioned plans. The dispute giving rise to the present proceedings is confined only to Towers 1 to 8 within the said township project. Respondent No.2-Society was registered on 12th September 2011. According to respondent No.2, the Society comprises eight buildings consisting of 811 flats, 12 shops, and common amenities, spread over the land forming part of the Blue Ridge Township. It is the grievance of respondent No.2 that despite repeated requests, the petitioners failed to convey the land and constructed premises to the Society, as required by law.

5. Faced with such inaction, respondent No.2 preferred an application for deemed conveyance before the District Deputy Registrar under the provisions of Section 11(3) of MOFA. The application was duly accompanied by necessary documents and records. On receipt of notice from the authority, the petitioners appeared and contested the application. By way of written submissions and oral arguments, the petitioners contended that the application was not maintainable in law. It was urged that no cause of action had arisen, inasmuch as the petitioners had not committed any breach of statutory duty. It was further submitted that the description of the subject matter of the application was incorrect, inasmuch as the entire master layout of the township could not be the subject matter of a deemed conveyance application restricted only to Towers 1 to 8. The petitioners also contended that the right of respondent No.2, if at all, could only extend to the land directly beneath the eight buildings in question, and not to the entire larger parcel of land forming the township.

6. Both parties submitted written arguments before the authority. After affording full opportunity of hearing to the petitioners and the society, the District De

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