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2026 Supreme(Bom) 447

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Amit Borkar, J.
Paramanand Builders LLP., - Petitioner
Versus
Competent Authority & District Deputy Registrar, Cooperative Societies - Respondent
Writ Petition No.1673 of 2022 With Interim Application No.3546 of 2023, Writ Petition No.17823 of 2024, Writ Petition No.2280 of 2024, Writ Petition No.2656 of 2022, Writ Petition No.2657 of 2022, Writ Petition No.4375 of 2022, Writ Petition No.7275 of 2025, Writ Petition No.9562 of 2023, Writ Petition No.9563 of 2023, Writ Petition No.9564 of 2023
Decided On : 24-02-2026

Advocates Appeared:
For the Petitioner:Mr. Girish Godbole, Senior Advocate with Mr. Ankit Lohia, Ms. Aditi Bhatt and Ms. Jyoti Ghag i/by Dua Associates
For the Respondent: Ms. Aloka A. Nadkarni, AGP

Under MOFA, promoter must convey entire right, title, and interest in land and building to flat purchasers' society; private leasehold agreements do not override if no lease executed and promoter holds freehold title.

Headnote:(A) Maharashtra Ownership Flats Act, 1963 - Sections 2(c), 4, 10, 11 - Promoter defined broadly to include person who constructs or causes construction of flats for sale - Obligation to convey right, title and interest in land and building to cooperative society of flat purchasers - Private agreements contemplating only leasehold rights overridden by statute where no lease executed due to municipal prohibition and promoter holds freehold title - Deemed conveyance under Section 11(3) by competent authority upheld as promoter must transfer entire interest held. (Paras 28-82)

(B) Agreements for sale - Prescribed Form V, Clause 13 - Must provide for transfer of promoter's full right, title and interest by conveyance or lease assignment depending on title nature - Cannot dilute statutory protection for flat purchasers through lease clauses if promoter owns land freehold. (Paras 55-57)

(C) Promoter duties - Statutory scheme prioritizes purchaser protection over internal arrangements between landowner, allottee and developer - Owner obtaining permissions and causing construction qualifies as promoter liable under Section 11. (Paras 36-43, 77)

Facts of the case:
Petitioners challenge order granting unilateral deemed conveyance of plot to respondent society under Section 11(3). Chain of agreements from allotment letters, development agreements and flat sale agreements contemplated leasehold rights post-construction. No lease executed due to initial municipal prohibition on leasing. Society applied for deemed conveyance after building completion and society formation. Competent authority granted certificate after hearing parties.

Findings of Court:
Impugned order upheld as no jurisdictional error. Promoter holds freehold title without subsisting lease; must convey full ownership to society. Private documents do not override MOFA mandate.

Issues: Whether competent authority lacked jurisdiction to grant freehold conveyance contrary to agreements stipulating lease; whether promoter obligated only to leasehold assignment; scope of promoter definition and Section 11 duties.

Ratio Decidendi: Statutory framework of MOFA governs; promoter must convey entire right, title and interest matching actual title held - freehold ownership if no lease exists, full lease assignment otherwise. Private contracts secondary to legislative intent protecting flat purchasers from promoter retention of superior interests.

Result: Writ petitions dismissed.

Table of Content
1. factual history of leasehold allotments and deemed conveyance application (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
2. petitioners argue contracts limit society to leasehold rights (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19)
3. respondents assert promoter must convey full title under mofa (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27)
4. statutory scheme of mofa overrides private contracts (Para 28 , 29)
5. mofa sections mandate promoter agreements and conveyance (Para 30 , 31 , 32 , 33 , 34 , 35)
6. broad promoter definition includes land owners causing construction (Para 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43)
7. promoter duties for disclosure and society formation (Para 44 , 45)
8. section 11 requires full transfer of promoter's title interest (Para 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54)
9. form v ensures complete conveyance matching promoter's estate (Para 55 , 56 , 57)
10. precedents confirm society gets promoter's entire interest (Para 58 , 59 , 60 , 61 , 63)
11. lease clauses in agreements subordinate to section 11 (Para 64 , 65)
12. prior cases fact-specific; not binding precedents (Para 66 , 67 , 68 , 69 , 70 , 71 , 72 , 73)
13. no executed lease; owner qualifies as promoter (Para 74 , 75 , 76 , 77 , 78 , 79)
14. deemed conveyance order upheld; petitions dismissed (Para 80 , 81 , 82)

JUDGMENT :

AMIT BORKAR, J.

1. By the present writ petition, the petitioner assails the order dated 17 March 2021 passed by Respondent No. 1, whereby a unilateral deemed conveyance in respect of the subject plot has been granted.

2. The material facts giving rise to the present petition are as follows. One Surendranath Jain and others, along with Rajkumari Seth and others, were the original owners of land bearing Survey No.222, Hissa Nos. 1 to 5, Survey No. 228, Hissa No. 3, and Survey No. 229, Hissa Nos. 3 and 5, situated at Dahisar. By an Agreement to Sell dated 15 April 1963, Surendranath Jain and others agreed to sell the larger property to the promoters of Respondent No. 5. Similarly, by a separate Agreement to Sell dated 20 June 1963, Rajkumar Seth and others agreed to transfer their interest in the said property to the same promoters. Respondent No. 5 came to be registered under the Maharashtra Cooperative Societies Act on 20 June 1963. Disputes subsequently arose between the parties. Since the existence of such disputes is not in controversy, their details are not set out at this stage. The petitioner reserves liberty to refer to the same and place relevant documents on record, if necessary. Eventually, Respondent No. 5 instituted Special Civil Suit No. 1649 of 1979 before this court against Surendranath Jain and others and Rajkumar Seth and others. The parties resolved the disputes by filing consent terms. Upon such settlement, Respondent No. 5 became entitled to and vested with all right, title, and interest in the larger property admeasuring 41,279.95 sq. mtrs. The property records were accordingly mutated to reflect the name of Respondent No. 5. Respondent No. 5 thereafter subdivided the larger property into approximately 31 smaller plots. By two separate letters of allotment, plot No. A/22 was allotted on monthly tenancy basis to Mr. Rajendra Patwa and Mr. Pandit Gauri Shankar, subject to the terms and conditions contained therein. Share certificates were issued in their names. In 1980, the said allottees transferred their rights in favour of Mr. Virendra Maru and Mr. Bharat M. Vadgama.

3. Respondent No. 5 admitted Mr. Virendra Maru and Mr. Bharat M. Vadgama as members and issued a fresh Letter of Allotment in their favour. Under the said letter, the plot was allotted to them with an agreement to execute a lease either in their favour or in favour of their nominee, including a cooperative housing society of flat purchasers to be formed in respect of the building to be constructed on the plot and sold on ownership basis. The letter further stipulated that such cooperative housing society would make a joint applicat

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