AI Overview...

Similar Clauses on Condominium, Deemed Conveyance, and Deemed Lease

Deemed Conveyance of Flats and Land

• Application and Eligibility: Under the Ownership of Flats Act (Section 11(3)) and MOFA guidelines, applications for deemed conveyance can be filed by societies or unit holders. The courts have held that such conveyances are entitled to be granted without unnecessary conditions, especially when developers attempt to deny or delay the process (e.g., Farhat Co-op. Housing Society Ltd. VS Malkani Enterprises - Bombay, Madhuvihar Co-operative Housing Society VS Jayantilal Investments - Bombay, ACME Enterprises vs Deputy Registrar Co-operative Societies (2) - Bombay, 00400027083).
• Procedural Aspects: The competent authority can pass an order of deemed conveyance after conducting a summary inquiry, provided the application is complete and the case qualifies as fit for unilateral conveyance. The Registrar or Sub-Registrar issues summons and registers the deemed conveyance deed, even overriding certain procedural deficiencies if justified (e.g., Sarita Nagari Phase – 2 Co-operative Housing Society Ltd. VS State of Maharashtra, through The Minister for Co-operation - Bombay, ACME Enterprises vs Deputy Registrar Co-operative Societies (2) - Bombay, 00400027083).
• Timeframe for Conveyance: Promoters are statutorily bound to execute conveyance within a specified period (generally 4 months), failing which the society or unit holders can seek deemed conveyance as per Section 11 of MOFA and Rules (e.g., Madhuvihar Co-operative Housing Society VS Jayantilal Investments - Bombay, Farhat Co-op. Housing Society Ltd. VS Malkani Enterprises - Bombay).

Deemed Lease and Conveyance Validity

• Validity of Declarations: Unilateral declarations or deemed conveyance deeds that are not supported by proper legal procedures are often deemed invalid. Courts have emphasized that conveyance deeds must be executed in favor of the society or condominium, not individual unit holders, unless explicitly stipulated (e.g., CIPLA Limited vs Competent Authority and The District Deputy Registrar, Co-operative Society, Mumbai - Bombay, JITEN S GADA & Ors. VS MR MANOJ KUMAR AGARWAL & Ors. - National Company Law Appellate Tribunal).
• Legal Jurisdiction and Authority: The authority to register deemed conveyance lies with the competent authority, and such deeds must comply with statutory provisions. Deeds executed without proper jurisdiction or in violation of statutory procedures are invalid, and the courts can pass orders of status quo or reject unilateral declarations (e.g., CIPLA Limited vs Competent Authority and The District Deputy Registrar, Co-operative Society, Mumbai - Bombay, Shahed Kamal VS Pagarani Universal Infrastructure Private Limited, formerly known as A. Surti Developers Pvt. Ltd. - Bombay).

Clauses in Lease and Conveyance Documents

• Lease Clauses: Many lease agreements do not explicitly state that the building will be owned by lessors or deemed leased along with the land. The absence of such clauses can impact the rights of lessees or lessees' associations, especially when lease agreements are not terminated or are challenged in courts (e.g., JITEN S GADA & Ors. VS MR MANOJ KUMAR AGARWAL & Ors. - National Company Law Appellate Tribunal).
• Implication of Inadequate Consideration: Mere inadequacy of consideration or onerous terms does not necessarily render conveyance or lease agreements unfair or invalid, but procedural compliance remains crucial (e.g., Bombay Textile Research Association vs Nilkanth Enterprise - Bombay).

Summary

• Main Points:
• Deemed conveyance is a statutory right for societies and unit holders under MOFA, enforceable through applications and orders by authorities.
• Proper procedural compliance, including completion of application and timely execution, is essential.
• Deed validity depends on adherence to statutory procedures; unilateral or invalid declarations are rejected.

• Lease clauses must explicitly specify ownership or deemed leasing arrangements to be enforceable.

• Insights:

• Courts favor protecting societies and unit holders from developers’ delays and machinations.
• Deemed conveyance acts as a legal remedy when formal conveyance is delayed or denied.
• Proper registration and adherence to statutory timelines are critical for the validity of conveyance and lease deeds.

References: - Farhat Co-op. Housing Society Ltd. VS Malkani Enterprises - Bombay, ACME Enterprises vs Deputy Registrar Co-operative Societies (2) - Bombay, Sarita Nagari Phase – 2 Co-operative Housing Society Ltd. VS State of Maharashtra, through The Minister for Co-operation - Bombay, Madhuvihar Co-operative Housing Society VS Jayantilal Investments - Bombay, CIPLA Limited vs Competent Authority and The District Deputy Registrar, Co-operative Society, Mumbai - Bombay, Rasheed Ahmad Usmani VS DLF Ltd. (through its Chairman & MD) DLF Centre - Consumer, Shahed Kamal VS Pagarani Universal Infrastructure Private Limited, formerly known as A. Surti Developers Pvt. Ltd. - Bombay, Bombay Textile Research Association vs Nilkanth Enterprise - Bombay, JITEN S GADA & Ors. VS MR MANOJ KUMAR AGARWAL & Ors. - National Company Law Appellate Tribunal