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2026 Supreme(Bom) 309

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Amit Borkar, J.
Quantum Park Cooperative Housing Society Limited - Petitioner
Versus
AHCL-PEL, A limited liability partnership registered under the provisions of the Limited Liability Partnership Act, 2008 - Respondent
Writ Petition No.10220 OF 2025
Decided On : 24-02-2026

Advocates Appeared:
For the Petitioner: Mr. Siddhesh Bhole with Ms. Maithili Jha and Mr. Aryesh Gaje i/by SSB Legal Advisory
For the Respondent: Mr. Prashant P. Kulkarni, Mr. D.V. Deokar with Mr. D. Parikh i/by Parimal K. Shroff & Co., Mr. Shafi Sayed with Ms. Sunita Yadav i/by S.A. Associates, Ms. Aarushi Yadav with Mr. Aatish Jayade i/by Ms. Ravleen Sabharwal, Mr. Satyajeet P. Dighe, Smt. S.D. Chipade, AGP

Competent Authority under Section 11 MOFA must determine and grant deemed conveyance for correct subdivided area from official records, undeterred by pending civil suits on construction deviations and FSI disputes which do not affect land entitlement.

Headnote:(A) Maharashtra Ownership Flats Act, 1963 - Section 11 - Application for unilateral deemed conveyance rejected by Competent Authority on grounds of excess area claimed and pendency of civil suits concerning construction deviations and FSI utilisation - Held, rejection flawed; Authority must scrutinise official records including amalgamation/subdivision orders, survey plans, property cards and registered sale agreements to identify and convey correct subdivided parcel on which buildings stand; pendency of suits alleging unauthorised floors and FSI diversion from one wing to another does not bar Section 11 proceedings as such disputes relate to building compliance, not land parcel identity, and conveyance transfers promoter's right, title and interest subject to civil rights and liabilities without validating unauthorised construction. (Paras 22-33)

(B) Scope of enquiry under Section 11 - Limited to determining area entitled from records; Authority cannot adopt all-or-nothing approach, must correct/quantify area if larger claimed, and cannot postpone on ground of civil litigation extraneous to statutory entitlement. (Paras 24-30)

Facts of the case:
Leasehold plots under slum rehabilitation scheme developed by promoters who constructed rehabilitation and free sale buildings, sold flats via registered agreements, handed possession and formed society. Developers failed to convey land despite notice; society applied for deemed conveyance which was rejected citing area exceeding entitlement (4242.90 vs 3635 sq m) and pending suits on 13th/14th floor legality and FSI misuse. Writ petition under Article 227 challenging rejection.

Findings of Court:
Society prima facie entitled to subdivided free sale component plot admeasuring approx 3635.4 sq m with two multistoried buildings (wings A and B) thereon.

Issues: Whether Competent Authority can reject application outright without identifying correct area from subdivision records; whether pendency of civil suits on construction irregularities operates as bar to deemed conveyance.

Ratio Decidendi: Official records (SRA subdivision approval, survey measurements including additional area, registered agreements linking buildings to specific subparcel) establish entitlement; Authority abdicated duty by non-application of mind to subdivision and treating parent parcel as indivisible; civil suits do not strike at land identity or society's possession-based right, allow independent adjudication post-conveyance.

Result: Writ petition allowed; impugned order quashed; Competent Authority directed to issue deemed conveyance certificate for specified subdivided plot and buildings within four weeks; parties' rights in pending suits kept open.

Table of Content
1. development rights established via leases and agreements (Para 1 , 2 , 3 , 4 , 5)
2. additional area included through amalgamation subdivision (Para 6 , 7 , 8 , 9)
3. buildings built society formed conveyance sought (Para 10 , 11 , 12 , 13)
4. application rejected over area pending suits (Para 14 , 15)
5. subdivision ignored suits irrelevant jurisdiction exceeded (Para 16 , 17 , 18)
6. fsi diversion unauthorized construction disputed (Para 19 , 20)
7. authority must identify correct subdivided area (Para 21 , 22 , 23 , 24 , 25 , 26)
8. suit pendency no bar to conveyance (Para 27 , 28 , 29)
9. documents affirm buildings on specific sub-plot (Para 30 , 31 , 32)
10. deemed conveyance ordered for sub-divided land (Para 33 , 34)

JUDGMENT :

AMIT BORKAR, J.

1. The petitioner has invoked supervisory jurisdiction of this Court under Article 227 of the Constitution of India to assail the Judgment and Order dated 13 April 2022 passed by respondent No.10. By the said order, the application preferred by the petitioner society under Section 11(3) of the Maharashtra Ownership Flats Act, 1963 was rejected.

2. The facts giving rise to the present petition are as follows. Respondent No.9 was the owner and lessor of two contiguous plots situated at Bandra, Danda Khar West, Mumbai 400052. The first plot originally bore CTS No.D 1084 admeasuring approximately 2983.25 square meters. The second plot originally bore CTS No.D1804 admeasuring approximately 3576.70 square meters.

3. By two separate lease deeds, both dated 7 February 1991, respondent No.9 demised the first property in favour of respondent No.6 and the second property in favour of respondent No.7. Thereafter, under two distinct Development Agreements dated 19 August 1997 and 17 September 1997 executed between respondent Nos.6 and 7 on one hand and respondent No.3 on the other, respondent No.3 was appointed as developer under the Slum Rehabilitation Authority Scheme. Respondent No.3 undertook to provide alternate accommodation to the occupants and members of respondent Nos.6 and 7 and was granted the right to utilize the balance FSI in accordance with the agreed terms. Necessary permissions and a Letter of Intent were granted by respondent No.8 upon applications submitted by respondent No.3.

4. Respondent No.3 thereafter entered into a partnership with respondent No.4 and constituted a partnership firm known as AHCL PEL, arrayed as respondent No.1. A Memorandum of Understanding dated 31 July 2001 was executed between respondent No. 1 and respondent No.2. Under the said arrangement, respondent No.2 was entrusted with the development of the property by utilizing 7918.54 square meters of FSI as per the Letter of Intent dated 19 February 1998, together with an additional ten percent balcony area and such other permissible areas, for construction of a building comprising stilt and twelve upper floors and any further additional area that might become available.

5. Subsequently, four Inter se Promoters Agreements dated 5 November 2001, 9 September 2002, 20 November 2003 and 7 December 2007 were executed between respondent Nos.1 and 2. These agreements recorded the detailed terms governing the development of the larger property and conferred development rights, including the right to construct residential buildings. In discharge of its obligations under the earlier Development Agreements dated 19 August 1997 and 17 September 1997, respondent No.1 completed construction of three buildings comprising ground plus seven floors for rehabilitation of the members and occupants of respondent Nos.6 and 7.

6. It was subsequently noticed that the actual areas of the first and second properties were larger than originally recorded. Respondent Nos.1 to 5, acting as promoters, procured rectification of the areas in the revenue records as well as in the records of the Slum Rehabilitation Authority in order to avail the benefit of the additional area for development. The first property, the second property and

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