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2025 Supreme(Bom) 1130

IN THE HIGH COURT OF JUDICATURE AT BOMBAY 
MILIND N. JADHAV, J.
M/s. S&M Enterprises - Appellant
Versus
The Palazzo Building No. 1 CHSL and Others - Respondents
Writ Petition No. 12297 of 2022
Decided On : 28-07-2025

Advocates:
Advocate Appeared:
For the Appellants : G.S. Godbole, Sumit Kothari
For the Respondents: S.S. Panchpor, Aashay Rabade, Pradnya Borhade, Shyam Taori, Hamid Mulla

Deemed conveyance must only cover completed areas of a property, reserving rights of the developer for ongoing and future construction under applicable law.

Headnote:(A) Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management And Transfer) Act, 1963 - Section 11(3) - Deemed Conveyance - Petition challenges an order granting deemed conveyance of property to a society without consideration of ongoing development rights of the promoter - The court found that deemed conveyance should only cover constructed areas of the building, pending completion of additional phases of development by the promoter. (Paras 19, 20, 21)

(B) Promoter rights - The court ruled that existing statutory frameworks must be adhered to, confirming that the deemed conveyance must be proportionate to the completed structures, emphasizing that development rights should not be jeopardized pending further construction. (Paras 19, 20)

Facts of the case:
The petitioner, a developer, sought to halt the registration of a deemed conveyance for a society which was granted without full consideration of the ongoing development on the property. The case highlighted disputes surrounding completion and rights to develop additional buildings.

Findings of Court:
The court set aside the deemed conveyance order, requiring it only cover the constructed portion of the society’s building until further constructions were completed.

Issues: The main issue examined was the legality of granting deemed conveyance while further construction by the promoter was ongoing.

Ratio Decidendi: The court determined that the deemed conveyance should not create obstacles to the promoter's rights regarding ongoing and future developments, reinforcing the principle that full completion must precede total conveyance of land.

Result: Writ Petition allowed and deemed conveyance order quashed.

Table of Content
1. petition challenges deemed conveyance order. (Para 1 , 2)
2. factual background of property ownership and society formation. (Para 3 , 4 , 5)
3. court evaluates construction phases and rights. (Para 6 , 7 , 8)
4. issues raised by society on construction quality and amenities. (Para 9 , 10 , 11 , 12)
5. disclosure of fsi rights and limitations on developments. (Para 13 , 14 , 15)
6. society's claims against promoter's development rights evaluated. (Para 16 , 17 , 18)
7. court's ruling on deemed conveyance and future actions. (Para 19 , 20 , 21)
8. judgment concludes and addresses potential stay. (Para 22 , 23)

JUDGMENT :

MILIND N. JADHAV, J.

1. Present Writ Petition takes exception to the order dated 17.06.2022 passed by the District Deputy Registrar, Pune in Application No.466 of 2021 filed by Respondent No.1 – Society under Section 11 (3) of the the Maharashtra Ownership Flats (Regulation of the promotion of Construction, Sale, Management And Transfer) Act, 1963 (for short ‘MOFA’).

2. By order dated 17.06.2022, the District Deputy Registrar, Pune allowed the Application filed by Respondent No.1 - Society and granted deemed conveyance in respect of the subject property bearing CTS No.1707(P) of C.S. No.1, Pune and Survey No. 256/1+1+1/2+2+3+4/1+4/2+5/1+5/2+6/1+6/2+6A/1+6A/2+7A+7B/1+7B/2/1/2 for land admeasuring 3422 square meters and constructed area of 3648 square meters out of total 3880 square meters originally situated in Village Hadapsar, Taluka Haveli and District Pune (for short "Suit property") in favour of Society which is admittedly owned by the Petitioner - Promoter/Developer. Pursuant to the above order Deemed Conveyance is also registered by Respondent No.1 - Society on 01.07.2022. Petition is filed on 12.10.2022.

3. Briefly stated facts germane for adjudication of the present Writ Petition are as follows:-

3.1. Petitioner – Promoter / Developer being owner of suit property was desirous of developing it in a phase-wise manner and in furtherance thereof applied for obtaining various approvals, sanctions, NOCs, Certificates, permissions etc. from the Pune Municipal Corporation and Statutory Authorities for carrying out the proposed development by exploiting its fullest potential. Accordingly on 23.05.2013 Petitioner – Promoter / Developer received Commencement Certificate and approval for construction of first building consisting of stilt + 9 floors on plinth area of 3170 square meters. On 19.11.2013 Petitioner – Promoter / Developer obtained non-agricultural permission in respect of the suit property. Thereafter Petitioner – Developer handed over reserved and designated H.C.M.T.R. area, Development Plan road area and water body area to the Competent Authority which were reserved in the suit property and in lieu thereof became entitled for additional FSI / benefits.

3.2. On 11.01.2016 Petitioner – Promoter / Developer revised the building plan of first building and got sanctioned a revised Commencement Certificate from Pune Municipal Corporation for building consisting of stilt + 11 floors with total 55 units, 24 two- wheeler parking spaces and 58 cycle parking spaces for 3648.23 square meters constructed area. Members of the Society did not object to this development. Promoter completed the said construction.

3.3. After completion of first building nomenclatured as Palazzo, on 25.08.2016 Petitioner – Developer executed registered Agreements under Section 4 of the MOFA with prospective flat purchasers / members of Respondent No.1 – Society. On 20.07.2017 Petitioner – Promoter / Developer received part Occupation Certificate for 55 flats in building No.1.

3.4. On 18.11.2019 Petitioner – Promoter / Developer submitted further proposal for development to the Pune Municipal Corporation for construction of additional building comprising of ground + 18 storeys on the balance suit plot by exploiting the balance potential of the entire plot as available in accordance with law. CC was sanctioned accordingly in 2021 by th

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