Bombay High Court Dismisses Promoters' Challenge to Deemed Conveyance Under MOFA — Upholds Competent Authority's Order Including Recreational Ground Area. The Court held that the Competent Authority's order under Section 11 of the Maharashtra Ownership Flats Act, 1963 was valid and the petitioners' objections regarding excess land and right of way were not sustainable.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The petitioners, Nahalchand Laloochand Pvt. Ltd., Rajesh Himatlal, and Wonder Estate Developers Pvt. Ltd., filed a writ petition under Article 226 of the Constitution before the Bombay High Court, challenging an order dated 15th October 2024 passed by the Competent Authority (respondent No.3) under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion, Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The impugned order granted unilateral deemed conveyance in favour of respondent No.1-Society, Shri Panchamrut CHS Ltd., in respect of land ad-measuring 4925.62 square metres together with undivided rights in the Recreational Ground (RG) area ad-measuring 869.23 square metres, totalling 5794.85 square metres. The property pertained to Survey No./Hissa No.330/6 and 330/3 of Village Dahisar, Mumbai Suburban District. The factual background reveals that respondent No.1-Society, representing flat purchasers, initiated proceedings before the Competent Authority seeking deemed conveyance. The petitioners, as original promoters/developers, had executed agreements under Section 4 of the MOFA Act with the Society's members. Disputes arose regarding the extent of land to be conveyed and the inclusion of the RG area. The Society filed Deemed Conveyance Application No.76 of 2024, annexing documents including the agreement for sale, resolution dated 11th December 2023, Architect's certificate, and sanctioned building plan. The petitioners filed objections, contending that the application was not maintainable due to lack of notarization, that they were ready to execute conveyance for a portion of land (2996 sq m of CTS No.1482/A/1/1), and that the Society had no right to the RG area. They also relied on clauses in the agreement that prohibited obstruction of a 9-metre-wide road of access. The Competent Authority, after considering the material, allowed the application and granted unilateral conveyance. Aggrieved, the petitioners approached the High Court. The legal issues considered were: (1) whether the impugned order granting deemed conveyance for an area exceeding that mentioned in the agreement was valid; (2) whether the application was maintainable without proper resolution and in prescribed Form-7; (3) whether the RG area could be included in the conveyance; and (4) whether the petitioners' right of way was affected. The petitioners argued that the order conveyed excess land, that the application lacked a valid resolution and was not in Form-7, and that the RG area was not part of the agreement. They also contended that the Society had consented to the sub-division and the right of way. Respondent No.1 argued that the Occupation Certificate was issued in 2004, but the promoter failed to convey the property, compelling the Society to seek deemed conveyance. They submitted that the agreement referred to a layout plan of 6753 sq m, and the impugned order covered only 4925.62 sq m plus RG area, which was consistent with the sanctioned plan. They further argued that the right of way was a civil right to be adjudicated by a Civil Court. The Court's analysis focused on the Competent Authority's reliance on the Architect's certificate and sanctioned plan. The Court noted that the petitioners' objections were considered and that the order was based on material on record. The Court held that the right of way claimed by the petitioners was a civil right that could not be adjudicated in deemed conveyance proceedings. The Court found no infirmity in the impugned order and dismissed the writ petition. The decision was that the writ petition was dismissed, upholding the Competent Authority's order granting deemed conveyance in favour of respondent No.1-Society.

Headnote

A) MOFA - Deemed Conveyance - Section 11 - Unilateral Conveyance - The Competent Authority granted deemed conveyance of land ad-measuring 4925.62 sq m and undivided rights in RG area of 869.23 sq m to the Society. The petitioners challenged the order on grounds of excess land, lack of resolution, and non-compliance with Form-7. The Court held that the Competent Authority's order was based on material on record including Architect's certificate and sanctioned plan, and the petitioners' objections were considered. The Court found no infirmity in the order and dismissed the petition. (Paras 1-10)

B) MOFA - Deemed Conveyance - Maintainability - The petitioners argued that the application was not maintainable due to lack of notarization and absence of Form-7. The Court did not specifically address these procedural objections but upheld the order on merits, implying that such technicalities did not vitiate the proceedings. (Paras 6-7)

C) MOFA - Deemed Conveyance - Right of Way - The petitioners claimed a 9-metre-wide right of way over the land. The Court noted that such a right is a civil right that can only be adjudicated by a Civil Court and not in deemed conveyance proceedings. (Para 9)

D) MOFA - Deemed Conveyance - Recreational Ground Area - The petitioners disputed the inclusion of RG area in the conveyance. The Court upheld the Competent Authority's decision to include the RG area based on the sanctioned plan and Architect's certificate. (Paras 4-5)

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Issue of Consideration

Whether the Competent Authority's order granting unilateral deemed conveyance under Section 11 of the MOFA Act, 1963, in respect of land including Recreational Ground area, is valid and sustainable in law.

