Case Note & Summary
The Petitioner, Gayatri Construction, a partnership firm, challenged an order dated 15 November 2022 and corrigendum dated 20 December 2022 passed by the District Deputy Registrar, Co-operative Societies, Mumbai (Competent Authority under MOFA), granting unilateral deemed conveyance of land admeasuring 1137.56 sq. mtrs. in favour of Respondent No.3-Society, Gayatri Krupa Co-operative Housing Society Ltd. The land in question, bearing CTS Nos. 866, 866/1 to 866/13, village Mulund, was originally owned by Dattatraya Khanderao Ladewar. The Petitioner claimed rights under an Agreement for Sale dated 21 August 1978, by which the owner agreed to assign his right, title and interest in the land to the Petitioner. Additionally, Respondent No.10-Dharma Builders held an Indenture of Lease dated 16 May 1975 over the same land. The Competent Authority, without issuing any notice or hearing to the Petitioner, passed the impugned order granting deemed conveyance to the Society. The Petitioner contended that the order was passed in gross violation of principles of natural justice and that its rights as an agreement holder were completely ignored. The Court, after hearing the parties, held that the order and corrigendum were passed without affording any opportunity of hearing to the Petitioner, which is a fundamental requirement of natural justice. The Court set aside both the order and corrigendum and remanded the matter to the Competent Authority for fresh consideration, directing that the Petitioner and all other interested parties be given a reasonable opportunity of hearing before passing a fresh order. The Court also directed that the fresh order be passed within a period of three months from the date of the judgment.
Headnote
A) Natural Justice - Deemed Conveyance - Opportunity of Hearing - Section 11 of Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA) - The Competent Authority granted unilateral deemed conveyance of land in favour of the Society without issuing any notice or hearing to the Petitioner, who claimed rights as an agreement holder under an Agreement for Sale dated 21 August 1978. The Court held that the order was passed in gross violation of principles of natural justice and set it aside, remanding the matter for fresh consideration after hearing all parties. (Paras 1-20) B) MOFA - Deemed Conveyance - Corrigendum - Section 11 of MOFA - The Competent Authority issued a corrigendum to the deemed conveyance order, which was also passed without notice to the Petitioner. The Court held that the corrigendum suffers from the same vice of violation of natural justice and is liable to be set aside. (Paras 1-20) C) Property Law - Agreement for Sale - Rights of Agreement Holder - The Petitioner claimed rights under an Agreement for Sale dated 21 August 1978 executed by the original owner Dattatraya Khanderao Ladewar. The Court noted that the Petitioner's rights were not considered by the Competent Authority before granting deemed conveyance, and directed that the Petitioner be given an opportunity to present its case. (Paras 2-10)
Issue of Consideration
Whether the Competent Authority under MOFA can grant unilateral deemed conveyance of land in favour of a co-operative housing society without issuing notice to the agreement holder/developer who claims rights over the same land.
Final Decision
The Court allowed the Petition, set aside the order dated 15 November 2022 and corrigendum dated 20 December 2022, and remanded the matter to the Competent Authority for fresh consideration after giving reasonable opportunity of hearing to the Petitioner and all other interested parties. The Competent Authority was directed to pass a fresh order within three months.
Law Points
- Natural justice
- deemed conveyance
- MOFA
- Section 11
- opportunity of hearing
- unilateral order
- corrigendum
- partnership firm
- agreement for sale
- leasehold rights
