Case Note & Summary
The judgment involves two writ petitions: Writ Petition No. 180 of 2018 filed by Marathon Era Co-operative Housing Society Ltd and Writ Petition No. 295 of 2015 filed by Gulmohar Lokmilan Co-operative Housing Society Ltd and another. The petitioners challenged orders passed by the Competent Authority appointed under Section 5A of the Maharashtra Ownership Flats (Regulation of Promotion of Construction, Sale, Management and Transfer) Act, 1963 (MOFA). The Competent Authority had passed orders directing the petitioners to hand over possession of certain properties to the respondents, without giving the petitioners an opportunity of being heard. The petitioners contended that the Competent Authority lacked jurisdiction to pass such orders as the disputes involved title and possession of land, which are outside the scope of Section 5A of MOFA. The respondents argued that the Competent Authority had jurisdiction under Section 5A to decide disputes arising out of agreements for sale of flats. The court analyzed the provisions of Section 5A of MOFA and held that the Competent Authority's jurisdiction is limited to disputes arising out of agreements for sale of flats and does not extend to deciding questions of title or possession of land. The court further held that the orders were passed in violation of principles of natural justice as the petitioners were not heard before the orders were passed. Consequently, the court quashed the impugned orders and allowed the writ petitions. The court also directed that any further proceedings before the Competent Authority shall be conducted in accordance with law and after giving due opportunity of hearing to all affected parties.
Headnote
A) Administrative Law - Natural Justice - Orders passed without hearing affected parties are void ab initio - The Competent Authority under Section 5A of the Maharashtra Ownership Flats (Regulation of Promotion of Construction, Sale, Management and Transfer) Act, 1963 passed orders affecting the rights of the petitioners without giving them an opportunity of being heard - Held that such orders are in violation of principles of natural justice and are liable to be quashed (Paras 10-15). B) Jurisdiction - Competent Authority under Section 5A of MOFA, 1963 - Scope of powers - The Competent Authority can only adjudicate disputes arising out of agreements for sale of flats and cannot decide questions of title or possession of land - The impugned orders purported to decide title and possession of land, which is beyond the jurisdiction of the Competent Authority - Held that the orders are without jurisdiction and are quashed (Paras 16-20). C) Constitutional Law - Writ Jurisdiction under Article 226 - Maintainability - The petitioners challenged the orders of the Competent Authority under Article 226 of the Constitution of India on the ground of lack of jurisdiction and violation of natural justice - Held that writ petitions are maintainable as the orders are patently illegal and without jurisdiction (Paras 21-25).
Issue of Consideration
Whether the Competent Authority under Section 5A of the Maharashtra Ownership Flats (Regulation of Promotion of Construction, Sale, Management and Transfer) Act, 1963 has jurisdiction to pass orders affecting rights of parties without hearing them, and whether such orders can be challenged under Article 226 of the Constitution of India.
Final Decision
The court allowed both writ petitions, quashed the impugned orders passed by the Competent Authority, and directed that any further proceedings before the Competent Authority shall be conducted in accordance with law and after giving due opportunity of hearing to all affected parties.
Law Points
- Jurisdiction of Competent Authority under Section 5A of MOFA
- 1963 is limited to disputes arising out of agreements for sale of flats
- not title or possession of land
- Principles of natural justice must be followed before passing any order
- Orders passed without hearing affected parties are void ab initio
- Writ jurisdiction under Article 226 can be invoked against orders of Competent Authority if they are without jurisdiction or in violation of natural justice.
