Case Note & Summary
The dispute arose from a writ petition filed by a promoter/developer challenging an order of the District Deputy Registrar, Pune that granted deemed conveyance to a housing society under Section 11(3) of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The petitioner was the owner of a plot in Hadapsar, Pune, and had undertaken phased development. The first building, Palazzo, was completed in 2017, and its flat purchasers formed a cooperative society in 2020. The petitioner then obtained a revised commencement certificate in 2021 for an additional building on the remaining plot. The society applied for deemed conveyance on 12.11.2021, seeking plot area of 3422 sq. m. and constructed area of 3648.19 sq. m. The petitioner opposed the application, contending that clause 15 of the MOFA agreements provided for transfer of rights only after completion of all buildings, and that Government Resolution dated 22.06.2018 required conveyance of only proportionate area while development was ongoing. The petitioner also contended that no show cause notice under Section 11(5) was issued. The District Deputy Registrar allowed the application on 17.06.2022, and deemed conveyance was registered on 01.07.2022. The petitioner then filed the present writ petition and also a regular civil suit for permanent injunction. In the writ petition, the petitioner argued that the order was contrary to the agreement, government resolution, and statutory notice requirement, relying on Supreme Court and Bombay High Court decisions. The respondent society argued that proceedings under Section 11(3) are summary and do not conclusively decide title, that the petitioner had an alternative remedy by civil suit, and that the brochure and consent were not part of the agreement. The respondent also pointed to clause 2(C)(vi) of the government resolution and relied on Arun Kumar H. Shah v. Avon Arcade Premises CHSL Ltd. The High Court reserved judgment on July 15, 2025, and pronounced on July 28, 2025. However, the provided excerpt ends during the respondent's submissions, and the final reasoning and operative directions are not available in the text. Therefore, the final decision of the court cannot be stated based solely on this excerpt.
Headnote
A) Real Property Law - Deemed Conveyance - Proportionate Area Requirement - Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA), Sections 11(3) and 11(5) - Petitioner promoter contended that the Competent Authority was bound by Government Resolution dated 22.06.2018 clause 4 to grant deemed conveyance only for proportionate area and not the entire plot while development of the additional building was in subsistence; further contended that mandatory show cause notice under Section 11(5) was not issued. The Court was called upon to examine whether the order dated 17.06.2022 granting deemed conveyance for 3422 sq. m. plot area was valid in light of these contentions (Paras 4.1-4.2). B) Civil Procedure - Writ Jurisdiction - Pending Civil Suit and Summary Nature of Proceedings - Maharashtra Ownership Flats Act, 1963, Section 11(3) - Respondent society argued that deemed conveyance proceedings under Section 11(3) are summary and do not conclusively decide title; petitioner had already filed Regular Civil Suit No.1715 of 2022 for permanent injunction, hence High Court should refrain from interference. The Court considered whether the writ petition should be entertained when the civil court was already seized of the matter (Paras 5, 5.1). C) Contract Law - MOFA Agreement - Clause on Transfer of Rights - Maharashtra Ownership Flats Act, 1963, Section 4 - Petitioner relied on clause 15 of the MOFA agreement which stated that the developer shall transfer all rights only on completion of all buildings in the project; respondent contended that brochure and consent were not part of the agreement and there was nothing to show flat purchasers consented to phase-wise construction. The Court considered the binding effect of agreement terms on the timing of conveyance (Paras 4, 5.2). D) Cooperative Societies - Formation of Housing Society - Section 10(1) Application - Maharashtra Ownership Flats Act, 1963, Section 10(1) - Members of building No.1 formed a cooperative housing society registered on 26.06.2020; the society then applied for deemed conveyance of 3422 sq. m. plot area and 3648.19 sq. m. constructed area under Section 11(3). The Court noted the factual background of society registration and the application for deemed conveyance (Paras 3.5, 3.8).
Issue of Consideration
Whether deemed conveyance under Section 11(3) of MOFA can be granted for the entire plot area when phase-wise development is ongoing and a revised commencement certificate for an additional building has been sanctioned; whether the Competent Authority was required to follow Government Resolution dated 22.06.2018 clause 4 and convey only proportionate area; whether the Competent Authority failed to issue a mandatory show cause notice under Section 11(5); whether the writ petition should be entertained when a regular civil suit is pending and the order under Section 11(3) is summary in nature.
Law Points
- Deemed conveyance under Section 11(3) MOFA is summary and does not conclusively decide title
- aggrieved party may file civil suit
- Government Resolution dated 22.06.2018 clause 4 requires proportionate area if development in subsistence
- Section 11(5) MOFA requires show cause notice to promoter
- clause in MOFA agreement governs timing of conveyance
- phase-wise development rights under sanctioned plan
