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1992 Supreme(Online)(Bom) 18

BOMBAY HIGH COURT
, J
Ramniklal Tulsidas Kotak and Others v. M/s. Varsha Builders and Others
Notice of Motion No. 966 of 1991, S. No. 1094 of 1991



Advocates:
For the Appellants/Petitioners:
For the Respondents: M/s. Pravin Mehta and Mithi and Co.

An Advocate's certificate of title may be conditional, but must adequately disclose any encumbrances and protect flat purchasers' interests.

Headnote:(A) Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - Certificate of title issued by an Advocate need not be unconditional or unqualified but must disclose encumbrances and must protect unwary flat purchasers. (Paras 28, 19)

(B) Professional conduct of Advocates - Advocates have a statutory and professional duty to protect the public interest and should not certify doubtful titles. (Paras 24, 22)

(C) Adverse possession - Certificate of title can be issued if adverse possession claim is clear and marketable, otherwise it must be refused. (Paras 22, 28)

Facts of the case:
The court examined the validity of the title certificates associated with a residential project, highlighting issues of malpractice and incomplete disclosures by promoters regarding the ownership of land and title transfers as per statutory requirements.

Findings of Court:
The existing certificate of title issued was deemed unsatisfactory, necessitating a strict adherence to the relevant provisions of the Act regarding the obligations of promoters and their representatives.

Issues: The court addressed the question of whether certificates of title should be unqualified, the implications of adverse possession claims on such titles, and the Advocate’s responsibilities towards flat purchasers.

Ratio Decidendi: A clear title must be established before issuing certificates; Advocates must ensure compliance with statutory mandates and protect the interests of unwary purchasers.

Result: The court determined the need for more stringent standards and clearer obligations of promoters and legal practitioners in real estate transactions.

Table of Content
1. a certificate of title can be conditional but must disclose necessary information. (Para 1 , 28)
2. promoters must adhere strictly to statutory obligations when issue titles. (Para 5 , 18)
3. advocates have a duty to protect public interest and ensure titles are not doubtful. (Para 22 , 24)

1. By my order dated 30th July 1991, I have granted injunctions, inter alia, in respect of flats and shops in the building under construction on the suit land or any part thereof and also passed a conditional order for appointment of receiver in respect of the suit land and all the structures standing on the suit land or any part thereof. The defendant No. 1 is constructing 51 flats and several shops after amalgamation of the suit plot with two other plots. I had therefore thought it proper to direct the parties to file affidavits so as to identify the flats and shops covered by the abovereferred order dated 30th July 1991. After considering the affidavit of defendant No. 2 dated 5th August 1991 and affidavit of plaintiff No. l dated 8th August 1991 and the submissions of learned counsel for the plaintiffs and defendants Nos. 1 to 3, I pass this clarificatory order to the effect that the order dated 30th July 1991 shall be applicable to 39 flats and 4 shops particularised in Exhibits 1 and 2 to the affidavit of defendant No. 2 dated 5th August 1991 in addition to the same being applicable to the suit plot. On a prima facie view of the matter, I have decided to accept the identity of the flats and the shops constructed or being constructed on the suit plot or part thereof as set out in the affidavit of defendant No. 2.

2. I am not permitting defendants Nos. 1 to 3 to re - open the matter in respect of any of the matters already decided by me by may order dated 30th July 1991 and not covered by the liberty granted by the said order. Hence it is directed that paragraph 4 of the affidavit of defendant No. 2 dated 5th August 1991 and reply thereto shall be treated as deleted.

3. One of the questions which arose for consideration of the Court while deciding this notice of motition was about the validity of the certificate of title appended to the printed agreements of sale in respect of flats and shops on the suit plot relied upon by defendant No. 1 in support of its plea of bona fides. Having regard to the legal position enunciated in the later part of this order and overall view of the facts of this case, I have no hesitation in observing that prima facie the said certificate of title is unsatisfactory. The said certificate is based inter alia on the declaration of defendants Nos. 4 to 9 to the effect that the plaintiffs are not traceable and the plaintiffs are presumed to have died and that defendants Nos. 4 to 9 are in adverse possession of the suit land as against the plaintiffs. I have already commented on the said declaration in my order dated 30th July 1991. M/s. Pravin Mehta and Mithi and Co. Advocates, are lawyers of repute. This fact however is of limited relevance. As Advocates of experience and repute, they have much larger responsibilities in the matter they handle. I express my unhappiness in respect of the said certificate of title. The matter will be examined in further depth at final hearing of the suit. At the stage of issuing of certificate of title, order dated 30th August 1968 cancelling Mutation Entry No. 3072 dated 27th September 1967 was in existence. The said order dated 30th August 1968 passed by the Tahsildar was set aside by the Sub-Divisional Officer much later. If the Advocates issuing the certificate of title inter alia had proceeded on the basis that the transaction of conveyance of September 1966 in favour of the plaintiffs was vitiated by reason of the said order dated 30th August 1968 passed by the Tahsildar, it could be one of the possible views. Possibility of the said Advocates being misled by their clients cannot be ruled out. However it cannot be ignored that the registered Deed of Conveyance




































































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