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2025 Supreme(Bom) 1683

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE
ACME Enterprises – Appellant
Versus
Deputy Registrar Co-operative Societies (2) – Respondent


Advocates Appeared:
For the Plaintiff :Mr. Aspi Chinoy, Senior Advocate with Mr. Karl Tamboly, Ms. Kausar Banatwala, Ms. Riya Thakkar and Mr. Yash Sheth i/b Mr. Tushar Goradia, Mr. Mayur Khandeparkar with Mr. Vikramjeet Garewal, Mr. Vinayak Pandit and Mr. Sufyaan Mansuri i/b Mr. Ajinkya M. Udane
For the Defendant :Mr. G.O. Giri with Mr. Rohit Gaikwad i/b Ms. Komal R. Mr. Mayur Khandeparkar with Mr. Vikramjeet Garewal, Mr. Vinayak Pandit and Mr. Sufyaan Mansuri i/b Mr. Ajinkya M. Udane, Mr. Aspi Chinoy, Senior Advocate with Mr. Karl Tamboly, Ms. Kausar Banatwala, Ms. Riya Thakkar and Mr. Yash Sheth i/b Mr. Tushar Goradia

Judgement Key Points

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

  1. The court clarified that a developer's right to complete construction cannot be denied solely on the basis of the execution of a deemed conveyance or the registration of a conveyance deed in favor of a federation of societies. The developer retains the right to complete the construction of their building, provided that the disclosures made to flat purchasers are not violated and statutory obligations are adhered to (!) (!) .

  2. The statutory framework of MOFA emphasizes full and true disclosure by the promoter regarding land title, encumbrances, plans, specifications, and other relevant details before sale and construction. It also mandates timely conveyance of land and building rights to the flat purchasers or their representative bodies, such as societies or federations (!) (!) .

  3. Conveyance of land in favor of a federation or society is not contingent upon the complete development of the entire layout or all buildings. It is permissible to convey proportionate land based on the extent of construction already completed, and such conveyance can be executed during the ongoing development process (!) (!) .

  4. The right of a society or federation to seek conveyance of proportionate land is supported by statutory provisions and is not dependent on the completion of all layout development or construction of all buildings. Delay in development does not extinguish the statutory right to conveyance of the land corresponding to the completed portions (!) (!) .

  5. The developer's right to construct and utilize FSI is also limited by disclosures made to flat purchasers. The developer cannot utilize additional FSI arising from changes in law or norms if such use contradicts the disclosures made, and the land conveyed or to be conveyed cannot be used to benefit from increased FSI beyond what was disclosed (!) (!) .

  6. The court recognizes the principle of proportionate land conveyance, where land is divided based on the built-up area of the constructed buildings, even if the entire layout development is incomplete. This ensures that developers' rights to develop remain intact while respecting the statutory rights of flat purchasers (!) (!) (!) .

  7. The conveyance of the entire layout land before the completion of all development or layout completion is not supported. Instead, a phased or proportionate approach is appropriate, and the land entitlement of a federation or society should be limited to the area corresponding to the constructed portions, unless full development is complete and sanctioned plans are fully executed (!) (!) (!) .

  8. The developer's delay or inaction in completing construction does not automatically result in the transfer of ownership of the land to the federation or society. The statutory rights to conveyance are based on fulfillment of disclosures and statutory obligations, not on the developer’s delay alone (!) (!) .

  9. The use of additional FSI arising from policy or norm changes, such as those under DCPR-2034, can be utilized by the developer for construction within the limits of disclosures made, and such use does not automatically vest in the federation or society unless explicitly supported by statutory provisions or disclosures (!) (!) .

  10. Overall, the court emphasizes the importance of adhering to statutory disclosures, the phased or proportionate conveyance of land based on completed construction, and the developer’s right to complete their development rights without being unduly restricted by the federation or society’s claims, especially when such claims are based on delays or alleged abandonment (!) (!) (!) .

These points collectively reflect the court’s approach to balancing the statutory rights of flat purchasers and societies with the developer’s rights to complete construction, emphasizing proportionate land conveyance and adherence to disclosures over unilateral ownership claims.


JUDGMENT :

Sandeep V. Marne, J.

1. These are cross Suits filed by the Developer and by the Federation of housing societies involving dispute about conveyance of land in the common layout and Developer’s right to carry out further construction therein. Suit No.151 of 2025 is filed by the Developer- Acme Enterprises (Developer) inter alia challenging the Competent Authority’s order dated 26 November 2019 granting unilateral deemed conveyance conveying the entire land in the layout admeasuring 18,602.20 sq. mtrs. in favour of Neelam Nagar Building Nos.11A to 11J Co-operative Housing Societies’ Association Limited (Federation).The registered deed of unilateral deemed conveyance dated 26 June 2023 is also under challenge. The Developer-Acme has sought a declaration that it is entitled to complete development on the suit plot at least to the extent of Plot D-1 admeasuring 3,200 sq.mtrs.

2. On the other hand, the Federation has filed Suit No.143 of 2025 seeking permanent injunction against Developer-Acme from utilizing any FSI arising out of conveyed layout land admeasuring 18,602.20 sq.mtrs. including D-1 plot admeasuring 3,200 sq.mtrs. The Federation has also prayed for removal of construc









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