Case Note & Summary
The petitioner, Jai Jalaram Co-operative Housing Society Ltd., is a cooperative housing society registered under the Maharashtra Cooperative Societies Act, 1960. It is in possession of a plot of land bearing Tika No.5, C.T.S. Nos.48, 49, 50 and 51, ad-measuring about 2785.12 square meters, situated at Tukaram Mahadik Road, Kharkar Ali, Thane (West). The land comprises Building 'A' (ground + 8 floors with 32 residential flats and 6 offices) and Building 'B' (ground + 2 floors with 12 flats and bungalows). Respondent Nos.1 and 2, the promoters, entered into agreements to sell with purchasers under Section 4 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA Act), but failed to execute conveyance in favour of the society within the agreed time. Consequently, on 31 May 2013, the society filed an application for a grant of unilateral deemed conveyance under Section 11 of the MOFA Act. The promoters submitted their no objection/consent on 14 December 2013. However, respondent No.3, claiming to be the owner of the land, objected to the grant. The competent authority (respondent No.4) rejected the application by order dated 3 April 2017. The society challenged this order by way of the present writ petition. The High Court, after considering the facts and submissions, held that the authority must decide the application on its merits and cannot reject it solely based on a third-party claim. The court set aside the impugned order and remanded the matter for fresh consideration, directing the authority to consider the application afresh and pass a reasoned order within three months.
Headnote
A) MOFA Act - Deemed Conveyance - Section 11 - Unilateral Application - The petitioner society sought deemed conveyance after promoter failed to execute conveyance within agreed time. The competent authority rejected the application based on objection from a third party claiming ownership. The High Court held that the authority must consider the application on merits and cannot reject solely on the basis of a third-party claim, as the scheme of MOFA Act is to protect flat purchasers and facilitate transfer of title. (Paras 1-4)
Issue of Consideration
Whether the petitioner society is entitled to a grant of unilateral deemed conveyance under Section 11 of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, despite objection from a third party claiming ownership of the land.
Final Decision
The High Court allowed the petition, set aside the impugned order dated 3 April 2017, and remanded the matter to respondent No.4 for fresh consideration. The authority is directed to decide the application afresh and pass a reasoned order within three months from the date of the judgment.
Law Points
- Deemed conveyance under Section 11 of MOFA Act
- Unilateral application by society
- Promoter's failure to execute conveyance
- Objection by third party claiming ownership
- Competent authority's power to grant deemed conveyance