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Final Decision

The writ petition is dismissed. The impugned order dated 15th October 2024 passed by the Competent Authority granting unilateral deemed conveyance under Section 11 of the MOFA Act in favour of respondent No.1-Society is upheld.

Law Points

  • Deemed conveyance under Section 11 MOFA
  • 1963
  • Unilateral conveyance
  • Recreational Ground area
  • Right of way
  • Maintainability of application
  • Notarization requirement
  • Form-7
  • Resolution of society
  • Delay in conveyance
  • Civil rights adjudication
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Case Details

2025 LawText (BOM) (2) 241

Writ Petition No.2222 of 2025

2025-02-24

AMIT BORKAR, J.

Mr. Vishal Kanade with Mr. Haresh Lulia, Ms. Janvee Joshi and Mr. Mangesh Shinde for the petitioners; Dr. Abhinav Chandrachud with Mr. Janay Jain, Mr. Amit Tungare, Karthyayani Amblimath and Akhata Katara i/by Asahi Legal for respondent No.1; Ms. Vaishali Nimbalkar, AGP for respondent Nos.2 and 3-State.

Nahalchand Laloochand Pvt. Ltd., Rajesh Himatlal, Wonder Estate Developers Pvt. Ltd.

Shri Panchamrut CHS Ltd., The State of Maharashtra, District Deputy Registrar, Co-operative Societies, Mumbai City (4) Competent Authority, U/s 5A of The MOFA, 1963

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Nature of Litigation

Writ petition under Article 226 of the Constitution challenging an order of the Competent Authority granting unilateral deemed conveyance under Section 11 of the MOFA Act.

Remedy Sought

The petitioners sought quashing of the order dated 15th October 2024 passed by the Competent Authority granting deemed conveyance in favour of respondent No.1-Society.

Filing Reason

The petitioners were aggrieved by the order granting deemed conveyance of land including Recreational Ground area, which they contended was in excess of the agreement and without proper procedure.

Previous Decisions

The Competent Authority (respondent No.3) passed the impugned order on 15th October 2024 allowing the deemed conveyance application of respondent No.1-Society.

Issues

Whether the Competent Authority's order granting deemed conveyance for an area exceeding that mentioned in the agreement under Section 4 of MOFA is valid. Whether the application for deemed conveyance was maintainable without a proper resolution and in prescribed Form-7. Whether the Recreational Ground area could be included in the deemed conveyance. Whether the petitioners' right of way over the land was affected by the deemed conveyance.

Submissions/Arguments

Petitioners: The impugned order conveys land in excess of the agreement; the application lacked a valid resolution and was not in Form-7; the RG area is not part of the agreement; the Society consented to sub-division and right of way. Respondent No.1: The Occupation Certificate was issued in 2004 but the promoter failed to convey; the agreement refers to a layout plan of 6753 sq m; the impugned order covers only 4925.62 sq m plus RG area; the right of way is a civil right to be adjudicated by a Civil Court.

Ratio Decidendi

The Competent Authority's order granting deemed conveyance under Section 11 of the MOFA Act is based on material on record including Architect's certificate and sanctioned plan. The petitioners' objections were considered and the order does not suffer from any infirmity. The right of way claimed by the petitioners is a civil right that cannot be adjudicated in deemed conveyance proceedings.

Judgment Excerpts

The Competent Authority, upon a consideration of the material on record, including but not limited to the Architect's certificate and the sanctioned plan, was pleased to allow the application filed by respondent No.1 and granted unilateral conveyance in favour of respondent No.1-Society... Learned counsel for respondent No.1 further submitted that the alleged right of way—claimed by the petitioners to be 9 metres in width—is a civil right that can only be adjudicated by a Civil Court in an independently instituted proceeding.

Procedural History

Respondent No.1-Society filed Deemed Conveyance Application No.76 of 2024 before the Competent Authority (respondent No.3). The petitioners filed objections. The Competent Authority passed the impugned order on 15th October 2024 allowing the application. The petitioners then filed the present writ petition before the Bombay High Court on 24th February 2025.

Acts & Sections

  • Maharashtra Ownership Flats (Regulation of the Promotion, Construction, Sale, Management and Transfer) Act, 1963: Section 4, Section 11
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